What are the cases of exceptions to tax or invoice-related administrative penalties in Vietnam?
- What are the cases of exceptions to tax or invoice-related administrative penalties in Vietnam?
- What are the cases of exceptions to tax or invoice-related administrative penalty charge decisions in Vietnam?
- What are the cases of exemption and reduction of fines for tax or invoice-related administrative violations in Vietnam?
What are the cases of exceptions to tax or invoice-related administrative penalties in Vietnam?
Pursuant to Article 9 of Decree 125/2020/ND-CP stipulates this content as follows:
Exceptions to tax or invoice-related administrative penalties
1. Exceptions to administrative penalties prescribed in laws on handling of administrative violations shall be treated as the exceptions to tax or invoice-related administrative penalties.
Taxpayers’ delay in carrying out electronic tax or invoice-related procedures due to technical problems of information technology systems that are informed on tax authorities’ web portals shall constitute the act of violation caused by force majeure events under the provisions of clause 4 of Article 11 in the Law on Handling of Administrative Violations.
2. Taxpayers’ commission of tax-related administrative violations due to the execution of instructional documents, decisions to respond to such violations of competent tax authorities or state regulatory agencies related to the tasks of determining taxpayer’s tax obligations (including those issued before the effective date of this Decree) shall be treated as exceptions to administrative penalties for tax-related violations or fines for late payment of taxes, except if taxpayers’ tax-related administrative violations are discovered after receipt of conclusions of tax inspections and examinations carried out at the taxpayer’s offices that none of the taxpayer’s defects arising from the declaration and calculation of taxes payable or tax exemptions, reductions or refunds have been discovered yet.
3. If, after making the false declaration, the taxpayer has supplemented tax returns and, of their own accord, has paid taxes before the time of the tax authority’s announcement of their decisions to conduct tax inspections or examinations at the taxpayer’s offices, or before the time of the tax authority’s discovery thereof without needing to carry out these inspections or examinations, or before the time of other competent authorities’ discovery thereof, the act of false declaration committed in this situation shall be exempted from any tax-related administrative penalties.
4. None of administrative penalties for tax-related violations shall be imposed upon persons directly carrying out personal income tax finalization procedures if they delay filing personal income tax finalization applications to claim their tax refunds; upon sole proprietorship households and sole proprietors subject to taxation or fixing of the constant tax rates as provided in Article 51 of the Law on Tax Administration.
5. During the extension of the time limit for tax return submission, taxpayers shall be exempted from any administrative penalties for violations related to the time limit for submission of tax returns.
Accordingly, when falling into one of the above cases, taxpayers who commit violations will not be administratively handled.
What are the cases of exceptions to tax or invoice-related administrative penalty charge decisions in Vietnam?
Pursuant to Article 38 of Decree 125/2020/ND-CP stipulating that the following cases shall be exempted from penalty charge decisions:
- Cases are stipulated in Article 9 of Decree 125/2020/ND-CP;
- Subject matters of tax or invoice-related administrative violations are not identified;
- The time limit for the imposition of an administrative penalty prescribed in Article 8 of Decree 125/2020/ND-CP, or the time limit for the issuance of a penalty charge decision provided in the law on handling of administrative violations, has expired;
- The violating person has died or gone missing; the violating entity has dissolved or been bankrupt during the period of consideration of a penalty charge decision, except the case prescribed in point c of clause 4 of Article 41 of Decree 125/2020/ND-CP.
Bases for determining whether a person has died, gone missing; an entity has dissolved or been bankrupt, are subject to clause 2 of Article 41 of Decree 125/2020/ND-CP;
- The file of a violation having a criminal sign has been referred for the criminal prosecution process.
With respect to exceptions to penalty charge decisions, the person accorded the sanctioning authority shall not issue the penalty charge decision, but shall apply the prescribed remedy (if any).
The decision on enforcement of the remedy must clearly state reasons for exception to the administrative penalty charge decision; the applicable remedy, responsibilities and time limit for execution thereof.
What are the cases of exceptions to tax or invoice-related administrative penalties in Vietnam?
What are the cases of exemption and reduction of fines for tax or invoice-related administrative violations in Vietnam?
