Mitigating and Aggravating Circumstances in the Field of Taxation: Are They Similar to the Regulations on Handling Administrative Violations?

Based on Clause 1 Article 6 and Clause 1 Article 7 of Decree 125/2020/ND-CP, the regulations are as follows:

Aggravating circumstances, mitigating circumstances as prescribed by law on handling administrative violations.

Main Forms of Sanction

- Warning

A warning penalty is applied to non-serious tax procedure and invoice violations with mitigating circumstances, and in cases where the warning penalty form is applied according to the provisions of this Decree.

- Fine

The maximum fine shall not exceed VND 200,000,000 for taxpayers who are organizations committing tax procedure violations. The maximum fine shall not exceed VND 100,000,000 for taxpayers who are individuals committing tax procedure violations.

A 20% fine on the shortfall in tax amount or the tax amount that has been exempted, reduced, or refunded in excess of the regulations for acts of incorrect declaration leading to a shortfall in the payable tax amount or an increase in the exempted, reduced, or refunded tax amount.

A fine ranging from 1 to 3 times the amount of tax evaded for acts of tax evasion.

Thus, first and foremost, aggravating circumstances and mitigating circumstances will follow the provisions of the law on handling administrative violations. Concurrently, in the field of taxation, there will be two main penalties: Warnings and fines.

Respectfully!