What are the administrative penalties for failing to notify changes of information contained in taxpayer registration information applications in Vietnam?

What are the administrative penalties for failing to notify changes of information contained in taxpayer registration information applications in Vietnam?

According to Article 11 of Decree 125/2020/ND-CP, the regulations are as follows:

Penalties for violations against regulations on time limits for notification of changes in taxpayer registration information information

1. Cautions shall be given as a form of penalty imposed for the following violations:

a) notification of changes to taxpayer registration information information from 01 to 30 days after expiration of the prescribed time limits without entailing any change in taxpayer registration information certificates or tax identification number notifications under mitigating circumstances;

b) notification of changes to taxpayer registration information information from 01 to 10 days after expiration of the prescribed time limits if such changes entail any change in taxpayer registration information certificates or tax identification number notifications under mitigating circumstances.

2. Fines ranging from VND 500,000 to VND 1,000,000 shall be imposed for the act of notification of changes to taxpayer registration information information from 01 to 30 days after expiration of the prescribed time limits without entailing any change in taxpayer registration information certificates or tax identification number notifications, except the cases specified in point a of clause 1 of this Article.

3. Fines ranging from VND 1,000,000 to VND 3,000,000 shall be imposed for one of the following violations:

a) notification of changes to taxpayer registration information information from 31 to 90 days after expiration of the prescribed time limits without entailing any change in taxpayer registration information certificates or tax identification number notifications;

b) notification of changes to taxpayer registration information information from 01 to 30 days after expiration of the prescribed time limits if such changes entail any change in taxpayer registration information certificates or tax identification number notifications, except as specified in point b of clause 1 of this Article.

4. Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for one of the following violations:

a) notification of changes to taxpayer registration information information at least 91 days after expiration of the prescribed time limits without entailing any change in taxpayer registration information certificates or tax identification number notifications;

b) notification of changes to taxpayer registration information information from 31 to 90 days after expiration of the prescribed time limits if these changes entail any change in taxpayer registration information certificates or tax identification number notifications.

5. Fines ranging from VND 5,000,000 to VND 7,000,000 shall be imposed for one of the following violations:

a) notification of changes to taxpayer registration information information at least 91 days after expiration of the prescribed time limits if these changes entail any change in taxpayer registration information certificates or tax identification number notifications;

b) Failing to notify changes of information contained in taxpayer registration information applications.

6. Regulations laid down in this Article shall be applied to the following cases:

a) Non-business persons who have been granted personal income tax identification codes delay in registering changes in their ID information after receipt of 12-digit ID cards;

b) Income payers delay in registering changes from ID cards to 12-digit ID cards of PIT payers that are persons granting authorization to complete PIT finalization procedures;

c) Notifying changes in information about taxpayer’s address contained in taxpayer registration information applications after expiration of the prescribed time limits due to any change in administrative jurisdictions under the Resolutions of the National Assembly’s Standing Committee or National Assembly.

7. Remedies: Compelling the submission of application for changes in taxpayer registration information information in case of committing the act specified in point b of clause 5 of this Article.

Thus, an administrative fine ranging from VND 5,000,000 to VND 7,000,000 shall be imposed for failing to notify changes of information contained in taxpayer registration information applications in Vietnam.

Note: According to clause 4, Article 7 of Decree 125/2020/ND-CP, the above fine applies to organizations. In case of individual violations, the fine will be half of that for organizations.

In addition to administrative penalties, it is mandatory to follow the procedure for changing taxpayer registration information in accordance with the law.

What are the administrative penalties for ffailing to notify changes of information contained in taxpayer registration information applications? (Image from the Internet)

What does the application for change of taxpayer registration information in Vietnam include?

According to point b, clause 3, Article 10 of Circular 105/2020/TT-BTC, the regulations are as follows:

Location of submission and application for change of taxpayer registration information

Location of submission and application for change of taxpayer registration information are specified in Article 36 of the Law on Tax Administration and the following regulations:

...

b) The application for change of taxpayer registration information, filed with the tax authority in person, includes:

- Application form for change of taxpayer registration information No. 08-MST hereto appended;

- Copy of unexpired citizen identification card or ID card, for an Vietnamese nationality individual; copy of unexpired passport, for a foreign national or overseas Vietnamese, if the taxpayer registration information information thereon is changed.

Thus, the the application for change of taxpayer registration information submitted directly to the tax authority includes:

- Application form for change of taxpayer registration information made in Form 08-MST.

- Copy of unexpired citizen identification card or ID card, for a Vietnamese nationality individual.

What are the regulations on notification of changes to taxpayer registration information in Vietnam?

According to Article 36 of the Tax Administration Law 2019, the regulations on notification of changes to taxpayer registration information are as follows:

- Upon any change to taxpayer registration information, taxpayers who combine taxpayer registration with business registration shall notify the changes to taxpayer registration information together with changes to business registration information as prescribed by law.

In case taxpayers' change of address leads to change of supervisory tax authorities, taxpayers must complete tax procedures with supervisory tax authorities as prescribed in Tax Administration Law 2019 before registering with business registration authorities for change of information.

- When there is any change to taxpayer registration information, taxpayers directly registered with tax authorities must notify their supervisory tax authorities within 10 working days starting from the date of changes to information.

- In case individuals authorizing their income payers to register changes to taxpayer registration information for themselves and their dependants, they must notify the income payers in no later than 10 working days starting from the date of changes to information; the income payers shall be responsible for notifying tax authorities of the changes in no later than 10 working days starting from the date of authorization from taxpayers.