Decree No. 125/2020/ND-CP penalties for administrative violations related to taxes and invoices

DECREE

On sanctioning of administrative violations related to taxes and invoices

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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.

Chapter 1
GENERAL PROVISIONS

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

a) Taxpayers;

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.

2. Administrative violation related to invoices means a faulty act which is committed by an individual or organization in violation of the law on invoices, but does not constitute a crime and, therefore, must be administratively sanctioned in accordance with law.

3. The evaded tax amount means the tax payable to the state budget in accordance with the tax law of the taxpayer, which is discovered and identified in the tax administrative violation record and inspection (examination) record.

4. Guiding document of tax agencies related to contents of tax liability determination means an administrative document issued by tax agencies at all levels for the purpose of guiding one or many taxpayers to fulfill tax obligations in a particular situation.

5. A tax agency's handling decision related to a taxpayer's tax liability determination means a tax refund handling decision, for case of examination before tax refund; tax exemption or reduction decision; decision on extension of the time limit for submission of tax declaration dossiers; to handle the deductible or refundable value-added tax amount or the loss transferred in the next period on the decision on sanctioning of administrative violations or decision on the application of remedial measures.

6. The start date of the overdue time limit specified in Articles 10, 11, 13, 14 and 19 of this Decree is the first day after the expiration of the time limit for performing the responsibilities and obligations of organizations and individuals according to the law on tax administration. In the event of an extension, the start date of the overdue time limit is the first day after the expiration of the time limit for extension.

7. A case of violation involving many complicated circumstances means a case discovered through tax inspection and examination at the taxpayer's head office; case need consultation from specialized agencies and organizations; case of incorrectly declaring, leading to a sufficiency in the payable tax amount or an increase in the exemptible, reducible or refundable tax amount, or leading to the acts of tax evasion.

8. A particularly serious case means a case of incorrectly declaring, leading to a sufficiency in the payable tax amount or an increase in the refundable tax amount, or leading to the acts of tax evasion for three or more consecutive tax periods.

9. The date of detection of an act of violation means the date on which the competent person on duty makes a written record of administrative violations committed by subject sanctioned for administrative violations related to taxes and invoices.

Article 3. Subjects that may be sanctioned for administrative violations related to taxes and invoices

1. Subjects that may be sanctioned for administrative violations related to taxes and invoices include:

a) The taxpayers that commit administrative violations related to taxes.

In case where the taxpayer authorizes another organization or individual to fulfill tax liability but the law on taxes and tax administration stipulates that the performance on behalf of the taxpayer is the authorized party's obligations and responsibilities, if the authorized party commits acts of administrative violation specified in this Decree, the authorized organization or individual shall be sanctioned according to this Decree.

In case according to the law on taxes and tax administration, an organization or individual that is obliged to carry out tax registration, declaration or payment on behalf of the taxpayer commits administrative violations specified in this Decree, such organization or individual shall be sanctioned for tax-related administrative violations according to the provisions of this Decree.

b) Related organizations and individuals that commit administrative violations related to taxes and invoices.

2. Taxpayers being organizations that may be sanctioned for administrative violations related to taxes and invoices include:

a) Enterprises established and operating under the Law on Enterprises, the Law on Investment, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities, the Law on Petroleum, the Law on Commercial and other legal normative documents; affiliated units of enterprises, and business locations directly declaring, paying taxes and using invoices;

b) Public or non-public non-business units;

c) Organizations established and operating under the Law on Cooperatives;

d) Foreign organizations and enterprises; branches and representative offices of foreign traders, operating offices of foreign contractors in Vietnam conducting business or earning income in Vietnam;

dd) State agencies committing acts of administrative violation related to taxes and invoices apart from their assigned state management tasks;

e) Cooperative groups and other organizations established in accordance with law provisions.

Article 4. The acts of using unlawful invoices and documents; unlawfully using invoices and documents

1. Using invoices and documents in the following cases shall be considered as the act of using unlawful invoices and documents:

a) Using a counterfeit invoice or document;

b) Using an invoice or document without validity or with expired validity;

c) Using an invoice no longer in use during the coerced period by the methods of stop using invoices, unless otherwise permitted by the tax agency’s notice;

d) Using an electronic invoice (hereinafter referred to as an e-invoice) without registration for the use of such e-invoice with the tax agency;

dd) Using an e-invoice without the tax agency’s code in the case of using e-invoices with the tax agency’s code;

e) Using a goods sale or service provision invoice or document with the creating date stated on such invoice or document from the date on which the tax agency determines that the seller does not operate at the business address registered with the competent state agency;

g) Using a goods sale or service provision invoice or document with the creating date stated on such invoice or document is earlier than the date of determining that the invoice- or document-creating party does not operate at the business address registered with the competent state agency, or without tax agency’s notice on the fact that the invoice- or document- creating party does not operate at the business address registered with the competent agency, but the tax agency or the police or other functional agencies have concluded that invoice or document is unlawful.

2. Using invoices and documents in the following cases shall be considered as the act of unlawfully using invoices and documents:

a) Using an invoice or document with insufficient compulsory contents as prescribed; an invoice erased or modified in contravention to law;

b) Using a fraudulent invoice or document (i.e. invoice or document with economic norms and contents but the whole or a part of goods or service purchase is unreal); an invoice that does not reflect the actual value incurred, or creating of an invoice without real transactions or creating a counterfeit invoice;

c) Using an invoice with differences on goods or service values or with differences on compulsory items among invoice sheets;

d) The repeated use of an invoice when transporting goods for sale, or the use of an invoice of certain goods or services for evidencing other goods or services;

dd) Using an invoice or document of another organization or individual (except for tax agencies’ invoices and the case of being authorized for creating invoices) for legalization of brought goods or services or sold goods or services;

e) The use of an invoice or document concluded by tax agencies or public security offices or other functional agencies as unlawful.

Article 5. Principles of sanctioning of administrative violations related to taxes and invoices

1. The sanctioning of administrative violations related to taxes and invoices shall comply with the law on tax administration and handling of administrative violations.

2. An organization or individual shall only be sanctioned for tax- and invoice- related administrative violations if it/he/she commits administrative violations related to taxes and invoices according to this Decree.

3. If an organization or individual commits many administrative violations, it/he/she shall be sanctioned for each violation, except for the following cases:

a) In case where a taxpayer incorrectly declares one or more items on the tax dossiers of the same tax at the same time, the act of incorrectly declaring in the case of tax procedure sanction shall be only sanctioned for one act of incorrectly declaring items on the tax dossier which has the highest fine bracket among the acts that have been carried out according to this Decree and the aggravating circumstances of repeated violations shall be applied;

b) In case where a taxpayer is late in submitting multiple tax declaration dossiers for many tax periods of the same tax at the same time, he/she/it shall only be sanctioned for one act of late submission of tax declaration dossiers with the highest fine bracket among the acts that have been carried out according to this Decree and the aggravating circumstances of repeated violations shall be applied.

If one tax declaration dossier among the late submitting tax declaration dossiers falls into the case of tax evasion, it shall be separated to sanction for the act of tax evasion;

c) In case where a taxpayer is late in submitting multiple notices and reports of the same type of invoices at the same time, he/she/it shall be sanctioned for one act of late submission of notices and reports related to invoice with the highest fine bracket among the acts that have been carried out according to this Decree and the aggravating circumstances of repeated violations shall be applied;

d) The acts of violations on using unlawful invoices or unlawfully using invoices that are sanctioned under Articles 16 and 17 of this Decree shall not be sanctioned according to Article 28 of this Decree.

4. In case it is allowed to prescribe more than one act of administrative violations in this Decree in one administrative procedure with multiple dossier components, the violating organization or individual shall be sanctioned for each violation.

5. For the same administrative violation related to taxes or invoices, the fine to be imposed on an institutional violator is twice as heavy as that to be imposed on an individual violator, except for the fines applicable to violations specified in Articles 16, 17 and 18 of this Decree.

Article 6. Aggravating circumstances and extenuating circumstances in the fields of taxes and invoices

1. Aggravating circumstances and extenuating circumstances shall comply with the law on handling of administrative violations.

2. An administrative violation with the tax amount (the deficit tax amount, evaded tax amount or higher exemptible, reducible or refundable tax amount) from VND 100,000,000 or more or the value of goods or services is from VND 500,000,000 or more shall be determined as a large-scale tax-related administrative violation according to Point l, Clause 1, Article 10 of the Law on Handling of Administrative Violations. An administrative violation of 10 invoice numbers or more shall be determined as a large-scale invoice-related administrative violation according to Point l, Clause 1, Article 10 of the Law on Handling of Administrative Violations.

Article 7. Forms of sanctioning, remedial measures and principles of application of fines when sanctioning administrative violations related to taxes and invoices

1. Principle sanctions

a) Warning

A warning shall be imposed if the violation of tax or invoice procedures is unserious, involves extenuating circumstance(s) and subject to a warning in accordance with this Decree.

b) Fine

A fine of up to VND 100,000,000 shall be imposed on an organization committing administrative violations related to invoices. A fine of up to VND 50,000,000 shall be imposed on an individual committing administrative violations related to invoices.

A fine of up to VND 200,000,000 shall be imposed to an organizational taxpayer committing violations related to tax procedures. A fine of up to VND 100,000,000 shall be imposed to an individual taxpayer committing violations related to tax procedures.

A fine equal to 20% of the deficit tax amount or the exemptible, reducible or refundable tax amount that is higher than prescribed shall be imposed for the act of incorrectly declaring, leading to a sufficiency in the payable tax amount or an increase in the exemptible, reducible or refundable tax amount.

