According to the provisions of the Land Law 2013 of Vietnam, within 30 days from the date of the change, the land user must carry out the procedures for registration of the change; In case of inheritance of land use rights, the time limit for registration of changes shall be counted from the date of completion of division of land use rights as inheritance.
The above-mentioned cases of change registration include conversion, transfer, lease, sub-lease, inheritance or donation of land use rights and assets attached to land; mortgage or contribute capital with land use rights and land-attached assets.
In addition, in each land transfer, personal income tax is incurred. Therefore, when generating income, taxable individuals are obliged to declare tax.
In Clause 2, Article 33 of the Law on Tax Administration 2019 also stipulates that taxpayers who register tax directly with tax authorities, the time limit for tax registration is 10 working days from the date of arising personal income tax obligations.
Thus, when the procedures for transferring/printing the name change are delayed, the land user may be administratively sanctioned for late registration to the LURC name and late tax declaration as follows:
Penalty for late registration to LURC name
According to Clause 2, Clause 3, Article 17 of Decree 91/2019/ND-CP of Vietnam, failing to conduct land change registration shall be sanctioned as follows:
* For rural areas:
- A fine ranging from VND 1,000,000 to VDN 3,000,000 shall be imposed if land change registration is not conducted within 24 months from the deadline specified in Clause 6 Article 95 of Land Law;
- A fine ranging from VND 2,000,000 to VDN 5,000,000 shall be imposed if land change registration is not conducted after 24 months from the deadline specified in Clause 6 Article 95 of Land Law.
* For urban areas: The fine is twice the fine amounts levels for each corresponding case in rural areas.
Penalty for late tax declaration
Persons responsible for paying tax late in making tax declaration dossiers may be administratively sanctioned according to the provisions of Clauses 4 and 5, Article 13 of Decree 125/2020/ND-CP as follows:
Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:
a) Filing tax returns from 61 to 90 days after expiration of the prescribed time limits;
b) Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;
c) Failing to submit tax returns if none of additional taxes is incurred;
d) Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.
Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax returns more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax returns under the provisions of clause 11 of Article 143 in the Law on Tax Administration.
In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.”
Thus, in the case of delay in carrying out the procedures for transferring the name or registering changes in the LURC, the land user may be administratively sanctioned for late registration to the LURC name up to 10,000,000 VND, and in the case of late tax declaration, the fine is up to 25,000,000 VND depending on the overdue period as prescribed by law.
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