DO BUSINESSES THAT PAY DEFICIENCY IN PERSONAL INCOME TAX TO EMPLOYEES HAVE TO PAY LATE PAYMENT MONEY?

For each employee and business, paying personal income tax (PIT) and annual tax finalization regulations is extremely necessary knowledge to help business owners operate their business more easily and effectively. Human resources can protect their financial interests when working. However, not everyone understands these procedures well enough to perform them correctly. So, do businesses that underpay personal income tax for employees have to pay late payment interest? Also Pham Consult learn through this article!

Pursuant to Article 47 of the Law on Tax Administration 2019 stipulates as follows:

Fill out additional tax declaration documents

1. Taxpayers who discover that the tax declaration documents submitted to the tax authority contain errors or omissions may submit additional tax declaration documents within 10 years from the date of expiry of the tax declaration submission deadline for the tax period. There are errors or omissions but before the tax authority or competent authority announces the inspection or examination decision.

2. When the tax agency or competent authority has announced the tax inspection and examination decision at the taxpayer’s headquarters, the taxpayer can still make additional tax declaration documents; Tax authorities shall sanction administrative violations of tax administration for the acts specified in Article 142 and Article 143 of this Law.

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At the same time, based on Article 59 of the Law on Tax Administration 2019 stipulates:

Handling of late tax payment

1. Cases where late payment interest must be paid include:

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b) The taxpayer declares additional tax declaration dossiers to increase the tax amount payable, or the tax administration agency or state agency with authority to check or inspect discovers an understatement of the tax amount payable, then the taxpayer must pay Late payment interest for the increased tax amount payable from the day following the last day of the tax payment deadline of the tax period with errors or omissions or from the date of expiry of the tax payment deadline of the original customs declaration;

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2. The late payment interest rate and time for calculating late payment interest are specified as follows:

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

b) The time to calculate late payment interest is calculated continuously from the day following the date on which late payment interest arises as prescribed in Clause 1 of this Article to the day immediately preceding the date on which the tax debt, tax refund, or tax increase occurs. In addition, the assessed tax and late transfer tax have been paid to the state budget.

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Accordingly, in case your company discovers underpayment of personal income tax for employees, it will be allowed to make additional tax declaration documents within 10 years from the date of expiry of the tax declaration submission deadline for the tax period. There are errors and omissions.

But it must be before the tax authority or competent authority announces the inspection and examination decision.

In case the tax authority or competent authority has announced a decision on tax inspection and examination at the headquarters, your company will still be able to supplement the tax declaration dossier, however in that case your company may be prosecuted. Penalties for administrative violations of tax administration.

When your company declares additional personal income tax returns for employees, increasing the tax amount payable, your company must pay late payment interest.

The late payment interest rate will be 0.03%/day calculated on the late payment tax amount.

Determining the amount of late payment of personal income tax is prescribed in Clause 3, Article 59 of the Law on Tax Administration 2019 as follows:

Handling of late tax payment

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3. Taxpayers determine the amount of late payment interest according to the provisions of Clauses 1 and 2 of this Article and pay it into the state budget according to regulations. In case a taxpayer has tax, late payment interest, or overpayment fines, the provisions in Clause 1, Article 60 of this Law shall comply.

4. If after 30 days from the end of the tax payment deadline, the taxpayer has not paid tax, late payment interest, or fines, the tax administration agency shall notify the taxpayer of the remaining tax and fine amounts. debt and number of days of late payment.

5. Late payment interest will not be charged in the following cases:

a) Taxpayers supplying goods and services paid for with state budget capital, including subcontractors specified in the contract signed with the investor and paid directly by the investor but If you have not yet paid, you will not have to pay late payment interest.

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Accordingly, the amount of late payment of personal income tax will be determined by the taxpayer and paid into the state budget according to regulations.

In what cases are taxpayers required to pay late payment interest exempted from late payment interest?

Cases of exemption from late payment interest are specified in Clause 8, Article 59 of the Law on Tax Administration 2019 as follows:

Handling of late tax payment

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6. Late payment interest is not calculated for cases of debt freezing as prescribed in Article 83 of this Law.

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