When it comes to tax obligations to be paid:
• If you are a consumer, you will immediately think of value-added tax.
• If you are an employee, you will think of personal income tax.
• If you are a business, you will immediately think of corporate income tax.
We usually only think about the amount of tax to be paid and are confident that not many people pay attention to the time for filing these taxes, leading to late filing and administrative penalties.
This article discusses administrative penalty levels for businesses that file taxes late, which often arise in practice.
TIMEFRAMES FOR BUSINESSES TO SUBMIT TAX RETURNS
The timeframes in which businesses need to submit common tax returns are regulated as follows:
The Tax Administration Law sets the deadline for submitting value-added tax, corporate income tax, and personal income tax returns as follows:
• For monthly filing: No later than the 20th day of the following month.
• For quarterly filing: No later than the last day of the first month of the next quarter.
• For annual tax settlement returns: No later than the last day of the third month from the end of the calendar year or fiscal year.
• For each tax obligation occurrence: No later than the 10th day from the date of tax obligation occurrence.
• In cases of business division, merger, dissolution, the deadline is no later than 45 days from the decision date.
The administrative penalties for violations of tax reporting deadlines are as follows, according to Decree 125 of 2020:
• Verbal warning: for late filings between 1 day and 5 days, with mitigating circumstances.
• Fines ranging from 2,000,000 to 5,000,000 VND: for late filings between 1 day and 30 days, with no mitigating circumstances.
• Fines ranging from 5,000,000 to 8,000,000 VND: for late filings between 31 days and 60 days.
• Fines ranging from 8,000,000 to 15,000,000 VND for the following cases:
Late filings between 61 days and 90 days or over 91 days with no tax payable;
Failure to file tax returns with no tax payable;
Failure to submit annexes as prescribed for enterprises with related-party transactions accompanying corporate income tax finalization dossiers.
• Fines ranging from 15,000,000 to 25,000,000 VND: for the act of filing tax returns more than 90 days after the deadline, with tax payable, and the taxpayer has paid the full amount of tax and late payment interest into the state budget before the tax authority announces its decision to inspect or audit taxes or before the tax authority draws up a record of the late filing.
OTHER NOTES
Enterprises will be fined from 10,000,000 to 20,000,000 VND for publicly disclosing financial reports without audit reports, for cases where the law requires auditing of financial reports.
For the act of not submitting financial reports, the fine is from 40,000,000 to 50,000,000 VND.
These are the summaries regarding administrative penalties for late tax filings as stipulated.
