Vietnam: How to calculate the late payment interest of PIT incurring from share transfers? What is the deadline for paying PIT incurring from share transfers?
What is the deadline for paying PIT incurring from share transfers in Vietnam?
Pursuant to Article 44 of the Law on Tax Administration 2019 as follows:
Deadlines for submission of tax declaration dossiers
1. Deadlines for submission of tax declaration dossiers of taxes declared monthly and quarterly:
a) For taxes declared monthly: the 20th of the month succeeding the month in which tax is incurred;
b) For taxes declared quarterly: the last day of the first month of the succeeding quarter.
2. For taxes declared annually:
a) For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year
b) For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;
c) For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year. For new household businesses and individual businesses: within 10 days from the date of commencement of the business.
3. For declaration of taxes that are declared and paid upon incurrence: the 10th day from the day on which tax is incurred.
4. For tax declaration dossiers upon shutdown, contract termination, business conversion or business re-arrangement: the 45th day from the occurrence of the event.
5. The Government shall specify the deadlines for submission of statements of farming land levies, non-farming land levies; land levies; land rents, water surface rents; mineral extraction licensing fee; water resource extraction licensing fee; registration fee; licensing fees; other amounts payable to state budget in accordance with regulations of law on management and use of public property; multinational profit reports.
6. Deadlines for submission of customs dossiers of exports and imports are specified by the Law on Customs.
7. In case a taxpayer declares tax electronically on the last day of the time limit for declaration and the information portal of the tax authority is not functional, the taxpayer may submit the electronic declaration on the next day after the online portal is functional again.
In addition, according to Clause 1, Article 55 of the Law on Tax Administration 2019 on tax payment deadlines as follows:
Tax payment deadlines
1. In case tax is calculated by the taxpayer, the tax payment deadline is the deadline for submission of the tax declaration dossier. In case of submission of supplementary tax documents, the tax payment deadline is the deadline for submission of the erroneous tax declaration dossier.
Thus, the deadline for paying PIT incurring from share transfers is the 10th day from the date on which tax is incurred.
In case tax is calculated by the taxpayer, the tax payment deadline is the deadline for submission of the tax declaration dossier. In case of submission of supplementary tax documents, the tax payment deadline is the deadline for submission of the erroneous tax declaration dossier.
How to calculate the late payment interest of PIT incurring from share transfers in Vietnam?
Pursuant to Article 59 of the Law on Tax Administration 2019 on handling of late tax payment as follows:
Handling of late tax payment
1. Late payment interest shall be charged in the following cases:
a) The taxpayer pays tax behind deadline, the extended deadline, the deadline written in the tax authority’s notice, tax liability imposition decision or handling decision;
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2. Calculation of late payment interest:
a) The rate of late payment interest is 0,03% per day on the overdue amount;
b) The period over which late payment interest is charged is a continuous period from the day succeeding the day on which late payment interest is charged as specified in Clause 1 of this Article to the day preceding the date of payment of the outstanding tax, refunded tax, increase in tax, imposed tax.
3. Taxpayers shall calculate the late payment interest themselves in accordance with Clause 1 and Clause 2 of this Article and pay it to the state budget as prescribed. Overpaid tax, late payment interest and fines shall be handled in accordance with Clause 1 Article 60 of this Law.
4. In case the taxpayer fails to pay tax, late payment interest and fines within 30 days from the deadline for making such payment, the tax authority shall inform the taxpayer of the amount payable and the number of days behind schedule.
Thus, the late payment rate and the period over which late payment interest is charged are prescribed as follows:
- The rate of late payment interest is 0,03% per day on the overdue amount;
- The period over which late payment interest is charged is a continuous period from the day succeeding the day on which late payment interest is charged as specified in Clause 1 of this Article to the day preceding the date of payment of the outstanding tax, refunded tax, increase in tax, imposed tax.
Where will taxpayers pay PIT incurring from share transfers in Vietnam?
According to the provisions of Article 56 of the Law on Tax Administration 2019, taxpayers shall pay taxes to the state budget according to the following provisions:
- At State Treasuries;
- At the tax authorities that receive the tax declaration dossiers;
- Via a organization authorized by the tax authority to collect tax; or
- Via a commercial bank or credit institution or service provider as prescribed by law.
In addition, the State Treasuries, commercial banks, credit institutions and service providers shall prepare their premises, equipment and personnel to collect tax, ensuring favorable conditions for taxpayers to timely pay taxes to the state budget.
At the same time, every organization that collects or deduct tax shall provide tax payment documents to taxpayers.
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