What are administrative penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions in Vietnam?

What are administrative penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions in Vietnam?

Pursuant to Article 15 of Decree 125/2020/ND-CP stipulating administrative penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions as follows:

Administrative penalties for Violations Related to Compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions

1. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for one of the following acts:

a) Refusing to accept the tax inspection or audit decision, or the decision on the enforcement of tax administrative decisions when delivered or sent by the tax authority according to the laws;

b) Failing to comply with the tax inspection or audit decision beyond 3 business days from the effective date of the authority’s decision;

c) Submitting records, documents, invoices, evidence, or accounting books related to tax obligations later than 6 working hours after receiving the request from the competent authority during the tax inspection or audit at the taxpayer’s premises;

d) Providing incomplete or inaccurate information, documents, and accounting books related to the determination of tax obligations as requested by the competent authority during the tax inspection or audit at the taxpayer’s premises;

dd) Failing to sign the tax inspection or audit report within 5 business days from the date of drafting or public announcement of the report.

2. Fines ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:

a) Failing to provide data, documents, and accounting books related to the determination of tax obligations upon the request of the competent authority during the tax inspection or audit at the taxpayer’s premises;

b) Failing to execute or improperly executing the decision to seal records, documents, safes, warehouses, materials, machinery, equipment, or workshops;

c) Unauthorized removal or alteration of the seals legally established by the competent authority.

3. Remedies: Compelling the provision of information, documents, and accounting books related to the determination of tax obligations for the acts specified in Clause 1(d) and Clause 2(a) of this Article.

In accordance with Clause 5, Article 5 of Decree 125/2020/ND-CP, the fines are stipulated as follows:

Principles for imposing fines on administrative tax violations and invoice-related violations

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5. For the same act of administrative tax violation and invoice-related violation, the monetary sanction rate for organizations is double that for individuals, except for the sanction rates specified in Articles 16, 17, and 18 of this Decree.

Pursuant to Clause 4, Article 7 of Decree 125/2020/ND-CP, the regulations state:

Forms of Sanction, Remedies, and Principles for Applying fines for Administrative Tax Violations and Invoice-related Violations

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4. Principles for applying fines

a) The fines stipulated in Articles 10, 11, 12, 13, 14, 15, Clauses 1, 2 of Article 19 and Chapter III of this Decree are the sanction rates applied to organizations.

For taxpayers being households or business households, the fines apply as for individuals.

b) When determining the monetary sanction rate for tax violators with both aggravating and mitigating circumstances, the mitigating circumstance shall offset the aggravating circumstance based on the principle that one mitigating circumstance shall offset one aggravating circumstance.

c) Aggravating or mitigating circumstances already used to determine the penalty framework shall not be used again to determine the specific monetary sanction according to point d of this clause.

d) When imposing fines, the specific fine for one act of procedural tax violation, invoice violation, and the act specified in Article 19 of this Decree is the average amount of the penalty framework stipulated for that act. If there is a mitigating circumstance, for each one, the penalty shall be reduced by 10% of the average fine of the penalty framework, but the fine shall not be reduced below the minimum limit of the penalty framework; if there is an aggravating circumstance, for each one, the fine shall be increased by 10% of the average fine of the penalty framework, but the fine shall not exceed the maximum limit of the penalty framework.

Thus, the administrative fine levels for tax violations related to compliance with tax inspection, audit decisions, and tax enforcement are as follows:

* Monetary Fines:

- From VND 2,000,000 to VND 5,000,000 for violating organizations and from VND 1,000,000 to VND 2,500,000 for individual violators in cases where individuals or organizations perform one of the following acts:

+ Refusing to accept the tax inspection or audit decision, or the decision on the enforcement of tax administrative decisions when delivered or sent by the tax authority according to the laws;

+ Failing to comply with the tax inspection or audit decision beyond 3 business days from the effective date of the authority’s decision;

+ Submitting records, documents, invoices, evidence, or accounting books related to tax obligations later than 6 working hours after receiving the request from the competent authority during the tax inspection or audit at the taxpayer’s premises;

+ Providing incomplete or inaccurate information, documents, and accounting books related to the determination of tax obligations as requested by the competent authority during the tax inspection or audit at the taxpayer’s premises;

+ Failing to sign the tax inspection or audit report within 5 business days from the date of drafting or public announcement of the report.

- From VND 5,000,000 to VND 10,000,000 for violating organizations and from VND 2,500,000 to VND 5,000,000 for individual violators in cases where individuals or organizations perform one of the following acts:

+ Failing to provide data, documents, and accounting books related to the determination of tax obligations upon the request of the competent authority during the tax inspection or audit at the taxpayer’s premises;

+ Failing to execute or improperly executing the decision to seal records, documents, safes, warehouses, materials, machinery, equipment, or workshops;

+ Unauthorized removal or alteration of the seals legally established by the competent authority.

* Remedies: Compelling the provision of information, documents, and accounting books related to the determination of tax obligations for the following acts:

- Providing incomplete or inaccurate information, documents, and accounting books related to the determination of tax obligations as requested by the competent authority during the tax inspection or audit at the taxpayer's premises;

- Failing to provide data, documents, and accounting books related to the determination of tax obligations upon the request of the competent authority during the tax inspection or audit at the taxpayer’s premises.

What are administrative penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions in Vietnam? (Image from the Internet)

Time limits for imposition for administrative penalties on Administrative Tax Violations Related to Compliance with Tax Inspection, Audit Decisions, and Tax Enforcement

Pursuant to point a, Clause 2, Article 8 of Decree 125/2020/ND-CP, the regulations state:

Time limits for imposition for Imposing administrative penalties on Administrative Tax Violations, Considering a Sanction as Not Imposed, and Tax Recollection Time Limits

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2. Time limits for imposition for imposing administrative penalties on administrative tax violations

a) The time limits for imposition for imposing administrative penalties for tax procedural violations is 2 years from the date the violation is committed.

The date of committing the administrative tax procedural violation is the day following the expiry date of the tax procedural obligation as prescribed by the tax administration laws, except for the following cases:

For the acts specified in Clause 1, points a, b of Clause 2, Clause 3, and point a of Clause 4, Article 10; Clauses 1, 2, 3, 4 and point a of Clause 5, Article 11; Clauses 1, 2, 3, and points a, b of Clause 4, Clause 5, Article 13 of this Decree, the date of violation is counted from the day the tax registration or taxpayer’s notification to the tax authority or submission of the tax return.

For the acts specified in point c of Clause 2, and 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 violation is counted from the day the competent public official discovers the violation.

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Thus, the iime limits for imposition for imposing administrative penalties on administrative tax violations related to compliance with tax inspection, audit decisions, and tax enforcement is 2 years from the date the violation is committed.

What is the duration for considering none of penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions to be imposed in Vietnam?

Pursuant to Clause 5, Article 8 of Decree 125/2020/ND-CP, the regulations state:

Time limits for imposition for Imposing administrative penalties on Administrative Tax Violations, Considering a Sanction as Not Imposed, and Tax Recollection Time Limits

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5. Duration for considering none of penalties for tax or invoice-related administrative violations is imposed

Organizations and individuals sanctioned for administrative tax violations will be considered as not having been sanctioned if they do not repeat the offense within 6 months from the date of complying with the warning sanction decision or 1 year from the date of complying with other administrative sanction decisions or expiration of the sanction implementation period.

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Thus, organizations and individuals sanctioned within 1 year from the date of complying with other administrative sanction decisions or expiration of the sanction implementation period without re-offending will be considered as not having been sanctioned for administrative tax violations related to compliance with tax inspection, audit decisions, and tax enforcement.