How to determine the late tax payment of CIT in Vietnam? When will enterprises be fined for late payment?
When is the deadline for temporary payment of corporate income tax in Vietnam?
Pursuant to Point g, Clause 6, Article 8 of Decree 126/2020/ND-CP (amended by Clause 5, Article 1 of Decree 91/2022/ND-CP) stipulating taxes on monthly and quarterly declarations , declare annually, declare each time a tax liability arises and declare tax finalization as follows:
Taxes declared monthly, quarterly, annually, separately; tax finalization
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6. The following taxes and amounts shall be declared annually and finalized when an enterprise is dissolved, shuts down, terminates a contract or undergoes rearrangement. In case of conversion (except equitized state-owned enterprises) where the enterprise after conversion inherits all tax obligations of the enterprise before conversion, tax shall be finalized at the end of the year instead of the issuance date of the decision on conversion. Tax shall be finalized at the end of the year):
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g) Corporate income tax of foreign transport companies shall be provisionally paid quarterly and finalized annually. The total provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier. If provisional tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget.
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According to Clause 1, Article 55 of the Law on Tax Administration 2019, the tax payment deadline is as follows:
- 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.
The deadline for paying corporate income tax, which is paid quarterly, is the 30th of the first month of the next quarter.
The deadline for paying resource royalty and corporate income tax on crude oil is 35 days from the date of selling domestically or the date of customs clearance in case of export.
Resource royalty and corporate income tax on natural gas shall be paid monthly.
How to determine the late tax payment of CIT in Vietnam? When will enterprises be fined for late payment?
When will enterprises be fined for late payment in Vietnam?
Pursuant to Clause 1, Article 59 of the Law on Tax Administration 2019, the handling of late tax payment is 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;
b) If the supplementation of the tax declaration dossier leads to an increase in the amount of tax payable, or the tax authority or inspecting authority finds that tax is understated, late payment interest shall be charged on the increase in tax over the period from the day succeeding the initial deadline or the deadline for tax payment of the initial customs declaration;
c) If the supplementation of the tax declaration dossier leads to a decrease in the amount of refundable tax, or the tax authority or inspecting authority finds that refundable tax is smaller than the refunded tax, late payment interest shall be charged on the excessively refunded tax, which has to be paid back to state budget, over the period from the day on which tax is refunded;
d) The cases in which outstanding debt may be paid by installments as prescribed in Clause 5 Article 124 of this Law;
dd) The cases in which administrative penalties are not imposed due to expiration of the time limit for penalty imposition but outstanding tax has to be collected as prescribed in Clause 3 Article 137 of this Law;
e) The cases in which administrative penalties are not imposed specified in Clause 3 and Clause 4 Article 142 of this Law;
g) The organization that is authorized by the tax authority to collect tax but fails to transfer the tax, late payment interest and fines paid by taxpayers to state budget in a timely manner shall pay an interest on such amount.
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Accordingly, enterprises will be fined for late payment of corporate income tax in the cases specified in Clause 1, Article 59 of the Law on Tax Administration 2019.
What are the regulations on late payment interest in Vietnam?
Pursuant to Clause 2, Article 59 of the Law on Tax Administration 2019, the handling of late payment of tax is as follows:
Handling of late tax payment
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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.
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Thus, the late payment interest rate is 0.03%/day calculated on the late payment tax amount.
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