What is the maximum amount of exemption or reduction in fines for tax or invoice-related administrative violations in Vietnam?

What is the maximum amount of exemption or reduction in fines for tax or invoice-related administrative violations in Vietnam?

Pursuant to the provisions in Clause 2, Article 43 of Decree 125/2020/ND-CP (amended by Clause 6, Article 1 of Decree 102/2021/ND-CP), the content is as follows:

Exemption, reduction of fines for tax or invoice-related administrative violations

1. Cases for exemption, reduction of fines for tax or invoice-related administrative violations; authority, order, procedures for exemption, reduction of fines for tax or invoice-related administrative violations shall comply with the provisions of Article 77 of the Law on Handling of Administrative Violations and Clause 38, Article 1 of the Law amending and supplementing some articles of the Law on Handling of Administrative Violations and Clauses 2, 3, 4, 5 of this Article.

2. The maximum amount of exemption or reduction in fines is equal to the fine amount in the penalty decision and not exceeding the value of damaged assets, goods, after deducting the insured and compensated value (if any).

Taxpayers suffering damage in force majeure circumstances as stipulated in the Law on Tax Administration must provide proof of the value of damaged assets, goods, and the value insured, compensated as follows:

a) Minutes of inventory, determination of physical damage value established by the taxpayer or the taxpayer's legal representative;

b) Minutes of determining physical damage value by an organization with valuation functions as prescribed by law (original or notarized or authenticated copy), except for cases with compensation dossiers as stipulated at Point c of this Clause;

c) Compensation for physical damage accepted by the insurance agency according to the provisions of law (original or notarized or authenticated copy) (if any);

d) Liability dossiers for compensation by organizations, individuals responsible for compensation as prescribed by law (original or notarized or authenticated copy) (if any).

3. No exemption or reduction for fines for tax and invoices for cases where the penalty decision has been fully executed.

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Thus, the maximum exemption for fines on taxes, invoices will be equal to the fine amount in the penalty decision and not exceeding the value of damaged assets, goods, after deducting the insured and compensated value (if any).

What is the maximum amount of exemption or reduction in fines for tax or invoice-related administrative violations in Vietnam? (Image from Internet)

Which entities are subject to administrative penalties for tax or invoice-related administrative violations in Vietnam?

According to the provisions of Clause 1, Article 3 of Decree 125/2020/ND-CP, subjects subject to administrative penalties for tax or invoice-related administrative violations include:

(1) Taxpayers who commit administrative violations regarding taxes, invoices.

In cases where taxpayers authorize other organizations or individuals to carry out tax-related obligations which by law on tax, tax administration requires the responsibilities of the authorized party to implement for the taxpayer, if the authorized party commits administrative violations as stipulated in Decree 125/2020/ND-CP, then the authorized organization or individual shall be penalized according to Decree 125/2020/ND-CP.

In cases, according to the law on tax and tax management, where organizations or individuals have obligations for taxpayer registration, declaration, and tax payment on behalf of the taxpayer, and these organizations or individuals commit administrative violations as stipulated in Decree 125/2020/ND-CP, then such organizations or individuals performing tax registration, declaration, and payment shall be subject to administrative penalties regarding taxes according to the provisions of Decree 125/2020/ND-CP.

(2) Organizations, individuals related to administrative violations regarding tax and invoices.

What is the time limit for execution of administrative penalty decisions for tax or invoice-related administrative violations in Vietnam?

According to Article 40 of Decree 125/2020/ND-CP, the following is regulated:

time limit for execution of executing administrative penalty decisions for tax or invoice-related administrative violations

1. The time limit for execution of executing administrative penalty decisions for tax or invoice-related administrative violations is one year from the date of penalty decision issuance. If this time limit lapses, and the tax authority has not delivered or sent the administrative penalty decision to the violating organization or individual as prescribed in Article 39 of this Decree, then the penalty decision will not be executed.

If the penalty decision has applied remedial measures, then such remedial measures will continue to be applied.

2. In cases where penalized individuals or organizations deliberately evade or delay, the time limit for execution of executing penalty decisions shall be counted from the time the act of evasion or delay ends.

3. In cases where the tax authority has delivered or sent the administrative penalty decision to the violating organization or individual according to Article 39 of this Decree, but the penalized individual or organization has not paid or has not fully paid the fine, back tax, late payment interest, the tax authority must monitor the unpaid amounts on the tax management system and apply tax debt enforcement measures as prescribed to fully collect the amount payable to the state budget.

Thus, the time limit for execution of executing administrative penalty decisions for tax or invoice-related administrative violations is one year from the date of penalty decision issuance.

If this statute of limitations lapses and the tax authority has not delivered or sent the administrative penalty decision to the violating organization or individual, the penalty decision will not be executed.