Late tax payment interest is an amount that an enterprise must pay when there is a situation of late payment of tax. The following article aims to help businesses better understand this amount, thereby improving tax payment awareness.
Previously, late payment interest was a fine amount according to the provisions of Article 106 of the Law on Tax Administration 2006. But from July 1, 2013, is the time when the Law amends and supplements a number of Articles of the Law on Tax Administration (also known as the Law on Tax Administration as amended in 2012) take effect. Late payment interest is no longer a fine.
1. Cases in which to pay Tax late payment interest
Enterprises must pay late payment interest in the following cases:
– Late payment of tax compared to the prescribed time limit, the time limit for tax payment extension, the time limit specified in the tax authority’s notice, the time limit specified in the tax authority’s decision on handling of tax-law violations, and the tax authority’s decision on handling of tax violations. handling decisions of competent state agencies.
– Underpaying tax due to incorrect declaration of payable tax amount, exempted tax amount, reduced tax amount, refunded tax amount of previous declaration periods.
In addition, in the case of commercial banks, other credit institutions and service organizations as prescribed by law, the State Treasury, tax authorities and organizations authorized to collect tax shall collect tax amounts, late payment interest, fines of enterprises but late to pay the collected amount into the state budget, the above subjects must pay late payment interest calculated on the tax amount collected but not yet remitted to the state budget.
2. Calculation of late payment tax
Enterprises self-determine the amount of late payment interest based on the amount of late payment tax, the number of days of late payment and the amount of late payment interest, according to the following formula:
Amount of late payment tax = Amount of late tax payment x Amount of late payment x Number of days of late payment
The number of days of late payment of tax (including holidays and days off as prescribed by law) is counted from the day immediately following the last day of the tax payment time limit or tax payment extension time limit as prescribed by law. tax, the deadline for tax payment stated in the notice or decision on handling of tax violations of the tax authority or the handling decision of the competent state agency until the date that the enterprise pays the tax amount to the bank. state books.
The late payment interest rate is 0.03%/day calculated on the late payment tax amount, according to the provisions of Clause 3, Article 3 of Circular 130/2016/TT-BTC:
“Article 3. Amending and supplementing Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration; Law amending and supplementing a number of articles of the Law on Tax Administration and Decree No. 83/2013/ND-CP dated July 22, 2013 of the Government (amended and supplemented according to Circular No. 119/2014/ TT-BTC dated August 25, 2014, Circular No. 151/2014/TT-BTC dated October 10, 2014 and Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance) as follows) :
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3. To amend and supplement Clause 2, Article 34 as follows:
“2. Determination of late payment tax
a) For tax arrears arising from July 1, 2016, the late payment interest is calculated at 0.03%/day on the late payment tax amount.
b) For tax arrears incurred before July 1, 2019 but still not paid after July 1, 2019, the calculation shall be as follows: before January 1, 2017, late payment penalty and late payment interest shall be calculated according to regulations. According to the Law on Tax Administration No. 78/2006/QH11, the Law amending and supplementing a number of articles of the Law on Tax administration No. 21/2012/QH13, from January 1, 2015, late payment interest shall be calculated according to the provisions of the Law on Tax Administration. amending and supplementing a number of articles of the tax laws No. 71/2014/QH13, from July 1, 2019, late payment interest is charged at 0.03%/day.””
Thus, depending on the time of late payment of tax, the late payment interest is calculated according to different rates of late payment as prescribed in legal documents in effect during that period.
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For example:
Enterprise A owes 100 million VND in VAT on the August 2017 VAT declaration (the declaration has been submitted on time to the tax authority), the deadline for tax payment is September 22, 2017 (due to the date of 20/02). September 2017 and September 21, 2017 are holidays).
On August 20, 2019, A pays this tax amount to the state budget, the number of days of late payment is calculated from September 23, 2017 to August 20, 2019.
The amount of late payment of tax is calculated as follows:
– Before January 1, 2018, the late payment interest is calculated according to the guidance in Article 34 of Circular 156/2013/TT-BTC:
+ From September 23, 2014 to December 21, 2017, the number of days of late payment is 90 days: VND 100 million x 0.05% x 90 days = VND 4.5 million.
+ From December 22, 2014 to December 31, 2017, the number of days of late payment is 10 days: VND 100 million x 0.07% x 10 days = VND 0.7 million.
– From January 1, 2018 to June 30, 2019, the number of days of late payment is 547 days. Late payment interest is calculated according to the guidance in Clause 9, Article 2 of Circular 26/2015/TT-BTC : 100 million VND x 0.05% x 547 days = 27.35 million VND.
– From July 1, 2019 to August 20, 2019, the number of days of late payment is 51 days, the late payment interest is calculated according to the guidance in Clause 3, Article 3 of Circular 130/2016/TT-BTC : 100 million VND x 0.03% x 51 days = 1.53 million VND.
The amount of late payment tax that A must pay is: 4.5 +0.7 +27.35 +1.53 = 34.08 million VND
Note:
In case an enterprise declares insufficient tax for the tax period arising before July 1, 2019 but after July 1, 2019, a competent state agency detects it through inspection or examination or the enterprise discovers it by itself. then apply late payment interest at the rate of 0.05%/day (or the appropriate rate prescribed by legal documents from time to time) from the date of payment according to the provisions of law to the end of June 30, 2019 and according to the provisions of law. the rate of 0.03%/day calculated on the understated tax amount from July 1, 2019 to the date the enterprise pays into the state budget.
3. Administrative penalties for false tax declarations
In case an enterprise has made a wrong tax declaration, leading to a lack of tax payable, it will voluntarily remedy the consequences by making additional tax declaration dossiers and fully paying the payable tax amount before the time the tax authority announces the decision. Tax inspection, tax inspection at the office, they only have to pay the late payment interest, but not be handled for tax administrative violations for the above-said false declaration.
In the opposite case, in addition to the underpaid tax amount and the late payment interest, the enterprise will also be fined at the rate of 20% of the understated tax amount as prescribed in Article 10 of Decree 129/2013/NĐ-CP. -CP provides for penalties for tax administrative violations and enforcement of tax administrative decisions.
Legal grounds:
– Law on Tax Administration 2006;
– Law amending and supplementing a number of articles of the Law on Tax Administration 2012;
– Decree 129/2013/ND-CP;
– Circular 156/2013/TT-BTC;
– Circular 26/2015/TT-BTC;
– Circular 130/2016/TT-BTC.
