What are regulations on aggravating and mitigating circumstances arising in the tax sector in Vietnam?

What are regulations on aggravating and mitigating circumstances arising in the tax sector in Vietnam?

According to Clause 1 Article 6 of Decree 125/2020/ND-CP, the aggravating and mitigating circumstances arising in the tax sector and invoices are regulated as follows:

Aggravating and mitigating circumstances arising in the tax sector and invoices

1. Aggravating and mitigating circumstances as prescribed by law on handling administrative violations.

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Referring to Article 9 and Article 10 of the Law on Handling Administrative Violations 2012, the aggravating and mitigating circumstances arising in the tax sector and invoices include:

* Regarding mitigating circumstances:

- The individual who committed an administrative violation has taken actions to prevent or reduce the consequences of the violation or voluntarily rectified the consequences or compensated for the damage;

- The individual who committed an administrative violation has voluntarily reported, sincerely repented; actively assisted authorities in detecting and handling administrative violations;

- Administrative offences committed under a state of provocation due to unlawful acts by others; acting beyond the limits of legitimate self-defense; exceeding the requirements of urgent circumstances;

- Administrative violations committed under compulsion or while being materially or mentally dependent;

- The individual committing an administrative violation is a pregnant woman, an elderly person, or a person with an illness or disability, limiting their ability to perceive or control their behavior;

- Administrative violations due to particularly difficult circumstances beyond the individual's control;

- Administrative violations due to backwardness;

- Other mitigating circumstances prescribed by the Government of Vietnam.

* Regarding aggravating circumstances:

- Administrative violations committed in an organized manner;

- Repeated administrative violations or recidivism;

- Instigating, enticing, or using minors to commit violations; coercing individuals dependent on them materially or spiritually to commit administrative violations;

- Using individuals who are known to be mentally unstable or suffering from an illness that impairs their ability to perceive or control their actions to facilitate administrative violations;

- Insulting or defaming individuals performing official duties; administrative violations with a hooligan nature;

- Exploiting position or authority to commit administrative violations;

- Taking advantage of wartime, natural disasters, pandemics, or other special difficulties in society to commit administrative violations;

- Violations committed while serving a sentence of a criminal judgment or while complying with measures to handle administrative violations;

- Continuing to carry out administrative violations despite being ordered by competent persons to cease such acts;

- Engaging in acts to avoid or conceal administrative violations after being committed;

- Large-scale administrative violations, involving large quantities or high value of goods;

- Administrative violations against multiple individuals, children, the elderly, disabled individuals, or pregnant women.

What are regulations on aggravating and mitigating circumstances arising in the tax sector in Vietnam? (Image from the Internet)

Is there a fine for late submission of tax declarations in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP, penalties for violations of the deadline for submitting tax declarations are regulated as follows:

Penalties for violations of the deadline for submitting tax declarations

1. An official warning for submitting tax declarations 1 to 5 days late and having mitigating circumstances.

2. A fine ranging from 2,000,000 VND to 5,000,000 VND for submitting tax declarations 1 to 30 days late, except as stipulated in Clause 1 of this Article.

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Thus, in cases where tax declarations are submitted 1 to 5 days late and there are mitigating circumstances, no fine will be imposed, and the individual will only receive an official warning.

However, if tax declarations are submitted 1 to 5 days late without mitigating circumstances, a fine ranging from 2,000,000 VND to 5,000,000 VND will be imposed.

What are the penalties for late submission of tax declarations in Vietnam?

Based on Article 13 of Decree 125/2020/ND-CP, the penalties for violations of the deadline for submitting tax declarations are as follows:

(1) An official warning for submitting tax declarations 1 to 5 days late and having mitigating circumstances.

(2) A monetary fine ranging from 2,000,000 VND to 5,000,000 VND for submitting tax declarations 1 to 30 days late, except as stipulated in Clause 1, Article 13 of Decree 125/2020/ND-CP.

(3) A monetary fine ranging from 5,000,000 VND to 8,000,000 VND for submitting tax declarations 31 to 60 days late.

(4) A monetary fine ranging from 8,000,000 VND to 15,000,000 VND for the following acts:

- Submitting tax declarations 61 to 90 days late.

- Submitting tax declarations 91 days late or more without tax payable;

- Failing to submit tax declarations but no taxes are payable;

- Failing to submit appendices as required under tax management regulations for enterprises with related-party transactions along with corporate income tax finalization declarations.

(5) A monetary fine ranging from 15,000,000 VND to 25,000,000 VND for submitting tax declarations over 90 days late from the deadline, with taxes payable, provided the tax due and late payment fees have been fully paid to the state budget before the tax authority announces tax inspections, audits, or before tax authorities record the violation according to Clause 11, Article 143 of the Law on Tax Administration 2019.

(6) Remedial measures:

- Compulsory payment of overdue taxes to the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of Article 13 of Decree 125/2020/ND-CP in cases where delayed submission of tax declarations leads to late tax payment.

- Compulsory submission of tax declarations and appendices along with tax declaration dossiers for violations specified in Point c, d Clause 4, Article 13 of Decree 125/2020/ND-CP.

Note: The specified fines are applicable to organizations. Penalties for individuals are half the amount applicable to organizations.