Vietnam: A fine which is 1 or 3 times as much as the evaded tax amount shall be imposed for any tax evasion act

According to Article 7 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, a fine which is 1 or 3 times as much as the evaded tax amount shall be imposed for any tax evasion act. To be specific:

1. Main sanctioning forms

- Cautions

Cautions shall be applicable to violations arising from implementation of tax or invoice-related procedures which are not serious, are committed under mitigating circumstances and are classified as those subject to cautions under this Decree.

- Fines

Fines not greater than VND 100,000,000 shall be imposed on entities committing invoice-related violations. Fines not greater than VND 50.000.000 shall be imposed on entities committing invoice-related violations.

Fines not greater than VND 200,000,000 shall be imposed on taxpayers that are entities committing tax-related violations. Fines not greater than VND 100,000,000 shall be imposed on taxpayers that are persons committing tax-related violations.

A fine which equals 20% of the underpaid tax amount or the higher-than-prescribed amount of tax exemption, reduction or refund shall be imposed for any violation arising from the act of false declaration leading to the underpayment of tax amount or the increase in the amount of tax exemption, reduction or refund.

A fine which is 1 or 3 times as much as the evaded tax amount shall be imposed for any tax evasion act.

A fine corresponding to the amount which has not yet been paid into the state budget account shall be imposed for any act of violation stipulated in point 1 of Article 18 herein.

2. Other supplementary penalties: The temporary suspension of the invoice printing business shall be enforced.

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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