I want to ask how will enterprises making late submission of tax declarations such as VAT, PIT, etc. be handled? This is the question of Mr. Ha Van Manh in Ho Chi Minh City sent to LawNet on May 14, 2020.
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LawNet would like to answer Mr. Manh’s question as follows:
According to Clause 3 Article 10 of Circular No. 156/2013/TT-BTC of the Ministry of Finance of Vietnam, the deadline for submitting a monthly tax declaration is the 20th of the month succeeding the month in which tax is incurred. This regulation applies to businesses that apply monthly tax declarations. If during the month the business does not deduct personal income tax, it does not need to submit that month's declaration.
Concurrently, according to Point a Clause 2 Article 11 and Point a Clause 3 Article 10 of Circular No. 156/2013/TT-BTC, enterprises with total revenue from selling goods and providing services in the preceding year of over VND 50 billion must submit a monthly value-added tax declaration, no later than the 20th day of the preceding month.
According to Article 9 of Circular No. 166/2013/TT-BTC of the Ministry of Finance of Vietnam, fines for late submission of tax declarations are specified as follows:
- A warning shall be issued if the tax declaration is submitted 01 to 05 days behind the deadline with mitigating circumstances.
- A fine of VND 700,000 shall be imposed if the tax declaration is submitted to the tax authority 01 – 10 days behind deadline (the fine shall not fall below VND 400,000 if there are mitigating circumstances, and shall not exceed VND 1,000,000 if there are aggravating circumstances).
- A fine of VND 1,400,000 shall be imposed if the tax declaration is submitted to the tax authority > 10 to 20 days behind deadline (the fine shall not fall below VND 800,000 if there are mitigating circumstances, and shall not exceed VND 2,000,000 if there are aggravating circumstances).
- A fine of VND 2,100,000 shall be imposed if the tax declaration is submitted to the tax authority > 20 to 30 days behind deadline (the fine shall not fall below VND 1,200,000 if there are mitigating circumstances, and shall not exceed VND 3,000,000 if there are aggravating circumstances).
- A fine of VND 2,800,000 shall be imposed if the tax declaration is submitted to the tax authority > 30 to 40 days behind deadline (the fine shall not fall below VND 1,600,000 if there are mitigating circumstances, and shall not exceed VND 4,000,000 if there are aggravating circumstances).
- The following violations shall incur a fine of VND 3,500,000 (the fine shall not fall below VND 2,000,000 if there are mitigating circumstances, and shall not exceed VND 5,000,000 if there are aggravating circumstances):
+ The tax declaration is submitted >40 to 90 days behind the deadline.
+ The tax declaration is submitted > 90 days behind the deadline but no additional tax is incurred or in the event defined in Clause 9 Article 13 of Circular No. 166/2013/TT-BTC.
+ The tax declaration is not submitted but no additional tax is incurred (unless, by law, the submission of tax declarations is not required).
+ The quarterly tax declaration is not submitted after 90 days from the deadline, but the deadline for submitting the annual tax declaration has not expired.
The above penalty also applies to cases where businesses are late in submitting license fee declarations and other types of annual reports.
Note:
- The deadlines for submitting declarations specified above include the extended deadline under decisions of competent authorities.
- These fines shall not apply if the extended deadline for submitting tax declarations or for paying tax has not expired.
- Taxpayers that submit their tax declarations late shall incur the penalties prescribed above. If their violations lead to late tax payment, an interest on late payment of tax shall be paid as prescribed in Article 106 of the Law on Tax administration of Vietnam and its guiding documents.
- Where the tax declaration is submitted late and the tax authority has issued a decision on tax imposition: If the taxpayer submits a valid tax declaration and accurately determines the tax payable of the period within 90 days from the deadline for submitting the tax declaration, the tax authority shall impose a penalty for late submission of the tax declaration as prescribed above and also impose an interest on late payment of tax. The decision on tax imposition shall be annulled.
Nguyen Trinh
