Decree No. 125/2020/ND-CP penalties for administrative violations related to taxes and invoices
To fine up to VND 20 million for the act of transmitting e-invoice data beyond the prescribed period
On October 19, 2020, the Government promulgates the Decree No. 125/2020/ND-CP on sanctioning of administrative violations related to taxes and invoices.
To be specific: A fine from VND 02 – 05 million shall be imposed for the act of transmitting e-invoice data to the tax agency beyond the prescribed period from 01 working day to 05 working days. A fine from VND 10 – 20 million shall be imposed for the act of transmitting e-invoice data to the tax agency beyond the prescribed period for 11 working days or more, or failing to transmit e-invoice data to the tax agency within the time limit as specified.
In addition, a fine equal to the evaded tax amount shall be imposed on the taxpayer that has one or more extenuating circumstance(s) when committing any of the following acts of violation: Failing to submit the tax registration dossier; failing to submitting the tax declaration dossier or submit the tax declaration dossier past 90 days, after the expiration of the time limit or extended time limit for submission of tax declaration dossiers; Using unlawful invoices; unlawfully using invoices for making the tax declaration that leads to a decrease in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount, etc.
Besides, the acts of notifying changes in tax registration contents beyond the prescribed period for 91 days or more, resulting in changes of the tax registration certificate or the notice of tax identification number or failing to notify changes in information in the tax registration dossier shall be fined from VND 05 – 07 million.
This Decree takes effect on December 05, 2020.
For further details of the Decree 125/2020/ND-CP, Click here
translation of the Official Gazette of the Vietnam News Agency
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, October 19, 2020
On sanctioning of administrative violations related to taxes and invoices
Pursuant to the Law on Organization of the Government dated June 19, 2015;
Pursuant to the Law on Handling of Administrative Violations dated June 20, 2012;
Pursuant to the Law on Tax Administration dated June 13, 2019;
At the proposal of the Minister of Finance;
The Government hereby promulgates the Decree on sanctioning of administrative violations related to taxes and invoices.
Article 1. Scope of regulation and subjects of application
1. Scope of regulation
This Decree stipulates acts of administrative violations, sanctioning forms and levels, remedial measures; competence to make written records and sanction of administrative violations and some sanctioning procedures for administrative violation related to taxes and invoices.
This Decree does not apply to administrative violations related to charges and fees; administrative violations related to taxes for exported and imported goods, that are collected by the customs agencies; and violations of regulations on procedures for tax registration, violations of regulations on notice of suspension of business operation, or notice of resumption of business operation before the prescribed time to the business registration agencies or cooperative registration agencies of organizations and individuals that carry out tax registration at the same time with enterprise, cooperative or business registration.
2. Subjects of application
b) Tax officers, and tax agencies at all levels;
c) Other organizations and individuals related to the implementation of the law on taxes and invoices.
Article 2. Interpretation of terms
In handling of administrative violations related to taxes and invoices, the terms below are construed as follows:
1. Administrative violation related to taxes means a faulty act which is committed by an individual or organization in violation of the law on tax administration, tax and other revenues (land use levy; land rentals and water surface rentals; royalty for mineral mining; royalty for exploitation of water resources; remaining after-tax-profit after setting up funds of enterprises with 100% State-own charter capital; dividends and profits distributed to the State capital portions invested in joint-stock companies or limited liability company with two or more members), but does not constitute a crime and, therefore, must be administratively sanctioned in accordance with law.