What are penalties for enterprises in case falsely filling out data fields related to the determination of tax obligations in tax dossiers in Vietnam?

What are penalties for enterprises in case falsely filling out data fields related to the determination of tax obligations in tax dossiers in Vietnam? 

Pursuant to Article 12 of Decree 125/2020/ND-CP stipulating penalties for acts of making false or incomplete declaration of information contained in tax dossiers that do not lead to any deficiency in taxes payable or any increase in amounts of tax exemption, reduction or refund as follows:

1. Fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for acts of making false or incomplete declaration of information required in data fields of tax dossiers which are not related to the determination of tax obligations, except the acts prescribed in clause 2 of this Article.

2. Fines ranging from VND 1,500,000 to VND 2,500,000 shall be imposed for acts of making false or incomplete declaration of information required in data fields of tax declaration forms and enclosed annexes which are not related to the determination of tax obligations.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

a) Falsely or incompletely filling out data fields related to the determination of tax obligations in tax dossiers;

b) Performing the acts prescribed in clause 3 of Article 16; clause 7 of Article 17 herein.

4. Remedies:

a) Compelling the provision of corrected information and the submission of supplementary documents or records in tax dossiers in case of commission of the acts prescribed in clause 1 and 2 and point a of clause 3 of this Article;

b) Compelling the re-adjustment of losses, the carried-forward amounts of input VAT deductions (if any) in case of commission of the acts prescribed in clause 3 of this Article.

Thus, for the act of falsely filling out data fields related to the determination of tax obligations in tax dossiers, a fine of from VND 5,000,000 to VND 8,000,000 will be imposed. Enforced re-declaration and submission of supplementary documents or records in tax dossiers and compelling the re-adjustment of losses, the carried-forward amounts of input VAT deductions (if any) for violations in Vietnam.

What are penalties for filing tax returns after expiration of the prescribed time limits in Vietnam?

Pursuant to Article 13 of Decree 125/2020/ND-CP stipulating penalties for violations against regulations on time limits for submission of tax returns are as follows:

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.

2. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax returns from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of this Article.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax returns from 31 to 60 days after expiration of the prescribed time limits.

4. 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.

5. 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.

6. Remedies:

a) Compelling the full payment of deferred tax amounts into the state budget with respect to the commission of the acts prescribed in clause 1, 2, 3, 4 and 5 of this Article if the taxpayer delays filing their tax return, leading to the late payment of taxes;

b) Compelling the submission of tax returns, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of this Article.

Thus, the act of filing tax returns after expiration of the prescribed time limits in Vietnam will be fined up to VND 25,000,000 depending on the case. In addition, it is also required to pay the full amount of of deferred tax amounts into the state budget with respect to the commission for violations in case taxpayer delays filing their tax return, leading to the late payment of taxes and taking remedial measures.

Best Regards!