From December 5, 2020, Decree 125/2020 providing for tax penalties and invoices takes effect. To help readers have an overview of the regulations on penalties for violations of tax obligations, we would like to summarize the following notable points:
1. Penalties for violations against regulations on tax registration time limits; notification of temporary business suspension; notification of premature business continuation
| CASE 1: Cautions Making tax registration; notifying the temporary business suspension; notifying the premature business continuation from 1 to 10 days after expiration of the prescribed time limits under mitigating circumstances. |
| CASE 2: Fines ranging from VND 1,000,000 to VND 2,000,000 a) Making tax registration; notifying the premature business continuation from 1 to 30 days after expiration of the prescribed time limits, except the cases prescribed in CASE 1; b) Notifying the temporary business suspension after expiration of the time limits, except the cases prescribed in CASE 1; c) Failing to notify the temporary business suspension. |
| CASE 3: Fines ranging from VND 3,000,000 to VND 6,000,000 Making tax registration; notifying the premature business continuation from 31 to 90 days after expiration of the prescribed time limits. |
| CASE 4: Fines ranging from VND 6,000,000 to VND 10,000,000 a) Making tax registration; notifying the premature business continuation from at least 91 days after expiration of the prescribed time limits; b) Failing to notify the premature business continuation without any more taxes incurred. |
2. Penalties for violations against regulations on time limits for notification of changes in tax registration information
|
CASE 1: Cautions |
|
CASE 2: Fines ranging from VND 500,000 to VND 1,000,000
|
|
CASE 3: Fines ranging from VND 1,000,000 to VND 3,000,000 |
|
CASE 4: Fines ranging from VND 3,000,000 to VND 5,000,000 |
|
CASE 5: Fines ranging from VND 5,000,000 to VND 7,000,000 a) Notifying changes in tax registration information at least 91 days after expiration of the prescribed time limits if these changes entail any change in tax registration certificates or tax identification number notifications; |
3. Penalties for acts of making a false or incomplete declaration of information contained in tax dossiers that do not lead to any deficiency in taxes payable or any increase in amounts of tax exemption, reduction, or refund
| CASE 1: Fines ranging from VND 500,000 to VND 1,500,000 Making false or incomplete declaration of information required in data fields of tax dossiers which are not related to the determination of tax obligations, except the acts prescribed in CASE 2 below. |
| CASE 2: Fines ranging from VND 1,500,000 to VND 2,500,000 Acts of making a 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. |
| CASE 3: Fines ranging from VND 5,000,000 to VND 8,000,000 a) Falsely or incompletely filling out data fields related to the determination of tax obligations in tax dossiers; b) Performing the acts prescribed in clause 3 of Article 16; clause 7 of Article 17 herein Decree 125/2020. |
4. Penalties for violations against regulations on time limits for submission of tax returns
| CASE 1: Cautions Violations arising from filing tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances. |
| CASE 2: Fines ranging from VND 2,000,000 to VND 5,000,000 The act of submitting tax returns from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in CASE 1. |
| CASE 3: Fines ranging from VND 5,000,000 to VND 8,000,000 The act of submitting tax returns from 31 to 60 days after expiration of the prescribed time limits. |
| CASE 4: Fines ranging from VND 8,000,000 to VND 15,000,000 a) Filing tax returns from 61 to 90 days after expiration of the prescribed time limits; b) Filing tax returns at least 91 days after expiration of the prescribed time limits if none of the additional taxes is incurred; c) Failing to submit tax returns if none of the additional taxes is incurred; d) Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers. |
| CASE 5: Fines ranging from VND 15,000,000 to VND 25,000,000 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. |
5. Penalties for violations against regulations on the provision of information about the determination of tax obligations
| CASE 1: Fines ranging from VND 2,000,000 to VND 3,000,000 a) Providing statutory information, documents, and records related to tax registration according to notifications issued by tax authorities at least 05 working days after expiration of the prescribed time limits; b) Providing statutory accounting information, documents, and records related to the determination of tax obligations according to notifications issued by tax authorities at least 05 working days after expiration of the prescribed time limits. |
| CASE 2: Fines ranging from VND 3,000,000 to VND 5,000,000 a) Failing to provide, or incompletely or inaccurately providing, information, documents, records, invoices or accounting books related to the determination of tax obligations; incompletely or inaccurately providing account numbers, balances of deposit accounts, checking accounts for competent authorities upon their request; b) Failing to provide, or incompletely or wrongly providing, information or data related to tax obligations of which registration must be made under regulations on condition that this act does not result in any reduction in tax obligations to the state budget; c) Failing to provide, or incompletely or inaccurately providing, information, documents related to deposit accounts, checking accounts opened at credit institutions, state treasuries, or debts of related third parties, for competent tax authorities upon their request. |
6. Administrative penalties for violations against regulations on compliance with decisions on tax inspection and examination, enforcement of tax-related administrative decisions
| CASE 1: Fines ranging from VND 2,000,000 to VND 5,000,000 a) Rejecting decisions on tax inspection and examination, decisions on enforcement of tax-related administrative decisions which are sent or delivered by tax authorities under laws; b) Failing to execute tax inspection and examination decisions at least 03 days after the deadline for compulsory execution of decisions of competent authorities after the prescribed time limit; c) Providing documents, records, invoices, accounting vouchers, and books related to tax obligations 6 working hours after the prescribed time limit, upon receipt of requests from competent authorities during tax examination or inspection visits at taxpayers’ offices or premises; d) Incompletely or inaccurately providing information, documents, accounting records, and books related to the determination of tax obligations upon competent authorities’ request during tax examination or inspection visits at taxpayers’ offices or premises; e) Failing to sign a record of the tax examination or inspection within 05 working days from the date of issuance or public announcement of the record. |
| CASE 2: Fines ranging from VND 5,000,000 to VND 10,000,000 a) Failing to provide data, documents, accounting records and books related to the determination of tax obligations upon competent authorities’ request during tax examination or inspection visits at taxpayers’ offices or premises; b) Failing to carry out, or unduly carrying out, decisions on security sealing of documents, records, reconciliation of funds, stocktaking of goods, input materials, supplies, machinery, equipment, workshops, and facilities; c) Deliberately removing or changing security seal signs lawfully created by competent agencies. |
Please feel free to contact us by email: huonghue.ht@gmail.com or phone number +84 935 439 454 if you need any further clarification. We look forward to a long-term co-operation with you.