What crime will be imposed for tax evasion with an amount of from VND 100,000,000 in Vietnam?

What are the 11 acts considered tax evasion in Vietnam?

Based on Article 143 of the Law on Tax Administration 2019, the following 11 acts are considered tax evasion under the law:

[1] Failure to submit taxpayer registration dossiers; failure to submit tax declaration dossiers; submission of tax declaration dossiers more than 90 days after the deadline for submitting tax declaration dossiers or the deadline for extended submission of tax declaration dossiers.

[2] Failure to record in accounting books the receipts related to determining the amount of tax payable.

[3] Failure to issue invoices when selling goods or services as required by law or recording the invoice value lower than the actual payment value of goods or services sold.

[4] Using illegal invoices or documents, illegally using invoices to account for goods or input materials in activities incurring tax obligations to reduce the tax amount payable or to increase the tax-exempt amount, tax-reduced amount, deductible tax amount, refundable tax amount, or non-payable tax amount.

[5] Using documents or materials that do not reflect the true nature of the transaction or the actual transaction value to determine wrongly the tax amount payable, tax-exempt amount, tax-reduced amount, refundable tax amount, or non-payable tax amount.

[6] Incorrect declaration with the actual export or import goods without supplementary tax declaration dossiers after goods clearance.

[7] Intentional failure to declare or false declaration of taxes on export or import goods.

[8] Colluding with the consignor to import goods for the purpose of tax evasion.

[9] Using goods subject to non-taxable, tax-exempt, reviewed tax-exemption purposes for improper use without declaring the change of usage purpose to tax authorities.

[10] Taxpayers engaging in business activities during the period of business suspension without notifying tax authorities.

[11] Taxpayers not penalized for tax evasion but penalized under Clause 1, Article 141 of the Law on Tax Administration 2019 in the following cases:

+ Failure to submit taxpayer registration dossiers, failure to submit tax declaration dossiers, submission of tax declaration dossiers more than 90 days without incurring tax payable;

+ Submission of tax declaration dossiers more than 90 days with incurred tax payable and the taxpayer has fully paid the tax amount, late payment amount to the state budget before the tax authority announces the tax inspection or audit decision or before the tax authority establishes a record of the act of late submission of tax declaration dossiers.

What crime will be imposed for tax evasion with an amount of from VND 100,000,000? (Image from the Internet)

What crime will be imposed for tax evasion with an amount of from VND 100,000,000 in Vietnam?

According to Clause 1, Article 200 of the Criminal Code 2015 as amended by Point a, Clause 47, Article 1 of the Law amending the Criminal Code 2017, the crime of tax evasion is regulated as follows:

Crime of Tax Evasion

1. Anyone who commits one of the following acts evades tax with an amount from 100,000,000 VND to under 300,000,000 VND or under 100,000,000 VND but has been administratively sanctioned for tax evasion or has been convicted of this crime or any of the crimes stipulated in Articles 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309, and 311 of this Code, not yet served the sentence for the intentionally repeated crime, shall be fined from 100,000,000 VND to 500,000,000 VND or imprisoned from 03 months to 01 year:

a) Failure to submit taxpayer registration dossiers; failure to submit tax declaration dossiers; submission of tax declaration dossiers after 90 days from the deadline for submitting tax declaration dossiers or the deadline for extended submission of tax declaration dossiers as prescribed by law;

b) Failure to record in accounting books the receipts related to determining the amount of tax payable;

c) Failure to issue invoices when selling goods or services or recording the invoice value lower than the actual payment value of goods or services sold;

d) Using illegal invoices, documents to account for goods, input materials in activities incurring tax obligations to reduce tax payable amount or to increase tax-exempt amount, tax-reduced amount or deductible tax amount, refundable tax amount;

dd) Using other illegal documents, materials to determine wrongly the tax payable amount, refundable tax amount;

e) Incorrect declaration with the actual export, import goods without supplementary tax declaration dossiers after goods clearance, if not stipulated in Article 188 and Article 189 of this Code;

g) Intentional failure to declare or false declaration of taxes on export or import goods if not stipulated in Article 188 and Article 189 of this Code;

h) Colluding with the consignor to import goods if not stipulated in Article 188 and Article 189 of this Code;

i) Using goods subject to non-taxable, tax-exempt, reviewed tax-exemption purposes for improper use without declaring the change of usage purpose with the tax management agency.

