When is the failure to submit a taxpayer registration application not considered tax evasion in Vietnam?

When is the failure to submit a taxpayer registration application not considered tax evasion in Vietnam?

Under Article 143 of the Law on Tax Management 2019, the acts of tax evasion are regulated as follows:

Tax evasion

1. Failure to submit the application for taxpayer registration; failure to submit the tax declaration dossier or to submit the tax declaration within 90 days from the deadline or extended deadline for submission specified in this Law.

2. Failure to record the revenues relevant to calculation of tax payable in the accounting books.

3. Failure to issue invoices when selling goods/services as prescribed by law; write lower prices on the sale invoices than the actual prices.

4. Use of illegal invoices or illegal use of invoices for purchases in order to decrease the tax payable or increase the tax eligible for remission, deduction, refund or cancellation.

5. Use of documents that do not truthfully reflect the nature of the transactions or their values which leads to decrease in the tax payable or increase in the tax eligible for remission, refund or cancellation.

6. Incorrect declaration of exports or imports without making supplementation after customs clearance is granted.

7. Deliberate omission or incorrect declaration of export or import duty.

8. Collaboration with the consignor in evading import duty.

9. Repurposing of tax-free goods without informing the tax authority.

10. Carrying on business operation during the suspension period without informing the tax authority.

11. In the following cases, the penalties mentioned in Clause 1 Article 141 shall be imposed instead of penalties for tax evasion:

a) The taxpayer fails to submit the application for taxpayer registration; fails to submit the tax declaration dossier or submits the tax declaration after 90 days without incurring tax;

b) The taxpayer fails to submit the tax declaration dossier within 90 days after tax is incurred but has fully paid the tax, late payment interest before the tax authority announces the tax audit or tax inspection decision, or before the tax authority issues the record on late submission of the tax declaration dossier.

Thus, failure to submit a taxpayer registration application is considered an act of tax evasion.

However, the taxpayer failing to submit a taxpayer registration application without incurring tax will face penalties for violations against tax procedures instead of penalties for tax evasion.

When is the failure to submit a taxpayer registration application not considered tax evasion in Vietnam? (Image from the Internet)

What are the methods of receiving taxpayer registration applications by tax authorities in Vietnam?

Under Article 41 of the Law on Tax Management 2019, the regulations are as follows:

Responsibilities of the Minister of Finance and tax authorities in taxpayer registration

1. The Minister of Finance shall specify the documents, procedures and forms of taxpayer registration prescribed in article 31, 34, 36, 37, 38, 39 and 40 of this Law.

2. Tax authorities shall receive taxpayer registration applications from taxpayers:

a) in person at tax authorities;

b) by post; or

c) electronically via portals of tax authorities and via the National business registration portal.

3. Tax authorities shall process taxpayer registration applications as follows:

a) In case the application is complete, announce the acceptance, and process the application within 03 working days starting from the date of receipt;

b) In case the application is incomplete, notify the taxpayer within 02 working days starting from the date of receipt.

4. In case an application for taxpayer registration is submitted together with the application for business registration on the National business registration portal, the receiving authority shall send it to tax authorities for processing and inform the result to the taxpayer as prescribed in this Law and other relevant regulations.

Tax authorities receive taxpayer registration applications from taxpayers through the following three methods:

- in person at tax authorities;

- by post; or

- electronically via portals of tax authorities and via the National business registration portal.

Shall information about taxpayers who commit tax evasion in Vietnam be published?

Under Article 100 of the Law on Tax Management 2019, the regulations are as follows:

Publishing taxpayer information

1. Tax authorities may publish information about a taxpayer if such taxpayer:

a) evades tax; delays paying tax and other amounts payable to state budget; owes overdue tax and other amounts payable to state budget;

b) commits a tax offence that affects interests and tax liability of another organization or individual;

c) fails to comply with the tax authorities’ request as prescribed by law.

2. The Government shall elaborate this Article.

Tax authorities shall publish information about taxpayers who commit tax evasion.