What are the administrative fines for a business that fails to submit a tax return for licensing fee in Vietnam?
What are the administrative fines for a business that fails to submit a tax return for licensing fee in Vietnam? Thank you!
Are enterprises established in 2024 exempt from licensing fee in Vietnam?
Pursuant to CLause 8 Article 3 of the Decree 139/2016/NĐ-CP (amended by Clause 1.c Article 1 of the Decree 22/2020/NĐ-CP) stipulating exemption from licensing fees as follows:
Exemption from licensing fees
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8. Exemption of license fees for the first year from the date of establishment or official commencement of production/business (from January 01 to December 31) shall be granted to:
a) New organizations (issued with new TINs/enterprise ID numbers).
b) Household businesses, individuals or groups of individuals engaging in production/business.
c) During the exemption period, if an organization, household business, individual or group of individuals establishes a new branch, representative office or business location, the new branch, representative office or business location shall be also exempted from the license fee for the same exemption period granted to that organization, household business, individual or group of individuals.
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As regulations above, enterprises established in 2024 (issued with new TINs/enterprise ID numbers) are exempt from licensing fee for the first year from the date of establishment or official commencement of production/business in Vietnam.
What are the administrative fines for a business that fails to submit a tax return for licensing fee in Vietnam? - Image from Internet
What are the administrative fines for a business that fails to submit a tax return for licensing fee in Vietnam?
Pursuant to Clause 4.a Article 7 of the Decree 125/2020/NĐ-CP stipulating as follows:
Acts of using illegal invoices or evidencing documents; acts of illegally using invoices or evidencing documents
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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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Pursuant to Article 13 of the Decree 125/2020/NĐ-CP stipulating penalties for violations against regulations on time limits for submission of tax returns as follows:
- Penalties imposed in form of cautions shall be imposed for violations arising from filing tax returns from 01 to 05 days.
- 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.
- 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.
- Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:
+ Filing tax returns from 61 to 90 days;
+ Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;
+ Failing to submit tax returns if none of additional taxes is incurred;
+ Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.
- 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.
Note: 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.
What is the deadline for payment of license fee in 2024 in Vietnam?
Pursuant to Clause 9 Article 18 of the Decree 126/2020/NĐ-CP stipulating the deadline for payment of license fee in 2024 in Vietnam as follows:
- Licensing fee shall be paid annually by the 30th of January.
As regulations above, the deadline for payment of license fee is 30/01/2023. By this date, organizations and individuals must complete the payment of license fee. Except for following cases:
- For medium and small enterprises converted from household businesses (including their dependent units and business locations), upon expiration of the licensing fee exemption period (3 years from the establishment date):
+ If the expiration date is in the first 6 months of the year, licensing fee shall be paid by the 30th of July of the same year.
+ If the expiration date is in the last 6 months of the year, licensing fee shall be paid by the 30th of January of the succeeding year.
- Household businesses and individual businesses that shut down and subsequently resume their business operation shall pay licensing fee as follows:
+ If the resumption date is in the first 6 months of the year, licensing fee shall be paid by the 30th of July of the same year.
+ If the resumption date is in the last 6 months of the year, licensing fee shall be paid by the 30th of January of the succeeding year.
Best regards!
