Vietnam: Summary of violations pertaining to taxation and corresponding fines

NO.

Group of violation

Violation

Fine

1

Late submission of the application for tax registration, late notification of changes in the application for tax registration

Submitting the application for tax registration or notifying changes in the application for tax registration to the tax authority 01 - 10 days behind schedules with mitigating circumstances

Warning

Submitting the application for tax registration or notifying changes in the application for tax registration to the tax authority 01 - 30 days behind schedule (except for the case mentioned above)

VND 400,000 - VND 1,000,000

Submitting the application for tax registration or notifying changes in the application for tax registration more than 30 days behind schedule

VND 800,000 - VND 2,000,000

Failing to notify changes in the application for tax registration

Failing to submit the application for tax registration without incurring tax

2

Providing insufficient information in the tax statement

Making a tax statement with insufficient or incorrect information on the list of sale invoices of purchased and sold goods/services, or on other documents related to tax obligations

VND 400,000 - VND 1,000,000

Making a tax statement with insufficient or incorrect information on invoices and other documents related to tax obligations

VND 600,000 - VND 1,500,000

Making a tax statement with insufficient or incorrect information on the provisional tax statement or final tax statement

VND 800,000 - VND 2,000,000

The violations mentioned in Clause 5 Article 10 and Clause 7 Article 11 of Decree No. 129/2013/NĐ-CP of Vietnam’s Government

VND 1,200,000 - VND 3,000,000

Making understatement of tax payable in the quarterly tax statement before the deadline for submitting the final tax statement

3

Late submission of the tax statement

Late submission of the tax statement 01 - 05 days behind schedule under mitigating circumstances

Warning

Late submission of the application for tax registration 01 - 10 days behind schedule (except for the case mentioned above)

VND 400,000 - VND 1,000,000

Late submission of the application for tax registration 10 - 20 days behind schedule

VND 800,000 - VND 2,000,000

Late submission of the application for tax registration 20 - 30 days behind schedule

VND 1,200,000 - VND 3,000,000

Late submission of the application for tax registration 30 - 40 days behind schedule

VND 1,600,000 - VND 4,000,000

Submitting the tax statement 40 - 60 days behind schedule

VND 2,000,000 - VND 5,000,000

Submitting the tax statement 90 days behind schedule without incurring tax

Failing to submit the application for tax registration without incurring tax

Submitting the quarterly provisional tax statement 90 days behind schedule before the deadline for submitting the final tax statement

4

Violations of the regulations on providing information related to the determination of tax obligations but do not lead to insufficient tax payment or tax evasion

Providing information, documents, and legal documents related to tax registration at the request of the tax authority 05 working days or more behind schedule

VND 400,000 - VND 1,000,000

Providing information, documents, and accounting books related to tax calculation at the request of tax authority 05 working days or more behind schedule

Providing incorrect information, documents, and accounting books related to tax calculation at the request of the tax authority

Providing incorrect, insufficient information, documents, receipts, invoices, and accounting books related to tax calculation, the account numbers, deposit account balance to competent authorities on request

VND 800,000 - VND 2,000,000

Providing insufficient, incorrect data, information about the tax obligation that must be registered without reducing the tax obligation to government budget

Not providing, providing incorrect, insufficient information and documents related to the deposit accounts at credit institutions, State Treasuries, and debts owed by third parties within 03 working days from the day on which the request of the tax authority is received

5

Violations against regulations on implementation of decisions on tax inspections, enforcement of administrative decisions on taxation

Refusing to receive the decision on inspection or enforcement of administrative decisions on taxation

VND 800,000 - VND 2,000,000

Failing to implement the decision on tax inspection within 03 working days from the deadline for implementation

Denying, delaying, avoiding providing documents, invoices, receipts, accounting books related to tax obligation within 06 working hours since the receipt of the request from of the competent authority during the inspection at the taxpayer’s premises

Denying, delaying, avoiding providing documents, invoices, receipts, accounting books related to tax obligation within 06 working hours since the receipt of the request of the competent authority during the inspection at the taxpayer’s premises

Failing to provide information, documents and accounting books related to tax calculation at the request of the competent authority during the inspection at the taxpayer’s premises

