Tasks That Accountants and Human Resources in Vietnam Must Complete Before December 31, 2019, and Penalties for Late Implementation

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1. Report on labor fluctuations in November 2019 in Vietnam

Form No. 29 on Notification of Labor Fluctuations

According to current regulations at Clause 2, Article 16 of Circular 28/2015/TT-BLDTBXH, by December 3, 2019, enterprises in Vietnam must complete the report on labor fluctuations for November 2019 with the Employment Service Center where their office is located (based on the calendar month prior to the reporting period).

Currently, there is no basis to impose administrative penalties for failure to submit or late submission of labor utilization reports by enterprises.

However, Decree 88/2015/ND-CP also stipulates penalties for enterprises failing to open Labor Management Books as required, for tracking, inspecting, as added in Article 4a following Article 4 of Decree 95/2013/ND-CP.

Enterprises in Vietnam must notify the Employment Service Center where their office is located about labor fluctuations at the unit before the third of each month (if any). Still, even if the report is submitted late, no penalty will be applied. Additionally, enterprises must open a Labor Management Book to monitor labor conditions and update information upon any change. Failure to establish or timely and adequately maintain these records may result in fines up to 3 million VND.

2. Report on the use of invoices in November 2019 in Vietnam

Form for Report on the Use of Invoices

According to current regulations at Article 27 of Circular 39/2014/TT-BTC, Clause 4 of Article 5 of Circular 119/2014/TT-BTC, and Section 10 of Official Dispatch 1839/TCT-CS, by December 20, 2019, enterprises must complete the report on the use of invoices for November 2019 with the direct managing tax authority (even if no invoices were used during the period).

In case of late submission of the report on the use of invoices, according to Clause 2 of Article 13 of Circular 10/2014/TT-BTC and Clause 7 of Article 1 of Circular 176/2016/TT-BTC, the specific penalties are as follows:

- Warning if the report is submitted from the first to the tenth day after the deadline.

- Fine from 2,000,000 VND to 4,000,000 VND if the report is submitted more than 10 days after the deadline.

- Fine from 4,000,000 VND to 8,000,000 VND if the report is submitted more than 20 days after the deadline.

3. Submission of Personal Income Tax Declaration for November 2019 in Vietnam

Personal Income Tax Declaration Forms as per each case

As regulated in Clause 3 of Article 10 of Circular 156/2013/TT-BTC, in November, if an enterprise deducts personal income tax, it must submit the Personal Income Tax declaration file to the directly managing tax authority by December 20, 2019, at the latest.

In case of late submission of the personal income tax declaration beyond the regulated deadline, according to Article 9 of Circular 166/2013/TT-BTC, depending on the duration of the delay, penalties may reach up to 3,500,000 VND. If there are mitigating circumstances, the minimum fine shall not be less than 2,000,000 VND, and in aggravating circumstances, the maximum fine shall not exceed 5,000,000 VND.

4. Submission of Value-Added Tax Declaration for November 2019 in Vietnam

Value-Added Tax Declaration Form

According to Point a, Clause 2 of Article 11 and Point a, Clause 3 of Article 10 of Circular 156/2013/TT-BTC, enterprises with an annual revenue from sales of goods and services of the previous year exceeding 50 billion VND must submit their monthly VAT declaration by the 20th of the following month. Therefore, by December 20, 2019, these enterprises must complete the submission of the VAT declaration for November 2019.

Similar to the late submission of the personal income tax declaration, if an enterprise submits its VAT declaration late beyond the regulated deadline, according to Article 9 of Circular 166/2013/TT-BTC, depending on the duration of the delay, penalties may reach up to 3,500,000 VND. If there are mitigating circumstances, the minimum fine shall not be less than 2,000,000 VND, and in aggravating circumstances, the maximum fine shall not exceed 5,000,000 VND.

5. Deduction and Payment of Social Insurance, Health Insurance, and Unemployment Insurance for December 2019 in Vietnam

See detailed social insurance contribution rates for employees HERE

According to Clause 1 of Article 7, Article 16, and Clause 1 of Article 19 of Decision 595/QD-BHXH, by December 30, 2019, enterprises must complete the deduction and payment of Social Insurance, Health Insurance, and Unemployment Insurance for December 2019 for employees.

In case of violation of regulations on the deduction and payment timeline for social insurance, unemployment insurance, and health insurance, according to Decree 95/2013/ND-CP, the specific penalties are as follows:

- Late payment of Social Insurance and Unemployment Insurance: Fines range from 12% to 15% of the total mandatory social insurance, unemployment insurance amount due at the time of making the administrative violation record, but the maximum fine shall not exceed 75,000,000 VND for individual violations and 150,000,000 VND for organization violations.

Additionally, enterprises must take remedial measures such as paying the overdue or unpaid mandatory social insurance and unemployment insurance amounts and the interest on those amounts according to the investment interest rate of the Social Insurance Fund for the year.

- Late payment of Health Insurance: Fines range from 300,000 VND to 35,000,000 VND depending on the level of violation, and the enterprise must also make up for the overdue or unpaid amounts and the accrued interest.

6. Payment of Trade Union Fees for December 2019 in Vietnam

According to Clause 2 of Article 6 of Decree 191/2013/ND-CP, by December 30, 2019, is also the deadline for paying Trade Union fees to the Accounting Department of the District Labor Federation where the enterprise registered for business.

In case of violation of regulations on paying trade union fees, such as late payment or insufficient payment of trade union fees, enterprises will be fined from 12% to under 15% of the total trade union fees due at the time the administrative violation record is made, but the maximum fine shall not exceed 75,000,000 VND.

Additionally, within 30 days from the date of the penalty decision, the enterprise must pay the overdue, insufficient, or unpaid trade union fees and the accrued interest on these amounts according to the highest non-term deposit interest rate published by state-owned commercial banks at the time of penalty for the violation.

Nguyen Trinh

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