Shall taxpayers be exempted from any administrative penalties for violations related to the time limit for submission of tax returns during the extension of the time limit in Vietnam?

Shall taxpayers be exempted from any administrative penalties for violations related to the time limit for submission of tax returns during the extension of the time limit in Vietnam?

Based on Article 9 of Decree 125/2020/ND-CP:

Cases where administrative penalties for tax and invoice violations are not imposed

1. No administrative penalties for tax and invoice violations will be imposed in cases where administrative violations are not penalized according to the provisions of the law on handling administrative violations.

Taxpayers who delay tax or invoice procedures electronically due to technical issues with the information technology system as announced on the electronic portal of the tax authority are subject to cases of violations due to force majeure events as stipulated in Clause 4, Article 11 of the Law on Handling Administrative Violations.

2. No administrative penalties for tax violations, no late payment interest will be calculated for taxpayers who commit administrative tax violations due to following guidance documents or decisions of tax authorities or state agencies related to determining the taxpayer's tax obligations (including guidance documents or decisions issued before the effective date of this Decree), except in the case of tax inspection or tax audit at the taxpayer's headquarters that has not detected the taxpayer's errors in declaring and determining the payable tax amount or tax amount exempted, reduced, refunded but later the taxpayer's administrative tax violations are discovered.

3. No administrative penalties for tax violations will be imposed in cases of incorrect declarations where the taxpayer has supplemented tax returns and has voluntarily paid the full amount of tax before the tax authority announces the tax inspection or tax audit decision at the taxpayer's headquarters, or before the tax authority detects without inspection or auditing at the taxpayer's headquarters, or before other competent authorities detect.

4. No penalties for tax procedural violations will be imposed on individuals who directly finalize personal income tax and delay the submission of personal income tax finalization dossiers but have a refundable tax amount; business households and individuals who have been taxed according to regulations in Article 51 of the Law on Tax Administration.

5. No penalties will be imposed for violations of the deadline for submitting tax returns during the extension period for submitting those tax returns.

There will be no administrative penalties for violations related to the time limit for submission of tax returns during the extension period for those tax returns.

Shall taxpayers be exempted from any administrative penalties for violations related to the time limit for submission of tax returns during the extension of the time limit in Vietnam? (Image from Internet)

How many main forms of penalties are there for tax or invoice-related administrative penalties in Vietnam?

Based on Clause 1, Article 7 of Decree 125/2020/ND-CP, which regulates forms of penalties, remedial measures, and principles for applying fines when handling tax or invoice-related administrative penalties, there are 2 main forms of penalties for tax or invoice-related administrative penalties:

(1) Warning

A warning is applied to minor tax and invoice procedural violations with mitigating circumstances, and cases where the form of a warning is applied as stipulated in Decree 125/2020/ND-CP.

(2) Fine

The maximum fine does not exceed VND 100,000,000 for organizations committing administrative invoice violations.

The maximum fine does not exceed VND 50,000,000 for individuals committing administrative invoice violations.

The maximum fine does not exceed VND 200,000,000 for taxpayer organizations committing tax procedural violations.

The maximum fine does not exceed VND 100,000,000 for taxpayer individuals committing tax procedural violations.

A fine of 20% of the deficit tax amount or the liberated, reduced, refunded tax amount higher than prescribed for incorrect declarations leading to a deficit in the payable tax amount or an increase in the liberated, reduced, refunded tax amount.

A fine from 1 to 3 times the evaded tax amount for tax evasion.

A fine equivalent to the amount not deducted into the state budget account (except for the minimum balance on the payment account as prescribed by the commercial bank providing payment services for the taxpayer) for commercial banks not fulfilling their responsibility to transfer money from the taxpayer's account to the state budget account upon the tax authority's request, except in cases where the taxpayer's accounts at that commercial bank no longer have a balance or have transferred the entire account balance of the taxpayer to the state budget account but still insufficient to cover the amount the taxpayer must pay.

How many remedial measures are there for tax or invoice-related administrative penalties in Vietnam?

Based on Clause 3, Article 7 of Decree 125/2020/ND-CP, there are 9 remedial measures for tax or invoice-related administrative penalties, including:

(1) Compelling the full payment of the deficit tax amount, the liberated, reduced, refunded tax amount higher than prescribed, the evaded tax amount, and late payment interest into the state budget.

(2) Compelling the adjustment of the loss, the deductible input VAT carried forward to the next period.

(3) Compelling the submission of revised taxpayer registration dossiers; re-declaration and supplementary submission of documents in the tax dossiers; submission of tax returns, appendices attached to the tax returns; provision of information.

(4) Compelling the issuance of invoices procedure.

(5) Compelling the issuance of invoices as prescribed.

(6) Compelling the cancellation, destruction of invoices, printed products.

(7) Compelling the issuance and submission of notices and reports on invoices.

(8) Compelling the transmission of electronic invoice data.

(9) Compelling the remittance of illegal proceeds obtained from committing administrative violations.