Recently, the Government of Vietnam has officially approved the Law on amendments and supplements to certain articles of Law on handling of administrative violations 2020, officially effective from January 01, 2022. This Law has amended and supplemented cases of adjournment, exemption and reduction of administrative fines in Vietnam.
Article table of contents
Specifically, according to Clause 37 Article 1 of the Law on amendments and supplements to certain articles of Law on handling of administrative violations 2020 of Vietnam, amending and supplementing Article 76 of the Law on handling of administrative violations 2012, adjournment of execution or enforcement of sanction decisions shall be required if the following conditions are fully met:
- The violating individual is fined 2,000,000 VND or more, or the violating organization is fined 100,000,000 VND or more;
- The violating individual is facing economic difficulties due to natural disasters, calamities, fires, epidemics, dangerous diseases or accidents; the violating organization is facing special or unexpected economic difficulties caused by natural disasters, disasters, fires or epidemics.
Note:
- In case the violating individual is facing economic difficulties due to natural disaster, calamity, fire, epidemic, fatal disease or accident, the certification of the People's Committee of the commune where he/she resides or the organization where he/she is learning or working shall be required; if the violating individual faces economic difficulties due to fatal disease or accident, the certification granted by a medical establishment at the district or higher level shall be required.
- In case the violating organization is facing economic difficulties due to natural disaster, catastrophe, fire or epidemic, the certification of the People's Committee of the commune, the Management Board of industrial parks, export processing zones or hi-tech zones, economic zones, or the directly supervisory tax authority or the directly superior authority shall be required.
Thus, according to the above provisions, the Law on amendments and supplements to certain articles of Law on handling of administrative violations 2020 of Vietnam has supplemented the provision that adjournment of execution or enforcement of sanction decisions shall be applied for the violating organization imposed a fine of 100,000,000 VND or more and facing economic difficulties due to natural disaster, catastrophe, fire or epidemic instead of only applied for individual as prescribed in the current Law on handling of administrative violations of Vietnam. Concurrently, this new Law also reduces the amount of fines for individuals facing economic difficulties due to natural disaster, calamity, fire, epidemic, fatal disease compared to the current regulations.
Currently, according to Clause 1 Article 76 of the Law on handling of administrative violations 2012 of Vietnam, a decision on fines may be postponed for execution in case individual fined from 3,000,000 dong or more meeting special, unexpected economic difficulties due to disasters, fires, epidemics, dangerous diseases, accidents and certified by communal People’s Committees where that person resideor by agency or organization where that person studying, working.
Besides, according to Clause 38 Article 1 of the Law on amendments and supplements to certain articles of Law on handling of administrative violations 2020 of Vietnam, amending and supplementing Article 77 of the Law on handling of administrative violations 2012, supplementing provision on reduction and exemption of fines for the violating organization imposed a fine of 100,000,000 VND or more and facing economic difficulties due to natural disaster, catastrophe, fire or epidemic; and individual fined from 2,000,000 VND or more meeting special, unexpected economic difficulties due to disasters, fires, epidemics, dangerous diseases, accidents. To be specific:
- The reduction in a part of the fine specified in a sanctioning decision against the violating individual and organization that have already obtained permission for adjournment of execution of the sanction if the violating individual and organization continues to be in a difficult economic situation caused by natural disaster, conflagration, calamity, accident, and obtains certification from the People's Committee of the commune, Management Board, or the directly supervisory tax authority or the directly superior authority.
- The violating individual may be granted an exemption from the remaining fine stated in the sanction decision due to his/her incapability of enforcing or executing the sanction decision if one of the following situations occurs:
+ Despite being granted the reduction in a part of the fine, he/she continues to be in a difficult economic situation caused by natural disaster, conflagration, calamity, epidemic, fatal disease or accident, and obtains the certification from the People's Committee of the commune;
+ He/she already pays the fine in the first or second installment in case of being permitted to make installment payment of the fine, but is still facing special or unexpected economic difficulties due to natural disaster, calamity, fire, epidemic, fatal disease or accident, and obtains the certification of the People's Committee of the commune; if he/she faces unexpected economic difficulties due to fatal disease or accident, the certification granted by a medical establishment at the district or higher level shall be further required.
The violating organization shall be exempt from payment of the residual amount of fine stated in the sanction decision when they fully meet the following conditions:
+ They have been granted a reduction in a part of the fine or have already paid the fine for the first or second installment if they are entitled to installment payment of the fine;
+ Supplementary penalties and relief or remedial measures stated in sanction decisions have been completely executed;
+ The violating organization continues to face economic difficulties due to natural disaster, catastrophe, fire or epidemic, and obtains the certification of the People's Committee of commune, Management Board of industrial parks, export processing zones or hi-tech zones, economic zones, or the directly supervisory tax authority or the directly superior authority.
- The violating individual may be granted an exemption from payment of the remaining fine stated in the sanction decision due to his/her incapability of enforcing or executing the sanction decision if one of the following situations occurs:
+ Despite being granted the adjournment of the fine charge decision, he/she continues to be in a difficult economic situation caused by natural disaster, calamity, fire, epidemic, fatal disease or accident, and obtains the certification from the People's Committee of the commune;
+ He/she is already fined at least VND 2,000,000 and is facing special or unexpected economic difficulties due to natural disaster, calamity, fire, epidemic, fatal disease or accident, and obtains the certification of the People's Committee of the commune where he/she is residing, or the organization where he/she is learning or working; if he/she faces unexpected economic difficulties due to fatal disease or accident, the certification granted by a medical establishment at the district or higher level shall be further required.
- The violating organization shall be exempt from payment of the entirety of the fine stated in the sanction decision if the following conditions are fully met:
+ Adjournment of execution or enforcement of the fine charge decision has been granted;
+ Supplementary penalties and relief or remedial measures stated in sanction decisions have been completely executed;
+ The violating organization continues to face economic difficulties due to natural disaster, catastrophe, fire or epidemic, and obtains the certification of the People's Committee of commune, Management Board of industrial parks, export processing zones or hi-tech zones, economic zones, or the directly supervisory tax authority or the directly superior authority.
It can be seen that the amendment and supplementation of many cases of adjournment, exemption and reduction of administrative fines as above will facilitate individuals and organizations to execute the sanctioning decision in case that the violating individual or organization facing difficult economic situation caused by unexpected events such as natural disaster, fire, epidemic or accident, especially in the current context of Covid-19 epidemic.
Ty Na