A fine of 1 to 3 times of the evaded tax amount shall be imposed for the act of tax evasion.

A fine in proportion to the amount that is not withdrawn and transferred to state budget shall be imposed for the acts of violations specified in Clause 1, Article 18 of this Decree.

2. Additional sanctions: Suspension of operation of invoice printing for a definite time.

3. Remedial measures

a) Forcible full payment of the deficit tax amounts, the exemptible, reducible or refundable tax amounts that are higher than prescribed, the evaded tax amounts, and late-payment interest of tax amounts into the state budget.

b) Forcible adjustment of the loss and the deductible input value-added tax amount transferred to the next period.

c) Forcible submission of dossiers of changes of tax registration contents; re-declaration and submission of additional materials in tax dossiers; submission of tax declaration dossiers, appendices attached to the tax declaration dossiers; and provision of information.

d) Forcible implementation of invoice issuance procedures.

dd) Forcible making of invoices as prescribed.

e) Forcible cancellation or destruction of invoices and printed products.

g) Forcible formulation and submission of notices and reports related to invoices.

h) Forcible transmission of e-invoice data.

i) Forcible refund of illicit profits earned through the commission of administrative violations.

4. Principles for application of fines

a) The fines specified in Articles 10, 11, 12, 13, 14, and 15, Clause 1 and 2, Article 19 and Chapter III of this Decree shall be imposed for institutional violators.

Taxpayers being households and business households shall be imposed with the fines for individual violators.

b) Upon determining the fines for the violating taxpayer who has both aggravating circumstance(s) and extenuating circumstance(s), the aggravating circumstance(s) shall be canceled according to the principle that one extenuating circumstance shall cancel out one aggravating circumstance.

c) Extenuating circumstances or aggravating circumstances that have been used to determine fine brackets shall not be used when determining the specific fine according to Point d of this Clause.

d) A specific fine for an act of violation related to tax or invoice procedure and act of violation specified in Article 19 of this Decree shall be the average fine level of the fine bracket for such act of violation. If there are extenuating circumstances, each circumstance shall be entitled to a 10% reduction of the average fine level of the fine bracket, provided that the fine level for such act must not exceed the minimum level of the fine bracket. If there are aggravating circumstances, each aggravating circumstance shall be entitled to a 10% increase of the average fine level of the fine bracket, provided that the fine level for such act must not exceed the maximum level of the fine bracket.

Article 8. Statute of limitations for sanctioning of tax- or invoice- related administrative violations; the duration to be regarded as having never been sanctioned; the time limit for retrospective collection of tax amount

1. Statute of limitations for sanctioning of tax- or invoice- related administrative violations

a) The statute of limitations for sanctioning of an administrative violation related to invoices is 01 year.

b) The statute of limitations for sanctioning an administrative violation related to invoices is counted as follows:

For an in-progress administrative violation as prescribed at Point c of this Clause, the statute of limitations is counted from the time when the violation is detected by the competent person on duty.

For a completed administrative violation as prescribed at Point d of this Clause, the statute of limitations is counted from the date when the violation stops.

c) The in-progress administrative violations related to invoices that are violations specified in Clause 4, Article 21; Point b, Clause 2 and Clause 3, Article 23; Clauses 2 and 5, Article 24; Point b, Clause 3, Article 25; Point b, Clause 2 and Points b, c and d, Clause 3, Article 27; Point b, Clause 5, Article 29; and Point b, Clause 3, Article 30 of this Decree.

d) Administrative violations related to invoices other than those prescribed at Point c of this Clause are completed administrative violations. The time of termination of a violation is the date on which such violation is committed.

For the act of losing, burning or damaging invoices, if the date of such loss, burn or damage of the invoice cannot be determined, the time of termination of the violation is the date when the invoice is found to be lost, burnt or damaged.

For the acts of violations of the time limits for notices or reports related to invoices as prescribed in Clauses 1 and 3, Article 21; Point a and b, Clause 1 and Points c and d, Clause 2, Article 23; Clauses 1 and 2 and Point a, Clause 3, Article 25; Clause 1 and Point a, Clause 2, Clause 3, Clause 4 and Point a, Clause 5, Article 29 of this Decree, the time of termination of a violation is the date when the taxpayer submits the notice or report related to invoices.

2. Statute of limitations for sanctioning of administrative violations related to taxes

a) The statute of limitations for sanctioning of an administrative violation related to taxes is 02 year, from the date on which the act of violation is committed.

The date on which the administrative violation related to tax procedures is committed is the day succeeding the deadline for tax procedure according to the law on tax administration, except for the following cases:

For the acts of violation specified in Clause 1, Points a and b, Clause 2, Clause 3, and Point a, Clause 4, Article 10; Clauses 1, 2, 3 4, and Point a, Clause 5, Article 11; Clauses 1, 2, 3, and Points a and b, Clause 4, Clause 5, Article 13 of this Decree, the date of committing violations for the calculation of the statute of limitations is the date when the taxpayer carries out tax registration or notifies to the tax agency or submits the tax declaration dossier.

For the acts of violation specified at Point c, Clause 2 and Point b, Clause 4, Article 10; Point b, Clause 5, Article 11; Points c and d, Clause 4, Article 13 of this Decree, the date of committing violations for the calculation of the statute of limitations is the date when the competent person on duty detects the acts of violation.

b) The statute of limitations for the act of tax evasion that is not serious enough for penal liability examination, the act of incorrectly declaring, leading to a sufficiency in the payable tax amount or an increase in the exemptible, reducible or refundable tax amount, is 05 years from the day on which the violation is committed.

The date on which the act of incorrectly declaring, leading to a sufficiency in the payable tax amount or an increase in the exemptible, reducible or refundable tax amount or the act of tax evasion (except for the acts specified at Point a, Clause 1, Article 17 of this Decree) is the day succeeding the deadline for submitting the tax declaration dossier of the tax period, on which the tax amount is under-declared, evaded by the taxpayer, or the day succeeding the date on which the competent agency issues a decision on tax refund, exemption or reduction.

For the acts of failing to submit tax registration dossiers or tax declaration dossiers as prescribed at Point a, Clause 1, Article 17 of this Decree, the date of committing violations for the calculation of the statute of limitations is the date when the competent person on duty detects the acts of violation. For the acts of submitting tax declaration dossier after 90 days as prescribed at Point a, Clause 1, Article 17 of this Decree, the date of committing violations for the calculation of the statute of limitations is the date on which the tax declaration dossier is submitted by the taxpayer.

3. For cases accepted for settlement by criminal procedure-conducting agencies for which decisions not to institute criminal cases, decisions to cancel decisions to institute cases, decisions to stop investigation or decisions to stop cases are issued later, if acts of violation show signs of administrative violation related to taxes and invoices, these agencies shall, within 03 days after issuing these decisions, transfer such decisions together with the case files, material evidences and means of the violations to persons competent to sanction administrative violations and request the latter to administratively sanction these tax- an invoice- related violations. The statute of limitations shall comply with Clauses 1 and 2 of this Article. The period during which the case is accepted and examined by the proceeding-conducting agency shall be included to the statute of limitations for sanctioning of administrative violations.

4. Within the statute of limitations specified in Clauses 1 and 2 of this Article, if an organization or individual intentionally shirks or obstructs the sanctioning, the statute of limitations for sanctioning its/his/her violations shall be recounted from the time when the act of shirking or obstructing the sanctioning stops.

5. The duration to be regarded as having never been sanctioned for tax- or invoice- related administrative violations

If an individual or organization sanctioned for an administrative violation related to taxes or invoices, within 06 months after completely executing a sanctioning decision to impose warning or 01 year after completely executing another administrative sanctioning decision or after the expiration of the statute of limitations for executing an administrative sanctioning decision, does not re-commit the administrative violation, he/she/it shall be regarded as having never been administratively sanctioned for such violation.

The date of completing the sanctioning decision to impose warning shall be the date on which the administrative sanctioning decision is assigned to the sanctioned organization or individual in accordance with Article 39 of this Decree.

6. Time limit for retrospective collection of tax

a) Past the statute of limitations for sanctioning of tax- related administrative violations, violating taxpayers shall not be sanctioned but shall still have to make full payment of retrospective collection of tax amounts (evaded tax amounts, evaded tax amounts, the exemptible, reducible or refundable tax amounts that are higher than the prescribed ones or late-payment interests) to the state budget for retrospective 10 years up to the date of detection of their violations. Taxpayers that have not made tax registration shall fully pay the unpaid or evaded tax amounts or late-payment interests for the whole retrospective period up to the date of detection of their violations.

b) The time limit for retrospective collection of tax specified at Point a of this Clause shall only apply to tax amounts according to the tax law, and other revenues declared and remitted to the state budget by organizations and individuals.

For revenues from land or other revenues defined as financial obligations of an individual or organization by the competent agency, the time limit for retrospective collection shall be determined by such competent agency in accordance with the land law and relevant laws, but not less than the time limit for retrospective collection as specified at Point a of this Clause.

Article 9. Cases to be exempted from sanctioning of tax- or invoice- related administrative violations

1. Sanctioning of tax- and invoice- related administrative violations shall not be imposed for the cases of administratively sanctioning in accordance with law provisions on handling of administrative violations.

