What are time limits for imposition of penalties for tax administrative offences in Vietnam?

What are rules for imposition of penalties for tax administrative offences in Vietnam?

According to Article 136 of the Law on Tax Management 2019 stipulates the rules for imposition of penalties for tax administrative offences as follows:

- The administrative penalties for tax management violations are carried out in accordance with the provisions of the law on tax management and the law on handling administrative violations.

- Administrative violations related to the illegal use of invoices, the illegal use of invoices, or the use of non-conformable invoices leading to tax shortage or tax evasion shall not be penalized as administrative violations related to invoices but shall be administratively penalized concerning tax management.

- The maximum fine for the act of incorrect declaration leading to tax shortage or increasing the amount of tax exempted, reduced, refunded, or unpaid, as well as tax evasion, shall be in accordance with the provisions of the Law on Tax Management 2019.

- For the same administrative violation in tax management, the fine for organizations shall be 2 times the fine for individuals, except for the fine for the act of incorrect declaration leading to tax shortage or increasing the amount of tax exempted, reduced, refunded, or unpaid, as well as tax evasion.

- In cases where taxpayers are subject to tax imposition as prescribed in Articles 50 and 52 of the Law on Tax Management 2019, depending on the nature and severity of the violation, they may be administratively penalized for tax management violations according to the provisions of the Law on Tax Management 2019.

- Competent persons performing official duties who detect administrative violations in tax management have the responsibility to make a record of the administrative violation as prescribed.

In cases where taxpayers register electronically, submit tax declaration files, or finalize taxes electronically, if the electronic notification of file receipt clearly identifies the administrative violation concerning tax management by the taxpayer, this notification serves as the administrative violation record, which forms the basis for issuing the penalty decision.

- In cases where tax management violations require criminal prosecution, the handling shall comply with the provisions of the law on criminal matters.

What are time limits for imposition of penalties for tax administrative offences in Vietnam? (Image from the Internet)

What are time limits for imposition of penalties for tax administrative offences in Vietnam?

According to Article 137 of the Law on Tax Management 2019 stipulates the time limits for imposition of penalties for tax administrative offences as follows:

- For violations of tax procedures, the penalty period is 2 years from the date of the violation.

- For acts of tax evasion not severe enough for criminal prosecution, acts of incorrect declaration leading to tax shortage or increasing the amount of tax exempted, reduced, refunded, or unpaid, the penalty period is 5 years from the date of the violation.

- If the penalty period for administrative violations in tax management has expired, the taxpayer shall not be penalized but must still pay the full amount of tax shortage, tax evasion, exempted, reduced, or refunded improperly, and late payment interest to the state budget for the period of 10 years preceding the detection of the violation. In cases where the taxpayer has not registered for tax, they must pay the full amount of tax shortage, tax evasion, and late payment for the entire period preceding the detection of the violation.

What are penalties, fines and remedial measures for tax administrative offences in Vietnam?

According to Article 138 of the Law on Tax Management 2019 stipulates the penalties, fines and remedial measures for administrative violations in tax management as follows:

(1) Forms for imposition of penalties for tax administrative offences include:

- Warning;

- Fine.

(2) Levels of fines in administrative penalties for tax management violations are stipulated as follows:

- The maximum fine for acts specified in Article 141 of the Law on Tax Management 2019 shall be in accordance with the provisions of the law on handling administrative violations;

- A fine of 10% of the under-declared tax amount or the increased tax amount in case of exemption, reduction, refund, or non-tax collection for acts specified at point a, clause 2, Article 142 of the Law on Tax Management 2019;

- A fine of 20% of the under-declared tax amount or the increased tax amount in case of exemption, reduction, refund, or non-tax collection for acts specified in clause 1 and points b, c clause 2, Article 142 of the Law on Tax Management 2019;

- A fine ranging from 1 to 3 times the evaded tax amount for acts specified in Article 143 of the Law on Tax Management 2019.

(3) Remedial measures in administrative penalties for tax management violations include:

- Forcing the full payment of evaded or underpaid tax amounts;

- Forcing the full payment of improperly exempted, reduced, refunded, or untaxed amounts.