Is failing to submit taxpayer registration applicaiton cnsidered tax evasion in Vietnam?

Is failing to submit taxpayer registration application cnsidered tax evasion in Vietnam?

Based on Clause 1, Article 143 of the Law on Tax Administration 2019, the acts of tax evasion are as follows:

Acts of Tax Evasion

1. Failure to file taxpayer registration; failure to file tax returns; filing tax returns 90 days past the deadline for filing tax returns or past the extended deadline for filing tax returns as prescribed by this Law.

2. Not recording in accounting books the revenues related to determining payable taxes.

3. Not issuing invoices when selling goods or services as prescribed by law or recording invoice values lower than the actual transaction value of the sold goods or services.

4. Using illegal invoices, illegal use of invoices for accounting goods, input raw materials in tax liabilities activities to reduce payable taxes or increase exempted, reduced, or deductible tax amounts, or refundable taxes, and non-payable taxes.

5. Using documents that do not reflect the true nature of the transaction or actual transaction value to determine incorrect payable taxes, exempted, reduced, or refundable taxes, or non-payable taxes.

6. Incorrectly declaring exported or imported goods without amending tax declarations after the goods have been cleared.

7. Intentionally not declaring or incorrectly declaring taxes on exported or imported goods.

8. Conspiring with consignors to import goods for tax evasion purposes.

9. Using tax-exempt goods, tax-free goods, examined tax-exempt goods for the incorrect purposes without declaring the change of use purpose to the tax management agency.

10. Conducting business activities during a suspension or temporary suspension period without notifying the tax management agency.

11. The taxpayer is not punished for tax evasion but is liable to punishment under Clause 1, Article 141 of this Law in the following cases:

a) Not filing taxpayer registration application, not filing tax returns, filing tax returns 90 days past the deadline without generating payable taxes;

b) Filing tax returns 90 days past the deadline with payable taxes, and the taxpayer has fully paid the tax amount, late payment amount to the state budget before the tax authority announces tax inspection decisions, tax inspection notices, or before the tax authority records the act of late filing tax returns.

Therefore, according to the above regulation, the act of failing to file taxpayer registration application is considered an act of tax evasion.

Is failing to submit taxpayer registration application cnsidered tax evasion in Vietnam? (Image from the Internet)

What are penalties for failure to submit taxpayer registration application in Vietnam?

Based on Clause 1, Article 17 of Decree 125/2020/ND-CP, the penalties for acts of tax evasion are as follows:

Penalties for Acts of Tax Evasion

1. A fine equal to the evaded tax amount for taxpayers who have one or more mitigating circumstances when committing the following violations:

a) Failure to file taxpayer registration; failure to file tax returns or filing tax returns 90 days past the deadline, from the deadline for filing tax returns or from the extended deadline for filing tax returns, except in cases specified in points b, c of Clause 4 and Clause 5 of Article 13 of this Decree;*

b) Not recording in accounting books the revenues related to determining payable taxes, not declaring, or incorrect declarations leading to a deficiency of payable taxes or increasing refundable, exempted, reduced taxes, except for violations specified in Article 16 of this Decree;

c) Not issuing invoices when selling goods or services, except for cases where taxpayers have declared taxes on the value of sold or provided goods or services in the corresponding tax period; issuing erroneous invoices about the quantity, value of goods or services to declare taxes lower than reality and being discovered after the deadline for filing tax returns;

d) Using illegal invoices; illegal use of invoices to declare taxes, reducing payable taxes, or increasing refundable, exempted, reduced tax amounts;

e) Using illegal documents; illegal use of documents; using documents that do not reflect the true nature of the transaction or actual transaction value to determine incorrect payable taxes, exempted, reduced, or refundable taxes; preparing procedures for canceling materials, and goods incorrectly, reducing payable taxes, or increasing refundable, exempted, reduced taxes;

f) Using tax-exempt goods, tax-free goods, examined tax-exempt goods for incorrect purposes without declaring the purpose change, tax declaration with the tax authority;

g) Taxpayers conducting business activities during the period of suspension or temporary suspension but not notifying the tax authority, except for cases specified in point b, Clause 4, Article 10 of this Decree.

...

Thus, in the case of failing to file taxpayer registration application, a fine equal to the evaded tax amount will be imposed.

*Note: The taxpayer must have one or more mitigating circumstances.

What is a taxpayer registration application in Vietnam?

Based on Clause 9, Article 3 of the Law on Tax Administration 2019:

Explanation of Terms

In this Law, the terms below are understood as follows:

1. Tax is a mandatory payment to the state budget by organizations, households, businesses, and individuals as prescribed by tax laws.

2. Other revenues under the state budget managed by tax authorities include:

a) Fees and charges according to the Law on Fees and Charges;

b) Land use fees payable to the state budget;

c) Land rent, water surface rent;

d) Fees for mineral exploitation rights;

e) Fees for water resource exploitation rights;

f) Revenues for the state budget from the sale of assets on land, transfer of land use rights according to the Law on Management and Use of Public Assets;

g) Revenues from administrative violations as prescribed by law on handling administrative violations in the field of taxation and customs;

h) Late payment charges and other revenues as prescribed by law.

3. Other revenues under the state budget not managed by tax authorities include:

a) Fees for sea area usage for disposal as prescribed by the laws on marine resources, environment, and islands;

b) Fees for protecting and developing rice cultivation land as prescribed by the land law;

c) Revenues from administrative violations as prescribed by law on handling administrative violations, except for the field of taxation and customs;

d) Revenues for the state budget according to the laws on management and use of public assets from managing, using, exploiting public assets for business, leasing, joint ventures, linkages, after fulfilling tax, fee, and charge obligations;

e) Aid revenues;

f) Other revenues as prescribed by law.

4. The headquarters of the taxpayer is the location where the taxpayer conducts part or all of their business activities, including the main office, branches, shops, production sites, storage locations for goods, assets used for production and business; residence or the site where the tax obligation arises.

5. Tax identification number is a string of 10 digits or 13 digits and other characters issued by the tax authority to the taxpayer for tax management purposes.

6. Tax period is the period for determining the payable tax amount to the state budget according to tax law.

7. Tax declaration form is a standardized document stipulated by the Minister of Finance, used by taxpayers to declare information to determine the payable tax amount.

8. Customs declaration is a standardized document stipulated by the Minister of Finance, used as a tax declaration for exported and imported goods.

9. Tax dossier includes taxpayer registration applications, tax declaration dossiers, tax refund dossiers, tax exemption dossiers, tax reduction dossiers, dossiers for exemption from late payment, no late payment charges, tax payment extension, tax debt installment payment, tax exemption, tax debt write-off dossiers, late payment debt write-off dossiers, fine write-off dossiers.

Therefore, according to the above regulation, the taxpayer registration application is one type of tax documents. A taxpayer registration application consists of documents and information about the identity of the taxpayer.