According to the provisions of the Tax Administration Law 2019, the deadline for submitting tax declaration dossiers for taxes with a tax period according to the year is prescribed as follows: "The latest is the last day of the fourth month from the end of the year. calendar for personal income tax finalization records of individuals who directly finalize tax”. Thus, the personal income tax finalization time of 2023 is approaching. This requires everyone to grasp the specific regulations to implement, ensuring that they do not violate the provisions of the law.
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1. Deadline for personal income tax settlement in 2023
The deadline for personal income tax finalization in 2023 is specified in Clause 2, Article 44 of the Law on Tax Administration 2019 as follows:
- No later than the last day of the 3rd month from the end of the calendar year or fiscal year for the annual tax finalization dossier; no later than the last day of the first month of the calendar year or fiscal year for the annual tax return;
- No later than the last day of the 4th month from the end of the calendar year for the personal income tax finalization dossier of the individual who directly finalizes the tax;
- No later than December 15 of the preceding year, for flat tax declaration dossiers of business households and individuals paying tax by the presumptive method; In case the business household or individual is new to the business, the time limit for submitting a flat tax return is 10 days from the date of starting the business.
2. Is there a penalty for not finalizing personal income tax in 2023?
If violating the deadline for submitting personal income tax finalization dossiers, the fines shall be as follows:
- A warning will be imposed for submitting tax declaration dossiers beyond the deadline from 01 days to 05 days and there are extenuating circumstances.
- A fine ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for submitting tax declaration dossiers beyond the deadline from 01 days to 30 days, except for the case specified in Clause 1 of this Article.
- A fine ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for submitting tax declaration dossiers beyond the prescribed time limit of 31 days to 60 days.
- A fine of between VND 8,000,000 and 15,000,000 shall be imposed for one of the following acts:
+ Submitting tax declaration dossiers beyond the prescribed time limit of 61 days to 90 days;
+ Submitting tax declaration dossiers 91 days or more past the prescribed time limit but no tax payable is incurred;
+ Failing to submit tax declaration dossiers but not generating payable tax amounts;
+ Failing to submit appendices according to regulations on tax administration for enterprises having related-party transactions together with the enterprise income tax finalization dossiers.
- A fine ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for submitting tax declaration dossiers over 90 days after the deadline for submitting tax declaration dossiers, generating tax payable and taxpayers. have fully paid tax and late payment interest to the state budget before the time the tax authority announces the decision on tax inspection or tax inspection or before the tax authority makes a record on late submission of tax declaration dossiers. tax according to the provisions of Clause 11 Article 143 of the Law on Tax Administration 2019.
In case the fine amount, if applied under this Clause, is larger than the tax amount incurred on the tax return, the maximum fine amount, in this case, is equal to the arising tax payable on the tax return, but not lower than the tax amount. then the average of the fine bracket specified in Clause 4, Article 13 of Decree No. 125/2020/ND-CP.
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3. Cases not required to finalize personal income tax in 2023
Individuals earning incomes from wages and salaries in the following cases are not required to finalize personal income tax:
(1) Individuals whose personal income tax amount to pay more after the final settlement of each year is 50,000 VND or less. Tax-exempt individuals in this case determine the exempted tax amounts themselves, are not required to submit personal income tax finalization dossiers, and are not required to submit tax exemption dossiers. In case the settlement period from 2019 and earlier has been settled before the effective date of Decree 126/2020/ND-CP, it will not be processed retroactively;
(2) Individuals whose personal income tax payable is smaller than the temporarily paid tax amount without request for tax refund or offset in the next tax return period;
(3) Individuals earning incomes from wages and salaries, signing labor contracts for 3 months or more at a unit, and at the same time earning an average monthly income of not more than VND 10 million in other places in a year, and having may withhold personal income tax at the rate of 10%, if there is no request, no tax finalization is required for this income;
(4) Individuals whose employer buys life insurance (except voluntary retirement insurance), other optional insurance with accumulated premiums that the employer or insurance enterprise has deducted. except for PIT at the rate of 10% on the premium amount corresponding to the part purchased or contributed by the employer to the employee, the employee is not required to finalize PIT on this income.
Note: In case income-paying organizations and individuals do not generate income, they are not required to declare PIT finalization.
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