What are the rules for imposition of penalties for tax administrative offences in Vietnam?
What are the rules for imposition of penalties for tax administrative offences in Vietnam?
According to Article 136 of the 2019 Law on tax administration:
Rules for imposition of penalties Regarding tax administrative offences
- The imposition of administrative sanctions for tax administrative offences is carried out in accordance with the laws on tax administration and the laws on handling administrative violations.
- Administrative violations involving the unlawful use of invoices, the illegal use of invoices, or using invoices not in conformance leading to tax deficiencies or tax evasion shall not be sanctioned as invoice violations but will be penalized as tax administrative offences.
- The maximum fine for acts of incorrect declaration leading to a deficiency in the payable tax amount or an increase in the tax amount exempted, reduced, refunded, or not collected, and acts of tax evasion are implemented according to the provisions of this Law.
- For the same administrative tax administration violation, the fine for an organization is twice the fine for an individual, except for the fine for acts of incorrect declaration leading to a deficiency in payable tax amounts or an increase in the tax amount exempted, reduced, refunded, or not collected, and acts of tax evasion.
- In cases where the taxpayer is assessed taxes as stipulated in Articles 50 and 52 of this Law, depending on the nature and extent of the violation, they may be subject to administrative penalties for tax administrative offences under the provisions of this Law.
- Authorities with the mandate to enforce official duties discovering administrative tax administrative offences are responsible for drawing up administrative violation records as stipulated. In cases where the taxpayer's registration, tax declaration, or electronic tax finalization notices indicate a clear administrative tax administration violation by the taxpayer, such notifications serve as administrative violation records forming the basis for issuing a penalty decision.
- In cases where tax administrative offences require criminal prosecution, actions will be in accordance with the laws on criminal proceedings.
Accordingly, the rules for imposition of penalties for tax administrative offences are as follows:
- The maximum fine for actions involving incorrect declarations resulting in deficiencies in the payable tax amount or increases in the tax amount exempted, reduced, refunded, or not collected, and acts of tax evasion are implemented according to the 2019 Law on tax administration.
- For the same administrative violation in tax administration, the fine for an organization is double that for an individual, except for the fine for incorrect declarations leading to a deficiency in payable tax amounts or an increase in tax amounts exempted, reduced, refunded, not collected, and acts of tax evasion.
What are the rules for imposition of penalties for tax administrative offences in Vietnam? (Image from the Internet)
What are time limits for imposition of penalties in tax administrative offences in Vietnam?
According to Article 137 of the 2019 Law on tax administration, the time limits for imposition of penalties in tax administrative offences is as follows:
- For violations concerning tax procedures, the time limits for sanctions is 2 years from the date the violation was committed.
- For acts of tax evasion that do not warrant criminal prosecution, acts of incorrect declarations leading to deficiencies in payable tax amounts, or increases in tax amounts exempted, reduced, refunded, not collected, the time limits for sanctions is 5 years from the date the violation was committed.
- Beyond the time limits for administrative penalties for tax administrative offences, the taxpayer will not be penalized but must still pay the full amount of the deficient tax, evaded tax, improperly exempted, reduced, refunded, or uncollected tax, and late payment fees to the state budget for up to 10 years prior to the detection of the violation.
In cases where the taxpayer is not registered, they must pay the full amount of deficient tax, evaded tax, and late payment fees for the entire period prior to the detection of the violation.
What are fines for tax administrative offences in Vietnam?
According to Clause 2, Article 138 of the 2019 Law on tax administration, the fines for tax administrative offences are as follows:
- The maximum fine for acts specified in Article 141 of the 2019 Law on tax administration is implemented according to the laws on handling administrative violations;
- A fine of 10% on the understated declared tax amount or increased declared amount in cases of exempted, reduced, refunded, or uncollected taxes for acts specified in point a, clause 2, Article 142 of the 2019 Law on tax administration;
- A fine of 20% on the understated declared tax amount or increased declared amount in cases of exempted, reduced, refunded, or uncollected taxes for acts specified in clause 1 and points b, c of clause 2, Article 142 of the 2019 Law on tax administration;
- A fine from 1 to 3 times the amount of evaded tax for acts specified in Article 143 of the 2019 Law on tax administration.
