Vietnam: The time limit for imposing penalties for failure to follow tax procedures is 02 years

According to Circular No. 166/2013/TT-BTC of the Ministry of Finance of Vietnam, the time limit for imposing penalties for failure to follow tax procedures is 02 years from the day on which the offense is committed.

Moreover, the time limit for penalty imposition in other cases is specified as follows:

- The time limit for imposing penalties for understatement of tax payable or overstatement of refundable tax, reduced tax, or exempt tax; for tax evasion or tax fraud that is not liable to criminal prosecutions is 05 years from the offense date.

- If the violator is eligible for tax deferral in the tax period, the time limit for penalty imposition shall start after the deferred deadline.

- If the case is transferred by a criminal proceedings agency to an agency competent to impose administrative penalties as prescribed in Article 25 of this Circular, the time limit for penalty imposition shall apply the regulations in Point a and Point b Clause 1 of this Article. The period over which the case is examined by the criminal proceedings agency is included in the time limit for penalty imposition.

Note: Over the period prescribed above, if the taxpayer deliberately avoids the penalties of obstructing the penalty imposition, the time limits for penalty imposition shall not apply. The time limit shall begin on the day on which the taxpayer’s avoidance or obstruction is stopped.

View more details at Circular No. 166/2013/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2014.

Thu Ba

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