What are the deadlines for submission of tax declaration dossiers, tax reports in March 2024 in Vietnam?

What are the deadlines for submission of tax declaration dossiers, tax reports in March 2024 in Vietnam?

Pursuant to Clause 1 Article 44 of the Law on Tax Administration in 2019 stipulating deadlines for tax declaration 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

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Pursuant to Article 86 of the Circular 80/2021/TT-BTC stipulating deadlines for submission of tax declaration dossiers 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.

As regulations above, the deadlines for submission of tax declaration dossiers, tax reports in March 2024 in Vietnam are as follows:

- Submission of the Value Added Tax declaration for February 2024: the deadline is March 20, 2024.

- Submission of the Personal Income Tax declaration for February 2024: the deadline is March 20, 2024.

- Submission of the tax return of the Corporate Income Tax for the year 2023: the deadline is April 1, 2024 (as March 31, 2024 is on Sunday).

- Submission of the tax return of the Personal Income Tax for the year 2023: the deadline is April 1, 2024 (as March 31, 2024 is on Sunday).

What are the deadlines for submission of tax declaration dossiers, tax reports in March 2024 in Vietnam? - image from internet

What are the fines imposed on organizations and individuals for late submission of tax declaration dossiers, tax reports in Vietnam?

Pursuant to Article 13 of the Decree 125/2020/ND-CP stipulating penalties for violations against regulations on time limits for submission of tax returns as follows:

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

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax declarations 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 declarations 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 declarations 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 declarations from 61 to 90 days after expiration of the prescribed time limits;

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

c) Failing to submit tax declarations 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.

5. Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax declarations 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 declarations under the provisions of clause 11 of Article 143 in the Law on Tax Administration.

In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax declaration, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.

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 return, leading to the late payment of taxes;

b) Compelling the submission of tax returns, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of this Article.

Pursuant to Clause 5 Article 5 of the Decree 125/2020/ND-CP stipulating sanctioning principles as follows:

Sanctioning principles

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5. For a tax or invoice-related administrative violation, if an entity commits such violation, they must be fined two times as much as the amount of penalty imposed on persons, except the amounts of penalty for the acts prescribed in Article 16, 17 and 18 herein.

Pursuant to Clause 4.a Article 7 of the Decree 125/2020/ND-CP stipulating sanctioning forms, remedies and principles of imposition of fines for tax or invoice-related administrative violations as follows:

Sanctioning forms, remedies and principles of imposition of fines for tax or invoice-related administrative violations

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4. Principles of determination of fine amounts

a) The fine amounts specified in Article 10, 11, 12, 13, 14 and 15; clause 1 and 2 of Article 19; and Chapter III herein, shall be those applied to violating entities.

Taxpayers that are family households or sole proprietorship households shall be fined the same as violating persons.

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As regulations above, organizations and individuals who are late in submitting tax declaration dossiers and tax reports may be subject to a warning if the delay is between 1 to 5 days and there are mitigating circumstances. In cases where the tax is overdue for more than 1 day, businesses may be fined from 2,000,000 VND to 25,000,000 VND as per the regulations.

Additionally, businesses are required to pay the full amount of the overdue taxes and submit tax declarations and reports as required.

Please note that the above-mentioned penalties apply to violations committed by organizations. For individuals committing the same violations, the fine will be half of the penalty imposed on organizations.

Which currencies in tax declaration and tax payment in Vietnam?

Pursuant to Article 7 of the Law on Tax Administration in 2019 stipulating currencies in tax declaration and tax payment as follows:

Currencies in tax declaration and tax payment

1. The currency for tax declaration and payment is the Vietnamese Dong, except for cases where tax declaration and payment in foreign convertible currencies are allowed.

2. Taxpayers who do bookkeeping in foreign currencies in accordance with the Accounting Law must exchange such bookkeeping into the Vietnamese dong based on the exchange rates applicable when the transaction is conducted.

3. For imported and exported goods, the currency for tax payment is the Vietnamese Dong, except for cases where tax declaration and payment in foreign convertible currencies are allowed. Exchange rates used for taxation shall follow provisions on customs.

4. The Minister of Finance shall stipulate the currencies of tax declaration and payment using foreign convertible currencies prescribed in clause 1, clause 3 and real exchange rates prescribed in clause 2 of this Article.

Pursuant to Article 4 of the Circular 06/2021/TT-BTC stipulating declaration and payment of taxes in freely convertible foreign currencies as folllows:

Instructions for Article 4, Clause 7 of the Tax Administration Law regarding the use of freely convertible foreign currencies for tax declaration and payment.

1. The currency for tax declaration, tax payment, and other fees related to exports, imports, transit, and the entry or exit of transportation means is the Vietnamese Dong.

2. Tax declaration and payment in freely convertible foreign currencies, as stipulated in Article 4, Clause 7 of the Tax Administration Law, shall be conducted as follows:

a) For tax declaration and payment in freely convertible foreign currencies for crude oil and natural gas exports, the regulations stated in Circular No. 36/2016/TT-BTC dated February 26, 2016, issued by the Ministry of Finance, providing guidance on taxes for organizations and individuals engaged in petroleum exploration and extraction activities, shall be followed, in accordance with the Petroleum Law.

b) For the declaration of fees and payment of customs fees in freely convertible foreign currencies for foreign flights arriving at Vietnamese airports, the regulations stated in Circular No. 194/2016/TT-BTC dated November 8, 2016, issued by the Ministry of Finance, which stipulates the rates, collection regime, and payment of customs fees and charges for entry and exit at Vietnamese airports, shall be followed.

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As regulations above, the currency used for tax declaration and payment is the Vietnamese Dong, except for cases where tax declaration and payment in freely convertible foreign currencies are allowed, including:

- Taxes on crude oil and natural gas exports.

- Customs fees for foreign flights arriving at Vietnamese airports.

Best regards!