Is failure to submit the tax declaration within 90 days from the deadline considered tax evasion in Vietnam?

Is failure to submit the tax declaration within 90 days from the deadline considered tax evasion in Vietnam?

Based on Clause 2, Article 143 of the Law on Tax Administration 2019, acts of tax evasion are regulated as follows:

Acts of Tax Evasion

1. Not submitting a taxpayer registration file; not filing a tax return; submitting a tax return more than 90 days after the deadline for submitting the tax return or the deadline for submitting an extended tax return according to the provisions of this Law.

2. Not recording in the accounting books the amounts related to the determination of the tax payable.

3. Not issuing invoices when selling goods or services as prescribed by law or recording a lower value on the sales invoice than the actual payment value of the goods or services sold.

4. Using illegal invoices, illegally using invoices for accounting input goods and materials in tax obligation generation activities to reduce the tax payable or increase the exempted or reduced tax amount, the deductible tax amount, the refundable tax amount, or the tax amount not payable.

5. Using documents and vouchers that do not reflect the true nature of the transaction or the actual transaction value to incorrectly determine the tax amount payable, the exempted tax amount, the reduced tax amount, the refundable tax amount, or the tax amount not payable.

6. Incorrectly reporting the facts regarding export and import goods without making a supplementary tax return after the goods have been cleared.

7. Intentionally not declaring or incorrectly declaring taxes for export and import goods.

8. Colluding with senders to import goods for the purpose of tax evasion.

9. Using goods exempt from tax, subject to tax exemption or relief, not in accordance with the stipulated purposes without notifying the change in usage purpose to the tax authorities.

10. Operating a business during a period of business suspension or temporary suspension without notifying the tax authorities.

11. A taxpayer, not penalized for tax evasion, being penalized under Clause 1, Article 141 of this Law in the following cases:

a) Not submitting a taxpayer registration file, not submitting a tax return, or submitting a tax return after 90 days without generating a payable tax amount;

b) Submitting a tax return more than 90 days late generating a payable tax amount and the taxpayer has fully paid the tax, late payment interest to the state budget before the tax authority announces the decision to conduct tax inspections or audits or before the tax authority drafts a report on the late submission of tax returns.

Not submitting a taxpayer registration file; not filing a tax return; submitting a tax return after 90 days from the deadline or the extended deadline as per this Law.

Therefore, in accordance with the above regulations, failure to submit the tax declaration within 90 days from the deadline (over 90 days) is considered an act of tax evasion.

Is failure to submit the tax declaration within 90 days from the deadline considered tax evasion in Vietnam? (Image from the Internet)

Shall information about taxpayers assisting in tax evasion be published in Vietnam?

According to Clause 1, Article 29 of Decree 126/2020/ND-CP, the disclosure of taxpayer information is regulated as follows:

Disclosure of Taxpayer Information

1. Tax authorities disclose taxpayer information in the following instances:

a) Tax evasion, assisting in tax evasion, misappropriating taxes, violating tax laws, and fleeing from business premises; issuing, using illegal invoices.

b) Not submitting tax returns after 90 days from the deadline according to current tax law regulations.

c) Ceased operations, not completed tax code termination procedures, non-operation at the registered address.

d) Tax law violations by taxpayers affecting the tax rights and obligations of other organizations or individuals.

dd) Non-compliance with tax authority requests as per legal regulations, such as refusing to provide information and documents to tax authorities, not complying with audit, inspection decisions, and other requests from tax authorities under the law.

e) Obstructing or preventing tax officials, customs officials from performing their duties.

g) Over 90 days have passed since the deadline for paying taxes and other state budget contributions or since the deadline for complying with tax administration decisions, and the taxpayer or guarantor has not voluntarily complied.

h) Individuals or organizations do not comply with tax administration decisions and engage in asset dispersal or flight.

i) Other information disclosed as per legal regulations.

...

Thus, In accordance with these regulations, in cases of assisting tax evasion, tax authorities have the right to publicly disclose taxpayer information.

What are the penalties for tax evasion in case of failure to submit the tax declaration within 90 days from the deadline in Vietnam?

According to Article 17 of Decree 125/2020/ND-CP, administrative penalties for tax evasion are regulated as follows:

Penalty for Tax Evasion

1. A fine equal to 1 times the evaded tax amount for taxpayers with one or more mitigating circumstances when committing any of the following violations:

**a) Not submitting a taxpayer registration file; not submitting a tax return or submitting a tax return more than 90 days from the deadline or the extended deadline, except as prescribed at Points b, c, Clause 4 or Clause 5, Article 13 of this Decree;

...

2. A fine equal to 1.5 times the evaded tax amount for taxpayers committing any violations prescribed in Clause 1 of this Article without aggravating or mitigating circumstances.

3. A fine equal to 2 times the evaded tax amount for taxpayers committing any violations prescribed in Clause 1 of this Article with one aggravating circumstance.

