How much are fines for tax evasion in Vietnam?

Specifically, according to Article 14 of the Decree No. 128/2020/NĐ-CP of Vietnam’s Government, the taxpayer that commits any of the offenses of tax evasion mentioned below which is not liable to criminal prosecution shall also incur a fine equal to the amount of evaded tax if no aggravating circumstances are found; every aggravating circumstance that is found will cause the fine to increase by 20% but not exceeding 03 times the evaded tax.

- Use of illegal or false documents to make tax declaration; making erasures or alterations on documents leading to understatement of tax payable or overstatement of tax exempted, reduced, refunded or canceled;

- Incorrectly declaring codes of goods, tax rates or tax amount though instructions have been provided by the Ministry of Finance or the customs authority as prescribed;

- Violating any of the offenses in Point b, c or d Clause 3 of Article 9 but failing to fully pay the tax payable as prescribed before the offense record is made;

- Following procedures for exporting processed products; domestic exports; exports of an export processing enterprise without actually exporting them;

- Overstatement of the quantity or categories of processed products; domestic exports; exports of an export processing enterprise; re-exported goods;

- Failure to declare domestically purchased raw materials or supplies subject to export duty incorporated into the processed products for export; incorrectly declaring value of the exported raw materials, supplies or parts incorporated into the processed products, thereby resulting in the overstatement of tax exempted for the products processed overseas and then imported into Vietnam;

- Repurposing goods which are tax-free, eligible for tax exemption, considered to be eligible for tax exemption or subject to tariff quotas without notifying the customs authority as prescribed;

- Incorrectly declaring quantity, names, categories, quality, value or origins of goods imported from a free trade zone into the domestic market;

- Failure to record the revenues and expenditures related to the determination of tax payables in accounting books;

- Selling duty-free goods to ineligible buyers, in excess of the prescribed allowances or without satisfying conditions as prescribed by law;

- Colluding with the consignor to import goods for the purpose of tax evasion.

View more details at the Decree No. 128/2020/NĐ-CP of Vietnam’s Government, effective from December 10, 2020.

Le Vy

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