[ad_1]
Thousands of companies can be fined for late payment of taxes if their business performance in the fourth quarter increases significantly compared to the first quarters of the year. In the photo: Tax procedures at the Ho Chi Minh City Tax Department – Photo: NGOC PHUONG
In accordance with the new regulation in Decree 126 presented by the Ministry of Finance and the Government has just issued guidance on the implementation of the Tax Administration Law, effective as of December 5, the tax on income has been temporarily suspended. total corporate income (CIT). the payment of the first 3 quarters of the year should not be less than 75% of the annual amount of income tax.
From the right to evil
In particular, Decree 126 also stipulates that in cases where taxpayers pay less taxes compared to the amount of tax to be paid temporarily in the first three quarters of the year, they must pay late payment interest based on the underpaid tax.
Explaining to Tuoi Tre, Ms. Le Thi Duyen Hai, Director of the Declaration and Accounting Department, General Tax Department, said that when the tax is finalized, the tax office will calculate the tax to be paid by the company throughout the year. However, before October 30, companies must pay 75% of the total tax payable throughout the year. If 75% is not enough, the company will be charged the late payment of the missing tax amount from November 1 to 11 until the date of payment. As for the fourth quarter tax, the company is paid until the time of liquidation is 30-3 years later.
Ms. Hai, for example, Company A has a total tax due in 2019 of VND 1 billion. As a general rule, by October 30, the amount of taxes to be paid by companies is not less than 750 million dong. However, the company only temporarily paid 650 million dong, on November 30, the company paid another 100 million dong. Therefore, companies continue to be fined for late payments of more than 100 million VND in 1 month.
However, Ms Nguyen Minh Ngoc, chief accountant of a Hanoi-based construction company, said that with the above calculation, assuming fourth quarter revenue and profit are much higher than Q1 Q1. year. This means that the amount of tax to be paid will increase and the possibility of late payment penalties will also increase. Inadvertently, companies have a reputation for not meeting tax obligations well, but this policy does not appear to encourage companies to operate effectively.
Ms. Ngoc also expressed this rule in the sense of wanting to force companies to pay more taxes if they do not want the possibility of being fined for late payment. “If the tax amount for the first 3 quarters of the year is not paid less than 75% of the tax for the whole year, it will be different for the company to insure the future. Illnesses, natural disasters and unusual fluctuations this year and the next, the It is impossible to predict income and earnings to establish the tax payable for the entire year, “said Ngoc.
Nguyen Van Duoc, CEO of Trong Tin Accounting and Tax Consulting Co., Ltd., said that the paradox of the new regulation is that most companies balance revenue and expenses in the fourth quarter, so even if They temporarily pay in In the first 3 quarters of the year, for every fourth quarter that revenues increased, companies went from doing good to bad. “Revenue agency planning like that is no different than puzzling ventures,” Mr. Dang commented.
The deadline to file and pay temporary taxes for the first three quarters of the year is October 30. That means only 2 months to finish the year. So with the plan that has been built and is being implemented, the business can fully calculate the revenue and profit for the entire year.
Ms. Le Thi Duyen Hai (Director of the Declaration and Accounting Department, General Tax Department)
The above provisions are too mechanical and are no different from forcing companies to temporarily pay before they don’t know how they make the revenue. While in some seasonal industries, the production cycle falls in the last 3 months of the year.
Attorney Tran Xoa
Thousands of companies run the risk of being fined
Attorney Tran Xoa, director of the Minh Dang Quang law firm, said that when he taught many classes on taxes, companies complained a lot about the old regulations. Many companies now back away from knowing this regulation.
According to many companies, the previous regulation only temporarily paid the 4-quarter corporate income tax, no less than 80% of the tax payable throughout the year. But the deadline to temporarily pay fourth-quarter corporate income tax is January 30 of next year. At the end of the fiscal year, the business must calculate the amount of CIT that will be paid temporarily, less likely to be charged for late payment.
With the new regulations, companies cannot predict with certainty that revenue will have to be paid over the counter to avoid the risk of fines. According to the provisions, companies can request a refund, but the procedure is complicated, so most companies stay there and deduct in the next quarter.
Mr. Nguyen Van suggested that the solution should keep the previous rule of temporarily paying 4 quarters, not less than 80%, because only at the end of the year, companies can determine the exact tax obligations for that year. If it is based on 3 quarters as the new tax industry has introduced, it is not fair to companies. In case you want to raise money in the budget ahead of time, you need to stipulate that with companies that do quarterly reports, the total amount of temporary payment for 4 quarters can be 75-80% …
According to Ms Nguyen Minh Ngoc, companies have two ways, one is to pay default interest and the other is to receive capital. Anyway, it “dies” when money is the lifeblood of business. Therefore, if companies are determined to be a source of income, the policies must nurture and facilitate that taxpayers feel secure in their productive and commercial activities.
Will report on the effectiveness of the new regulations
Ms. Le Thi Duyen Hai said that the basis for proving that the amount of provisional income tax for the first 3 quarters of the year is at least 75% of the total amount of tax payable for the year, is because the CIT is paid in 4 quarters. The tax payable each quarter corresponds to 25% of the total payable for the year. Therefore, the tax amount for 3 quarters is calculated as 75% of the total tax due.
In response to the idea that this regulation does not reflect the reality of production and business, the General Directorate of Taxation disagrees and thinks that companies have unusual business results in the fourth quarter that companies do not expect will not be popular. . Ms. Hai added that through monitoring, usually until the end of January next year, most companies only pay the CIT for the whole year, the first 3 quarters pay very little. Because the tax industry only counts late payments for 4 quarters after January 31st. As a result, with tax payments shifting to next year’s budget, the tax industry is struggling to get the correct amount of tax in the budget year. On the other hand, the companies complained about the difficulties, but in the process of gathering comments to elaborate decrees, no company had objections to this content.
Regarding the effective date of the previous provisions, the General Tax Directorate said that it would inform the competent authorities to receive specific instructions.
Don’t put too much pressure on taxpayers
