VI If there is no entity with income sufficient to pay personal income tax, do businesses need to make a personal income tax settlement? When is the deadline for businesses to submit tax declarations for taxes calculated annually? Can businesses extend the deadline for submitting tax declarations? Through today’s article, let’s find out about this issue with Pham Consult!
If there is no entity with income sufficient to pay personal income tax, do businesses need to make a personal income tax settlement?
According to the provisions of Point d, Clause 6, Article 8 of Decree 126/2020/ND-CP, the types of taxes to be declared monthly, quarterly, annually, each time a tax obligation arises and tax finalization are as follows:
Types of taxes to be declared monthly, quarterly, annually, each time a tax obligation arises and tax finalization
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6. Types of taxes and revenues to be declared for annual finalization and finalization up to the time of dissolution, bankruptcy, termination of operations, termination of contracts or reorganization of enterprises. In case of conversion of enterprise type (excluding equitized state-owned enterprises) in which the converted enterprise inherits all tax obligations of the converted enterprise, it is not required to declare tax finalization up to the time of the decision on enterprise conversion, the enterprise declares finalization at the end of the year. Specifically as follows:
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d) Personal income tax for organizations and individuals paying taxable income from salaries and wages; Individuals with income from salaries and wages authorize tax settlement to organizations and individuals paying income; individuals with income from salaries and wages directly settle taxes with tax authorities. Specifically as follows:
d.1) Organizations and individuals paying income from salaries and wages are responsible for declaring and settling taxes and settling on behalf of individuals authorized by organizations and individuals paying income, regardless of whether tax deductions arise or not. In case organizations and individuals do not pay income, they do not have to declare and settle personal income tax. In case an individual is an employee transferred from an old organization to a new organization due to the old organization merging, consolidating, dividing, separating, or converting the type of enterprise or the old organization and the new organization are in the same system, the new organization is responsible for tax settlement under the authorization of the individual for both the income paid by the old organization and collecting the personal income tax deduction certificate issued by the old organization to the employee (if any).
Thus, in case there is no subject with income to the level of personal income tax, the enterprise must still make tax settlement on behalf of the individuals authorized by the enterprise paying the income, regardless of whether tax deductions arise or not.
When is the deadline for enterprises to submit tax declarations for taxes calculated on an annual basis?
According to Clause 2, Article 44 of the Law on Tax Administration 2019, the deadline for submitting personal income tax is as follows:
Time limit for submitting tax declarations
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2. The deadline for submitting tax declarations for taxes with annual tax periods is as follows:
a) No later than the last day of the third month from the end of the calendar year or fiscal year for annual tax settlement dossiers; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration dossiers;
b) No later than the last day of the fourth month from the end of the calendar year for personal income tax settlement dossiers of individuals directly settling taxes;
c) No later than December 15 of the previous year for lump-sum tax declaration dossiers of business households and business individuals paying tax by the lump-sum method; In the case of new business households and individuals, the deadline for submitting lump-sum tax declaration dossiers is no later than 10 days from the date of commencement of business.
Thus, the deadline for submitting tax declaration dossiers for types of taxes with annual tax calculation periods is stipulated as follows:
– No later than the last day of the third month for annual tax settlement dossiers; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration dossiers;
– No later than the last day of the fourth month from the end of the calendar year for personal income tax settlement dossiers of individuals directly settling taxes.
Can businesses extend the deadline for submitting personal income tax returns?
According to Article 46 of the 2019 Law on Tax Administration, tax filing extensions are as follows:
Extension of tax filing deadline
1. Taxpayers who are unable to submit tax returns on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents will be granted an extension by the head of the tax authority directly managing them.
2. The extension period shall not exceed 30 days for submitting monthly, quarterly, annual, or tax filings for each time a tax obligation arises; 60 days for submitting tax finalization filings from the deadline for submitting tax filings.
3. Taxpayers must send a written request for extension of tax declaration submission to the tax authority before the deadline for tax declaration submission, clearly stating the reason for the extension request, certified by the People’s Committee of the commune or the police of the commune, ward or town where the case of extension prescribed in Clause 1 of this Article occurs.
4. Within 03 working days from the date of receipt of the written request for extension of tax declaration submission, the tax authority must respond in writing to the taxpayer regarding whether or not to accept the extension of tax declaration submission.
Thus, enterprises can extend the payment of personal income tax, but only in cases where they are unable to submit tax declarations on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents, will the head of the tax authority directly managing them grant an extension of tax declaration submission.
According to Article 46 of the 2019 Law on Tax Administration, tax filing extensions are as follows:
Extension of tax filing deadline
1. Taxpayers who are unable to submit tax returns on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents will be granted an extension by the head of the tax authority directly managing them.
2. The extension period shall not exceed 30 days for submitting monthly, quarterly, annual, or tax filings for each time a tax obligation arises; 60 days for submitting tax finalization filings from the deadline for submitting tax filings.
3. Taxpayers must send a written request for extension of tax declaration submission to the tax authority before the deadline for tax declaration submission, clearly stating the reason for the extension request, certified by the People’s Committee of the commune or the police of the commune, ward or town where the case of extension prescribed in Clause 1 of this Article occurs.
4. Within 03 working days from the date of receipt of the written request for extension of tax declaration submission, the tax authority must respond in writing to the taxpayer regarding whether or not to accept the extension of tax declaration submission.
Thus, enterprises can extend the payment of personal income tax, but only in cases where they are unable to submit tax declarations on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents, will the head of the tax authority directly managing them grant an extension of tax declaration submission.
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