Is an administrative penalty for tax administration violations imposed after the time limit in Vietnam?

Is an administrative penalty for tax administration violations imposed after the time limit in Vietnam?

Based on the provisions of Article 137 of the Law on Tax Administration 2019 regarding the time limit for administrative penalties for tax administration violations as follows:

time limit for Administrative Penalties for tax administration Violations

1. For acts of violating tax procedures, the time limit for penalties is 2 years from the date of the violation.

2. For acts of tax evasion not yet subjected to criminal prosecution, acts of incorrect declaration leading to a deficiency in the payable tax amount or an increase in the tax amount exempted, reduced, refunded, or not collected, the time limit for penalties is 5 years from the date of the violation.

3. After the time limit for administrative penalties for tax administration violations expires, the taxpayer is not penalized, but they must still pay the full amount of tax deficiency, tax evasion, improperly exempted, reduced, refunded, or not collected tax, and late payment charges to the state budget for the period of 10 years preceding the date the violation is detected. In cases where the taxpayer is not registered, they must pay the full tax deficiency, tax evasion, and late payment charges for the entire period preceding the date the violation is detected.

Thus, after the time limit for administrative penalties for tax administration violations expires, the taxpayer is not penalized.

However, the taxpayer must still pay the full amount of tax deficiency, tax evasion, improperly exempted, reduced, refunded, or not collected tax, and late payment charges to the state budget for the period of 10 years preceding the date the violation is detected.

In cases where the taxpayer is not registered, they must pay the full tax deficiency, tax evasion, and late payment charges for the entire period preceding the date the violation is detected.

Is an administrative penalty for tax administration violations imposed after the time limit in Vietnam? (Image from the Internet)

What are the principles for administrative penalties for tax administration in Vietnam?

Based on the provisions of Article 136 of the Law on Tax Administration 2019 regarding the principles for administrative penalties for tax administration as follows:

(1) The imposition of administrative penalties for tax administration violations is carried out according to the provisions of the tax administration law and the law on handling administrative violations.

(2) Administrative violations related to the improper use of invoices, using invoices illegitimately, or using invoices that do not conform, resulting in tax deficiencies or tax evasion are not subject to administrative penalties regarding invoices but are subject to administrative penalties for tax administration.

(3) The maximum monetary penalty for acts of incorrect declaration leading to a deficiency in the payable tax amount or an increase in the tax amount exempted, reduced, refunded, not collected, and acts of tax evasion shall be implemented according to the provisions of this Law.

(4) For the same administrative violation in tax administration, the penalty amount for organizations is twice the penalty amount for individuals, except for the cases of incorrect declaration leading to tax deficiency or increased exemption, reduction, refund, non-collection, and tax evasion.

(5) Where taxpayers are subject to tax imposition according to the provisions of Article 50 and Article 52 of the Law on Tax Administration 2019, the nature and extent of the violation may determine administrative penalties for tax administration as prescribed by this Law.

(6) Those with authority while performing their official duties who detect administrative violations in tax administration are responsible for making administrative violation minutes as prescribed.

In the case of taxpayers engaging in taxpayer registration, filing tax returns, and settling taxes electronically, if the electronic notification of receiving the taxpayer registration file, tax return file, and settlement file clearly identifies the administrative violations about the taxpayer's tax administration, this notification serves as the administrative violation minutes, forming the basis for issuing the penalty decision.

(7) If the violation of the law on tax administration reaches the level of criminal prosecution, the matter is handled according to the provisions of criminal law.

When are administrative penalty fines for tax administration waived in Vietnam?

Based on the provisions of Article 140 of the Law on Tax Administration 2019 regarding circumstances for waiving administrative penalties for tax administration violations as follows:

Taxpayers subject to fines for administrative violations in tax administration may be waived in cases of force majeure, including:

+ Taxpayers suffering from material losses due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents;

+ Other force majeure cases as stipulated by the Government of Vietnam.

Note: Fines for administrative violations in tax administration are not waived for cases where the administrative penalty decision imposed by tax administration bodies or competent state agencies has already been executed.