4. A fine equal to 2.5 times the evaded tax amount for taxpayers committing any violations prescribed in Clause 1 of this Article with two aggravating circumstances.

5. A fine equal to 3 times the evaded tax amount for taxpayers committing any violations prescribed in Clause 1 of this Article with three or more aggravating circumstances.

6. Remedial measures:

a) Must pay the full tax evaded into the state budget for violations prescribed in Clauses 1, 2, 3, 4, and 5 of this Article.

For tax evasion acts prescribed in Clauses 1, 2, 3, 4, and 5 of this Article beyond the statute of limitations, the taxpayer is not fined for tax evasion, but must pay the full evaded tax amount and late payment interest based on the evaded tax amount into the state budget within the time frame specified in Clause 6, Article 8 of this Decree.

b) Required to adjust the reported loss, deductible input value-added tax on tax returns (if any) for acts prescribed in Clauses 1, 2, 3, 4 and 5 of this Article."

Additionally, according to Article 200 of the Criminal Code 2015, Points a and b, Clause 47, Article 1 of the Law Amending the Criminal Code 2017, regulations on the crime of tax evasion are provided:

"1. Those who commit any of the following acts, evading taxes in the amount of VND 100,000,000 to under VND 300,000,000 or less than VND 100,000,000 but have been administratively penalized for tax evasion or convicted of this crime or on one of the crimes specified in Articles 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309, and 311 of this Code, unresolved record of convictions, shall be fined from VND 100,000,000 to VND 500,000,000 or imprisoned from 03 months to 01 year:

a) Not submitting a taxpayer registration file; not submitting a tax return; submitting a tax return 90 days after the expiry date of the tax return submission or the extended deadline according to law;

b) Not recording in the accounting books the amounts related to the determination of the tax payable;

c) Not issuing invoices when selling goods, services or recording a lower value on the sales invoice than the actual payment value of the goods, services sold;

d) Using illegal invoices, vouchers for accounting input goods and materials in tax obligation generation reducing the tax payable or increasing the tax amount exempted, the amount of tax reduced or increased deductible tax amount, the refundable tax amount;

dd) Using other illegal documents to incorrectly determine the tax amount payable or the refundable tax amount;

e) Incorrectly declaring the actual goods exported, imported without a supplementary tax return after the goods have been cleared, if not subject to Articles 188 and 189 of this Code;

g) Intentionally not declaring or declaring falsely regarding tax for export, import goods, if not subject to Articles 188 and 189 of this Code;

h) Colluding with senders to import goods, if not subject to Articles 188 and 189 of this Code;

i) Using tax-free goods, exempted goods not as stipulated without notifying the change in usage purpose with the tax authorities.

2. Whoever commits the crime in any of the following circumstances shall be fined from VND 500,000,000 to VND 1,500,000,000 or imprisoned from 01 year to 03 years:

a) Having a structure;

b) The amount of tax evasion from VND 300,000,000 to under VND 1,000,000,000;

c) Exploiting position, authority;

d) Committing the crime two times or more;

dd) Dangerous recidivism.

3. Committing tax evasion with an amount of VND 1,000,000,000 or more shall be fined from VND 1,500,000,000 to VND 4,500,000,000 or imprisoned from 02 years to 07 years:

4. The offender may also be fined from VND 20,000,000 to VND 100,000,000, prohibited from holding certain positions, prohibited from practicing certain professions or doing certain jobs for 01 to 05 years or confiscated of part or all of their property.

5. A commercial legal entity that commits a crime specified in this Article shall be subject to the following penalties:

a) Committing any of the acts specified in Clause 1 of this Article, evading taxes with an amount from VND 200,000,000 to under VND 300,000,000 or from VND 100,000,000 to under VND 200,000,000 but has been administratively penalized for tax evasion or convicted of this crime or one of the crimes specified in Articles 188, 189, 190, 191, 192, 193, 194, 195 and 196 of the Code, unresolved record of convictions, shall be fined from VND 300,000,000 to VND 1,000,000,000;

b) Committing the crime in any of the cases specified at Points a, b, d, and đ of Clause 2 of this Article, shall be fined from VND 1,000,000,000 to VND 3,000,000,000;

c) Committing the crime in the case specified at Clause 3 of this Article, shall be fined from VND 3,000,000,000 to VND 10,000,000,000 or suspended operation for 06 months to 03 years;

d) Committing the crime in the case specified in Article 79 of this Code, shall be subject to permanent suspension of operation;

đ) A commercial legal entity may also be fined from VND 50,000,000 to VND 200,000,000, prohibited from doing business, forbidden from activities in certain fields or raising capital for 01 to 03 years."

Thus, the legal penalty for tax evasion by submitting tax returns 3 months late is a fine equal to 1 time the evaded tax amount for taxpayers with one mitigating circumstance or more. In more severe cases, criminal charges may be imposed.