What is the deadline for collecting back taxes?
I have been a freelancer since 2019. However, I have never registered for tax and paid personal income tax, even though my income has always been over 100 million VND per year. Therefore, if discovered, could I be subject to retroactive personal income tax collection for the entire period from 2019 to the present? This is a question from Mr. Pham Dinh T. (Thai Hoa Ward, Nghe An Province).
Reply:According to Clause 6, Article 8 of Decree 125/2020/ND-CP, the deadline for tax collection is stipulated as follows:
6. Deadline for tax collection
a) If the statute of limitations for administrative penalties for tax violations has expired, the taxpayer will not be penalized but must still pay the full amount of back taxes (tax arrears, tax evasion, tax exemptions, reductions, refunds exceeding regulations, and late payment penalties) to the State budget for the period of ten years prior to the date the violation was discovered. This applies to taxpayers in the following cases:not registered for taxThen they must pay the full amount of outstanding taxes, evaded taxes, and late payment penalties.all time going back, from the date the violation was discovered.
b) The deadline for tax collection as stipulated in point a of this clause applies only to taxes under tax laws and other revenues that organizations and individuals self-declare and self-pay into the State budget.
For revenue from land or other revenues where the competent authority determines the financial obligations of organizations and individuals, the competent authority shall determine the collection period in accordance with the law on land and relevant laws, but not less than the collection period stipulated in point a of this clause.
According to the information you provided, you have never registered for tax. Therefore, you will have to pay the full amount of unpaid taxes, evaded taxes, and late payment penalties for the entire period prior to the date the violation was discovered.
