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Amend the regulations on handling late tax payments.

The government has just issued Decree 100/2016/ND-CP detailing and guiding the implementation of some articles of the Law amending and supplementing some articles of the Law on Value Added Tax, the Law on Special Consumption Tax and the Law on Tax Administration, including amendments to the regulations on handling late tax payments.

Specifically, those who pay taxes late compared to the prescribed deadline, the extended tax payment deadline, the deadline stated in the tax authority's notice, or the deadline in the tax authority's penalty decision must pay the full amount of tax plus a late payment penalty at a rate of 0,03%/day (previously 0,05%/day) calculated on the amount of tax overdue.

For tax debts incurred before July 1, 2016, that taxpayers have not yet paid into the state budget, including tax debts collected through inspections and audits by competent authorities, the late payment penalty rate stipulated in this regulation will also apply from July 1, 2016.

In cases where taxpayers supply goods or services that are paid for with state budget funds but have not yet received payment, resulting in tax arrears, no tax enforcement will be carried out, and no late payment penalty will be charged on the outstanding tax amount, but not exceeding the amount of state budget funds that have not yet been paid during the period of state budget funds' delay.

During the period of installment payment of tax arrears, taxpayers are still required to pay late payment penalties at a rate of 0,03% per day on the amount of tax overdue. Taxpayers are responsible for paying the full amount of tax and late payment penalties as committed.

Source: Decree 100/2016/ND-CP

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