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Personal income tax (PIT) payers must know clearly the deadline for making a declaration and paying PIT to avoid sanctions for administrative violations in accordance with law provisions.
The deadline for PIT
The deadline for PIT includes the submission of monthly or quarterly tax declaration dossier and annual tax finalization declaration, within that:
- Monthly or quarterly tax declaration and payment are based on monthly/quarterly income.
- Tax finalization declaration defines the payable tax amount of the tax year: The request for refund of overpaid amounts under enterprise income tax finalization or PIT finalization shall be made, and the balance due must be paid.
* The deadline for temporary submission of monthly or quarterly tax declaration dossiers
The deadline for submission of monthly or quarterly is prescribed in Clause 1, Article 44, Law on tax administration 2019 as follows:
- For taxes declared and paid on a monthly basis: The 20th day of the month following the month in which the tax liability arises.
- For taxes declared and paid on a quarterly basis: The last day of the first month of the quarter following the quarter in which the tax liability arises.
* The deadline for tax finalization declaration
Clause 4, Article 44, Law on tax administration 2019 prescribes the tax deadline for tax finalization declaration in 2022 as follows:
- Individuals who authorize income payers to make tax registration shall submit tax finalization declaration before March 31, 2023.
- Individuals who make tax finalization declarations with tax agencies, the deadline shall be before April 30, 2023.
The sanctions for late submission of personal income tax
2.1. The sanctiob for late submission of personal income tax declaration
Article 13, Decree No. 125/2020/ND-CP, the sanctions for late submission of PIT declaration as follows:No. | Fine | Acts | Additional fines | Base |
1 | Warnings | for late submission of the tax declaration dossier beyond the prescribed period from 01 day to 05 days under extenuating circumstances | Forcible full payment of the late-payment interests into the state budget, in the case where the taxpayer delays in submitting tax declaration dossiers, leading to late payment of tax amount. | Clause 1, Article 13 |
2 | VND 02 - 05 million | For the acts of late submission of the tax declaration dossier beyond the prescribed period from 01 day to 30 days, except for the above case | Clause 2, Article 13 | |
3 | VND 05 - 08 million | For the acts of late submission of the tax declaration dossier beyond the prescribed period from 31 days to 60 days | Clause 3, Article 13 | |
4 | A fine ranging from VND 08 - 15 million for the acts as follows: | - For the acts of late submission of the tax declaration dossier beyond the prescribed period from 61 days to 90 days; - Submitting the tax declaration dossier beyond the prescribed period for - Failing to submit the tax declaration dossier without arising payable tax - Failing to submit appendices as prescribed by regulations on tax administration together with the enterprise income tax finalization dossier, for enterprises that have transfer pricing transactions (**) | Forcible full payment of the late-payment interests into the state budget, in case where the taxpayer delays in submitting tax declaration dossiers, leading to late payment of tax amount. Note: The case (*) and (**) must submit the tax declaration dossier and appendices attached with the tax declaration dossier. | Clause 4, Article 13 |
5 | VND 15 - 25 million | For the acts of submitting tax declaration dossiers past 90 days from the date of expiration of the time limit for submission of tax declaration dossiers, with incurred payable tax amount, and the taxpayer has fully paid tax amounts and late-payment interests into the state budget before the tax agency announces tax examination or tax inspection decisions or makes written records of late submission of tax declaration dossiers. Note: When applying provisions specified in the clause, if the fine is higher than the tax amount arising on the tax declaration dossier, the maximum fine for such case shall be equal to the payable tax amount arising on the tax declaration dossier, but not less than VND 11.5 VND. | Forcible full payment of the late-payment interests into the state budget, | Clause 5, Article 13 |
2.2. The sanction for the handling of cases of late payment of tax
Pursuant to Clause 2, Article 59 of the Law on tax administration 2019, late-payment interest rates and time periods for calculation of late-payment interests are prescribed as follows:
Late payment tax amount = The late-payment interest rate x 0.03%/day x Number of late-payment days
Here are the regulations on the deadline for personal income tax 2023 and the sanctions for late submission of declaration and personal income tax payment. Payers must make timely declarations and PIT payments, especially on the PIT’s financial finalization in 2022 in order to avoid the sanctions.
