Vietnam: What are the fines imposed on entities delaying the submission of tax declarations for March 2024? What are the remedial measures adopted by entities delaying the submission of tax declarations?
- What is the deadline for submission of tax declarations for March 2024 in Vietnam?
- What are the fines imposed on entities delaying the submission of tax declarations for March 2024 in Vietnam?
- Is an income payer who does not have PIT incurred in March 2024 in Vietnam required to submit a tax declaration?
What is the deadline for submission of tax declarations for March 2024 in Vietnam?
According to the provisions of Article 44 of the Law on Tax Administration 2019 on the deadlines for submission of tax declaration dossiers:
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.
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According to the provisions of Article 86 of Circular 80/2021/TT-BTC as follows:
Deadlines for submission of tax declaration dossiers and tax payment
Deadlines for submission of tax declaration dossiers shall comply with Clauses 1, 2, 3, 4, 5 Article 44 of the Law on Tax Administration and Article 10 of Decree No. 126/2020/ND-CP. Deadlines for tax payment shall comply with Clauses 1, 2, 3 Article 55 of the Law on Tax Administration and Article 18 of Decree No. 126/2020/ND-CP. In case the deadline is not a working day, it shall be the succeeding working day according to the Civil Code.
According to the above regulations, the deadline for submission of tax declarations for March 2024 shall be April 20, 2024.
However, April 20, 2024 falls on a Saturday and April 21, 2024 falls on a Sunday.
Thus, the deadline for submission of tax declarations for March 2024 in Vietnam shall be April 22, 2024.
What are the fines imposed on entities delaying the submission of tax declarations for March 2024 in Vietnam?
Under the provisions of Article 13 of Decree 125/2020/ND-CP, entities delaying the submission of tax declarations for March 2024 in Vietnam shall face fines and adopt remedial measures as follows:
(1) Penalties imposed in the form of cautions shall be imposed for violations arising from filing tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.
(2) Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax returns from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of Article 13 of Decree 125/2020/ND-CP.
(3) Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax returns from 31 to 60 days after expiration of the prescribed time limits.
(4) Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:
- Filing tax returns from 61 to 90 days after expiration of the prescribed time limits;
- Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;
- Failing to submit tax returns if none of additional taxes is incurred;
- Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.
(5) Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax returns more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax returns under the provisions of clause 11 of Article 143 in the Law on Tax Administration.
(6) Remedial measures:
- Compelling the full payment of deferred tax amounts into the state budget with respect to the commission of the acts prescribed in clause 1, 2, 3, 4 and 5 of Article 13 of Decree 125/2020/ND-CP if the taxpayer delays filing their tax return, leading to the late payment of taxes;
- Compelling the submission of tax returns, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of Article 13 of Decree 125/2020/ND-CP.
Note: This fine shall be imposed on the organization. The fine imposed on individuals is equal to 1/2 of the above.
For taxpayers who are households of household businesses, the fine for individuals shall be imposed.
Is an income payer who does not have PIT incurred in March 2024 in Vietnam required to submit a tax declaration?
Under Clause 3 Article 7 of Decree 126/2020/ND-CP supplemented by Clause 2 Article 1 of Decree 91/2022/ND-CP on cases in which a taxpayer is not required to declare tax:
Tax declaration dossiers
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3. A taxpayer is not required to declare tax in the following cases:
a) The taxpayer only has business operations that are not subject to any tax.
b) The taxpayer is an individual earning tax-free income as prescribed by personal income tax laws and Point b Clause 2 Article 79 of the Law on Tax administration, except individuals that receive real estate as inheritance or gift and individuals that transfer real estate.
c) An enterprise that only exports is not required to declare VAT.
d) The taxpayer’s business suspension is suspended as prescribed in Article 4 of this Decree.
dd) The taxpayer applies for TIN invalidation, except termination of business operation, contract or business rearrangement prescribed in Clause 4 Article 44 of the Law on Tax administration.
e) The declarant of personal income tax is the income payer, declares personal income tax monthly or quarterly, and does not deduct personal income tax in the same month or quarter.
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Thus, if an income payer declaring personal income tax monthly does not have PIT incurred in March 2024 for the deduction, it is not required to submit a tax declaration for March 2024.
Download the PIT declaration form for March 2024: Here
(The above PIT declaration form applies to income payers)
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