The acts of lately carrying out tax and invoice procedures by electronic means by taxpayers due to technical incidents of the information technology system that have been reported on the Portal of the tax agency, shall be considered as committing acts of violation due to force majeure events as prescribed in Clause 4, Article 11 of the Law on Handling of Administrative Violations.

2. Taxpayers violating tax-related administrative violations due to the performance of guiding documents, handling decisions of tax agencies or competent state agencies, that related to contents of taxpayer liability determination (including guiding documents and handling decision issued before the effective of this Decree) shall not be sanctioned for tax-related administrative violations, except for the cases where the taxpayers’ mistakes in declaring or determining the payable tax amount or the exemptible, reducible or refundable tax amount could not be detected through tax examination and inspection at the taxpayers’ head offices, but latter their tax-related administrative violations are discovered.

3. Taxpayers that make incorrect declarations but then make additional declarations in tax declaration dossiers and are willing to fully pay the payable tax amounts before tax agencies announce tax examination or tax inspection decisions at the taxpayers’ head offices or before tax agencies detect incorrect declarations not through examination or inspection at the taxpayers’ head offices, or before other competent agencies detect incorrect declarations shall not be sanctioned for tax-related administrative violations.

4. Individual taxpayers directly finalizing personal income tax that are late in submitting their personal income tax finalization dossiers and enjoy refundable tax amounts, and business households or individuals that are subject to tax assessment under Article 51 of the Law on Tax Administration shall not be sanctioned for tax procedure-related administrative violations.

5. Taxpayers who are enjoying an extension of the time limit for submission of tax declaration dossiers shall not be sanctioned for administrative violations related to the time limit for submission of tax declaration dossiers.

Chapter II

TAX-RELATED ADMINISTRATIVE VIOLATIONS, FORM OF SANCTIONING AND REMEDIAL MEASURES

Section 1

SANCTIONING OF TAX-RELATED ADMINISTRATIVE VIOLATIONS FOR TAXPAYERS

Article 10. Sanctioning of violations related to the time limit for tax registration; notices of suspension of business operation and notices of resumption of business operation before the prescribed time

1. A warning shall be imposed for the acts of making tax registration; or sending notices of suspension of business operation or notices of resumption of business operation before the announced time from 01 day to 10 days after the prescribed period, under extenuating circumstances.

2. A fine from VND 1,000,000 to VND 2,000,000 shall be imposed for any of the following acts of violation:

a) Making tax registration; or sending notices of resumption of business operation before the announced time from 01 day to 30 days after the prescribed period, except for the cases specified in Clause 1 of this Article;

b) Sending notices of suspension of business operation beyond the prescribed period, except for the cases specified in Clause 1 of this Article;

c) Failing to send notice of suspension of business operation.

3. A fine from VND 3,000,000 to VND 6,000,000 shall be imposed for the acts of making tax registration; or sending notices of resumption of business operation before the announced time from 31 days to 90 days after the prescribed period.

4. A fine from VND 6,000,000 to VND 10,000,000 shall be imposed for any of the following acts of violation:

a) Making tax registration; or sending notices of resumption of business operation before the announced time for 90 days or more after the prescribed period;

b) Failing to sending notices of resumption of business operation without any rise to a new payable tax amount.

Article 11. Sanctioning of violations related to the time limit for notifying changes in tax registration information

1. A warning shall be imposed for any of the following acts of violation:

a) Notifying changes in tax registration contents beyond the prescribed period from 01 day to 30 days without changing the tax registration certificate or the notice of tax identification number, under extenuating circumstances;

b) Notifying changes in tax registration contents beyond the prescribed period from 01 day to 10 days, resulting in changes of the tax registration certificate or the notice of tax identification number, under extenuating circumstances.

2. A fine from VND 500,000 to VND 1,000,000 shall be imposed for the acts of notifying changes in tax registration contents beyond the prescribed period from 01 day to 30 days without changing the tax registration certificate or the notice of tax identification number, except for the cases to be sanctioned in accordance with Point a, Clause 1 of this Article.

3. A fine from VND 1,000,000 to VND 3,000,000 shall be imposed for any of the following acts of violation:

a) Notifying changes in tax registration contents beyond the prescribed period from 31 days to 90 days without changing the tax registration certificate or the notice of tax identification number;

b) Notifying changes in tax registration contents beyond the prescribed period from 01 day to 30 days, resulting in changes of the tax registration certificate or the notice of tax identification number, except for the cases specified at Point b, Clause 1 of this Article.

4. A fine from VND 3,000,000 to VND 5,000,000 shall be imposed for any of the following acts of violation:

a) Notifying changes in tax registration contents beyond the prescribed period for 91 days or more, without changing the tax registration certificate or the notice of tax identification number;

b) Notifying changes in tax registration contents beyond the prescribed period from 31 days to 90 days, resulting in changes of the tax registration certificate or the notice of tax identification number;

5. A fine from VND 5,000,000 to VND 7,000,000 shall be imposed for any of the following acts of violation:

a) 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;

b) Failing to notify changes in information in the tax registration dossier.

6. This Article shall not apply to the following cases:

a) Non-business individual that is already granted personal income tax identification number, delays in changing identity card information when being granted a citizen identification card;

b) Income-paying agency delays in notifying changes in identity card information in case where the individual personal income taxpayers authorizing to finalize personal income tax are issued with citizen identification cards;

c) Notifying changes in information of tax registration dossiers about the taxpayers’ addresses beyond the prescribed period, due to changes of administrative boundaries according to resolutions of the National Assembly Standing Committee or the National Assembly.

7. Remedial measures: Forcible submission of dossiers of change in tax registration contents, for the acts of violation specified at Point b, Clause 5 of this Article.

Article 12. Sanctioning of the acts of incorrectly declaring, insufficiently declaring tax dossier contents without leading to a sufficiency in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount

1. A fine from VND 500,000 to VND 1,500,000 shall be imposed for the acts of incorrectly declaring, insufficiently declaring tax dossier norms, but not related to the tax liability determination, except for the cases specified in Clause 2 of this Article.

2. A fine from VND 1,500,000 to VND 2,500,000 shall be imposed for the acts of incorrectly declaring, insufficiently declaring norms stated on a tax return and it attached appendices, but not related to the tax liability determination.

3. A fine from VND 5,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violation:

a) Incorrectly declaring, insufficiently declaring norms related to the tax in the tax dossier;

b) The acts of violation specified in Clause 3, Article 16 and Clause 7, Article 17 of this Decree.

4. Remedial measures:

a) Forcible re-declaration and additional submission of materials in the tax dossier, for the acts of violation specified in Clauses 1, 2, and Point a, Clause 3 of this Article;

b) Forcible adjustment of the loss and the deductible input value-added tax amount transferred to the next period (if any), for the acts of violation specified in Clause 3 of this Article.

Article 13. Sanctioning of violations related to the time limit for submission of tax declaration dossiers

1. A warning shall be imposed for late submission of the tax declaration dossier beyond the prescribed period from 01 day to 05 days under extenuating circumstances.

2. A fine from VND 2,000,000 to VND 5,000,000 shall be imposed for the acts of late submission of the tax declaration dossier beyond the prescribed period from 01 day to 30 days, except for the cases specified in Clause 1 of this Article.

3. A fine from VND 5,000,000 to VND 8,000,000 shall be imposed for the acts of late submission of the tax declaration dossier beyond the prescribed period from 31 days to 60 days.

4. A fine from VND 8,000,000 to VND 15,000,000 shall be imposed for any of the following acts of violation:

a) Submitting the tax declaration dossier beyond the prescribed period from 61 days to 90 days;

b) Submitting the tax declaration dossier beyond the prescribed period for 91 days or more without arising payable tax amount;

c) Failing to submit the tax declaration dossier without arising payable tax amount;

d) Failing to submit appendices as prescribed by regulations on tax administration together with the enterprise income tax finalization dossier, for enterprises that have transfer pricing transaction.

5. A fine from VND 15,000,000 to VND 25,000,000 shall be imposed for the acts of submitting tax declaration dossiers past 90 days from the date of expiration of the time limit for submission of tax declaration dossiers, with incurred payable tax amount, and the taxpayer has fully paid tax amounts and late-payment interests into the state budget before the tax agency announces tax examination or tax inspection decisions or makes written records of late submission of tax declaration dossiers in accordance with Clause 11, Article 143 of the Law on Tax Administration.

When applying provisions specified in this Clause, if the fine is higher than the tax amount arising on the tax declaration dossier, the maximum fine for such case shall be equal to the payable tax amount arising on the tax declaration dossier, but not less than the average level of the fine bracket as prescribed in Clause 4 of this Article.

6. Remedial measures:

A) Forcible full payment of the late-payment interests into the state budget, for the acts of violation specified in Clauses 1, 2, 3, 4 and 5 of this Article, in case where the taxpayer delays in submitting tax declaration dossiers, leading to late payment of tax amount;

b) Forcible submission of tax declaration dossiers, and appendices attached to such tax declaration dossiers, for the acts of violation specified at Points c and d, Clause 4 of this Article.

Article 14. Sanctioning of violations of providing information related to the tax liability determination

1. A fine from VND 2,000,000 to VND 3,000,000 shall be imposed for any of the following acts of violation:

a) Providing information, materials, and legal dossiers related to tax registration according to the tax agency's notices beyond the prescribed period for 05 working days or more;

b) Providing information, materials, and accounting books related to tax liability determination according to the tax agency’s notices beyond the prescribed period for 05 working days or more.

