Recently, the General Department of Taxation of Vietnam has issued the Official Dispatch No. 4818/TCT-PC on some new points in sanctioning administrative violations on taxes and invoices and the implementation of the Decree No. 125/2020/NĐ-CP.
Article table of contents
The Official Dispatch No. 4818/TCT-PC has introduced in detail 04 new points in sanctioning of administrative violations on tax registration specified in the Decree No. 125/2020/NĐ-CP of Vietnam’s Government as follows:
(1) Increase fines for violations of tax registration time limits
Specifically, according to Article 10 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, the fine is ranging from VND 1.000.000 to 10.000.000, in which, making tax registration from at least 91 days after expiration of the prescribed time limits shall be fined from VND 6.000.000 to VND 10.000.000. (previously, the fine is only from VND 400.000 to VND 2.000.000)
Concurrently, supplementing sanctions for violations of the time limit for notifying of business suspension, notifying the premature business continuation.
(2) Increase fines for violations against regulations on time limits for notification of changes in tax registration information
According to Article 11 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, the fine is ranging from VND 500.000 to 7.000.000 for violations against regulations on time limits for notification of changes in tax registration information. (previously, the fine is only from VND 400.000 to VND 2.000.000)
Concurrently, the Decree No. 125/2020/NĐ-CP has divided notifying changes in tax registration information after expiration of the prescribed time limits into 2 acts with different sanctions as follows:
- Notifying changes in tax registration information after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications under mitigating circumstances;
- Notifying changes in tax registration information if such changes entail any change in tax registration certificates or tax identification number notifications under mitigating circumstances.
Moreover, remedies are supplemented which are compelling the submission of application for changes in tax registration information in case of failing to notify changes of information contained in tax registration applications.
(3) Increase fines for acts of making false or incomplete declaration of information contained in tax dossiers
According to Article 12 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, fines for acts of making false or incomplete declaration of information contained in tax dossiers have been increased and there are acts that have been amended compared to previous provisions. To be specific:
- A fine ranging from VND 500.000 to VND 8.000.000 for acts of making false or incomplete declaration of information contained in tax dossiers (previously, the fine is only from VND 400.000 to VND 3.000.000)
- Annulling 03 acts: (i) providing insufficient or incorrect information serving determination of tax liability on the statements of invoices, purchases, sales, or on other documents related to tax liability when making the tax declaration; (ii) providing insufficient or incorrect information serving determination of tax liability on invoices and other documents related to tax liability when making the tax declaration; (iii) tax in the quarterly tax declaration is understated but the deadline for submitting the annual tax declaration has not expired.
- Arranging the acts of making false or incomplete declaration of information contained in tax dossiers according to 3 small acts:
+ Acts of making false or incomplete declaration of information required in data fields of tax dossiers which are not related to the determination of tax obligations;
+ Acts of making false or incomplete declaration of information required in data fields of tax declaration forms and enclosed annexes which are not related to the determination of tax obligations;
+ Falsely or incompletely filling out data fields related to the determination of tax obligations in tax dossiers; and acts of false declaration, tax evasion but not leading to lack of tax or tax evasion.
- A fine ranging from VND 5000.000 to VND 8.000.000 for acts of making false declaration but not leading to tax lack or tax evasion (previously, the fine is only from VND 1.200.000 to VND 3.000.000)
(4) Increase fines for violations against regulations on time limits for submission of tax returns
According to Article 13 of the Decree No. 125/2020/NĐ-CP of Vietnam’s Government, fines for violations against regulations on time limits for submission of tax returns have been increased and there are acts that have been amended compared to previous provisions. To be specific:
- A fine ranging from VND 2.000.000 to VND 25.000.000 for violations against regulations on time limits for submission of tax returns. (previously, the fine is only from VND 400.000 to VND 5.000.000)
- Amending the time limit for submission of tax returns: violations against regulations on time limits for submission of tax returns are divided into 4 levels: “from 01 to 30 days”; “from 31 to 60 days”; “from 61 to 90 days”; “at least 90 days”.
(Previously, violations against regulations on time limits for submission of tax returns were divided into 6 levels: “from 01 to 10 days”; “from 10 to 20 days”; “from 20 to 30 days”; “from 30 to 40 days”; “from 40 to 90 days”; “at least 90 days”)
- A fine ranging from VND 8.000.000 to 15.000.000 for filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred and failing to submit tax returns (previously, the fine is only from VND 2.000.000 to VND 5.000.000)
- Supplementing sanction for “failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers”.
- New provision on sanction for the act of “filing tax returns more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax returns” for the highest fine level of VND 15.000.000 to VND 25.000.000. In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in Clause 4 Article 13 of this Decree (from VND 8.000.000 to 15.000.000).
Ty Na
