Penalties for Evasion and Fraud in Insurance Contributions under the 2015 Penal Code

Crime of evading social insurance (SI), health insurance (HI), and unemployment insurance (UI) contributions for employees (EEs)

(1) Any person obligated to pay SI, HI, UI contributions for EEs who fraudulently or by other means fails to pay or fully pay as required for 6 months or more in any of the following cases, having been administratively sanctioned for this act and still committing the violation, shall be fined from VND 50 million to VND 200 million, subject to non-custodial reform for up to 1 year, or imprisonment from 3 months to 1 year:

- Evading insurance payment from VND 50 million to less than VND 300 million;- Evading insurance payment for 10 to less than 50 EEs.

(2) Committing the crime in one of the following cases shall be fined from VND 200 million to VND 500 million or imprisoned from 6 months to 3 years:

- Committing the crime 2 times or more;- Evading insurance payment from VND 300 million to less than VND 1 billion;- Evading insurance payment for 50 to less than 200 EEs;- Failing to pay the insurance amount collected or deducted from EEs under case (1).

(3) Committing the crime in one of the following cases shall be fined from VND 500 million to VND 1 billion or imprisoned from 2 years to 7 years:

- Evading insurance payment from VND 1 billion or more;- Evading insurance payment for 200 EEs or more;- Failing to pay the insurance amount collected or deducted from EEs under case (2).

(4) Additionally, the offender may be fined from VND 20 million to VND 100 million, prohibited from holding certain positions, practicing certain professions or performing certain jobs from 1 year to 5 years.

(5) For legal entities committing the crime, the following fines apply:

- Committing the crime under case (1) shall be fined from VND 200 million to VND 500 million;- Committing the crime under case (2) shall be fined from VND 500 million to VND 1 billion;- Committing the crime under case (3) shall be fined from VND 1 billion to VND 3 billion.

Crime of social insurance fraud, unemployment insurance fraud

(1) Any person committing one of the following acts, appropriating SI, UI funds from VND 10 million to less than VND 100 million or causing damage from VND 20 million to less than VND 200 million not falling under any of Articles 174, 353, and 355 of the Penal Code 2015, shall be fined from VND 20 million to VND 100 million, subject to non-custodial reform for up to 2 years, or imprisonment from 3 months to 2 years:

- Creating fake dossiers or falsifying the contents of SI, UI dossiers to deceive the SI agency;- Using fake dossiers or dossiers with falsified contents to deceive the SI agency to claim SI, UI policies.

(2) Committing the crime in one of the following cases shall be fined from VND 100 million to VND 200 million or imprisoned from 1 year to 5 years:

- Organized crime;- Professional crime;- Appropriating SI, UI funds from VND 100 million to less than VND 500 million;- Causing damage from VND 200 million to less than VND 500 million;- Using cunning and deceitful methods;- Dangerous recidivism.

(3) Committing the crime in one of the following cases shall be imprisoned from 5 years to 10 years:

- Appropriating SI, UI funds of VND 500 million or more;- Causing damage of VND 500 million or more.

(4) Additionally, the offender may be fined from VND 10 million to VND 100 million, prohibited from holding certain positions, practicing certain professions or performing certain jobs from 1 year to 5 years.

See also:

- Penal Code 2015- Official Dispatch 1864/BHXH-VP- Official Dispatch 1863/BHXH-VP

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