Time limit for submitting quarterly tax report in Vietnam

The quarterly tax reporting is an important activity that helps tax administration agencies grasp the operating situation of enterprises. Therefore, enterprises that are required to submit quarterly tax reports must clearly understand the submission deadline to avoid being fined according to the law. So how long is the time limit for submitting quarterly tax report in Vietnam? Viet An Law will answer in the article below.

Legal basis

• Law on Tax Administration 2019;
• Decree 125/2020/ND-CP regulates penalties for administrative violations of taxes and invoices.
• Decree 126/2020/ND-CP details several articles of the Law on Tax Administration, as amended and supplemented by Decree 91/2022/ND-CP.

What is the tax reporting?

Tax reporting is the activity of declaring input value added tax (VAT) invoices generated during the process of purchasing goods or services and sale invoices issued by the unit itself as output VAT.

What types of tax reports must be submitted quarterly?

Value Added Tax (VAT)

• For newly established enterprises, VAT declaration is quarterly
• For enterprises, if the previous year’s revenue exceeds 50 billion, they must declare quarterly.

Personal Income Tax (PIT)

If an enterprise reports VAT quarterly, it must also submit quarterly PIT reports.

In case an enterprise reports VAT monthly, it is based on one of the following cases:

• If in the month the PIT payable is more than 50,000,000 VND, it must be reported monthly.
• If in the month the PIT payable is less than 50,000,000 VND, it must be declared quarterly.

Note: For corporate income tax (CIT), you only have to temporarily calculate the payment amount and do not have to submit quarterly tax reports.

Time limit for submitting quarterly tax report in Vietnam

Pursuant to the provisions in Point b, Clause 1, Article 44 of the Law on Tax Administration 2019 on the time limit for submitting the tax declaration dossier: “For taxes declared quarterly: no later than the last day of the first month of the succeeding quarter.”

For example, ABC Limited Liability Company (LLC) is required to submit quarterly VAT reports. The time limit for submitting the tax report for the 3^rd quarterly of 2023 of ABC LLC will start from October 1^st, 2023 to October 31^st, 2023. Thus, the time limit for submitting the tax report for the third quarterly is October 31^st, 2023.

In case the taxpayer is required to report VAT or PIT (reporting excluding PIT from salaries and wages) quarterly, the tax reporting deadline with the following timelines:

Note:

• During the quarterly, whether the enterprise generates revenue or not, and does not incur PIT deductions, it must still submit VAT declarations and PIT reports according to regulations.
• Enterprises self-balance the provisional CIT rate and then at the end of the year, enterprises will synthesize revenues and expenses to finalize the total CIT payable in the year (if any).

Guidance on performing quarterly tax reports

How to perform quarterly VAT reports

How to perform PIT reports

• Quarterly PIT declaration according to form No. 05/KK-TNCN according to Circular 92/2015/TT-BTC.
• In case of tax deduction for income from investing the capital, transfer securities, copyrights, commercial franchise, or winning prizes, declare and submit the declaration according to form No. 03/KK-TNCN quarterly.
• In case during the quarterly, the enterprise does not deduct the PIT, it does not have to report the PIT in that quarterly. Pursuant to Clause 2, Article 1 of Decree No. 91/2022/ND-CP stipulates: “The declarant of personal income tax is the income payer, declares personal income tax monthly or quarterly, and does not deduct personal income tax in the same monthly or quarterly”.

Form of submitting quarterly tax reports

Subjects who must submit quarterly tax reports can choose one of the following two forms to submit tax reports:

• Online form.
• Directly form to the tax agency.

Penalties for violating the time limit for submitting quarterly tax report

The quarterly tax reporting is one of the most important tax administrative procedures for enterprises. If enterprises do not submit quarterly tax reports on time, they will be punished according to the law on tax administration. Pursuant to Article 13 of Decree 125/2020/ND-CP regulating penalties for violations of the tax declaration dossier submission deadline as follows:

• For acts of submitting tax finalization declarations beyond the deadline from 01 day to 05 days and there are extenuating circumstances, a caution penalty will be imposed.
• For acts of submitting tax finalization declarations beyond the deadline from 01 day to 30 days, the fine will be from 2,000,000 VND to 5,000,000 VND.
• For acts of submitting tax finalization declarations beyond the deadline from 31 days to 60 days, the fine will be from 5,000,000 VND to 8,000,000 VND.
• For acts of submitting tax finalization declarations beyond the deadline from 61 days to 90 days, the fine will be from 8,000,000 VND to 15,000,000 VND.
• For acts of submitting tax finalization declarations 91 days or more beyond the deadline but not incurring tax payable, the fine will be from 8,000,000 VND to 15,000,000 VND.
• For acts of not submitting tax finalization declarations but not incurring tax payable, the fine will be from 8,000,000 VND to 15,000,000 VND.
• For acts of submitting tax finalization declarations beyond the deadline of 90 days from the due date of tax declaration submission, if tax payable arises, the fine will be from 15,000,000 VND to 25,000,000 VND.
• If the fine is from 15,000,000 VND to 25,000,000 VND greater than the amount of tax incurred on the tax report, the maximum fine amount, in this case, is equal to the amount of tax payable on the tax report but not lower than the average fine range from 8,000,000 VND to 15,000,000 VND.

Some frequently asked questions about tax reporting

Can a person obliged to submit quarterly tax reports have an extension of time for submitting tax reports?

According to Article 46 of the Law on Tax Administration 2019, a person who is obliged to pay taxes and submit quarterly tax reports can have the time limit for submitting tax reports extended in the following cases: “Taxpayers that are unable to submit their tax reports on time due to natural disasters, catastrophes, epidemics, fires or unexpected accidents will enjoy an extension for submitting tax reports by the head of the directly managing tax agency”.

The time limit for submitting quarterly tax report in Vietnam is extended to exceed 30 days and must be reported each time a tax liability arises.

To extend the time limit for submitting quarterly tax report in Vietnam, what do taxpayers need to do?

• Taxpayers must send to the tax agency a written request to extend the time limit for submitting quarterly tax reports before the tax report submission deadline expires, clearly stating the reason for the extension request with confirmation from the issuing People’s Committee of Commune or Commune Police, Ward or Town where the case arises is extended
• Within 03 working days from the date of receiving the written request for an extension of tax report submission, the tax agency must respond in writing to the taxpayer on whether or not to accept the extension of tax report submission.
• Thus, in cases where taxpayers are unable to submit their tax reports on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents, they will enjoy an extension for submitting tax reports by the head of the directly managing tax agency.

Clients who have difficulty declaring taxes, reporting taxes, or need to use tax accounting services, please contact Viet An Tax Agent for the most effective support!