What are the administrative penalties for violations against regulations on time limits for notification of changes in taxpayer registration information in Vietnam?

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.

What are the administrative penalties for violations against regulations on time limits for notification of changes in taxpayer registration information in Vietnam? (Image from Internet)

What are the administrative penalties for violations against regulations on time limits for notification of changes in taxpayer registration information in Vietnam?

As per Article 11 of Decree 125/2020/ND-CP, the penalties for violations against regulations on time limits for notification of changes in taxpayer registration information are as follows:

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

- notification of changes to taxpayer registration 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;

- notification of changes to taxpayer registration 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 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:

- notification of changes to taxpayer registration 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;

- notification of changes to taxpayer registration 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:

- notification of changes to taxpayer registration 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;

- notification of changes to taxpayer registration 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:

- notification of changes to taxpayer registration 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;

- 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:

- 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;

- 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;

- 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 in case of committing the act specified in (5) is required.

Note: According to Clause 4 Article 7 of Decree 125/2020/ND-CP, the above-mentioned fines apply to organizations. For individual violators, the fines will be 1/2 of those applied to organizations.

What is the time limit for the execution of decisions on imposing the penalties for violations against regulations on time limits for notification of changes in taxpayer registration information in Vietnam?

Under Article 40 of Decree 125/2020/ND-CP, the regulations are as follows:

Time limit for execution of tax or invoice-related administrative penalty charge decisions

1. Time limit for execution of tax or invoice-related administrative penalty charge decisions shall be 01 year from the decision-issuing date. Upon expiry of the aforesaid execution time limit, if the tax authority has not yet transmitted or sent the administrative penalty charge decision to the violating entity or person under the provisions of Article 39 herein, that decision shall become inactive.

If the administrative penalty charge decision requires the enforcement of any remedy, such remedy shall be enforced as usual.

2. If the sanctioned entity or person deliberately evades or defers execution of the decision, the time limit for execution of the penalty charge decision shall start from the date of termination of the act of evasion or deferment.

3. If the tax authority has transmitted or sent the administrative penalty charge decision to the violating entity or person as provided in Article 39 herein, but the sanctioned entity or person has not yet paid or has not fully paid fines, back taxes or deferred amounts, tax authorities must track amounts not yet paid on tax administration systems and apply measures to enforce recovery of outstanding taxes under regulations in order to fully collect amounts payable into the state budget.

Thus, the time limit for the execution of decisions on imposing the penalties for violations against regulations on time limits for notification of changes in taxpayer registration information in Vietnam is 1 year from the date of the decision.

Note: If the administrative penalty charge decision requires the enforcement of any remedy, such remedy shall be enforced as usual.

Additionally, if the sanctioned entity or person deliberately evades or defers execution of the decision, the time limit for execution of the penalty charge decision shall start from the date of termination of the act of evasion or deferment.