Regulations on calculating late payment interest for temporary tax payment are determined according to the time of the enterprise's fourth quarter tax payment deadline, accordingly, in case the total amount of tax temporarily paid in the tax period is lower than the amount of corporate income tax payable according to the tax period. If the settlement amount is 20% or more, the enterprise will pay late payment interest with the difference of 20% or more between the temporarily paid tax amount and the tax amount payable according to the settlement calculated from the day following the last day of the fourth quarter tax payment deadline. of the enterprise until the date of actual payment of the outstanding tax amount compared to the final tax amount.
However, reality shows that many businesses not only do not comply but also deliberately take advantage of this regulation, leading to budget imbalance..
To solve the above problem, the Government issued Decree 126/2020/ND-CP effective from December 5, 2020, guiding the Law on Tax Administration, which stipulates the calculation of late payment interest for With regard to CIT temporarily paid during the year, the year-end finalization declaration has been amended at Point b, Clause 6, Article 8. Accordingly, in case the taxpayer underpays the amount of tax temporarily paid in the first 3 quarters of the year, he/she must pay money. Late payment is calculated on the amount of tax underpaid compared to the amount of tax payable according to finalization from the day following the last day of the temporary payment deadline for third quarter CIT to the date of payment of the outstanding tax amount to the state budget. This regulation comes from the fact that businesses have annual plans and plans for production and business activities, and will be completely proactive in determining/estimating the results of production and business activities to make temporary tax payments.