Pursuant to Article 43 of Decree 125/2020/ND-CP (amended by Clause 6, Article 1 of Decree 102/2021/ND-CP), Article 77 of the Law on Handling of Administrative Violations 2012 (amended by Clause 38 Article 1 of the Law on amendments and supplements to certain Articles of the Law on Handling of Administrative Violations 2020), exemption and reduction of fines for tax or invoice-related administrative violations include:
(1) The reduction in a part of the fine specified in a sanctioning decision against the violating individual and organization that have already obtained permission for adjournment of execution of the sanction decision according to the provisions of Article 76 of the Law on Handling of Administrative Violations 2012 shall be granted if the following regulations are met:
- The violating individual continues to be in a difficult economic situation caused by natural disaster, conflagration, calamity, accident, and obtains certification from the People's Committee of the commune where he/she are residing, or the organization where he/she is studying or working is located;
- The violating organization is facing economic difficulties due to natural disaster, catastrophe, fire or epidemic, and obtains the certification of the People's Committee of commune, Management Board of industrial parks, export processing zones or hi-tech zones, economic zones, or the directly supervisory tax authority or the directly superior authority.
(2) The violating individual may be granted an exemption from the remaining fine stated in the sanction decision due to his/her incapability of enforcing or executing the sanction decision if one of the following situations occurs:
- Despite being granted the reduction in a part of the fine prescribed in clause 1 of this Article, he/she continues to be in a difficult economic situation caused by natural disaster, conflagration, calamity, epidemic, fatal disease or accident, and obtains the certification from the People's Committee of the commune where he/she is residing, or the organization where he/she is studying or working;
- He/she already pays the fine in the first or second installment in case of being permitted to make installment payment of the fine under the provisions of Article 79 of the Law on Handling of Administrative Violations 2012, but is still facing special or unexpected economic difficulties due to natural disaster, calamity, fire, epidemic, fatal disease or accident, and obtains the certification of the People's Committee of the commune where he/she is residing, or the organization where he/she is learning or working; if he/she faces unexpected economic difficulties due to fatal disease or accident, the certification granted by a medical establishment at the district or higher level shall be further required.
(3) The violating organization shall be exempt from payment of the residual amount of fine stated in the sanction decision when they fully meet the following conditions:
- They have been granted a reduction in a part of the fine prescribed in clause 1 of this Article or have already paid the fine for the first or second installment if they are entitled to installment payment of the fine under the provisions of Article 79 of the Law on Handling of Administrative Violations 2012;
- Supplementary penalties and relief or remedial measures stated in sanction decisions have been completely executed;
- The violating organization continues to face economic difficulties due to natural disaster, catastrophe, fire or epidemic, and obtains the certification of the People's Committee of commune, Management Board of industrial parks, export processing zones or hi-tech zones, economic zones, or the directly supervisory tax authority or the directly superior authority.
(4) The violating individual may be granted an exemption from payment of the remaining fine stated in the sanction decision due to his/her incapability of enforcing or executing the sanction decision if one of the following situations occurs:
- Despite being granted the adjournment of the fine charge decision as prescribed in Article 76 of the Law on Handling of Administrative Violations 2012, he/she continues to be in a difficult economic situation caused by natural disaster, calamity, fire, epidemic, fatal disease or accident, and obtains the certification from the People's Committee of the commune where he/she is residing, or the organization where he/she is studying or working;
- He/she is already fined at least VND 2,000,000 and is facing special or unexpected economic difficulties due to natural disaster, calamity, fire, epidemic, fatal disease or accident, and obtains the certification of the People's Committee of the commune where he/she is residing, or the organization where he/she is learning or working; if he/she faces unexpected economic difficulties due to fatal disease or accident, the certification granted by a medical establishment at the district or higher level shall be further required.
(5) The violating organization shall be exempt from payment of the entirety of the fine stated in the sanction decision if the following conditions are fully met:
- Adjournment of execution or enforcement of the fine charge decision prescribed under Article 76 of the Law on Handling of Administrative Violations 2012 has been granted;
- Supplementary penalties and relief or remedial measures stated in sanction decisions have been completely executed;
- The violating organization continues to face economic difficulties due to natural disaster, catastrophe, fire or epidemic, and obtains the certification of the People's Committee of commune, Management Board of industrial parks, export processing zones or hi-tech zones, economic zones, or the directly supervisory tax authority or the directly superior authority.
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