2. A fine from VND 3,000,000 to VND 5,000,000 shall be imposed for any of the following acts of violation:

a) Failing to provide or providing incorrect and insufficient information, materials, documents, invoices, and accounting books related to tax liability determination; providing incorrect and insufficient account numbers, deposit or spend account balances to competent agencies upon requests;

b) Failing to provide or providing insufficient and incorrect norms and data related tax liability that must be registered without reducing the tax liability to the state budget;

c) Failing to provide or providing incorrect and insufficient information and materials related to the deposit or spend accounts at credit institutions, State Treasuries, and debts owed by the relevant third parties at the tax agencies’ requests.

3. Remedial measures: Forcible provision of information, for the acts of violation specified in Clause 2 of this Article.

Article 15. Sanctioning of violations related to abide by decisions on tax examination, inspection, and enforcement of tax-related administrative decisions

1. A fine from VND 2,000,000 to VND 5,000,000 shall be imposed for any of the following acts of violation:

a) Failing to receive decisions on tax examination, inspection, and enforcement of tax-related administrative decisions when being delivered or sent by the tax agency in accordance with law provisions;

b) Failing to implement the decision on tax examination or inspection within 03 working days from the deadline for implementation of the competent agency’s decision;

c) Failing to provide dossiers, materials, documents, invoices, accounting books related to tax liability within 06 working hours since the receipt of the request from of the competent agency during the inspection or examination at the taxpayer’s head office;

d) Providing insufficient, incorrect information, materials, or accounting books related to tax liability determination at the request of the competent agency during the inspection or examination at the taxpayer’s head office;

d) Failing to sign the inspection or examination record within 05 working days from the date on which such report is made or publicized.

2. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed for any of the following acts of violation:

a) Failing to provide data, materials and accounting books related to tax liability determination at the request of the competent agency during the inspection or examination at the taxpayer’s head office;

b) Failing to implement or incorrectly implementing the decision on sealing dossiers, safes, warehouses, supplies, materials, machinery, equipment and workshops;

c) Deliberately removing or changing the seals lawfully created by competent agencies.

3. Remedial measures: Forcible provision of information, materials, accounting books related to the tax liability determination, for the acts of violation specified at Point d, Clause 1 and Point a, Clause 2 of this Article.

Article 16. Sanctioning of the acts of making incorrect declaration, leading to a sufficiency in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount

1. A fine equal to 20% of the under-declared payable tax amount or the exemptible, reducible or refundable tax amount that is higher than prescribed shall be imposed for any of the following acts of violation:

a) Incorrectly declaring tax bases or deductible tax amounts or wrongfully identifying cases eligible for tax exemption, reduction or refund leading to a sufficiency in payable tax amounts or an increase in exemptible, reducible or refundable tax amounts while economic operations have been fully reflected in the system of accounting books, and lawful invoices and documents;

b) Incorrectly declaring tax leading to a decrease in payable tax amounts or an increase in exemptible, reducible or refundable tax amounts, but do not fall into the cases specified at Point a of this Clause, and the taxpayer has voluntarily made additional declarations and fully paid the deficit tax amount into the state budget before the tax agency stops the tax examination or inspection at the taxpayer’s head office;

c) Incorrectly declaring tax leading to a decrease in payable tax amounts or an increase in exemptible, reducible or refundable tax amounts, has been determined as a tax evasion by the agency competent to make records on tax inspection and examination or administrative violation records, but the taxpayer commits administrative violations of tax evasion for the first time, and has made additional declarations and fully paid the tax amount to the state budget before the time the competent agency issues the sanctioning decision and the tax agency already made a written record to determine that incorrect declaration leads to insufficiency of tax amount;

d) Incorrectly declaring tax leading to a sufficiency in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount for a transfer pricing transaction, but the taxpayer has already made a dossier of determining the market price or already made and sent its appendices as prescribed by the law on tax administration for enterprises with transfer pricing transactions;

d) Using unlawful invoices and documents to account bought goods and service values in order to reduce the payable tax amount or increase the exemptible, reducible or refundable tax amount, but when such violation is discovered by the tax agency through tax examination or inspection, the buyer proves that the sellers are responsible for the use of unlawful invoices and documents, and the accounting has been sufficiently done by the buyer.

2. Remedial measures:

a) Forcible full payment of the deficit tax amount and the exemptible, reducible or refundable tax amount that is higher than prescribed into the state budget, for the acts of violation specified in Clause 1 of this Article.

If past the statute of limitations, the taxpayer shall not be sanctioned under Clause 1 of this Article, but he/she/it must make full payment of the deficit tax amount, the exemptible, reducible or refundable tax amount that is higher than prescribed and the late-payment interest into the state budget according to the time limit prescribed in Clause 6, Article 8 of this Decree;

b) Forcible adjustment of the loss and the deductible input value-added tax amount transferred to the next period (if any), for the acts of violation specified in Clause 1 of this Article.

3. In case where the taxpayer make incorrect declarations as prescribed at Points a, b and d, Clause 1 of this Article without leading to an insufficiency in the payable tax amount or an increase in the exemptible, reducible amount or the tax refund has not been given, he/she/it shall not be sanctioned under this Article, but shall be sanctioned under Clause 3, Article 12 of this Decree.

Article 17. Sanctioning of the acts of tax evasion

1. 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:

a) Failing to submit the tax registration dossier; failing to submit 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, except for the cases specified at Points b and c, Clause 4 and Clause 5, Article 13 of this Decree;

b) Failing to record the revenues related to the determination of payable tax amounts in accounting books; failing to make declarations or making incorrect declarations, leading to a sufficiency in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount, except for the acts of violation specified in Article 16 of this Decree.

c) Failing to making invoices when selling goods or providing services, except for the cases where the taxpayer already made tax declarations for the sold goods or provided service value in the corresponding tax period; making goods or service sales invoices with incorrect quantity and value of goods or services in order to make tax declaration lower than reality and being detected after the time limit for submitting tax declaration dossiers;

b) 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;

dd) Using unlawful documents; unlawfully using documents; using documents and materials to untruthfully reflect the nature of transactions or actual transaction value in order to incorrectly determine payable tax amounts or exemptible, reducible or refundable tax amounts; carrying out procedures for, or making dossiers of destruction of materials or goods that are not true to reality, leading to a decrease in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount;

e) Using goods not liable to duty, duty-free goods or goods eligible for duty exemption consideration for improper purposes without declaring the use purpose change to tax agencies;

g) The taxpayer conducting business activities during the period of business operation cessation or suspension without notifying such to tax agencies, except for the cases specified at Point b, Clause 4, Article 10 of this Decree.

2. A fine equal to 1.5 times of the evaded tax amount shall be imposed on the taxpayer that commits any of the acts of violation specified in Clause 1 of this Article, without extenuating or aggravating circumstances.

3. A fine equal to 02 times of the evaded tax amount shall be imposed on the taxpayer that commits any of the acts of violation specified in Clause 1 of this Article, with an aggravating circumstance.

4. A fine equal to 2.5 times of the evaded tax amount shall be imposed on the taxpayer that commits any of the acts of violation specified in Clause 1 of this Article, with two aggravating circumstances.

5. A fine equal to 03 times of the evaded tax amount shall be imposed on the taxpayer that commits any of the acts of violation specified in Clause 1 of this Article, with 03 aggravating circumstances or more.

6. Remedial measures:

a) Forcible full remittance of the evaded tax amount into the state budget, for the acts of violation specified in Clauses 1, 2, 3, 4 and 5 of this Article.

In case where the statute of limitations for sanctioning of the acts of tax evasion specified in Clauses 1, 2, 3, 4 and 5 of this Article is past, the taxpayer shall not be sanctioned for the acts of tax evasion, but he/she/it must make full payment of the evaded tax amount and the late-payment interest calculated on such evaded tax amount into the state budget according to the time limit specified in Clause 6, Article 8 of this Decree.

b) Forcible adjustment of the loss and the input value-added tax amount deducted on the tax dossier (if any), for the acts of violation specified in Clauses 1, 2, 3, 4 and 5 of this Article.

7. If the acts of violation specified at Points b, dd and e, Clause 1 of this Article are discovered after the time limit for submitting the tax declaration dossier, but the payable tax amount is not reduced, or refundable tax amount is not given, or the exemptible, reducible tax amount is not increased, the violator shall be administratively sanctioned in accordance with Clause 3, Article 12 of this Decree.

Section 2
SANCTIONING OF TAX-RELATED ADMINISTRATIVE VIOLATIONS FOR COMMERCIAL BANKS AND OTHER RELEVANT ORGANIZATIONS AND INDIVIDUALS

Article 18. Sanctioning of tax-related administrative violations for commercial banks and tax payment guarantors

1. A fine corresponding to the tax amounts, the late-payment interests and fines for not deducting and transferring the taxpayers’ payable tax arrears into the state budget's account (except for the minimum balance in the spend account in accordance with regulations or the commercial banks providing payment service for taxpayers) shall be imposed on the commercial banks that fail to perform the responsibility to deduct and transfer from taxpayers’ accounts to the state budget’s accounts at the request of tax agencies, unless taxpayers’ accounts opened at such commercial banks are no longer have a balance or the balance of such accounts has been wholly transferred to the state budget’s accounts but is not enough to pay the tax arrears.

2. The tax payment guarantors shall pay tax amounts, interests on late payment of tax, fines, and interest on late payment of fines (if any) on the taxpayer behalf’s in accordance with the guarantee agreements if the taxpayers fail to pay such amounts to the state budget.

