How often is the tax clearance deadline prescribed?

Personal income tax is no longer a strange concept to Vietnamese people. But many people still do not know the specific concept, tax finalization deadline, and the online personal income tax finalization process. How often do you settle taxes? How many years should a business finalize its tax before it is legal? How should tax clearance documents be prepared? All will be in this article.

1. What is PIT finalization?

Finalization of personal income tax is the act of individuals declaring tax amounts in a tax year regarding additional tax issues that need to be paid, refunding overpaid tax amounts, and offsetting taxes in the next period.

Why must personal income settlement be settled? – The implementation of personal income tax finalization procedures aims to limit:

  • Tax authorities will impose administrative penalties on individuals who have to pay additional taxes without declaring and finalizing taxes on time.
  • Individuals who have overpaid but do not declare and finalize tax on time will not be refunded the overpaid tax amount. At the same time, the offset regime cannot be applied to the next tax declaration period.

2. How often does a business finalize taxes?

According to Circular No. 166/2013/TT-BTC, issued on November 15, 2013, on penalties for tax administrative violations, the Ministry of Finance has the following regulations: For tax evasion, If tax fraud is not serious enough to be prosecuted for criminal liability, the statute of limitations for sanctioning is 5 years, from the date of commission of the violation to the date of issuance of the sanctioning decision. The date of violation is the day following the last day of the tax declaration submission deadline of the tax period in which the taxpayer commits the violation.

With the above regulations, if more than 5 years do not carry out tax finalization, the enterprise will be considered in the case of tax evasion, and will be subject to penalties for late tax payment, tax evasion and late payment fines. into the budget; At the same time, you must self-finalize taxes for each year that has not yet been declared.

Thus, the time limit for tax clearance requirements every year has not been specifically specified. But if the settlement is not completed for more than 5 years, businesses will be subject to penalties according to current legal regulations.

Tax clearance requirements Vietnam 2024

>>>Read more: Tax accounting and auditing services for foreign businesses in Vietnam

3. Businesses should be proactive when finalizing taxes

Because there is no set deadline, many businesses choose to settle taxes once every 5 years. However, tax finalization over a long period of time can easily lead to confusion. Even if it is not done in time, businesses will have to pay a large and costly fine. Enterprises should proactively carry out personal income tax finalization on time. To avoid unfortunate risks that may occur, businesses should be more proactive when finalizing taxes by proactively submitting tax finalization requests to tax authorities. When receiving this request, the tax authority will rely on the business field and business scale of each individual and business to determine an appropriate tax settlement time. Businesses will have a clear time basis to be more proactive in performing tax finalization.

Businesses should be proactive when finalizing taxes.

4. Request documents when businesses finalize taxes

When performing tax finalization, businesses will usually have to prepare a set of documents that fully meet the following tax clearance requirements:

  • Corporate income tax finalization declaration according to form No. 03/TNDN.
  • Final year financial report. Depending on the circumstances, an enterprise can also report its financials up to the time of the decision to dissolve, split, merge, consolidate, convert the type of business, change the form of ownership or terminate business operations. joint.
  • Appendix of results of production and business activities of the enterprise. Depending on each field of production and business, businesses choose the appropriate type of appendix.

Smart Solutions For Business Company Limited(S4B Vietnam) hopes that the above article has helped you and your business answer the regulations on how often to finalize taxes. Any questions or comments, please contact us.

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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