What are regulations on deadline extension for submission of tax declaration dossiers in Vietnam?

05 entities that must finalize personal income tax themselves in 2024 in Vietnam

Pursuant to Clause 6.d Article 8 of the Decree 126/2020/ND-CP, the personal income tax finalization is stipulated as follows. 05 salary earners that must finalize personal income tax themselves in 2024 in Vietnam are:

[1] Residents who have income from wages or salaries from two or more sources but do not meet the conditions for delegation of finalization are required to pay additional taxes if they have a tax liability or request a refund or offset in the next tax declaration period.

[2] The individual has been present in Vietnam for fewer than 183 days in the first calendar year but more than 183 days in 12 consecutive months from the arrival date.

[3] An individual that is a foreigner whose employment contract in Vietnam has ended shall submit a tax finalization dossier to the tax authority before exit or authorize the income payer or another organization or individual to prepare and submit the tax finalization dossier as per regulations. The income payer or the authorized organization/individual must pay tax arrears if tax is underpaid or will receive a refund in case tax is overpaid.

[4] Residents who have income from wages or salaries paid from abroad, as well as residents who have income from wages or salaries paid by international organizations, embassies, or consulates without tax deductions within the year, are required to pay additional taxes if they have a tax liability or request a refund or offset in the next tax declaration period.

[5] Resident salary earners who are eligible for tax reduction due to a natural disaster, fire, accident or serious illness.

What are regulations on deadline extension for submission of tax declaration dossiers in Vietnam? - image from internet

What are regulations on deadline extension for submission of tax declaration dossiers in Vietnam?

Pursuant to Clause 2 Article 46 of the Law on Tax Administration in 2019 stipulating deadline extension:

Deadline extension

1. In case a taxpayer is unable to submit the tax declaration dossier by the deadline due to a natural disaster, epidemic, fire or accident, the head of the supervisory tax authority will consider extending the deadline for submission.

2. The deadline shall be extended for up to 30 more days for monthly, quarterly, annual declarations and declaration upon tax incurrence; 60 more days for terminal tax declaration.

3. The taxpayer shall send a written request for deadline extension to the tax authority before the deadline, provide explanation and confirmation by the People’s Committee or police authority of the commune in which the event mentioned in Clause 1 of this Article occurred.

4. Within 03 working days from the day on which the taxpayer’s request is received, the tax authority shall inform the taxpayer in writing of whether such request is granted.

As regulations above, a taxpayer is eligible for deadline extension for submission of tax declaration dossiers in case of a natural disaster, epidemic, fire or accident.

Therefore, the deadline for annual submission of tax declaration dossiers is up to 30 more days.

What are the fines for the act of submitting tax declaration 07 days after expiration of the prescribed time limits in Vietnam?

Pursuant to Clause 2 and 6.a, Article 13 of the Decree 125/2020/ND-CP stipulating penalties for violations against regulations on time limits for submission of tax returns:

Penalties for violations against regulations on time limits for submission of tax declaration

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax declaration 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 declaration from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of this Article.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax declaration 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:

a) Filing tax declaration from 61 to 90 days after expiration of the prescribed time limits;

b) Filing tax declaration at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;

c) Failing to submit tax declaration if none of additional taxes is incurred;

d) Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.

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6. Remedies:

a) 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 this Article if the taxpayer delays filing their tax declaration, leading to the late payment of taxes;

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As regulations above, fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax declaration 07 days after expiration of the prescribed time limits in Vietnam.

In addition, the violators shall make the full payment of deferred tax amounts into the state budget if the taxpayers delay filing their tax declaration, leading to the late payment of taxes.

Note: This is the penalty level applicable to individuals, while for organizations committing the same violation, the monetary penalty will be doubled compared to that for individuals, as stipulated in Clause 5 of Article 5 of Decree 125/2020/ND-CP.

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