1. Tax Settlement Deadline for Personal Income Tax (PIT)
In accordance with points a and b, Clause 4, Article 44 of the 2019 Tax Administration Law, the deadline for filing and settling Personal Income Tax (PIT) is as follows:
- For organizations responsible for tax payments: No later than the last day of March following the end of the calendar year.
- For individuals directly settling their taxes: No later than the last day of April following the end of the calendar year. In cases where there is a tax refund but the tax settlement declaration is submitted late, no administrative penalty will be imposed for the delayed tax settlement declaration.
- If the tax settlement deadline falls on a public holiday, it will be extended to the next working day.
Therefore, the tax settlement deadline for organizations in 2023 is 31 March 31 2023. For individuals, the PIT settlement deadline is 4 May 2023.
2. Penalties for Late Personal Income Tax Settlement
According to Article 13 of Decree 125/2020/ND-CP, individuals who fail to settle their PIT within the prescribed deadline will be subject to administrative penalties as follows:
| No. | Violations | Penalty | Supplemented penalty |
| 1 | Filing tax returns after the deadline by 1-5 days with mitigating circumstances. | Warning | Compelling the full payment of deferred tax amounts into the state budget if the taxpayer delays filing their tax return, leading to the late payment of taxes; |
| 2 | Filing tax returns after the deadline by 1-30 days (exclude circumstance no.1) | 2-5 million dongs | |
| 3 | Filing tax returns after the deadline by 31-60 days | 5-8 millions dongs | |
| 4 | – Filing tax returns after the deadline by 61 -90 days- Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;- Failing to submit tax returns if none of additional taxes is incurred (*);- Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers (**) | 8-15 million dongs | – Compelling the full payment of deferred tax amounts into the state budget if the taxpayer delays filing their tax return, leading to the late payment of taxes;- Compelling the submission of tax returns, enclosing annexes, in case of committing the acts specified in (*) and (**) |
3. Handling Late Tax Payments
In accordance with Article 59 of the 2019 Tax Administration Law, once a decision on administrative penalties is received, taxpayers are obligated to pay the fines within the specified deadline as stated in the decision. In case of delayed payment, an additional late payment fee will be imposed. The late payment fee is calculated at a rate of 0.03% per day based on the amount of tax overdue. The calculation of the late payment fee is continuous on a daily basis.
As for administrative penalty fines, the late payment fee is determined in Article 42, Section 1 of Decree 125/2020/ND-CP. The late payment fee is calculated at a rate of 0.05% per day based on the amount of the overdue penalty. This rate applies even on public holidays.
Therefore, when taxpayers delay their tax payments, in addition to the penalties specified in the administrative penalty decision, they must also pay the Late Tax Payment Penalty and the Late Penalty Payment
To avoid administrative violations, taxpayers in 2023 should take note of the deadlines for settling Individual Income Tax and making tax payments.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
