Enterprises are obliged to declare and pay taxes by themselves according to the provisions of Vietnam law. In case of late submitting, there will be administrative penalties.
Legal grounds:
- Decree No. 125/2020/ND-CP.
We get the following questions:
My company has just received a notice from the tax authority asking to work because the previous person in charge of accounting has quit his job but has not filed the PIT report because the company does not have to pay PIT. I want to ask how much can the company be fined?
During the business operation, enterprises must declare and self-determine the payable tax amount. Therefore, if misunderstood the tax laws, it may lead to underpayment of tax reports. Special attention should be paid to VAT and PIT reporting.
Businesses should note:
- For VAT: Monthly/quarterly, whether or not having value-added invoices, the enterprise must still submit a VAT declaration;
- For PIT: Monthly/quarterly, if the enterprise has a salary or income payment, it must submit a PIT declaration (whether or not there is a PIT payment).
If enterprises fail to submit tax reports on time, it will be penalized according to the provisions of Article 13 of Decree No. 125/2020/ND-CP as follows:
Article 13. Penalties for violations of the deadline for submitting tax declarations
- A warning will be imposed for the act of submitting tax declaration dossiers beyond the deadline from 01 day to 05 days and there are extenuating circumstances.
- A fine ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for submitting tax declaration dossiers beyond the deadline from 01 day to 30 days, except for the case specified in Clause 1 of this Article.
- A fine ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for submitting tax declaration dossiers beyond the deadline from 31 days to 60 days.
- A fine of between VND 8,000,000 and 15,000,000 shall be imposed for one of the following acts:
- Submitting tax declaration dossiers beyond the deadline from 61 days to 90 days;
- Submitting tax declaration dossiers beyond the deadline 91 days or more but no tax payable is incurred;
- Failing to submit tax declaration dossiers but no tax payable is incurred;
- Failing to submit the appendices according to regulations on tax administration for enterprises having related-party transactions together with the enterprise income tax finalization dossiers.
- A fine ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for submitting tax declaration dossiers overdue for more than 90 days from the deadline for submitting tax declaration dossiers, generating tax payable and the taxpayer has paid the full amount of tax and late payment interest to the State before the time the tax agency announces the decision on tax inspection or before the time the tax authority makes a record on the act of late declare tax according to the provisions of Clause 11 Article 143 of the Law on Tax Administration.
- In case the fine amount, if applied under this Clause, is larger than the tax amount incurred on the tax return, the maximum fine amount in this case is equal to the arising tax payable on the tax return, but not lower than the average of the fine bracket specified in Clause 4 of this Article.
- Remedial measures:
- Enforce the payment of the late tax payment amount to the State, for violations specified in Clauses 1, 2, 3, 4 and 5 of this Article in case the taxpayer is late in submitting the tax return. leads to late payment of tax;
- Enforced submission of tax declaration dossiers and appendices together with tax declaration dossiers, for the acts specified at Points c and d, Clause 4 of this Article.
According to the above provisions:
- The fine level is divided according to each level and based on the time of late submission of tax reports;
- In addition to fines, enterprises must additionally submit a complete tax report;
- If tax payable is incurred, the enterprise must fully pay tax and interest due to late tax payment to the State.
