In 2026, due to the extended April 30 – May 1 holiday, the deadline for individuals to self-finalize their Personal Income Tax (PIT) has been postponed to May 4, 2026. However, the situation of employees delaying their tax obligations remains quite common. The late submission of tax finalization dossiers is not simply a violation of paperwork procedures, but it also entails a series of subsequent legal troubles, ranging from administrative fines of millions of dong to the incurrence of additional late payment interest.
The following article, compiled by DNP Viet Nam Law Firm, analyzes the legal consequences when an individual is late in PIT finalization according to the latest regulations, thereby helping taxpayers identify risks and have appropriate solutions.
1. PIT finalization obligation and implementation deadline
Legal basis: Point b, Clause 2, Article 44 of the Law on Tax Administration 2019, Section V of Official Dispatch 883/TCT-DNNCN in 2022 guiding PIT finalization.
- Individuals generating income subject to PIT finalization are responsible for submitting their tax finalization dossiers on time according to the provisions of the law.
- In cases where individuals directly carry out finalization procedures with the tax authority, the latest deadline for submitting the dossier is the last day of the 4th month from the end of the calendar year (if it falls on a holiday, it will be postponed to the next working day).
*Note: Individuals who submit their PIT finalization returns late but have a tax refund arising will not be subject to administrative penalties.
2. Administrative penalties for late PIT finalization
Legal basis: Clause 5, Article 5; Point a, Clause 4, Article 7; Article 13 of Decree 125/2020/ND-CP (amended and supplemented by Point a, Clause 10, Article 1 of Decree 310/2025/ND-CP).
- The fine amount is determined based on the number of days late.
- The fine framework specified in Article 13 is structured to apply to organizations. For violating individuals, the fine will be 1/2 of that for organizations (Article 5, Article 7). Therefore, in case of late tax finalization, the fine applied to individuals is specifically determined as follows:
| 1 to 5 days late (with extenuating circumstances) | Warning. |
| 1 to 30 days late (without extenuating circumstances) | A fine from 1,000,000 VND to 2,500,000 VND. |
| 31 to 60 days late | A fine from 2,500,000 VND to 4,000,000 VND. |
| 61 to 90 days late | A fine from 4,000,000 VND to 7,500,000 VND. |
| Over 90 days late | Depending on each specific case (whether there is tax payable or not, whether there is tax evasion or not), the fine for individuals can be up to 12,500,000 VND. |
3. When does the statute of limitations for sanctioning begin?
Legal basis: Article 137 of the Law on Tax Administration 2019 and Article 8 of Decree 125/2020/ND-CP.
- Statute of limitations for sanctioning: 02 years.
- As a general principle, the date of committing the violation for calculating the statute of limitations is the day following the end date of the prescribed time limit. However, for the act of late submission of tax declaration dossiers under Article 13 of Decree 125/2020/ND-CP, the statute of limitations is calculated as follows:
- In case the individual voluntarily submits the late dossier (applicable to violations under Clauses 1, 2, 3; Points a, b, Clause 4, and Clause 5, Article 13): The 02-year statute of limitations is calculated from the date the individual actually submits the tax declaration dossier.
- In case the individual fails to submit the dossier and is discovered by the tax authority (applicable to violations under Points c, d, Clause 4, Article 13): The 02-year statute of limitations is calculated from the date the competent person on official duty discovers the violation.
4. Obligation to pay late tax payment interest
Legal basis: Clause 2, Article 59 of the Law on Tax Administration 2019 (amended and supplemented by Clause 7, Article 6 of Law No. 56/2024/QH15).
Besides being subject to administrative penalties for the late submission of tax returns, if through the finalization process an additional amount of PIT payable arises (underpaid tax), the individual will have to bear an additional late payment interest.
- Calculation rate: The late payment amount is calculated at 0.03%/day on the late-paid tax amount.
- Calculation period: Starting from the day following the last day of the tax payment deadline until the date the individual actually pays the underpaid tax amount into the State Budget.
*Note: This is a financial obligation completely independent of the administrative fine in Section 2.
5. Cases requiring payment of late payment interest on fines
Legal basis: Article 42 of Decree 125/2020/ND-CP (amended and supplemented by Clause 5, Article 1 of Decree 102/2021/ND-CP).
- After the tax authority issues a Decision on administrative sanction (in Section 2), if the individual fails to comply with paying that fine into the State Budget by the deadline stated in the decision, the individual will continue to be charged additional late payment interest on this fine amount itself.
- Calculation rate: The late payment interest on the fine is calculated at 0.05%/day on the unpaid fine amount.
“The above content is provided by DNP Viet Nam Law Firm for reference purposes only. For detailed, accurate, and tailored legal advice that meets your specific needs, please contact us using the information provided below.”
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