Vietnam: Increase fines for "non-cooperation" during tax inspection and examination

According to Article 15 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, administrative penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions are specified as follows:

1. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for one of the following violations:

- Rejecting decisions on tax inspection and examination, decisions on enforcement of tax-related administrative decisions which are sent or delivered by tax authorities under laws;

- Failing to execute tax inspection and examination decisions at least 03 days after the deadline for compulsory execution of decisions of competent authorities after the prescribed time limit;

- Providing documents, records, invoices, accounting vouchers and books related to tax obligations 6 working hours after the prescribed time limit, upon receipt of requests from competent authorities during tax examination or inspection visits at taxpayers' offices or premises;

- Incompletely or inaccurately providing information, documents, accounting records and books related to the determination of tax obligations upon competent authorities’ request during tax examination or inspection visits at taxpayers' offices or premises;

- Failing to sign a record of the tax examination or inspection within 05 working days from the date of issuance or public announcement of the record.

2. Fines ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following violations:

- Failing to provide data, documents, accounting records and books related to the determination of tax obligations upon competent authorities’ request during tax examination or inspection visits at taxpayers' offices or premises;

- Failing to carry out, or unduly carrying out, decisions on security sealing of documents, records, reconciliation of funds, stocktaking of goods, input materials, supplies, machinery, equipment, workshops and facilities;

- Deliberately removing or changing security seal signs lawfully created by competent agencies.

Current regulation:

According to Clause 2 Article 11 of the Circular No. 166/2013/TT-BTC of the Ministry of Finance of Vietnam, penalties for failure to implement decisions on tax inspection or enforcement of administrative decisions on taxation, in case there are aggravating circumstances, shall not exceed VND 5,000,000. Thus, this penalty has been doubled.

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

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE