What are the fines for late submission of tax return dossier within 60 days in Vietnam?
What are the fines for late submission of tax return dossier within 60 days in Vietnam?
Pursuant to Article 13 of Decree 125/2020/ND-CP stipulating sanctions for violations regarding the deadline for submitting tax returns:
Article 13. Sanctions for violations regarding the deadline for submitting tax returns
1. A warning is issued for filing a tax return 1 to 5 days late with mitigating circumstances.
2. A fine ranging from VND 2,000,000 to VND 5,000,000 is imposed for filing a tax return more than 1 to 30 days late, except in cases prescribed in Clause 1 of this Article.
3. A fine ranging from VND 5,000,000 to VND 8,000,000 is imposed for filing a tax return from 31 to 60 days after the deadline.
- A fine ranging from VND 8,000,000 to VND 15,000,000 is imposed for any of the following acts:
a) Filing a tax return from 61 to 90 days late;
b) Filing a tax return more than 91 days late without a tax payable amount arising;
c) Not filing a tax return but no tax payable amount arises;
d) Not submitting annexes under regulations on tax management for enterprises with related transactions accompanying the corporate income tax settlement dossier.
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Pursuant to Article 5 of Decree 125/2020/ND-CP stipulating principles for handling administrative violations regarding taxes and invoices:
Article 5. Principles for handling administrative violations regarding taxes and invoices
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- In cases where an administrative procedure contains multiple document components as regulated by more than one administrative violation in this Decree, the violating organization or individual shall be sanctioned for each violation.
- For the same administrative violation regarding taxes and invoices, the fine imposed on organizations is twice the fine imposed on individuals, except for fines concerning violations prescribed in Articles 16, 17, and 18 of this Decree.
According to the above provisions, individuals committing the act of filing a tax return late by less than 30 days shall be sanctioned as follows:
- Filing 1 to 5 days late with mitigating circumstances shall result in a warning.
- Filing from 1 to 30 days late results in a fine ranging from VND 2,000,000 to VND 5,000,000
- Filing from 31 to 60 days late results in a fine ranging from VND 5,000,000 to VND 8,000,000
In addition, there is an obligation to pay the overdue tax amount into the state budget for violations leading to the late payment of taxes.
Note: The above fines apply to individuals. Organizations committing the same violation shall incur fines twice the amount imposed on individuals.
What are the fines for late submission of tax return dossier within 60 days in Vietnam? (Image from the Internet)
What does the tax return dossier include for types of taxes declared and paid according to each tax obligation arising in Vietnam?
Pursuant to Article 43 of the Law on Tax Administration 2019 stipulating tax return dossiers:
Article 43. Tax return dossiers
- The tax return dossier for taxes declared and paid monthly is the monthly tax return.
- The tax return dossier for taxes declared and paid quarterly is the quarterly tax return.
- The tax return dossier for taxes calculated annually includes:
a) The annual tax return and other documents related to determining the payable tax amount;
b) The annual tax settlement dossier includes the annual tax settlement return, annual financial statement, linked transaction return; and other documents related to tax settlement.
4. The tax return dossier for taxes declared and paid on each taxable occurrence includes:
a) The tax return;
b) Invoice, contract and other documents related to the tax obligation as prescribed by law.
- For exported or imported goods, the customs dossier as prescribed by the Law on Customs is used as the tax return dossier.
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According to the above provisions, the tax return dossier for taxes declared and paid on each taxable occurrence includes the following documents:
[1] The tax return
[2] Invoice, contract, and other documents related to the tax obligation as prescribed by law.
What is the location to submit the tax return dossier for types of taxes declared and paid according to each tax obligation arising in Vietnam?
Pursuant to Article 45 of the Law on Tax Administration 2019 stipulating locations for submitting tax return dossiers:
Article 45. Locations for submitting tax return dossiers
- Taxpayers submit tax return dossiers at the directly managing tax authority.
- In cases where tax return dossiers are submitted according to the one-stop-shop interlinked mechanism, the submission location shall be as prescribed by that mechanism.
- The location for submitting tax return dossiers for exported and imported goods is as prescribed by the Law on Customs.
- The Government of Vietnam stipulates the locations for submitting tax return dossiers in the following cases:
a) Taxpayers engaging in multiple production and business activities;
b) Taxpayers conducting production and business in multiple areas; taxpayers with taxable obligations on taxes declared and paid on each taxable occurrence;
c) Taxpayers having obligations to pay taxes from land revenues; granting rights to exploit water resources, mineral resources;
d) Taxpayers having obligations to settle personal income tax;
đ) Taxpayers declaring taxes through electronic transactions and other necessary cases.
Thus, the location for submitting tax return dossiers for taxes declared and paid on each taxable occurrence is stipulated by the Government of Vietnam. Specifically:
The submission location for taxpayers with taxable obligations on taxes declared and paid on each taxable occurrence is the directly managing tax authority, except for the following cases:
- Tax return dossiers in cases prescribed in point a, d, e, k of clause 4, Article 8 Decree 126/2020/ND-CP shall be submitted at the tax authority in the locality where business activities or other tax obligations arise, which differs from the provincial locality where the taxpayer's headquarters is located.
- Tax return dossiers for exported, imported goods stipulated in point c, clause 4, Article 8 Decree 126/2020/ND-CP shall be submitted at the customs authority where the customs declaration is registered.
In cases where exported or imported goods require a new customs declaration file for tax payment at the export-import stage on the new customs declaration, tax return dossiers shall be submitted at the customs authority where the first export-import declaration is registered.
- Tax return dossiers for corporate income tax regarding capital transfer transactions of foreign contractors shall be submitted at the tax authority managing the enterprise where the foreign contractor invests capital (including cases where an organization or individual receiving the capital transfer declares on behalf of the foreign contractor and cases where the organization established under Vietnamese law where the foreign contractor invests declares on behalf of the foreign contractor if the receiving organization or individual is also a foreign contractor).
- Contractors must submit corporate income tax return dossiers for transferring rights to participate in oil and gas contracts at the tax authority managing the respective oil and gas contracts that experience a transfer of participation rights (including changing ownership of contractors holding participation rights in the oil and gas contract).
- Individuals earning income from capital transfers, capital investments directly filing tax with the tax authority shall submit their tax return at the tax authority managing the issuing unit.
- Individuals earning income from copyrights, franchising, prizes from abroad; inheriting, receiving gifts as other assets (except real estate; assets requiring registration of ownership, use rights) abroad directly filing tax with the tax authority shall submit their tax return at the tax authority where the individual resides.
- Individuals earning income from leasing property (except for real estate) should submit their tax return at the tax authority where the individual resides. Individuals with income from leasing real estate in Vietnam should submit their tax return at the tax authority where the leased real estate is located. Individuals with real estate leased abroad should submit their tax return at the directly managing tax authority where the individual resides.
- Individuals gaining income from receiving inheritance or gifts in the form of other property requiring registration of ownership, use rights shall submit their tax return at the tax authority where the registration fee is filed.
- Business households, individual businesses without fixed business locations and conducting non-regular business activities shall submit their tax return and other dues at the tax authority where the individual resides.
- Organizations and individuals registering ownership or use rights of assets, except land and housing (including cases exempted from registration fees under the law on registration fees) shall submit their registration fee declaration dossiers at the tax authority where ownership or use rights are registered or the location decided by the provincial People's Committee.
