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Personal Income Tax

Guidance on PIT Withholding Receipts Issued after the Settlement Deadline and Related Penalties

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Based on:Nghị định số 70/2025/NĐ-CP; Nghị định số 125/2020/NĐ-CP; Công văn số 1992/CT-CS - Ministry of Finance

This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.

The Ho Chi Minh City Tax Department (Long Bien - Gia Lam area tax sub-department) provides guidance on a case where a business filed its 2024 PIT annual settlement on 25 March 2025 but issued 11 withholding tax receipts to employees on 15 April 2025, after the settlement deadline. Under Decree 70/2025/ND-CP amending Decree 125/2020/ND-CP, late issuance of withholding receipts (after the settlement date) may attract administrative tax penalties. However, if Official Letter 1992/CT-CS applies and no actual tax loss occurred, the authority may exercise discretion on penalty level. The business is advised to proactively contact the local tax authority for specific guidance on whether penalties apply and at what level, and to ensure correct electronic tax filing going forward.

Guidance on Late PIT Withholding Receipt Issuance

Source: Ministry of Finance Q&A Portal | Long Bien - Gia Lam Area Tax Sub-department (Ho Chi Minh City)

Question Summary

A business employs short-term workers (10% flat withholding) and long-term employees (progressive withholding). On 25 March 2025, the company filed the 2024 PIT annual settlement and paid all tax due. On 15 April 2025, the payroll service company issued 11 withholding tax receipts. Question: Is this a violation? What penalties apply?

Tax Authority Guidance

  1. Legal basis: Decree 70/2025/ND-CP amending Decree 125/2020/ND-CP on administrative penalties for tax and invoice violations.

  2. Article 25.4, Decree 125/2020: A fine of VND 2 million to VND 5 million for incorrect declarations leading to underpayment of tax due.

  3. Decision authority: The local tax authority (Tax Sub-department) reviews the specific circumstances and supporting documents.

  4. Recommendation: The business should proactively submit supplementary documentation and meet directly with the local Tax Sub-department for specific guidance on whether penalties apply and whether exemption/reduction conditions are met.

  5. Going forward: Use electronic tax filing and ensure withholding receipts are issued within the prescribed deadlines.

Nghị định số 70/2025/NĐ-CP; Nghị định số 125/2020/NĐ-CP; Công văn số 1992/CT-CS

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