Thus, it can be seen that tax evasion with an amount of from VND 100,000,000 will be charged with the crime of tax evasion and will be fined from 100,000,000 VND to 500,000,000 VND or imprisoned from 03 months to 01 year.

Additionally, if the crime is committed for the first time, administrative penalties and criminal handling measures under the regulations are applied depending on the amount of tax evaded.

What are the regulations on penalties for tax evasion in Vietnam?

Under Article 17 of the Decree 125/2020/ND-CP, penalties for tax evasion include:

+ A fine equivalent to the amount of tax evaded shall be imposed on taxpayers who have at least one mitigating circumstance when committing one of the following violations:

- Failure to submit taxpayer registration dossiers; failure to submit tax declaration dossiers or submission of tax declaration dossiers more than 90 days from the deadline or the extended deadline, except for cases stated at points b, c of Clause 4 and Clause 5 of Article 13 of Decree 125/2020/ND-CP;

- Failure to record in accounting books the receipts involved in determining tax payable or incorrect declarations leading to a shortfall in the tax payable or an increase in refundable, exempted, or reduced tax, excluding the violations stipulated in Article 16 of Decree 125/2020/ND-CP;

- Failure to issue invoices when selling goods or services, except where taxpayers have declared taxes on the valued goods or services sold for the corresponding tax period; incorrect invoicing for goods or services in quantity or value leading to tax declarations lower than actual and discovered after the tax declaration period deadline;

- Using illegal invoices; unlawful use of invoices to declare tax reducing payable tax or increase refundable, exempted, or reduced tax;

- Using unlawful documents; unlawful use of documents, materials not reflecting the true nature of the transaction or actual value to wrongly determine tax payable, exempted tax, reduced tax, refundable tax; preparation of false procedures or documents for canceling supplies, goods to reduce tax payable or increase refundable, exempted, reduced tax;

- Using goods subject to non-taxable, tax-exempt, reviewed tax-exemption purposes for improper use without declaration of purpose change or tax declaration with the tax authorities;

- Taxpayers conducting business activities during the declared suspension, temporary suspension period without notifying the tax authority, except for cases stipulated at point b of Clause 4 of Article 10 of Decree 125/2020/ND-CP.

+ A fine equivalent to 1.5 times the amount of tax evaded shall be imposed on taxpayers committing any act specified in Clause 1 of Article 17 of Decree 125/2020/ND-CP without mitigating or aggravating circumstances.

+ A fine equivalent to 2 times the amount of tax evaded shall be imposed on taxpayers committing any act specified in Clause 1 of Article 17 of Decree 125/2020/ND-CP with one aggravating circumstance.

+ A fine equivalent to 2.5 times the amount of tax evaded shall be imposed on taxpayers committing any act specified in Clause 1 of Article 17 of Decree 125/2020/ND-CP with two aggravating circumstances.

+ A fine equivalent to 3 times the amount of tax evaded shall be imposed on taxpayers committing any act specified in Clause 1 of Article 17 of Decree 125/2020/ND-CP with three or more aggravating circumstances.

+ Measures to remedy consequences:

- Enforcement of payment of the full evaded tax amount into the state budget for violations stipulated in Clauses 1, 2, 3, 4, 5 of Article 17 of Decree 125/2020/ND-CP.

In cases where tax evasion as per Clauses 1, 2, 3, 4, 5 of Article 17 of Decree 125/2020/ND-CP is past the statute of limitations for punishment, the taxpayer is not penalized for tax evasion but must pay the full evaded tax amount, including the late payment amount calculated on the tax evaded, into the state budget as per the timeframe stipulated in Clause 6 of Article 8 of Decree 125/2020/ND-CP.

- Adjustment of losses or input value-added tax that can be deducted in tax records (if any) for actions stated in Clauses 1, 2, 3, 4, 5 of Article 17 of Decree 125/2020/ND-CP.

- Violations at point b, đ, e of Clause 1, Article 17 of Decree 125/2020/ND-CP discovered after the tax declaration filing deadline that do not reduce tax payable or increase tax collection, do not increase tax exemption, reduction will be administratively sanctioned per Clause 3, Article 12 of Decree 125/2020/ND-CP.