What are the penalties for the late payment of taxes in Vietnam?

What are the penalties for the late payment of taxes in Vietnam?

Pursuant to Article 21 of Circular 80/2021/TT-BTC regulating the handling of tax late payment as follows:

1. Determination of late payment interest

Late payment interest shall be determined according to the tax arrears, the number of days of late payment, and the interest rate specified in Article 59 of the Law on Tax Administration. Late payment period begins on the day succeeding the day on which late payment interest is charged and ends on the day preceding the day on which tax arrears are paid to state budget.

2. Notification of late payment interest

The tax authority shall notify the late payment interest and tax debt (according to Form No. 01/TTN in Appendix I hereof) to the taxpayer whose tax debt is overdue for at least 30 days. For non-agricultural land use tax, the tax authority shall inform the tax debt and late payment interest of taxpayers that are individuals and households via the authorized collectors.

In order to complete administrative procedures for taxpayers or at the request of competent authorities, the tax authority shall determine and notify tax debt that accumulates by the time the tax authority issues the notification (according to Form No. 02/TTN in Appendix I hereof).

3. Decreasing late payment interest

a) In case the taxpayer makes a supplementary declaration that decreases tax obligations, the taxpayer shall determine the decreased late payment interest on the supplementary declaration. The tax authority shall determine the decreased late payment interest on the basis of information about the taxpayer's obligations and send a notification to the taxpayer according to Form No. 03/TTN in Appendix I hereof.

b) In case the tax authority or a competent authority, upon inspection, discovers that the tax payable is decreased or issues a decision on or notification of decrease in tax payable, the tax authority shall decrease the late payment interest in proportion to the decrease in tax payable and send a notification to the taxpayer according to Form No. 03/TTN in Appendix I hereof.

What are the regulations on the forms and appendices of the tax declaration and related documents in the tax declaration dossier in Vietnam?

Pursuant to Article 20 of the above Circular, the form of declaration, appendix of declaration and relevant documents in the tax declaration dossier are as follows:

The tax form, appendices; additional declaration; registration of dependants; PIT declaration authorization form; report on estimated petroleum production and provisional tax rate; declaration of increase in tax declared monthly compared to quarterly declared tax; application for conversion from monthly declaration to quarterly declaration of taxes and other state budget revenues are provided in Appendix II hereof.

Best Regards!