If past the guarantee period but the taxpayers have not yet paid or insufficiently paid tax arrears, interests on late payment of tax, fines, or interests on late payment of fines but the guarantors fail to perform the guarantee obligation, such guarantors shall be subject to interests due to late payment of taxes and fines and being coerced in accordance with the Law on Tax Administration.

Article 19. Sanctioning of tax-related administrative violations committed by relevant organizations and individuals

1. A fine from VND 2,000,000 to VND 6,000,000 shall be imposed for the acts of providing information and materials related to the determination of the taxpayers’ tax liability and accounts at the tax agencies’ requests beyond the prescribed period for 05 days or more.

2. A fine from VND 6,000,000 to VND 16,000,000 shall be imposed for any of the following acts of violation:

a) Colluding or covering up taxpayers for the purpose of tax evasion, or not implementing decisions on enforcement of tax administration, except for the acts of failing to deduct and transfer money from the taxpayers’ accounts as prescribed in Article 18 of this Decree;

b) Failing to provide or providing inaccurate information related to the taxpayers’ assets, asset-related rights and obligations that are hold by such organizations or individuals; taxpayers’ accounts that are opened at credit institutions and State Treasuries.

3. The fines specified in Clauses 1 and 2 of this Article shall be imposed for institutional violators. The fines imposed for individual violators shall comply with the principles specified in Clause 5, Article 4 of this Decree.

4. Remedial measures: Forcible provision of information, for the acts of violation specified at Point b, Clause 2 of this Article.

Chapter III
INVOICE-RELATED ADMINISTRATIVE VIOLATIONS, FORM OF SANCTIONING AND REMEDIAL MEASURES

Article 20. Sanctioning of violations of regulations on invoices printed on order

1. A fine from VND 500,000 to VND 1,500,000 shall be imposed for the acts of failing to sign the printing contracts that are made in writing, or the printing organizations printing invoices on order for using purpose without a decision on printing of invoices issued by the representative as prescribed by law.

2. A fine from VND 2,000,000 to VND 4,000,000 shall be imposed for the acts of ordering invoice printing when the tax agency has issued a written notice of ineligibility to order invoice printing, unless the tax agency has no written opinion upon receipt of the proposal to use printed-on-order invoices.

3. A fine from VND 20,000,000 to VND 50,000,000 shall be imposed for the acts of ordering invoice printing according to invoice forms already issued by other organizations or individuals, or ordering invoice printing with an identical number of the same invoice symbol.

4. Remedial measures: Forcible cancellation of invoices, for the acts of violation specified in Clauses 2 and 3 of this Article.

Article 21. Sanctioning of violations of regulations on printing invoices printed on order

1. A warning shall be imposed for any of the following acts of violation:

a) Reporting of the receipt of invoice printing beyond the prescribed period from 01 day to 05 days;

b) Reporting of the receipt of invoice printing beyond the prescribed period from 06 days to 10 days, under the extenuating circumstance(s).

2. A fine from VND 500,000 and VND 1,500,000 shall be imposed for the acts of printing invoices without signing written contracts on the printing.

3. A fine from VND 2,000,000 to VND 4,000,000 shall be imposed for the acts of reporting the invoice printing beyond the prescribed period for 06 days or more, except for the cases specified at Point b, Clause 1 of this Article.

4. A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for the acts of failing to cancel damaged or excessively printed products upon liquidation of printing contracts.

5. A fine from VND 6,000,000 to VND 18,000,000 shall be imposed for any of the following acts of violation:

a) Receiving to print invoices printed on order when failing to fully meet conditions for printing invoices as prescribed;

b) Failing to declare the loss of invoices before handing them to customers.

6. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed for the acts of transferring any or all of printing stages in the printing contracts to other printing establishments.

7. A fine from VND 20,000,000 to VND 50,000,000 shall be imposed for the acts of printing invoices according to invoice forms already issued by other organizations or individuals, or ordering invoice printing with an identical number of the same invoice symbol.

8. Additional sanctions: Suspension of invoice printing operations for a definite time of between 01 month and 03 months, from the date on which the sanctioning decision takes effect, for the acts of violation specified in Clause 7 or this Article.

9. Remedial measures: Forcible cancellation of printing products and invoices, for the acts of violation specified in Clauses 4 and 7 of this Article.

Article 22. Sanctioning of the acts of giving away or selling invoices

1. A fine from VND 15,000,000 to VND 45,000,000 shall be imposed for any of the following acts of violation:

a) Giving away or selling unissued invoices printed on order;

b) Giving away or selling invoices printed on order of customers to other organizations or individuals.

2. A fine from VND 20,000,000 to VND 50,000,000 shall be imposed for the acts of giving away or selling invoices bought from tax agencies which are not yet made.

3. Remedial measures:

a) Forcible cancellation of invoices, for the acts of violation specified in this Article;

b) Forcible refund of illicit profits earned through the commission of administrative violations specified in this Article.

Article 23. Sanctioning of violations of regulations on invoice issuance

1. A fine from VND 500,000 to VND 1,500,000 shall be imposed for any of the following acts of violation:

a) Submitting a notice of adjusting information in the invoice issuance notice to the direct tax administration agency upon changing business address, resulting in changing the direct tax administration agency or upon changing name beyond the prescribed period from 10 days to 20 days, after starting the use of invoices at the new address or with a new name;

b) Submitting the list of unused invoices to the tax agency where the organization or individual move to upon changing business address, resulting in changing the direct tax administration agency beyond the prescribed period from 10 days to 20 days, after starting the use of invoices at the new address;

c) Using invoices that are already notified to be issued with the tax agency but not yet take effect.

2. A fine from VND 2,000,000 to VND 4,000,000 shall be imposed for any of the following acts of violation:

a) Formulating an invoice issuance notice with insufficient contents as prescribed, and such formulation is detected by the tax agency and the tax agency has sent a written notice to the violating organizations or individuals for adjustment, but such organizations or individuals issued such invoice to customer without any adjustment;

b) Failing to post up invoice issuance notices under regulations;

c) Submitting a notice of adjusting information in the invoice issuance notice to the direct tax administration agency upon changing business address, resulting in changing the direct tax administration agency or upon changing name beyond the prescribed period for 21 days or more, after starting the use of invoices at the new address or with a new name;

d) Submitting the list of unused invoices to the tax agency where the organization or individual move to upon changing business address, resulting in changing the direct tax administration agency beyond the prescribed period for 21 days or more, after starting the use of invoices at the new address.

3. A fine from VND 6,000,000 to VND 18,000,000 shall be imposed for the acts of failing to formulate the invoice issuance notice before putting invoices into use, if such invoices associated with the arising economic operation, and the tax declaration and payment already been carried out, or the prescribed tax declaration and payment period has not yet arrived.

In case of failing to formulate an invoice issuance notice before putting invoices into use, if such invoices unassociated with the arising economic operation, or past the time limit for tax declaration but the tax declaration and payment has not yet been carried out according to regulations, the violator shall be sanctioned under Article 28 of this Decree or under Articles 16 and 17, Chapter II of this Decree.

4. Remedial measures: Forcible implementation of procedures for invoice issuance as prescribed, for the acts of violation specified at Points a and b, Clause 2 and Clause 3 of this Article.

Article 24. Sanctioning of violations of regulations on the formulation of invoices when selling goods and services

1. A warning shall be imposed for any of the following acts of violation:

a) Failing to make invoices within the prescribed time, without leading to delay in performance of tax liability, under extenuating circumstances;

b) Making invoices with continuous numbers from small to large number but in different book (using invoice book with the larger serial number without using the one with the smaller serial number), and an organization or individual already cancel the invoice book with the smaller serial number after discovering such thing;

c) Making incorrect type of invoice as prescribed, and such invoice has already been delivered to the buyer, or has been used for tax declaration, then the buyer and seller discovered such incorrection, and re-made invoice type as prescribed before the competent agency announces the decision on examination and inspection at the taxpayer's head office, without affecting the tax liability determination.

2. A fine from VND 500,000 to VND 1,500,000 shall be imposed for any of the following acts of violation:

a) Failing to make the general invoice in accordance with law provisions on invoices of goods sales or service provision;

b) Failing to make invoices for goods and services for promotion or advertising or used as samples; goods and services donated, granted, presented as gifts, exchanged or given as salary for employees, except for goods internally circulated for further production.

3. A fine from VND 3,000,000 to VND 5,000,000 shall be imposed for the acts of failing to make invoices within the prescribed time, without causing to delay in the performance of tax liability, except for the cases specified at Point a, Clause 1 of this Article.

4. A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violation:

a) Failing to make invoices within the time limit as prescribed by the law on invoices of goods sales and service provision, except for the cases specified at Point a, Clause 1, Clause 3 of this Article;

b) Failing to make invoices from the smaller serial number to the larger serial number as prescribed, except for the cases of warning as prescribed at Point b, Clause 1 of this Article;

c) Making invoices with the date stated on invoices earlier than the date of buying such invoices from the tax agency;

a) Making incorrect type of invoices as prescribed by the law on invoices of goods sales or service provision, and such invoices have already been delivered to the buyers or used for tax declaration, except for the cases of warning as prescribed at Point c, Clause 1 of this Article;

dd) Making e-invoices without the tax agency’s approval notice, or before the date on which the tax agency approves the use of e-invoices with or without the tax agency’s code;

e) Making of goods or service sales invoices during the period of suspension of business operation, except for the case of making invoices for customers to perform contracts signed before the date of notifying the notice of business operation suspension;

a) Making e-invoices from a POS cash register without network connection for transmission of electronic data to the tax agency.

5. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed for the acts of failing to make invoices when selling goods or providing services for the buyer as prescribed, except for the cases specified at Point b, Clause 2 of this Article.

6. Remedial measures: Forcible of making of invoices as prescribed upon the buyers’ requests, for the acts of violation specified at Point d, Clause 4 and Clause 5 of this Article.

Article 25. Sanctioning of violations of regulations on reporting the loss, burning or damage of invoices before notifying the issuance or unmade invoices bought from tax agencies

1. A warning shall be imposed for the acts of reporting the loss, burning or damage of invoices beyond the prescribed period for report from 01 day to 05 days, under extenuating circumstances.

2. A fine from VND 1,000,000 to VND 4,000,000 shall be imposed for the acts of reporting the loss, burning or damage of invoices beyond the prescribed period from 01 day to 05 days, except for the cases specified in Clause 1 of this Article.

3. A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violation:

a) Reporting the loss, burning or damage of invoices beyond the prescribed period for 06 days or more;

b) Failing to report the loss, burning or damage of invoices.

Article 26. Sanctioning of the acts of losing, burning or damaging invoices

1. A warning shall be imposed for any of the following acts of violation:

a) Losing, burning or damaging made invoices (except for the sheets delivered to customers) during the course of using, and such invoices have been used for tax declaration and payment, and there are dossiers and documents proving the goods or service purchase, with the extenuating circumstances;

b) Losing, burning or damaging invoices that are incorrectly made or canceled and the seller already made other invoices replacing such incorrectly made or canceled invoices.

2. A fine from VND 3,000,000 to VND 5,000,000 shall be imposed for the acts of losing, burning or damaging made invoices (the sheets delivered to customers) during the course of using, and the seller already carried out tax declaration and payment, and there are dossiers, materials and documents proving the goods or service purchase, with the extenuating circumstances.

In case where the buyer has the invoices lost, burnt or damaged, such loss, burn or damage must be recorded in the minutes between the buyer and seller.

3. A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violation:

a) Losing, burning or damaging invoices that are issued or bought from the tax agency but not yet made;

b) Losing, burning or damaging made invoices (the sheets delivered to customers) during the course of using, and the seller already carried out tax declaration and payment, and there are dossiers and documents proving the goods or service purchase.

In case where the buyer has the invoices lost, burnt or damaged, such loss, burn or damage must be recorded in the minutes between the buyer and seller.

4. A fine from VND 5,000,000 to VND 10,000,000 shall be imposed for the acts of losing, burning or damaging invoices that already made, used for tax declaration and payment during the course of using or storing, except for the cases specified in Clauses 1, 2 and 3 of this Article.

5. In case of loss, burning or damage of invoices as prescribed in Clause 2 and Point b, Clause 3 of this Article due to the third party’s fault, if the third party conducts transaction with the seller, then the seller shall be sanctioned, if the third party conducts transaction with the buyer, then the buyer shall be sanctioned.

The buyer or seller and the third party shall make a minutes of such loss, burning or damage.

Article 27. Sanctioning of violations of regulations on invoice cancellation or destruction

1. A warning shall be imposed for the acts of canceling or destroying invoices beyond the prescribed period for cancellation or destruction from 01 day to 05 days, under extenuating circumstances.

2. A fine from VND 2,000,000 to VND 4,000,000 shall be imposed for any of the following acts of violation:

a) Canceling invoices already issued but not yet made or invalid invoices in contravention of regulations;

b) Failing to cancel invalid invoices that are already issued but not yet made; failing to cancel expired invoices bought from the tax agency;

c) Canceling or destroying invoices beyond the prescribed period for invoice cancellation or destruction from 01 working day to 10 working days, except for the cases specified in Clause 1 of this Article.

3. A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violation:

a) Canceling or destroying invoices beyond the prescribed period for invoice cancellation or destruction, for 11 working days or more;

b) Failing to cancel or destroy invoices in accordance with law provisions;

c) Failing to cancel e-invoices that are incorrectly made after past the time limit for the tax agency to notify the seller about error examination;

d) Failing to cancel invoices printed on order which are no longer used before their issuance as prescribed;

dd) Failing to cancel or destroy invoices in accordance with order and procedures prescribed by law;

e) Destroying invoices other than those to be destroyed as prescribed.

4. Remedial measures: Forcible cancellation or destruction of invoices, for the acts of violation specified at Point b, Clauses 2 and Points b, c and d, Clause 3 of this Article.

Article 28. Sanctioning of the acts of using unlawful invoices and unlawfully using invoices

1. A fine from VND 20,000,000 to VND 50,000,000 shall be imposed for the acts of using unlawful invoices or unlawfully using invoices specified in Article 4 of this Decree, except for the cases specified at Point dd, Clause 1, Article 16 and Point d, Clause 1, Article 17 of this Decree.

2. Remedial measures: Forcible destruction of used invoices.

Article 29. Sanctioning of violations of regulations on formulating and sending invoice-related notices and reports

1. A warning shall be imposed for the acts of submitting invoice-related notices and reports beyond the prescribed period from 01 day to 05 days, under extenuating circumstances.

2. A fine from VND 1,000,000 to VND 3,000,000 shall be imposed for any of the following acts of violation:

a) Submitting invoice-related reports and notices beyond the prescribed period from 01 day to 10 days, except for the cases specified in Clause 1 of this Article;

b) Sending incorrectly or insufficient contents of the notices and reports related to invoices as prescribed to the tax agency.

In case where organizations or individuals discover errors by themselves, and re-make replacement notices and reports in accordance with regulations, and send them to the tax agency before the tax agency and competent agency issues a decision on tax examination and inspection at the taxpayers’ head offices, such organizations or individuals shall not be sanctioned.

3. A fine from VND 2,000,000 to VND 4,000,000 shall be imposed for the acts of submitting invoice-related notices and reports to the tax agency beyond the prescribed period from 11 days to 20 days.

4. A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for the acts of submitting invoice-related notices and reports to the tax agency beyond the prescribed period from 21 days to 90 days.

5. A fine from VND 5,000,000 to VND 15,000,000 shall be imposed for any of the following acts of violation:

a) Submitting invoice-related notices and reports to the tax agency beyond the prescribed period for 91 days or more;

b) Failing to submit invoice-related notices and reports to the tax agency as prescribed.

6. For the acts of violation of making and sending notices and reports related to invoices that have been specified in Articles 23 and 25 of this Decree, this Article shall not be applied when sanctioning of administrative violations.

7. Remedial measures: Forcible formulation and submission of notices and reports related to invoices, for the acts of violation specified at Point b, Clause 2 and Point b, Clause 5 of this Article.

Article 30. Sanctioning of violations of regulations on transmission of electronic data

1. A fine from VND 2,000,000 to VND 5,000,000 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.

2. A fine from VND 5,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violations:

a) Transmitting e-invoice data to the tax agency beyond the prescribed period from 06 working days to 10 working days;

b) Transmitting an e-invoice data summary sheet with inadequate invoices created in the period.

3. A fine from VND 10,000,000 to VND 20,000,000 shall be imposed for any of the following acts of violations:

a) Transmitting e-invoice data to the tax agency beyond the prescribed period for 11 working days or more;

b) Failing to transmit e-invoice data to the tax agency within the time limit as specified.

4. Remedial measures: Forcible transmission of e-invoice data to the tax agency, for the acts of violations prescribed at Point b, Clause 2 and Point b, Clause 3 of this Article.

Article 31. Sanctioning of violations of regulations on invoice service provision

A fine from VND 4,000,000 to VND 8,000,000 shall be imposed for any of the following acts of violations:

1. Providing invoice printing software at variance with principles or when printing, invoices do not fully contain the contents as prescribed by the law on invoices.

2. Providing e-invoice software at variance with principles as prescribed in law on invoices.

Chapter IV

SANCTIONING COMPETENCE; A NUMBER OF PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS RELATED TO TAX AND INVOICES

Article 32. Competence of tax agencies to sanction administrative violations related to tax, invoices

1. Tax officers who are on duty may impose caution.

2. Within the ambit of their respective functions and tasks, heads of tax teams may:

a) Impose warning;

b) Impose fines of up to VND 5,000,000 for the acts of violations prescribed in Clause 2, Article 10; Clauses 2, 3 and 4, Article 11; Clause 1, Article 14; Points a, b, c and dd, Clause 1, Article 15; Clause 1, Article 20; Clauses 2 and 3, Article 21; Clause 1 and Points c, d, Clause 2, Article 23; Clauses 2 and 3, Article 24; Clause 2, Article 25; Clause 2, Article 26; Points a and c, Clause 2, Article 27; Point a, Clause 2, Clause 3, Article 29; Clause 1, Article 30 of this Decree.

3. In the locality under their management, directors of district-level Tax Departments may:

a) Impose warning;

b) Impose fines of up to VND 50,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree;

c) Impose fines for the acts of violations prescribed in Articles 16, 17 and 18 of this Decree;

d) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

dd) Apply remedial measures prescribed in this Decree.

4. In the locality under their management, directors of provincial-level Tax Departments may:

a) Impose warning;

b) Impose fines of up to VND 140,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree;

c) Impose fines for the acts of violations prescribed in Articles 16, 17 and 18 of this Decree;

d) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

dd) Apply remedial measures prescribed in this Decree.

