Overdue payment of personal income tax may be fined up to 25 million VND

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The tax authority has just answered citizens about a fine of up to 25 million VND if they exceed the deadline for paying personal income tax.

On the Ministry of Finance Information Portal, reader D.T. K. S reflected: In the years from 2021 to 2025, readers incurred surplus PIT amounts but have not submitted tax finalization dossiers.

In 2023 alone, after finalization, the additional tax payable amount was 100,000 VND. Due to negligence, it was not until 2026 that readers submitted personal income tax finalization dossiers for 2023.

Readers wonder if submitting applications in 2026 for the 2023 tax period will be penalized for exceeding the deadline or not?

For the years 2021 and 2022, there is a surplus tax amount of about 1,000,000 VND but so far no settlement dossiers have been submitted, readers wonder if settlement can still be carried out to request tax refund or compensation or not?

Answering this content, Ho Chi Minh City Tax Department is based on current legal regulations as follows:

Based on Clause 5, Article 13 of Decree 125/2020/ND-CP dated October 19, 2020 of the Government stipulating penalties for administrative violations related to taxes and invoices:

5. A fine of between 15,000 VND and 25,000 VND shall be imposed for the act of submitting tax declaration dossiers more than 90 days from the date of expiration of the tax declaration dossier, incurring the amount of tax payable and the taxpayer has paid the full amount of tax and late payment interest into the state budget before the tax authority announces the tax inspection and examination decision or before the tax authority makes a record of the act of late payment of tax declaration dossiers as prescribed in Clause 11, Article 143 of the Law on Tax Administration".

Based on Clause 5, Article 5 of Decree 125/2020/ND-CP dated October 19, 2020 of the Government stipulates:

5. For the same administrative violation of taxes and invoices, the fine level for organizations is 02 times the fine level for individuals...

Regarding the personal income tax finalization dossier for 2023 submitted in 2026 (exceeding the prescribed time limit and incurring a tax payable amount of 100,000 VND), Ms.'s case was administratively sanctioned according to the provisions of Clause 5, Article 5 and Clause 5, Article 13 of Decree 125/2020/ND-CP dated October 19, 2020 of the Government.

For cases of surplus tax payment, Ho Chi Minh City Tax Department shall base on the provisions of the Law on Tax Administration No. 108/2025/QH15 dated December 10, 2025:

Based on Clause 2, Article 15 of the Law on Tax Administration No. 108/2025/QH15 dated December 10, 2025 stipulates:

2. Taxpayers who have tax amounts, other revenues, late payment fees, and overpaid penalties are compensated for the amount of tax, other revenues, late payment fees, and overpaid penalties with the amount of tax, other revenues, late payment fees, penalties payable or are refunded the amount of tax, other revenues, late payment fees, and overpaid penalties when the taxpayer no longer has tax debts. The compensation within or between other types of taxes, other revenues, late payment fees, and penalties is carried out automatically by the Tax Administration Information System or at the request of the taxpayer according to the guidance of the Minister of Finance".

Based on point b, clause 4, Article 15 of the Law on Tax Administration No. 108/2025/QH15 dated December 10, 2025, stipulating cases of non-refund of overpaid tax amounts:

The amount of tax, other revenues, late payment interest, and overdue penalties paid more than 10 years from the date of payment to the state budget that the taxpayer does not compensate for tax payment obligations, other revenues, late payment interest, penalties and does not request tax refunds, other revenues, late payment interest, penalties".

For tax finalization dossiers for 2021 and 2022 with surpaid tax amounts, taxpayers can compensate or refund tax according to the provisions of Clause 2, Article 15 and Point b, Clause 4, Article 15 of the Law on Tax Administration No. 108/2025/QH15 dated December 10, 2025.

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