What are the penalties for violations against regulations on the provision of information related to the determination of tax liabilities in Vietnam?

Are taxpayers in Vietnam required to provide information related to the determination of tax liabilities?

Under Article 29 of the Tax Administration Law 2019, the regulations are as follows:

Duties and powers of other organizations and individuals

1. Providing information related to the determination of tax liabilities as requested by tax authorities.

2. Cooperating with tax authorities in implementing handling decisions on tax-related administrative violations.

3. Reporting tax-related regulatory violations to tax authorities or state authorities.

4. Requesting sellers and/or service providers to deliver invoices and records of goods and/or services with the correct quantity, type and actual payment amount when purchasing goods and/or services.

Thus, taxpayers in Vietnam (individuals or organizations) are required to provide information related to the determination of tax liabilities at the request of the tax authority.

What are the penalties for violations against regulations on the provision of information related to the determination of tax liabilities in Vietnam? (Image from the Internet)

What are the penalties for violations against regulations on the provision of information related to the determination of tax liabilities in Vietnam?

According to Article 14 of Decree 125/2020/ND-CP, the penalties for violations against regulations on the provision of information related to the determination of tax liabilities in Vietnam are as follows:

(1) Fines ranging from VND 2,000,000 to VND 3,000,000 shall be imposed for one of the following violations:

- Providing statutory information, documents and records related to tax registration according to notifications issued by tax authorities at least 05 working days after expiration of the prescribed time limits;

- Providing statutory accounting information, documents and records related to the determination of tax obligations according to notifications issued by tax authorities at least 05 working days after expiration of the prescribed time limits.

(2) Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for one of the following violations:

- Failing to provide, or incompletely or inaccurately providing, information, documents, records, invoices or accounting books related to the determination of tax obligations; incompletely or inaccurately providing account numbers, balances of deposit accounts, checking accounts for competent authorities upon their request;

- Failing to provide, or incompletely or wrongly providing, information or data related to tax obligations of which registration must be made under regulations on condition that this act does not result in any reduction in tax obligations to the state budget;

- Failing to provide, or incompletely or inaccurately providing, information, documents related to deposit accounts, checking accounts opened at credit institutions, state treasuries, or debts of related third parties, for competent tax authorities upon their request.

(3) Remedies: Compelling the provision of information with respect to the acts specified in (2)

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

What is the time limit for the execution of decisions on imposing the penalties for violations against regulations on the provision of information related to the determination of tax liabilities in Vietnam?

Pursuant to 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 the provision of information related to the determination of tax liabilities in Vietnam is 01 year from the date of the penal 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.