5. The Director General of Taxation may:

a) Impose warning;

b) Impose fines of up to VND 200,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree;

c) Impose fines for the acts of violations prescribed in Articles 16, 17 and 18 of this Decree;

d) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

dd) Apply remedial measures prescribed in this Decree.

Article 33. Competence of chairpersons of People’s Committee at all levels to sanction administrative violations

1. Chairpersons of district-level People’s Committees may:

a) Impose warning;

b) Impose fines of up to VND 50,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree;

c) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

d) Apply the remedial measures prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree.

2. Chairpersons of provincial-level People’s Committees may:

a) Impose warning;

b) Impose fines of up to VND 100,000,000 for the acts of violations prescribed in Chapter III of this Decree;

c) Impose fines of up to VND 200,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II of this Decree;

d) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

dd) Apply the remedial measures prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree.

Article 34. Competence of inspectorates to sanction administrative violations related to tax, invoices

1. Inspectors and persons assigned to perform specialized inspection tasks who are on duty may impose warning.

2. Chief inspectors of provincial-level Departments of Finance, heads of inspection teams of provincial-level Tax Departments and of the General Department of Taxation who performing the function of specialized inspection may:

a) Impose warning;

b) Impose fines of up to VND 50,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree;

c) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

d) Apply the remedial measures prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree.

3. Head of inspection team under the Ministry of Finance performing the function of specialized inspection may:

a) Impose warning;

b) Impose fines of up to VND 70,000,000 for the acts of violations prescribed in Chapter III of this Decree;

c) Impose fines of up to VND 140,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II of this Decree;

d) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

dd) Apply the remedial measures prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree.

4. The Chief Inspector of the Ministry of Finance may:

a) Impose warning;

b) Impose fines of up to VND 100,000,000 for the acts of violations prescribed in Chapter III of this Decree;

c) Impose fines of up to VND 200,000,000 for the acts of violations prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II of this Decree;

d) Suspend operation of printing invoices for a definite time, for the acts of violations prescribed in Article 21 of this Decree;

dd) Apply the remedial measures prescribed in Articles 10, 11, 12, 13, 14, 15 and 19, Chapter II and Chapter III of this Decree.

Article 35. Principles of determination and delimitation of competence to sanction administrative violations related to tax, invoices

1. Competence of persons prescribed in Articles 32, 33 and 34 of this Decree to sanction violations related to tax procedures, administrative violations related to invoices shall be applied to an act of violations of an organization. In cases of imposing fines on individuals who commit the acts of violations related to tax procedures, administrative violations related to invoices and the acts prescribed in Clause 19 of this Decree, competence to sanction individuals shall be equal to a half of competence to sanction organizations.

Competence to sanction the acts of administrative violations prescribed in Articles 16, 17 and 18 of this Decree shall comply with Clause 2, Article 139 of the Law on Tax Administration.

2. Heads of specialized inspection teams have competence to sanction the acts of administrative violations within the scope and contents of the inspection within the time limit of inspection prescribed by inspection law.

3. For an administrative violation related to tax, invoices falling under the sanctioning competence of many persons, the sanctioning of such administrative violation shall be conducted by the person who first accepts the case of violation.

4. When handling a case of violation, if the fine level(s), remedial measure(s) or additional sanction(s) applied to any of administrative violations in the case of violation falls beyond the competence of the sanctioning person prescribed in this Decree, such person shall immediately transfer such case to agency, person with sanctioning competence.

Article 36. Making written records of administrative violations related to tax, invoices

1. Competence to make written records of administrative violations related to tax, invoices

When detecting acts of violations related to tax, invoices, persons with sanctioning competence defined in Articles 32, 33 and 34 of this Decree or persons being on duty under State administrative agencies shall be competent to make written records of administrative violations.

2. Making written records of administrative violations

a) The making written records of administrative violations shall comply with law regulations on handling of administrative violations.

In case acts of administrative violations are clearly defined in tax examination or inspection records, such records shall be regarded as administrative violation records in accordance with Clause 1, Article 108 of the Law on Tax Administration.

b) Making electronic records of administrative violations

In case a taxpayer are late in submitting tax registration dossier or tax declaration dossier, tax finalization declaration dossier or in changing tax registration information by electronic means, within 01 working day after sending a written notice of receipt of online tax registration dossier, dossier of change in tax registration information or notice of online tax declaration or tax finalization dossier, the tax agency shall make and send 01 electronic record of administrative violations to the taxpayer via the Portal of the General Department of Taxation, including the cases where a taxpayer submits many tax dossiers.

Electronic record of administrative violations that are made and sent in conformity with requirements of tax-related electronic transactions shall serve as a basis for the tax agency to issue decisions on sanctioning of administrative violations.

An e-record of an administrative violation must clearly state the date and place of making; the full name and position of the maker; the digital signature of the maker; the full name, address, tax identification number, identity card number or identification number of the individual violator or the name, address and tax identification number of the institutional violator; time, date and location of the violation; the act of administrative violation; the right of the violator to make and time limit for making explanations about the administrative violation; and the agency receiving explanations. An e-record of an administrative violation is not required the signature of the individual or institutional violator.

Tax agency shall take responsibility for establishing the information technology system to satisfy the making and sending of electronic administrative violation records. When the information technology system satisfies the conditions for making and sending electronic administrative violation records for acts of violations of other procedures for tax and invoices, the Minister of Finance shall define the making and sending of electronic administrative violation records.

Article 37. Explanations of administrative violations related to tax, invoices

1. A written explanation of an administrative violation related to tax, invoices shall be required in the following cases:

a) Administrative violations related to tax, invoices that are detected via tax examination or inspection or the cases of making electronic records of administrative violations;

b) The acts of violations prescribed in Articles 16, 17, 18; Clause 3, Article 20; Clause 7, Article 21; Article 22 and Article 28 of this Decree.

2. The explanations of administrative violations related to tax, invoices shall comply with law regulations on handling of administrative violations.

Article 38. Cases in which no decision on sanctioning of administrative violations related to tax and invoices is issued

1.  No decision on sanctioning of administrative violations shall be issued in the following cases

a) The cases specified in Article 9 of this Decree;

b) The tax-, invoice-related administrative violator is unidentifiable;

c) The statute of limitations for sanctioning an administrative violation specified in Article 8 of this Decree or the time limit for issuing a sanctioning decision in accordance with law regulations on handling of administrative violations that has expired;

d) An individual administrative violator dies or is missing or an institutional administrative violator is dissolved or bankrupt while the issuance of a sanctioning decision is considered, except for cases specified at Point c, Clause 4, Article 41 of this Decree.

Bases for determination of individuals as missing or dead, institutions as dissolved or bankrupt shall comply with Clause 2, Article 41 of this Decree;

dd) The case file of the violation showing signs of crime is transferred for the penal liability examination.

2. For the cases in which no decision on sanctioning of administrative violations related to tax and invoices is issued specified at Points a, b, c and d, Clause 1 of this Article, a person with sanctioning competence shall not issue a decision on sanctioning of an administrative violation, but must apply remedial measure(s) according to regulations (if any). A decision on application of remedial measure(s) must specify the reason(s) for non-issuance of a sanctioning decision; remedial measure(s) to be applied, and the responsibility and time limit for execution.

Article 39. Handing and sending of decision on sanctioning of administrative violations related to tax and invoices

1. Within 02 working days after issuing a decision on sanctioning of an administrative violation, a competent person shall send or hand it to the sanctioned individual or organization, fine-collecting agency and other related agencies (if any) for execution.

2. A sanctioning decision shall be sent by electronic means via the address of the taxpayer registered with the tax agency, if a sanctioned individual or organization satisfies all conditions for conducting electronic transactions in the field of tax. In case such conditions are not satisfied, the sanctioning decision shall be directly handed or sent by post as registered mail according to Clauses 3 and 4 of this Article.

3. In case a sanctioning decision is handed directly to the sanctioned violator, the civil servant who hands the sanctioning decision must make a written record on the handing of sanctioning decision. In case a sanctioning decision is handed directly to the sanctioned violator but the latter intentionally refuses to receive, the competent person shall make a written record of the refusal and have it certified by the local administration. In this case, this decision is regarded as having been handed.

4. In case a sanctioning decision is sent by post as registered mail but after 10 days since the sanctioning decision sent for the third time via the postal services is returned because it is refused by the institutional or individual violator; or a sanctioning decision is posted up at the head office of the sanctioned organization or the residential place of the sanctioned individual, or there are grounds proving that the violator avoids receiving the sanctioning decision, the decision shall be regarded as having been handed.

In case a sanctioning decision is sent by post, the advice of delivery of the postal party (confirming that the sanctioning decision is handed to the sanctioned organization or individual) shall be kept in the sanctioning dossier.

Article 40. Statute of limitations for execution of decisions on sanctioning of administrative violations related to tax and invoices

1. The statute of limitations for execution of a decision on sanctioning of administrative violations related to tax, invoices is 01 year, from the date of issuing the sanctioning decision. Upon the expiration of this statute of limitations, the tax agency has not yet handed or sent the decision on sanctioning of administrative violations to the institutional or individual violator in accordance with Article 39 of this Decree, such decision must not be executed.

In case the sanctioning decision contains the application of remedial measure(s), such remedial measure(s) must be applied.

2. In case a sanctioned organization or individual intentionally shirks or delays the execution of the sanctioning decision, the above statute of limitations must be counted from the time when the act of shirking or delaying the execution stops.

