What are regulations on duration for considering none of penalties for tax or invoice-related administrative violations in Vietnam?

What are regulations on duration for considering none of penalties for tax or invoice-related administrative violations in Vietnam?

Pursuant to Clause 5 Article 8 of the Decree 125/2020/NĐ-CP stipulating duration for considering none of penalties for tax or invoice-related administrative violations in Vietnam as follows:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

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5. Duration for considering none of penalties for tax or invoice-related administrative violations is imposed

If sanctioned entities or persons do not commit repeat violations within 06 months from the date of the completed execution of the decision to impose a penalty in form of a caution or within 01 year from the completed execution of other administrative penalty decisions, or after the expiry date of the time limit for execution of penalty decisions, it shall be considered that they have not been subject to any administrative penalty for such violations.

The date of the completed execution of the decision to impose a penalty in form of a caution is the date on which an administrative penalty decision is given or sent to sanctioned entities or persons under the provisions of Article 39 herein.

As regulations above, if sanctioned entities or persons do not commit repeat violations within 06 months from the date of the completed execution of the decision to impose a penalty in form of a caution or within 01 year from the completed execution of other administrative penalty decisions, or after the expiry date of the time limit for execution of penalty decisions, it shall be considered that they have not been subject to any administrative penalty for such violations.

Is there any penalty imposed on persons directly carrying out personal income tax finalization procedures if they delay filing personal income tax finalization applications to claim their tax refunds in Vietnam?

Pursuant to Clause 4 Article 9 of the Decree 125/2020/NĐ-CP stipulating as follows:

Exceptions to tax or invoice-related administrative penalties

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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.

As regulations above, 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.

What is the time limit for imposition of administrative penalties for the act of making false declarations leading to the underpaid tax amount or the increased amount of tax exemption, reduction or refund in Vietnam?

Pursuant to Clause 2 Article 8 of the Decree 125/2020/NĐ-CP stipulating the time limit for imposition of administrative penalties for tax-related violations as follows:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

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2. Time limits for imposition of tax-related administrative penalties

b) Time limit for imposition of administrative penalties for the act of tax evasion committed not to the extent that a criminal action is brought, or the act of making false declarations leading to the underpaid tax amount or the increased amount of tax exemption, reduction or refund, shall be 05 years from the date of commission of any of such acts.

The date of commission of the act of making false declaration resulting in the underpaid tax amount or the increased amount of tax exemption, reduction or refund or the act of tax evasion (except the act prescribed in point a of clause 1 of Article 17 herein) is the date following the deadline for submission of tax returns within the tax term for which violating taxpayers make declarations causing tax shortfall, tax evasion, or the date succeeding the date of a competent authority's issuance of the tax refund, exemption or reduction decision.

As for acts of failure to submit tax registration applications or failure to submit tax returns as prescribed in point a of clause 1 of Article 17 herein, the date of commission of these acts which is accepted as the start date of that time limit shall be the date on which competent law enforcement officers detect these acts. As for the act of submitting tax returns after the prescribed 90-day duration prescribed in point a of clause 1 of Article 17 herein, the date of commission of this act which is accepted as the start date of that time limit shall be the date on which taxpayers submit their tax returns.

As regulations above, the time limit for imposition of administrative penalties for the act of making false declarations leading to the underpaid tax amount or the increased amount of tax exemption, reduction or refund in Vietnam is 05 years from the date of commission of any of such acts.

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