Cases of exemption from fines and procedures for tax or invoice-related administrative violations in Vietnam

According to Article 43 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, any taxpayer subject to penalties for tax or invoice-related violations that suffers material loss in case of force majeure events prescribed in clause 27 of Article 3 in the Law on Tax Administration of Vietnam shall be exempt from fines.

After getting away from the deduction of the insured value or indemnity value (if any), the maximum amount of exemption shall be equal to the remaining amount of fine determined in the fine charge decision and does not exceed the value of damaged goods or services.

Documents submitted to apply for the exemption from fines for tax or invoice-related administrative violations, including:

- Application form for the exemption from the fine, clearly stating reasons for such application; determining the value of the damaged property or goods; the amount of fine or interest on late payment of the fine (if any) in question;

- Written request for fine exemption from the competent person or his/her host entity issuing the penalty charge decision, clearly stating reasons for application for the fine exemption; the amount of fine or the amount of interest on late payment of the fine (if any) in question;

- Written document stating that the taxpayer is affected by any natural disaster, calamity, disease, fire or sudden accident or other force majeure events under the Government’s regulations, time and location of occurrence of the force majeure event under discussion, from one of the following entities or authorities: Police of communes, wards and townships; People's Committees of communes, wards and towns; Management boards of industrial parks, export processing zones and economic zones where the force majeure event took place; rescue or emergency response services; entities having competence in declaring the disease (an original copy or notarized or authenticated copy);

- The written inventory determining the damaged value issued by the taxpayer or the taxpayer’s legal representative;

- The written document or record stating the damaged value which is issued by the competent appraising body in accordance with regulations of laws (an original copy, notarized or certified copy), unless otherwise stated in point g of this clause;

- The penalty charge decision or the notice of the tax authority regarding the outstanding amount of fine determined at the time of occurrence of the force majeure event under discussion and at the time of submission of the application for fine exemption;

- The set of documents and records stating the indemnity against the material loss accepted by the insurance agency as required by laws (original copies or notarized or certified copies) (if any);

- The set of documents and records stating compensation liabilities that must be accepted by the insurance agency as required by laws (original copies or notarized or certified copies) (if any).

View more details at the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, effective from December 05, 2020.

Thuy Tram

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