What measure is applied for the tax enforcements on a taxpayer who is employed on the payroll in Vietnam?

What measure is applied for the tax enforcements on a taxpayer who is employed on the payroll in Vietnam?

Pursuant to Clause 1, Article 130 of the Law on Tax Administration 2019, regulations on enforcement by means of partial wage or income deduction are as follows:

Enforcement by means of partial wage or income deduction

1. The measure of partially deducting wages or income is applied to a taxpayer who is subject to enforcement of an administrative tax management decision and is working under the payroll or a contract of 06 months or more, or is receiving a pension or disability benefits.

2. The deduction rate for wages, pensions, or disability benefits for individuals is not less than 10% and not more than 30% of the total monthly wages, pensions, or benefits of that individual; for other types of income, the deduction rate is based on actual income, but not exceeding 50% of the total income.

3. The agency or organization employing and managing the wages or income of the person subject to enforcement of an administrative tax management decision has the following responsibilities:

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Thus, the measure of partially deducting wages or income applies to individuals employed on the payroll when a taxpayer is enforced to comply with an administrative tax management decision.

What measure is applied for the tax enforcements on a taxpayer who is employed on the payroll in Vietnam? (Image from the Internet)

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

Pursuant to Article 136 of the Law on Tax Administration 2019, specific principles regarding administrative penalties for tax violations are as follows:

[1] penalties for tax administrative offences are executed according to the laws on tax administration and the laws on handling administrative violations.

[2] Administrative violations concerning the illegal use of invoices, unauthorized use of invoices, or use of non-conformable invoices leading to underpayment or tax evasion are penalized under administrative tax management violations instead of invoice violations.

[3] The maximum monetary penalty for acts of incorrect declaration leading to underpayment or increase of exempted, reduced, refunded, or non-collectible taxes, and tax evasion acts, are governed by this Law.

[4] For the same administrative tax management violation, the pecuniary penalty for organizations is double that for individuals, except for penalties related to incorrect declarations leading to underpayments or increased tax benefits, tax evasion acts.

[5] In cases where the taxpayer is subject to tax assessment under Articles 50 and 52 of this Law, the administrative tax management penalty may be imposed based on the nature and extent of the violation as per this Law.

[6] An official with authority performing public duty, upon finding an administrative tax management violation, must prepare a record of the administrative violation as prescribed. In case of electronic taxpayer registration or filing, if the receipt confirmation clarifies the administrative tax management violation, this notice serves as the record for penalty decision-making.

[7] If a tax management law violation warrants criminal accountability, it follows the provisions of criminal law.

Vietnam: How many forms of penalties for tax administrative offences are there?

According to Clause 1, Article 138 of the Law on Tax Administration 2019, specific forms of penalties, monetary fines, and remedial measures are stipulated as follows:

Forms of penalties, monetary fines, and remedial measures

1. The forms of penalties for tax administrative offences include:

a) Warning;

b) Fine.

2. The monetary fines for administrative tax management violations are specified as follows:

a) The maximum fine for actions described in Article 141 of this Law is applied as per regulations on handling administrative violations;

b) A 10% fine of the undeclared taxable amount or falsely declared amount for exemptions, reductions, refunds, or non-collectible taxes for violations stated in point a, clause 2, Article 142 of this Law;

c) A 20% fine of the undeclared taxable amount or falsely declared amount for exemptions, reductions, refunds, or non-collectible taxes for violations stated in clause 1 and points b, c, clause 2, Article 142 of this Law;

d) Fines ranging from 01 to 03 times the amount of evaded tax for actions listed in Article 143 of this Law.

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Based on the above regulations, there are two forms of penalties for tax administrative offences: warning and fine.