Late submission of tax returns personal income tax This is one of the most common mistakes taxpayers make, leading to unnecessary administrative penalties. In the context of the tax industry's push for digitalization and stricter management of personal data, understanding regulations regarding deadlines and penalties is more crucial than ever to protect personal financial interests.
According to statistics from the General Department of Taxation, the number of individuals required to self-declare their taxes has increased sharply each year, but the rate of errors due to late filing remains high. personal income tax settlement It still accounts for a large proportion. This article from the expert team at MAN – Master Accountant Network will provide a comprehensive overview, helping you avoid legal risks and optimize your tax obligations.
Deadline for tax settlement for 2025 (to be completed in 2026)
Before learning about penalties for late filing of personal income tax returns, taxpayers need to accurately determine the "golden" deadline for submitting their tax returns for the 2025 tax year. (Based on Article 44) Tax Administration Law No. 38/2019/QH14, The deadlines for each entity when settling accounts in 2026 are specified as follows:
For organizations and businesses that pay income, the deadline for submitting tax returns for the 2025 tax period is no later than the last day of the third month from the end of the calendar year (i.e., March 31, 2026). Late submission of personal income tax returns by businesses not only causes financial losses but also affects the reputation and trustworthiness of the entity in the tax management system.
For individuals who directly settle their tax obligations with the tax authorities, the deadline is extended by one month compared to businesses. Specifically, the deadline to avoid being considered late in filing personal income tax returns for the 2025 tax period is the last day of the fourth month from the end of the calendar year (April 30, 2026).
Special note: In 2026, March 31st (Tuesday) and April 30th (Thursday) will both be normal working days. However, taxpayers should proactively file their taxes early to avoid system technical issues on the final days.
Details of penalties for late submission of personal income tax returns.
Late submission of personal income tax returns is subject to administrative penalties as stipulated in Article 13. Decree 125/2020/ND-CP. The penalties vary depending on the number of days overdue, ranging from a warning to a fine of up to 25 million VND.
Below is a detailed summary of penalties for individuals or organizations who are late in submitting their personal income tax returns, for your easy reference:
| Late submission period | Forms of punishment | Fine amount (VND) |
| From 1 to 5 days (with mitigating circumstances) | Warning | 0 |
| From 1 to 30 days | Fine | 2.000.000 – 5.000.000 |
| From 31 to 60 days | Fine | 5.000.000 – 8.000.000 |
| From 61 to 90 days | Fine | 8.000.000 – 15.000.000 |
| Over 90 days (no additional tax payable) | Fine | 8.000.000 – 15.000.000 |
| Over 90 days (with additional tax payable) | Fine | 15.000.000 – 25.000.000 |
It should be noted that if the penalty for late filing of personal income tax returns is greater than the additional tax payable, the maximum penalty will be equal to the tax payable but not less than VND 11.5 million (average penalty range as specified in Clause 4, Article 13).
Cases where penalties for late filing of personal income tax returns are waived.
Not all late filings result in penalties. The tax authorities clearly state that individuals who have overpaid taxes and request a refund or tax offset in the next period but file their tax returns late will not be subject to administrative penalties. This is an important point to alleviate concerns for those entitled to a refund regarding late filing of their personal income tax returns.
However, even without a fine, late filing of personal income tax returns in this case still delays the tax refund process, affecting the individual's cash flow. Therefore, filing on time remains the best option.
How to calculate late payment penalties for taxes and fines.
Besides administrative fines, late payment of personal income tax returns also leads to consequences such as "interest" on delayed payments to the state budget. According to Clause 2, Article 59 of the 2019 Tax Administration Law, late payment interest is calculated using the following formula:
|
Late payment penalty = Amount of tax overdue x 0.03% x Number of days overdue |
Prolonged delays in filing personal income tax returns will significantly increase this figure over time. Furthermore, if taxpayers receive a penalty notice but fail to pay the penalty on time, the late payment penalty will be 0.051 TP3T/day on the overdue penalty amount.
Therefore, as soon as taxpayers discover they have been late in filing their personal income tax return, they should proactively submit the documents and immediately pay the outstanding tax amount plus any calculated late payment penalties to minimize the risk of aggravating circumstances from the tax authorities.
Things to note to avoid the risk of late filing of personal income tax returns.
To avoid falling into the trap of late filing of personal income tax returns, individuals and corporate accountants need to implement risk management measures early on. Reviewing tax deduction documents and collecting income confirmation letters from various sources are essential preparatory steps.
Many individuals with income from multiple sources often overlook this, leading to delays in filing personal income tax returns due to waiting for documentation from the paying entity. Tax experts at MAN advise that you should request withholding tax documents at the end of the fiscal year or upon termination of your employment contract.
Using applications like eTax Mobile is also an effective way to control income information and avoid late filing of personal income tax returns. This system allows you to track your tax obligations anytime, anywhere, and receive notifications from the tax authorities about important deadlines.
Conclude
Late filing of personal income tax returns poses clear financial risks and negatively impacts the tax compliance history of individuals and businesses. Understanding the law and being proactive in filing are key to effective tax management. Staying informed about changes in penalties for late personal income tax returns will give you more confidence during tax filing periods.
At MAN – Master Accountant Network, we understand the challenges our clients face in handling complex tax matters. If you are concerned about late filing of your personal income tax return or need a professional agency to manage risks, MAN offers a comprehensive ecosystem of services including:
- Independent auditing and financial statement review services.
- Full-service tax accounting for businesses.
- In-depth tax consulting services, optimizing the amount of tax legally payable.
- Personal Income Tax Settlement Services For individuals and foreigners in Vietnam.
- Tax reporting and provide an explanation to the authorities.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Late Filing of Personal Income Tax Return
In this case, the individual is not penalized for late filing of personal income tax returns; the responsibility lies with the business. The business will be subject to administrative penalties according to the framework for organizations for late filing of tax returns.
According to regulations, taxpayers can request an extension for filing their tax returns in cases of natural disasters, fires, or unexpected accidents. The extension period cannot exceed 30 days. Unless it is a force majeure event, any late filing will be considered a late filing of personal income tax returns.
Taxpayers should apply mitigating circumstances such as: voluntarily rectifying the consequences, sincerely repenting, and committing the violation for the first time due to exceptionally difficult circumstances. Proactively submitting documents before the tax authorities issue an audit decision will help ensure the lowest penalty within the penalty framework for late filing of personal income tax returns. If an individual is authorized to file the tax return but the business submits it late, who will be penalized?
Is it possible to request an extension to avoid being considered late in filing personal income tax returns?
How can I reduce the penalty for being late in filing my personal income tax return?
