What are exceptions to tax-related administrative penalty charge decisions in Vietnam?

What are exceptions to tax-related administrative penalty charge decisions in Vietnam?

According to Article 38 of Decree 125/2020/ND-CP, exceptions to tax-related administrative penalty charge decisions include:

- No decision on administrative tax penalties is issued in the following cases:

+ The cases specified in Article 9 of Decree 125/2020/ND-CP regarding cases of non-penalty for administrative tax violations:

++ No tax-related administrative penalty is imposed for cases where no administrative penalty is imposed as stipulated by the law on administrative violations handling.

A taxpayer delays tax procedures electronically due to technical failures of the information technology system, which are reported on the electronic information portal of the tax authority, falls under the case of performing violations due to force majeure events specified in Clause 4, Article 11 of the Law on Handling Administrative Violations 2012.

++ No tax-related administrative penalty and no late payment interest on tax are imposed on taxpayers committing administrative tax violations due to compliance with written guidance or decisions of tax authorities or competent state agencies related to the determination of taxpayer's tax obligations (including guidelines or handling decisions issued before December 5, 2020), except in the case of tax inspection and examination at the taxpayer’s office where the taxpayer's errors regarding tax declarations and determinations of tax amounts payable or tax amounts exempted, reduced, or refunded were not detected but were discovered later.

++ No tax-related administrative penalty for incorrect declarations if the taxpayer has added supplementary tax declaration documents and voluntarily paid the correct tax amount due before the tax authority announces the decision to inspect or examine taxes at the taxpayer's office or before the tax authority detects it without inspection or examination at the taxpayer's office or before another competent authority discovers it.

++ No penalty for delayed personal income tax finalization for individuals who file late but have refundable tax amounts, or for business households and individuals whose tax has been determined according to Article 51 of the Law on Tax Administration 2019.

++ No penalty for late tax return submission during the period the taxpayer's tax return submission is extended.

+ Unable to identify the entity violating administrative tax regulations;

+ Expired time limit for administrative tax penalties specified in Article 8 of Decree 125/2020/ND-CP or expired time for issuing penalty decisions as stipulated by the law on handling administrative violations;

+ The individual committing the tax violation has died, is missing, or the organization violating administrative regulations has been dissolved or bankrupt during the penalty decision consideration period, except as specified in point c, Clause 4, Article 41 of Decree 125/2020/ND-CP.

The basis for determining an individual’s death, missing status, or an organization’s dissolution or bankruptcy is according to Clause 2, Article 41 of Decree 125/2020/ND-CP;

+ Forwarding the case with signs of crime to criminal prosecution.

- In cases not issuing administrative tax penalties as regulated in points a, b, c, d, Clause 1, Article 38 of Decree 125/2020/ND-CP, the competent person will not issue a penalty decision but must apply remedial measures as provided (if any).

The decision to apply remedial measures must clearly state the reasons for not issuing an administrative penalty decision, the remedial measures applied, responsibilities, and the deadline for implementation.

Exceptions to tax-related administrative penalty charge decisions in Vietnam(Image from the Internet)

What is the time limit for execution of tax-related administrative penalty ecisions?

According to Article 40 of Decree 125/2020/ND-CP, the time limit for execution tax-related administrative penalty decisions is as follows:

- The time limit for execution tax-related administrative penalty decisions is 01 year from the date the penalty decision is issued. After this period, if the tax authority has not delivered or sent the administrative penalty decision to the violating organization or individual as specified in Article 39 of Decree 125/2020/ND-CP, the penalty decision will not be executed.

In cases where the penalty decision includes remedial measures, these measures still apply.

- If the penalized individual or organization intentionally evades or delays, the time limit for execution the penalty decision is calculated from the end of the evasion or delay.

- If the tax authority has delivered or sent the administrative penalty decision to the violating organization or individual as specified in Article 39 of this Decree and the penalized individual or organization has not paid or fully paid the fine, back taxes, or late payment interest, the tax authority must monitor the unpaid amounts in the tax management system and apply tax debt enforcement measures according to regulations to collect the full amounts owed to the state budget.

What are cases of explanations about tax or invoice-related administrative violations in Vietnam?

Based on Article 37 of Decree 125/2020/ND-CP, the regulations are as follows:

Explanations about tax or invoice-related administrative violations

1. Cases of explaining tax and invoice administrative violations

a) Administrative violations on taxes and invoices detected through tax inspection, tax examination, or in cases of electronic administrative violation records;

b) Administrative violations specified in Articles 16, 17, 18; Clause 3 of Article 20; Clause 7 of Article 21; Articles 22 and 28 of this Decree.

2. The explanation of tax and invoice administrative violations is conducted according to the law on handling administrative violations.

Thus, the explanation for administrative violations on taxes and invoices is conducted according to the law on handling administrative violations.