Shall taxpayer be penalized after the time limits for imposition of tax-related administrative violations in Vietnam?

Shall taxpayer be penalized after the time limits for imposition of tax-related administrative violations in Vietnam?

Based on Clause 6, Article 8 of Decree 125/2020/ND-CP, the regulation is as follows:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

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6. Period for tax collection

a) After the time limits for imposition of tax and invoice-related administrative violations, taxpayers are not penalized but are still required to pay the full amount of back taxes (shortages, evaded taxes, excess exemptions, reductions, refunds beyond what is stipulated, and late payment fees) to the state budget for up to ten years prior to the date the violation is discovered. In the case of taxpayers without taxpayer registration, they must pay all the shortage of taxes, evaded taxes, and late payment fees for the entire period prior to the date the violation is discovered.

b) The period for tax collection stipulated in point a of this clause only applies to taxes prescribed by tax laws and other amounts to be declared and paid by organizations and individuals to the state budget.

For revenues from land or other amounts for which financial obligations of organizations and individuals are determined by competent authorities, the competent authorities determine the period for tax collection according to the provisions of land law and related laws, but not less than the period for tax collection stipulated in point a of this clause.

Therefore, after the time limits for imposition of tax and invoice-related administrative violations, taxpayers are not penalized but will be subject to tax collection.

Taxpayers must pay the full amount of back taxes (shortages, evaded taxes, excess exemptions, reductions, refunds beyond what is stipulated, and late payment fees) to the state budget for up to ten years prior to the date the violation is discovered.

In the case of taxpayers without taxpayer registration, they must pay all the shortage of taxes, evaded taxes, and late payment fees for the entire period prior to the date the violation is discovered.

For revenues from land or other amounts for which financial obligations of organizations and individuals are determined by competent authorities, the competent authorities determine the period for tax collection according to the provisions of land law and related laws, but not less than the aforementioned period.

Shall taxpayer be penalized after the time limits for imposition of tax-related administrative violations in Vietnam? (Image from Internet)

What is the time limits for imposition of tax-related administrative violations in Vietnam?

Based on Article 8 of Decree 125/2020/ND-CP, the regulation is as follows:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

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2. time limits for imposition of tax and invoice-related administrative violations

The date of committing administrative violations on tax procedures is the next day following the end of the term for fulfilling tax procedures as prescribed by tax administration laws, except for the following cases:

For violations stipulated in Clause 1, points a, b of Clause 2, Clause 3 and point a of Clause 4, Article 10; Clause 1, 2, 3, 4 and point a of Clause 5, Article 11; Clause 1, 2, 3 and points a, b of Clause 4, Clause 5, Article 13 of this Decree, the date of the violation for determining the time limits is the date the taxpayer conducts taxpayer registration or notifies the tax authority or submits the tax declaration.

For violations stipulated in point c of Clause 2, point b of Clause 4, Article 10; point b of Clause 5, Article 11; points c, d of Clause 4, Article 13 of this Decree, the date of the violation for determining the time limits is the date the competent authority discovers the violation.

b) The time limits for sanctions on tax evasion not reaching the level for criminal prosecution, misstatements leading to a shortage of payable taxes or an increase in tax exemptions, reductions, refunds is 05 years from the date of committing the violation.

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The time limits for imposition of tax and invoice-related administrative violations (procedural tax violations) is 02 years.

The time limits for sanctions on tax evasion not reaching the level for criminal prosecution, misstatements leading to a shortage of payable taxes, or an increase in tax exemptions, reductions, refunds is 05 years.

What are the 08 prohibited acts in tax administration in Vietnam?

According to Article 6 of the 2019 Law on Tax Administration, the 08 prohibited acts in tax administration include:

- Collusion, collusion, or concealment between taxpayers and tax administration officials or tax administration agencies to transfer pricing or evade taxes.

- Causing trouble or harassment towards taxpayers.

- Exploitation to embezzle or illegally use tax money.

- Deliberately failing to declare or inadequately declaring taxes, promptly, and accurately about payable tax amounts.

- Obstructing tax administration officials from performing their duties.

- Using the taxpayer ID of another taxpayer to conduct law violations or allowing others to use one's taxpayer ID non-conformable with the law.

- Selling goods or providing services without issuing invoices as prescribed by law, using unlawful invoices, and unlawful use of invoices.

- Misrepresenting, misusing, unauthorized access, or destroying the taxpayer's information system.

- Failure to issue invoices is a violation of the law and will be subject to administrative sanctions.

These are the 08 prohibited acts in tax administration.