HOW TO CALCULATE LATE TAX PAYMENT AND CASES TO APPLY

Organizations and individuals that are taxpayers are obliged to declare and pay tax on time. Here are some contents about the cases of tax late payment and how to calculate the tax late payment, invite entrepreneurs, organizations, individuals and readers for reference!

1. 7 cases of tax late payment:

Clause 1, Article 59 of the Tax Management Law 2019 stipulates cases in which late payment is required, including:

1️⃣ Taxpayers are late to pay tax compared with the prescribed time limit, the time limit for tax payment extension, the time limit stated in the notice of the tax authority, the time limit stated in the decision on tax imposition or handling decision of the tax management department.

2️⃣ Taxpayers who make additional declarations to tax declaration documents that increase the payable tax amount or tax management department or other competent state department inspect and detect, if the tax payable is found to be under-declared, a late payment interest must be paid for the increased payable tax amount.

The time for calculating late payment is counted from the day following the last day of the tax payment deadline of the tax period with mistakes or from the date of expiration of the tax payment time limit of the original customs declaration.

3️⃣ In case of gradual payment of tax debt specified in Clause 5, Article 124 of the Tax Management Law 2019.

4️⃣ The taxpayer makes additional declarations to the tax declaration file that reduces the refunded tax amount, or the tax management department or other competent state department has the authority to inspect and detect, if the refunded tax amount is found to be smaller than the refunded tax amount, a late payment interest must be paid with the refunded tax amount which must be recovered from the date of receipt of the refund from the state budget.

5️⃣ In case the taxpayer is not sanctioned for an administrative violation on tax administration due to the expiration of the statute of limitations for sanctioning, but has arrears in the tax arrears as prescribed in Clause 3, Article 137 of the Tax Management Law 2019.

6️⃣ In case the taxpayer is not sanctioned for an administrative violation of tax administration with the acts specified in Clauses 3 and 4, Article 142 of the Tax Management Law 2019

7️⃣ Agencies or organizations authorized to collect tax by tax management department that are late in transferring taxpayers' tax money, late payment interest, or fines to the state budget must pay late payment with the amount of late transfer according to the regulations.

2. How to calculate tax late payment?

Clause 2, Article 59 of the Tax Management Law 2019 stipulates the rate of tax late payment and time for late payment as follows:

a) The late payment  rate is 0.03%/day calculated on the tax late payment amount;

b) The time for calculating late payment is calculated continuously from the day following the day on which the late payment interest is incurred specified in Clause 1 of this Article to the day immediately preceding the day on which the tax arrears, tax refund or tax increases, fixed tax, and late-transfer tax already paid into the state budget.

Thus, one-day late payment is calculated as follows:

1 day late payment rate = 0.03% x Tax late payment amount

3. When is late payment exempt?

According to Clause 8, Article 59 of the Tax Management Law 2019, in principle, taxpayers must pay late payment interest but will be exempted from late payment interest if they fall into force majeure circumstances, specifically:

- Taxpayers suffer material damage due to natural disasters, epidemics, catastrophes, fires, unexpected accidents.

- Other force majeure cases according to the Government's regulations.

4. 4 cases where late payment is not charged

Clause 5 of the Law on Tax Administration 2019 stipulates cases in which no late payment interest is charged, specifically:

1️⃣ Taxpayers providing services and goods are paid by the state budget, including subcontractors specified in the contract signed with the investor and paid directly by the investor but not yet paid for by the investor. payment.

The amount of tax arrears, excluding late payment, is the total amount of tax owed to the taxpayer's budget but not exceeding the unpaid budget amount.

2️⃣ Goods subject to assessment and analysis to determine the exact amount of tax payable shall not be charged late payment interest while waiting for assessment and analysis results.

3️⃣ Goods that do not have an official price at the time of registration of the customs declaration will not be charged late payment fees during the time when the official price is not available.

4️⃣ Goods with actual payments, goods with adjustments added to the customs value that have not been determined at the time of customs declaration registration, are not required to pay late payment interest during the time when the amount has not been determined. actual payment, adjustments added to the customs value.

Note: Late payment interest has not been charged for cases where debt is frozen according to Article 83 of the Tax Management Law 2019.