Penalty for Late Personal Income Tax Settlement

Latest Excel file for calculating personal income tax

According to the guidance in Article 21 of Circular 92/2015/TT-BTC Amending and supplementing Article 16 of Circular 156/2013/TT-BTC:

- Resident individuals with income from salaries and wages are responsible for filing tax finalization if there is additional tax payable or overpaid tax requested for refund or offset to the next tax declaration period.- Organizations and individuals paying income subject to personal income tax from salaries and wages are responsible for filing personal income tax finalization and finalizing personal income tax on behalf of authorized individuals regardless of whether tax withholding arises or not.

According to regulations, the deadline to submit tax finalization documents is no later than the 90th day from the end of the calendar year or fiscal year (i.e., March 30 or 31 of the following year).

Article 9 of Circular 166/2013/TT-BTC stipulates the administrative penalties for late submission of personal income tax finalization documents as follows:

- From 01 day to 05 days with mitigating circumstances: Warning.- From 01 day to 10 days: Fine from 400,000 VND to 1,000,000 VND.- From over 10 days to 20 days: Fine from 800,000 VND to 2,000,000 VND.- From over 20 days to 30 days: Fine from 1,200,000 VND to 3,000,000 VND.- From over 30 days to 40 days: Fine from 1,600,000 VND to 4,000,000 VND.- From over 40 days to 90 days or more than 90 days but no tax payable arises: Fine from 2,000,000 VND to 5,000,000 VND.

The fines mentioned above apply to organizations. The fine for individuals is ½ of the fine for organizations. For taxpayers who are households, the fine applies as for individuals.

Therefore, taxpayers subject to tax finalization are advised to proactively complete the process before the stipulated deadline to avoid penalties in accordance with the law.

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