What are the 07 rules for imposition of penalties for tax administrative offences in Vietnam?

What are the 07 rules for imposition of penalties for tax administrative offences in Vietnam?

Based on Article 136 of the Law on Tax Administration 2019, the latest rules for imposition of penalties for tax administrative offences are as follows:

- penalties for tax administrative offences are implemented according to the provisions of Law on Tax Administrations and laws on handling administrative violations.

- Administrative violations concerning the use of illegal invoices, unauthorized use of invoices, or using non-conformable invoices leading to tax shortfall or tax evasion are not subject to administrative penalties on invoices but are subject to administrative penalties on tax management.

- The maximum fine for the act of incorrect declaration leading to a shortfall in the payable tax amount or an increase in the tax amount exempted, reduced, refunded, or not collected, or tax evasion shall be according to the provisions of the Law on Tax Administration 2019.

- For the same administrative violation in tax management, the fine for an organization is double the fine for an individual, except for the fine concerning incorrect declaration leading to a shortfall in payable tax or an increase in the tax amount exempted, reduced, refunded, or not collected and tax evasion acts.

- In cases where taxpayers are imposed taxes according to the provisions of Article 50 and Article 52 of the Law on Tax Administration 2019, depending on the nature and severity of the violation, they may be subjected to administrative sanctions on tax management as per the provisions of the Law on Tax Administration 2019.

- Persons with authority discovering administrative violations concerning tax management during duty performance are responsible for preparing an administrative violation record according to regulations. In cases where taxpayers engage in electronic taxpayer registration, file electronic tax returns, or annual tax finalizations, if the receipt notice clearly determines a taxpayer’s administrative violation on tax management, this notice acts as an administrative violation record which serves as a basis for issuing a penalty decision.

- Cases of tax administrative offences subject to criminal investigation shall be handled according to criminal law provisions.

What are the 07 rules for imposition of penalties for tax administrative offences in Vietnam? (Image from the Internet)

What is the time limits for imposition of penalties for tax administrative offences in Vietnam?

According to Article 137 of the Law on Tax Administration 2019, the time limits for imposition of penalties for tax administrative offences is as follows:

- For tax procedure violations, the statute of limitations is 02 years from the date the violation is committed.

- For tax evasion acts not subject to criminal liability and incorrect declarations leading to a shortfall in the payable tax amount or an increase in the tax amount exempted, reduced, refunded, or not collected, the statute of limitations is 05 years from the date the violation is committed.

- Beyond the statute of limitations, taxpayers are not subjected to administrative penalties but must still pay the full amount of tax shortfall, evaded tax, incorrectly exempted, reduced, refunded, not collected taxes, and late payment fees to the state budget for up to 10 years from the date the violation is detected.

In cases where taxpayers have not engaged in taxpayer registration, they must pay the full amount of tax shortfall, evaded tax, and late payment charges for the entire period from the date the violation is detected.

What are penalties for tax administrative offences in Vietnam?

According to Article 138 of the Law on Tax Administration 2019, the forms of penalty, fine levels, and remedial measures for consequences are as follows:

Forms of penalty, fine levels, and remedial measures for consequences

1. The forms of penalty for tax administrative offences include:

a) Warning;

b) Fine.

2. The fine levels for administrative penalties in tax management are stipulated as follows:

a) The maximum fine for the acts stipulated in Article 141 of this Law shall be implemented according to the law on handling administrative violations;

b) A 10% fine on the incorrectly declared tax amount or the increased tax amount in cases of exemption, reduction, refund, or non-collection for the acts stipulated at point a, clause 2, Article 142 of this Law;

c) A 20% fine on the incorrectly declared tax amount or the increased tax amount in cases of exemption, reduction, refund, or non-collection for the acts stipulated in clause 1, and points b, c, clause 2, Article 142 of this Law;

d) Fines ranging from 01 to 03 times the evaded tax amount for acts stipulated in Article 143 of this Law.

3. Remedial measures for consequences in administrative penalties in tax management include:

a) Compelling payment of the full evaded or shortfall tax amount;

b) Compelling payment of the improperly exempted, reduced, refunded, or non-collected tax amount.

4. The Government of Vietnam prescribes the details of this Article.

Thus, according to the regulations stated above, there are 2 forms of administrative penalties in tax management, including warnings and fines.