VND 2,000,000 - VND 5,000,000

Failing to implement or wrongly implementing the decision on sealing documents, safes, warehouses, materials, machinery, equipment, workshops being the basis for verifying tax calculation

Breaking or changing the seal of the competent authority without permission

Failing to sign the inspection record within 05 working days from the receipt of the inspection record

Failing to implement the conclusion on tax inspection, decision on enforcement of administrative decisions on taxation made by competent authorities

6

Understatement of tax payable or overstatement of refundable tax

The taxpayer understates the amount of tax payable or overstates the amount of tax refunded, exempted, or reduced, but the operations that incur tax are sufficiently recorded in accounting books, invoices and receipts

20% of the outstanding tax, the excess refund, reduction, or exemption of tax as prescribed by legislation on taxation

The taxpayer mentioned in Point a Clause 1 of this Article has paid the outstanding tax to government budget when the understatement or overstatement is discovered by a competent authority before a record on administrative violations pertaining to taxation is made by the competent authority or record on tax inspection is made by the tax authority

The false statement of the taxpayer has been confirmed and considered tax evasion by the tax inspector, but it is the offense of the taxpayer under mitigating circumstances, and the taxpayer has voluntarily paid tax to the government budget before a decision on penalties is issued by the competent authority. In this case the tax authority shall make a record on insufficient tax statement

Illegal invoices and receipts are used for recording values of purchased goods and services in order to reduce the amount of tax payable or increase the amount of tax refunded, exempted, or reduced, but the buyer proves that the sellers are responsible for the use of illegal invoices, and bookkeeping has been sufficiently done by the buyer

7

Tax evasion

Failing to submit the application for tax registration, failing to submit the tax statement or submit the tax statement after 90 days from the deadline for submitting the tax statement mentioned in Clauses 1, 2, 3, and 5 Article 32 of the Law on Tax administration, or from the extended deadline for submitting the tax statement mentioned in Article 33 of the Law on Tax administration, except for the cases mentioned in Clause 6 Article 7 of Decree No. 129/2013/NĐ-CP

- A fine equal to the amount of tax evaded shall be imposed if tax evasion is the first offense of the taxpayer and does not fall into the cases mentioned in Article 10 of Decree No. 129/2013/NĐ-CP, or it is the second offense with at least 02 mitigating circumstances;

- A fine of equal to 2 times the tax evaded shall be imposed if the taxpayer commits for the first time under aggravating circumstances, or commits it for the second time under a mitigating circumstance;

- A fine of equal to 2.5 times the tax evaded shall be imposed if the taxpayer commits for the second time under an aggravating circumstance, or commits it for the third time without any mitigating circumstance;

- A fine of equal to 3 times the tax evaded shall be imposed if the taxpayer commits for the second time under two aggravating circumstances or more, or commits it for the third time under an aggravating circumstance, or commits it for the fourth time onwards.

Using illegal or invalid invoices and documents for making the tax statement that leads to a decrease in the amount of tax payable or an increase in the amount of tax refunded, exempted, or reduced

Making false documents about the destruction of goods that leads to a decrease in the amount of tax payable or an increase in the amount of tax refunded, exempted, or reduced

Issuing sale invoices that contain incorrect quantities or values to understate tax

Failing to record the revenues related to tax calculation in accounting books; failing to make statements or making incorrect statements that lead to a decrease in the amount of tax payable or an increase in the amount of tax refunded, exempted, or reduced

Failing to issuing invoices when selling goods or services, or writing lower values of goods than the actual values on invoices that are discovered after the deadline for submitting the tax statement

Using tax-free goods, goods eligible for tax exemption for improper purposes without reporting the change of their purposes and submit tax statement to the tax authority

Falsifying the accounting books and documents that leads to a decrease in the amount of tax payable or an increase in the amount of tax exempted or reduced

Destroying the accounting books and documents that leads to a decrease in the amount of tax payable or an increase in the amount of tax exempted or reduced

Using illegal invoices and documents in other cases to miscalculate the amount of tax payable or refunded

The taxpayer carries on his business during the suspension period