What are administrative fines for late submission of tax returns in Vietnam?

What are administrative fines for late submission of tax returns 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 returns

1. Penalties imposed in 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 this Article.

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:

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

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

c) Failing to submit tax returns 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 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.

In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, 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.

As regulations above, people who file tax returns late shall face following administrative fines:

- Penalties imposed in 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.

- 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.

- 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.

- Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for the act of submitting tax returns from 61 to 90 days after expiration of the prescribed time limits.

- 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 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.

- Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred.

- Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for failing to submit tax returns if none of additional taxes is incurred.

In addition, the taxpayers are forced to make the full payment of deferred tax amounts and submit the tax returns.

Note: The above fines are applied to organizations (according to Article 4 of the Decree 125/2020/ND-CP)

What are administrative fines for late submission of tax returns in Vietnam? - image from internet

How to calculate late tax payment in Vietnam?

Pursuant to Clause 2 Article 59 of the Law on Tax Administration in 2019 stipulating calculation of late tax payment in Vietnam as follows:

Handling of late tax payment

...

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.

...

As regulations above, late tax payment in Vietnam shall be calculated as follows:

The rate of late payment interest = 0.03% x (Amount of tax late) x (Number of days late)

Note: 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 to the day preceding the date of payment of the outstanding tax, refunded tax, increase in tax, imposed tax.

What is the deadline of submission of tax return of enterprises in 4th quarter of the year in Vietnam?

Pursuant to Article 43 of the Law on Tax Administration in 2019 stipulating tax return as follows:

Tax return

...

2. The tax return dossier of taxes that are declared and paid quarterly is the quarterly tax return.

...

Pursuant to Clause 1 Article 44 of the Law on Tax Administration in 2019 stipulating deadlines for submission of tax return dossiers as follows:

Deadlines for submission of tax return dossiers

1. Deadlines for submission of tax return dossiers of taxes declared monthly and quarterly:

a) For taxes declared monthly: the 20^th 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.

...

Based on the above provisions, the deadline for submitting the corporate income tax return is also determined by the deadline for submitting the corporate income tax filing documents.

Therefore, the latest deadline for submitting the corporate income tax return for the fourth quarter is the last day of the first month of the following quarter in which the tax liability arises.

Best regards!