On 19 October 2020, the Vietnam Government has released Decree 125/2020/ND-CP on sanctioning of administrative violations of tax and invoices. The Decree has adjusted to increasing the sanction level for a number of tax-related administrative violations and comes into force from 5 December 2020.
Accordingly, the Decree stipulates that administrative violations with the tax amount of 100 million VND or more or the value of goods from 500 million VND or more are determined as administrative violations of large-scale tax and administrative violations of 10 or more invoice numbers are identified as administrative violations of large-scale invoices. The principle of determining the fine level when there is an aggravating or extenuating circumstance is calculated to increase or decrease 10% of the average fine level of the fine bracket.
The group of violations of tax procedures has a minimum fine of 500 thousand VND and a maximum level of 25 million VND, the fine level will increase sharply for the group of violations regarding the deadline for tax registration and late submission of declaration dossiers. tax. In which, cases of violation of tax registration deadline; time limit for notification of stopping business, continuing to do business ahead of schedule with a fine of from 1 million VND to 10 million VND. For violations of the time limit for notification of information changes in tax registration, the fine is from VND 500,000 to VND 7 million.
The act of incorrectly declaring or declaring incompletely the contents of the tax dossier does not lead to a lack of tax payable or does not lead to an increase in the exempt, reduced, or refunded tax amount will be fined from VND 500,000 to VND 8 million. copper.
Regarding the sanction of violations on the time limit for submitting the tax declaration dossiers, the minimum fine level is 2 million VND, the maximum level is 25 million VND. In particular, acts of delayed filing a tax return from 1 to 30 days will be fined from 2 million VND to 5 million VND.
For acts of late payment for more than 30 days, the fine level shall be from VND 5 million to VND 15 million. The act of submitting tax declaration dossiers for more than 90 days is an act of tax evasion, but the taxpayer has fully paid the tax amount or late payment interest into the state budget before the tax agency announced the inspection decision or before making the record. The village is not sanctioned for tax evasion but is fined with a fine of between VND 15 million and VND 25 million, corresponding to the extent and nature of this act.
The decree also stipulates that violations of regulations on providing information related to the determination of tax obligations will be fined from 2 million VND to 5 million VND; Violations against regulations on compliance with decisions on tax inspection, tax inspection, coercive enforcement of tax administrative decisions will be fined from 2 million to 10 million VND; a penalty of 20% of the understated tax amount or the tax amount exempted, reduced or refunded higher than the regulations for the act of making false declarations leading to insufficient tax payable or an increase in the exempt, reduced, or refunded tax amount.
Furthermore, the Decree stipulates fines for tax evasion according to the criteria of aggravating and mitigating circumstances, and in accordance with the principles of the Law on Handling of Administrative Violations, specifically: a fine of 1 time of tax evasion for tax evasion with 1 or more extenuating circumstances; a fine of 1.5 times the amount of tax evasion for tax evasion without mitigating or aggravating circumstances. For tax evasion with aggravating circumstances, the fine will be 2 to 3 times.
