What is time limit for declaration of corporate income taxes with irregular tax incurred by businesses in Vietnam?
What is time limit for declaration of corporate income taxes with irregular tax incurred by businesses in Vietnam? Having announced decision on tax inspection at the taxpayer’s premises, is it possible to provide tax supplementary documents in Vietnam? Can deadline for submission of tax declaration dossiers be extended in Vietnam?
Hello Lawyers. My company operates in the field of construction contractors, has no real estate business, but because this time many employees quit and after re-arranging staff, there was one building left, so I sold the building. I don't know when this is sold, what is time limit for declaration of corporate income taxes with irregular tax incurred by businesses?
Please advise. Thankyou.
What is time limit for declaration of corporate income taxes with irregular tax incurred by businesses in Vietnam?
At Point dd, Clause 4, Article 8 of Decree 126/2020/ND-CP has the following provisions:
4. The following taxes and other amounts shall be declared separately:
dd) Irregular VAT and corporate income tax incurred by payable by taxpayers paying tax directly on value added and revenue as prescribed by VAT and corporate income tax laws. In case these taxes are incurred multiple times within a month, they may be declared monthly.
According to Clause 3, Article 44 of the Law on Tax Administration 2019, deadlines for submission of tax declaration dossiers are as follows:
3. For declaration of taxes that are declared and paid upon incurrence: the 10th day from the day on which tax is incurred.
According to this Article, your business operates in the field of construction contractors in Vietnam, does not have real estate business but you proceed to sell the building, this is considered a irregular business activity of the business, so it will applied for each time a tax liability arises and no later than the 10th day from the day on which tax is incurred.
Having announced decision on tax inspection at the taxpayer’s premises, is it possible to provide tax supplementary documents in Vietnam?
Article 47 of the Law on Tax Administration 2019 provides for tax dossier supplementation, specifically as follows:
1. In case the tax declaration dossier submitted to the tax authority is erroneous or inadequate, supplementary documents may be provided within 10 years from the deadline for submission of the erroneous or inadequate tax declaration dossier but before the tax authority or a competent authority announces a decision on tax document examination.
2. When the tax authority or a competent authority has announced the decision on tax inspection or tax audit on the taxpayer’s premises, the taxpayer is still allowed to provide supplementary documents; the tax authority shall impose administrative penalties for the violations specified in Article 142 and 143 of this Law.
3. After the tax authority or competent authority issues a conclusion or tax decision when the inspection is done:
a) The taxpayer may provide supplementary tax documents if they increase the tax payable or reduce the deductible tax, exempted tax or refundable tax, and shall face administrative penalties for the violations specified in Article 142 and Article 143 of this Law;
b) If the supplementation leads to a decrease in the tax payable or an increase in the deductible tax, exempted tax or refundable tax, the taxpayer shall follow procedures for filing tax-related complaints.
4. Supplementary documents include:
a) The supplementary tax return;
b) The explanation for the supplementation and relevant documents.
5. Supplementary tax documents on exports and imports shall be provided in accordance with customs laws.
Thus, when the tax authority or the competent authority has announced the decision on tax inspection or tax audit on the taxpayer’s premises, the taxpayer is still entitled to provide supplementary documents in Vietnam.
Can deadline for submission of tax declaration dossiers be extended in Vietnam?
Pursuant to Article 46 of the Law on Tax Administration 2019 stipulating deadline extension, according to which:
1. In case a taxpayer is unable to submit the tax declaration dossier by the deadline due to a natural disaster, epidemic, fire or accident, the head of the supervisory tax authority will consider extending the deadline for submission.
2. The deadline shall be extended for up to 30 more days for monthly, quarterly, annual declarations and declaration upon tax incurrence; 60 more days for terminal tax declaration.
3. The taxpayer shall send a written request for deadline extension to the tax authority before the deadline, provide explanation and confirmation by the People’s Committee or police authority of the commune in which the event mentioned in Clause 1 of this Article occurred.
4. Within 03 working days from the day on which the taxpayer’s request is received, the tax authority shall inform the taxpayer in writing of whether such request is granted.
With this provision in Vietnam, when individual taxpayers are unable to submit the tax declaration dossier by the deadline due to a natural disaster, epidemic, fire or accident and the head of the supervisory tax authority will consider extending the deadline for submission.Then this individual will be entitled to an extension of the submission time.
Best Regards!
