What is a tax-related administrative violation? What are the exceptions to tax or invoice-related administrative penalty charge decisions in Vietnam?
What is a tax-related administrative violation in Vietnam?
Pursuant to Clause 1, Article 2 of Decree 125/2020/ND-CP, tax-related administrative violation means an act performed through an entity or person’s fault in breach of the provisions of the laws on tax administration, taxes and other collections which is not a crime and is bound by laws to be subject to administrative penalties.
Other collections include:
- Land levies;
- Land rents, water surface rents;
- Fees for grant of mineral rights;
- Fees for grant of water abstraction rights;
- After-tax profits remaining after setting aside a part of them to set up funds of enterprises whose 100% charter capital is held by the State;
- Distributable dividends and profits on the state investments in joint-stock companies or multiple-member limited liability companies.
What is a tax-related administrative violation? What are the exceptions to tax or invoice-related administrative penalty charge decisions in Vietnam?
What is an invoice-related administrative violation in Vietnam?
Pursuant to Clause 2, Article 2 of Decree 125/2020/ND-CP, invoice-related administrative violation means an act performed through an entity or person’s fault in breach of the provisions of legislation on invoices, which is not a crime and is bound by laws to be subject to administrative penalties.
What are the exceptions to tax or invoice-related administrative penalty charge decisions in Vietnam?
Exceptions to tax or invoice-related administrative penalty charge decisions are specified in Article 38 of Decree 125/2020/ND-CP as follows:
- The following cases shall be exempted from penalty charge decisions:
+ Cases are stipulated in Article 9 of Decree 125/2020/ND-CP;
++ 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.
++ 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.
++ 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.
++ 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.
++ 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.
+ 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 prescribed in point a, b, c and d of clause 1 of this Article, 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.
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