What are the fines in imposing administrative penalties for tax administrative offences in Vietnam?

What are the forms of administrative penalties for tax administrative offences in Vietnam?

According to Clause 1, Article 138 of the Law on Tax Administration 2019, the forms of administrative penalties for tax administrative offences include:

- Warning;

- fine.

What are the remedial measures in imposing administrative penalties for tax administrative offences in Vietnam?

According to Clause 3, Article 138 of the Law on Tax Administration 2019, the remedial measures in imposing administrative penalties for tax administrative offences include:

- Compelling to pay the full amount of evaded or underreported tax;

- Compelling to pay the full amount of tax exempted, reduced, refunded, or incorrectly not collected.

What are the fines in imposing administrative penalties for tax administrative offences in Vietnam? (Image from the Internet)

What are the fines in imposing administrative penalties for tax administrative offences in Vietnam?

The fines for imposing administrative penalties for tax administrative offences are stipulated in Clause 2, Article 138 of the Law on Tax Administration 2019 as follows:

* The maximum monetary penalty for the acts specified in Article 141 of the Law on Tax Administration 2019 is determined according to the provisions of the law on administrative violations handling;

According to Clause 1, Article 141 of the Law on Tax Administration 2019, tax procedure violations include:

- Violations regarding deadlines for taxpayer registration; deadlines for notifying changes in taxpayer registration information;

- Violations regarding the deadline for submitting tax returns within 90 days from the deadline for submitting tax returns or the extended deadline for submitting tax returns as stipulated by the Law on Tax Administration 2019;

- Violations regarding the deadline for submitting tax returns from the deadline for submitting customs declarations to before the date of handling unclaimed goods according to the provisions of the Customs Law 2014;

- Incorrect or incomplete declarations in tax dossiers that do not lead to a deficiency in the tax amount payable or an increase in the tax amount exempted, reduced, refunded, or not collected, except for cases where taxpayers make amendments within the prescribed period;

- Violations of regulations on providing information related to tax obligations determination;

- Violations of regulations on compliance with tax inspection, tax audit decisions, and enforcement of administrative decisions on tax management.

* A fine of 10% calculated on the underreported tax amount or overreported tax refund amount for the acts specified in Point a, Clause 2, Article 142 of the Law on Tax Administration 2019:

Taxpayers who self-detect and amend after the customs authority has notified direct inspection of customs dossiers for goods in customs clearance or after 60 days from the date of customs clearance and before the customs authority decides post-clearance inspection and auditing for cleared goods.

* A fine of 20% calculated on the underreported tax amount or overreported tax refund amount for the acts specified in Clause 1 and Points b, c Clause 2, Article 142 of the Law on Tax Administration 2019:

- Incorrect declarations leading to underreported tax amounts payable or increased tax amounts exempted, reduced, refunded, including:

+ Wrongly declaring tax calculation bases or deductible tax amounts or wrongly determining exemption, reduction, or refund cases leading to underreported tax amounts payable or increased tax amounts exempted, reduced, refunded while economic transactions have been fully reflected in accounting records, legal invoices, and documents;

+ Taxpayers have prepared dossiers for market price determination or have declared related party transactions but the inspection and audit authorities' conclusions differ from the taxpayers' declarations leading to underreported tax amounts payable or increased tax amounts exempted, reduced, refunded;

+ Using invalid invoices, misusing invoices to record the value of purchased goods, services to reduce payable tax amounts or increase tax amounts exempted, reduced, refunded while the purchaser of goods, services using invalid invoices proves that the violation related to invalid invoices belongs to the seller.

- Customs authorities discovered during customs procedure; discovered during audits for cleared goods and violators have voluntarily remedied the consequences by paying the full tax amount payable as prescribed;

- Cases other than those specified in Points a and b Clause 2 Article 142 of the Law on Tax Administration 2019 and violators have voluntarily rectified the situation by paying the full tax amount payable.

* Fines ranging from 1 to 3 times the evaded tax amount for the acts specified in Article 143 of the Law on Tax Administration 2019:

- Not submitting taxpayer registration dossiers; not submitting tax declarations; submitting tax declarations after 90 days from the deadline for submitting tax returns or the extended deadline for submitting tax returns as stipulated by the Law on Tax Administration 2019.

- Not recording in accounting books the revenue related to the determination of tax payable amounts.

- Not issuing invoices when selling goods, services as prescribed by law or recording values on sales invoices lower than the actual payment value of sold goods, services.

- Using invalid invoices, misusing invoices to record purchased goods, raw materials leading to reduced tax payable amounts or increased tax amounts exempted, reduced, refunded, or increased deductible tax amounts, refunded tax amounts, tax not collected.

- Using documents, and data that do not reflect the true nature of the transactions or actual transaction values to misreport tax payable amounts, tax exempted, tax reduced, refunded, tax not collected.

- Incorrectly declaring export, and import goods without amending tax declarations after the goods have been cleared.

- Intentionally not declaring or incorrectly declaring export, import goods tax.

- Colluding with consignors to import goods aimed at tax evasion.

- Using tax-free, exempt, duty-examined goods for purposes not prescribed and not declaring the change of usage purposes to tax management authorities.

- Taxpayers conducting business activities during periods of suspension without notifying the tax management authorities.

- Taxpayers not being penalized for tax evasion acts but sanctioned according to Clause 1, Article 141 of the Law on Tax Administration 2019 in the following cases:

+ Not submitting taxpayer registration dossiers, not submitting tax returns, submitting tax returns after 90 days but without any arising tax payable;

+ Submitting tax returns after 90 days with arising tax payable and taxpayers have paid the full tax amounts along with late payment interest to the state budget before the tax authority announces tax inspection or audit decisions, or before the tax authority records the delay in submitting tax returns.