VI How is the late payment of provisional corporate income tax for the second quarter of 2024 handled? The fee for late payment of provisional corporate income tax for the 2024 HANDLED? Through today’s article, let’s learn about this issue with Pham Consult!
Deadline for payment of provisional corporate income tax for the second quarter of 2024?
Pursuant to Clause 1, Article 55 of the 2019 Tax Administration Law, the tax payment deadline is as follows:
Tax payment deadline
1. In case the taxpayer calculates tax, the latest tax payment deadline is the last day of the tax declaration submission deadline. In case of supplementary tax declaration, the tax payment deadline is the deadline for submitting the tax declaration of the tax period with errors or omissions.
For corporate income tax, provisional payment is made quarterly, the latest tax payment deadline is the 30th day of the first month of the following quarter.
Thus, the deadline for paying provisional corporate income tax for the second quarter (ie April, May, June) is the latest 30th day of the first month of the third quarter, ie July 30, 2024. In case the last day of the deadline is a weekend or a holiday, the deadline ends at the end of the next working day following that holiday as prescribed in Clause 5, Article 148 of the 2015 Civil Code.
How will late payment of provisional corporate income tax for the second quarter of 2024 be handled?
Pursuant to Clause 1, Article 59 of the 2019 Law on Tax Administration, the cases of late payment of tax arrears are stipulated as follows:
Handling of late payment of tax arrears
1. Cases of late payment of tax arrears include:
a) Taxpayers pay tax arrears compared to the prescribed deadline, the extended deadline for tax payment, the deadline stated in the tax authority’s notice, the deadline in the tax assessment decision or the handling decision of the tax authority;
b) Taxpayers make additional tax declarations that increase the amount of tax payable or the tax authority or competent state agency inspects and detects an understatement of the amount of tax payable, then late payment of tax arrears must be paid 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 expiration of the tax payment deadline of the original customs declaration;
c) If a taxpayer makes a supplementary tax declaration that reduces the amount of tax refunded or the tax authority or a competent state agency conducting an inspection discovers that the amount of tax refunded is less than the amount of tax refunded, the taxpayer must pay a late payment fee for the amount of tax refunded that must be recovered from the date of receipt of the refund from the state budget;
d) In cases where the tax arrears are paid in installments as prescribed in Clause 5, Article 124 of this Law;
dd) In cases where the tax arrears are not subject to administrative penalties for tax administration violations due to the expiration of the statute of limitations for penalties but the tax arrears are collected as prescribed in Clause 3, Article 137 of this Law;
e) In cases where the tax arrears are not subject to administrative penalties for violations specified in Clauses 3 and 4, Article 142 of this Law;
g) Agencies and organizations authorized by tax authorities to collect taxes that are late in transferring tax, late payment fees, and fines from taxpayers to the state budget must pay late payment fees for the late transfer amount according to regulations.
At the same time, Pursuant to Point b, Clause 6, Article 8 of Decree 126/2020/ND-CP, amended by Clause 3, Article 1 of Decree 91/2022/ND-CP, stipulating the types of taxes declared monthly, quarterly, annually, upon each occurrence of tax obligations, and tax finalization declaration as follows:
Types of taxes declared monthly, quarterly, annually, upon each occurrence of tax obligations, and tax finalization declaration
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6. Types of taxes and revenues 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 until 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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b) Corporate income tax (except corporate income tax from capital transfer of foreign contractors; corporate income tax declared according to the ratio method on revenue for each occurrence or monthly as prescribed in Point d, Clause 4 of this Article). Taxpayers must self-determine the amount of corporate income tax provisionally paid quarterly (including provisionally allocating corporate income tax to the provincial-level locality where there are dependent units, business locations, and transferred real estate other than where the taxpayer has its head office) and deduct the amount of tax provisionally paid from the amount payable according to the annual tax finalization.
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The total amount of corporate income tax provisionally paid for 04 quarters must not be less than 80% of the corporate income tax payable according to the annual settlement. In case the taxpayer pays less than the amount of tax provisionally paid for 04 quarters, he/she must pay late payment interest calculated on the tax underpayment from the day following the last day of the deadline for provisional payment of corporate income tax for the 04th quarter to the day immediately preceding the day of payment of the remaining tax to the state budget.
Accordingly, corporate income tax is a type of tax provisionally paid quarterly and declared for settlement annually.
Therefore, late payment of corporate income tax for the 2nd quarter is not subject to handling of late payment of tax according to the above regulations and it is not required to declare and submit a quarterly provisional corporate income tax declaration and the amount of corporate income tax provisionally paid will be determined by the enterprise itself. Therefore, the act of late payment, non-payment, or provisional payment of corporate income tax is not subject to penalties.
However, in case the taxpayer is late in paying (paying less) than the amount of tax to be provisionally paid for 04 quarters, he/she must pay late payment interest calculated on the amount of tax underpaid from the day following the last day of the deadline for provisional payment of corporate income tax for the 04 quarter to the day immediately preceding the date of payment of the remaining tax to the state budget.
In which, the amount of corporate income tax provisionally paid for 04 quarters must not be lower than 80% of the corporate income tax payable according to the annual settlement.
How to calculate late payment interest for provisional corporate income tax in 2024?
Pursuant to Clause 2, Article 59 of the 2019 Law on Tax Administration, the method of calculating late payment interest for provisional corporate income tax is as follows:
Handling of late payment of tax
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2. The rate of late payment interest and the time for calculating late payment interest are prescribed as follows:
a) The rate of late payment interest is 0.03%/day calculated on the amount of late payment tax;
b) The period for calculating late payment interest is calculated continuously from the day following the date of occurrence of late payment interest as prescribed in Clause 1 of this Article to the day immediately preceding the day on which the tax debt, tax refund, additional tax, fixed tax, and late transfer tax have been paid to the state budget.
Thus, late payment of corporate income tax is calculated at 0.03%/day on the late tax amount.
The period for calculating late payment interest is calculated continuously from the day following the date of occurrence of late payment interest to the day immediately preceding the day on which the tax debt, tax refund, additional tax, fixed tax, and late transfer tax have been paid to the state budget.
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