What are the administrative penalties for failing to notify changes of head office address to the tax authorities in Vietnam?
- In case of changing the head office address, do enterprises in Vietnam need to notify the tax authorities?
- What are the administrative penalties for failing to notify changes of head office address to the tax authorities in Vietnam?
- What are the procedures of application for amendments in changing head office address to tax registration in Vietnam?
In case of changing the head office address, do enterprises in Vietnam need to notify the tax authorities?
Article 36 of the Law on Tax Administration 2019 stipulates the obligation to notify the change of tax registration information as follows:
Article 36. Notification of changes to taxpayer registration information
1. Upon any change to taxpayer registration information, taxpayers who combine taxpayer registration with business registration shall notify the changes to taxpayer registration information together with changes to business registration information as prescribed by law.
In case taxpayers' change of address leads to change of supervisory tax authorities, taxpayers must complete tax procedures with supervisory tax authorities as prescribed in this Law before registering with business registration authorities for change of information.
2. When there is any change to taxpayer registration information, taxpayers directly registered with tax authorities must notify their supervisory tax authorities within 10 working days starting from the date of changes to information.
3. In case individuals authorizing their income payers to register changes to taxpayer registration information for themselves and their dependants, they must notify the income payers in no later than 10 working days starting from the date of changes to information; the income payers shall be responsible for notifying tax authorities of the changes in no later than 10 working days starting from the date of authorization from taxpayers.
Thus, in the case of a change of address that changes the management agency, a notification must be made to the tax administration agency.
What are the administrative penalties for failing to notify changes of head office address to the tax authorities in Vietnam?
What are the administrative penalties for failing to notify changes of head office address to the tax authorities in Vietnam?
Based on Point a, Clause 1, Article 23 of Decree 125/2020/ND-CP, what is the sanction for the act of not adjusting information to the tax office when changing the business address?
"Article 23. Penalties for violations against regulations on release of invoices
1. Fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for one of the following violations:
a) Submitting notices of modification of information contained in notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, from 10 to 20 days after the date on which invoices start being used at new addresses, or newly-named invoices start being used;
[...]
2. Fines ranging from VND 2,000,000 to VND 4,000,000 shall be imposed for one of the following violations:
[...]
c) Submitting the notices of revision of information contained in the notices of invoice release to directly supervisory tax authorities in case of any change of business address entailing any change to other directly supervisory tax authorities, or in case of the name change, for the period of at least 21 days after the prescribed submission deadline which begins on the date on which invoices start being used at new addresses, or newly-named invoices start being used;
[...]"
Thus, when failing to notify a change of head offices to the tax office, a fine ranging from VND 500,000 to VND 1,500,000 shall be imposed depending on the delay time.
What are the procedures of application for amendments in changing head office address to tax registration in Vietnam?
Point a, Clause 2, Article 10 of Circular 105/2020/TT-BTC stipulating that the location of submission and application for amendments to tax registration as follows:
- If the taxpayer that previously applied for tax registration together with enterprise/cooperative/business registration relocates the headquarters to another province or central-affiliated city (hereinafter referred to as province) or another district but within the same province resulting in alternation of the supervisory tax authority, the taxpayer shall file an application for amendments to tax registration with the supervisory tax authority (the tax authority in charge of the old location) to complete the tax-related procedures before applying for change of the headquarters to the business/cooperative registration authority.
- The application filed with the tax authority in charge of the old location includes: Application form for amendments to tax registration No. 08-MST hereto appended.
- After receiving the notice of taxpayer’s relocation form No. 09-MST hereto appended from the tax authority in charge of the old location, the enterprise/cooperative shall apply for change of headquarters to the business/cooperative registration authority as per the law on business/cooperative registration.
Thus, in order to avoid being sanctioned for failing to notify the change to the tax authority, your company should prepare a dossier to carry out the procedures for changing information to the tax authority according to regulations of the law.
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