Vietnam: Application for exemption for administrative penalties for tax or invoice-related violations

According to the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, application and documentation requirements for fine exemption are prescribed as follows:

- Taxpayers prescribed in Clause 1 Article 43 of this Decree must file applications for exemption from the remaining amounts of fines owed or the entire fines, enclosing documents and records, to persons/entities issuing penalty charge decisions.

- Within the duration of 03 working days of receipt of the submitted application for fine exemption, the person issuing the administrative penalty charge decision must transfer the application, enclosing documents and records on the case to the person having authority to issue the decision on fine exemption, and inform the applicant of this.

- Within the duration of 30 working days of receipt of the submitted application and documents for fine exemption, the person having authority to grant fine exemption must issue the decision on fine exemption or the notice of refusal of grant of fine exemption to the applicant, the person issuing the penalty charge decision. In cases where the person having authority to grant a fine exemption does not disapprove of the fine exemption, clear reasons for such disapproval must be stated.

Authority to grant the fine exemption is as follows:

- Heads of Taxation Sub-departments shall, within their remit, have authority to grant fine exemptions for administrative penalty charge decisions issued by Leaders of Tax Teams;

- Directors of Taxation Departments shall, within their remit, have authority to grant fine exemptions for administrative penalty charge decisions issued by Heads of Taxation Sub-departments or Leaders of Inspectorates of Taxation Departments;

- Directors of General Department of Taxation shall have authority to grant fine exemptions for administrative penalty charge decisions issued by Directors of Taxation Departments or Leaders of Inspectorate of General Department of Taxation;

- Minister of Finance shall have authority to grant fine exemptions for administrative penalty charge decisions issued by Directors of General Department of Taxation or Chief Inspector of the Ministry of Finance;

- Directors of Departments of Finance shall have authority to grant fine exemptions for administrative penalty charge decisions issued by Chief Inspectors of Departments of Finance;

- Chief Inspector of Ministry of Finance shall have authority to grant fine exemptions for administrative penalty charge decisions issued by Leader of the Inspectorate of Ministry of Finance;

- Presidents of provincial-level People’s Committees shall have the authority to grant fine exemptions for administrative penalty charge decisions issued by Presidents of district-level People’s Committees and by themselves.

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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