3. In case the tax agency has handed or sent a decision on sanctioning of administrative violations to a sanctioned organization or individual in accordance with Article 39 of this Decree, if the sanctioned organization or individual still fails to pay or to fully pay fines, deficit tax amount being subject to retrospective collection, late-payment interests, the tax agency must monitor the unpaid amounts on tax administration system and apply tax debt enforcement measures according to regulations to fully collect the amount to be paid into the state budget.

Article 41. Execution of decisions on sanctioning of administrative violations related to tax, invoices in case sanctioned individuals are dead or missing or sanctioned organizations are dissolved or bankrupt

1. In case a sanctioned individual is dead or missing or a sanctioned organization is dissolved or bankrupt, the decision on imposition of fine must not be executed but the remedial measure(s) stated in the sanctioning decision must still be executed.

The person that has issued such decision shall issue a decision on execution of part of the sanctioning decision within 60 days after receiving a written notice showing that the sanctioned individual is dead or missing or the sanctioned organization is dissolved or bankrupt.

In case a sanctioning decision does not contain the application of remedial measure(s), the person with sanctioning competence shall issue a decision on termination of execution of the sanctioning decision.

2. Bases for determination of individuals as missing or dead, institutions as dissolved or bankrupt:

a) A death certificate, a death notice or another substitute paper according to law on civil status or the court’s decision declaring the person dying or missing, in case an individual is dead or missing (Such paper shall be an original or a copy according to regulations);

b) A notice about the dissolution of an enterprise or a cooperative issued by the business registration agency or the cooperative registration agency in case the enterprise or cooperative is dissolved; or a notice about the termination of a tax identification number issued by the tax agency, in case the dissolved organization is not an enterprise or a cooperative (Such notice shall be an original or a copy according to regulations);

c) A decision on bankruptcy declaration, in case an enterprise or a cooperative is bankrupt (such decision shall be original or a copy according to regulations).

3. A decision on execution of part of the sanctioning decision contains the following contents: Termination of imposition of fines and reason for termination; contents of sanctioning decision that continue being executed, name of the organization or individual responsible for the execution; the time limit for execution

4. Inheritance of the obligations of executing remedial measures left by the sanctioned persons that die or are missing or sanctioned organizations that are dissolved or fall bankrupt

a) Individuals who inherit an estate shall continue to execute the remaining part of the sanctioning decision regarding remedial measures within the limit of estate left by the decedent.

In case the estate has not yet been distributed, the remaining part of the sanctioning decision regarding remedial measures that is left by the decedent shall continue to be executed by the estate manager.

In case the estate has been distributed, each heir shall continue to execute the remaining part of the sanctioning decision regarding remedial measures that is left by the decedent, which correspond to, but do not exceed, the portion of property he/she has received, unless otherwise agreed upon.

In case the State, agencies or organizations inherit an estate under a testament, they shall continue to execute the remaining part of the sanctioning decision regarding remedial measures that is left by the decedent like an individual heir.

In case there is no testamentary heir or no at-law heir or there is an heir who has, however, disclaimed his/her estate, to comply with the civil law.

b) The person assigned by the court to manage the property of a person who has been declared missing shall continue to execute the remaining part of the sanctioning decision (regarding remedial measures) left by the person who has been declared missing within the limit of estate assigned for management.

c) In cases of an dissolved organization being a dependent unit or business location of an enterprise or a dissolution caused by the reorganization of an enterprise, cooperative, another organization or a dissolution of a branch or representative office of a foreign trader, an executive office of a foreign contractor that is located in Vietnam, the dissolved organization shall be not exempted from fines as defined in the sanctioning decision.

Article 42. Interests for late payment of fines for administrative violations related to tax, invoices

1. Calculation of an interest for late payment of a fine

a) An organization or individual is late for payment of the fine for his/her/its administrative violations related to tax, invoices shall pay an interest for late payment of the fine at the per-diem rate of 0.05% of the late paid amount of the fine.

b) The number of days of late payment for the fine includes public holidays and leave days as prescribed and shall be the period from the day following the expiration date of the fine payment to the day immediately preceding the day when the organization or individual pays the fine into the state budget.

2. The taxpayer is not subject to an interest for late payment of a fine in the following cases:

a) In the period of postponement of execution of a decision on imposition of fine;

b) In the period of consideration and decision on fine exemption;

c) The amount of the fine is not due in the case of payment of the fine in installments.

3. In case an organization or individual does not voluntarily pay fines or interests for late payment of fines into the state budget, the tax agency directly managing such organization or individual shall notify and urge such organization and individual to pay fines, interests for late payment of fines according to regulations.

Article 43. Exemption from fines for administrative violations related to tax, invoices

1. Taxpayers sanctioned for administrative violations related to tax, invoices who suffer material damage due to force majeure events prescribed in Clause 27, Article 3 of the Law on Tax Administration shall be exempt from fines.

2. A total exempted fine amount shall be equal to the remaining fines according to the sanctioning decision and must not exceed the value of their damaged property or goods after subtracting insured value, compensation (if any).

3. Dossier of request for exemption from fines for administrative violations related to tax, invoices:

a) A written request for exemption from fines, in which the reasons for the request; the value of their damaged property or goods; fines, interests for late payment of fines (if any) to be exempt must be clearly stated;

b) A written request for exemption from fines of the competent person who issued the sanctioning decision or the agency of the competent person who issued the sanctioning decision, in which the reasons for the request; the value of their damaged property or goods; fines, interests for late payment of fines (if any) to be exempt must be clearly stated;

c) A written certification stating that the taxpayer suffered any of natural disasters, catastrophes, epidemics, fires, accidents or other force majeure events as prescribed by the Government and stating the date and location of such force majeure event issued by Police office or People’s Committee of the commune, ward or town; the management board of the industrial park, export-processing zone or economic zone where the force majeure event occurred; a rescue organization or an agency competent to declare the epidemic (Such paper shall be an original or a notarized or certified copy);

d) A record of inventory and determination of the value of material damage made by the taxpayer or the taxpayer's legal representative;

dd) A record of determination of the value of material damage made by a valuation organization in accordance with law (an original or a notarized or certified copy of the record is required), except cases where compensation dossier is required according to Point g of this Clause;

e) A decision on sanctioning of administrative violations or a notice about the amount of unpaid fines at the time of the force majeure event and at the time of submission of dossier of request for exemption from fines;

g) A dossier of material damage compensation accepted by an insurance agency in accordance with law (an original or a notarized or certified copy of the record is required) (if any);

h) A dossier of compensation responsibility of an organization or individual in charge of compensation as prescribed by law (an original or a notarized or certified copy of the record is required) (if any).

4. Competence to exempt from fines

a) In the locality under their management, directors of district-level Tax Departments may exempt from fines for decisions on sanctioning of administrative violations issued by heads of tax teams;

b) In the locality under their management, directors of provincial-level Tax Departments may exempt from fines for decisions on sanctioning of administrative violations issued by directors of district-level Tax Departments and heads of inspection teams of provincial-level Tax Departments;

c) The Director General of Taxation may exempt from fines for decisions on sanctioning of administrative violations issued by directors of provincial-level Tax Departments and heads of inspection teams of the General Department of Taxation;

d) The Minister of Finance may exempt from fines for decisions on sanctioning of administrative violations issued by the Director General of Taxation and the Chief Inspector of the Ministry of Finance;

dd) Directors of provincial-level Departments of Finance may exempt from fines for decisions on sanctioning of administrative violations issued by Chief inspectors of provincial-level Departments of Finance;

e) The Chief Inspector of the Ministry of Finance may exempt from fines for decisions on sanctioning of administrative violations issued by head of inspection teams under the Ministry of Finance;

g) Chairpersons of provincial-level People’s Committees may exempt from fines for decisions on sanctioning of administrative violations issued by themselves and by chairpersons of district-level People’s Committees.

5. Oder and procedures for the exemption from fines

A taxpayer defined in Clause 1 of this Article shall send a written request for exemption from the remaining part or the whole of the fine together with a dossier to person/agency who has issued the sanctioning decision.

Within 03 working days after receiving a written request for exemption from the fine, the person who has issued the sanctioning decision shall transfer the written request together with the dossier of the case to the person competent to exempt from the fine and notify it to the taxpayer.

Within 30 days after receiving the dossier and written request for exemption from the fine, the person competent to exempt from the fine shall issue a decision on exemption from the fine or a notice about the rejection of exemption from the fine and send it to the taxpayer and the person who has issued the sanctioning decision. In case of rejection of the request, the person competent to exempt from the fine shall clearly state the reason.

6. Taxpayers that have completely executed sanctioning decisions are not exempt from fines for administrative violations related to tax, invoices.

7. If a taxpayer is exempt from a fine, such taxpayer is also exempt the corresponding interest for late payment of fine.

8. In case a taxpayer has been exempt from a fine, if a competent agency or tax agency detects that such exemption of the fine does not comply this Article, the person competent to exempt from the shall issue a decision on cancelation or adjustment of the decision on exemption from the fine. The tax agency directly managing the taxpayer shall collect for the state budget the fine amount from which the taxpayer is exempt at variance with regulations and calculate the interest for late payment of such fine in according to Article 42 of this Decree. The interest for late payment of the fine shall be calculated from the day when sanctioned organization or individual fully submitted the dossier for exemption from the fine.

Chapter V
IMPLEMENTATION PROVISIONS

Article 44. Effect

1. This Decree takes effect on December 05, 2020.

2. If the taxpayers using e-invoices according to the Law No. 38/2019/QH14 dated June 13, 2019 on Tax Administration and legal documents guiding the implementation of this Law before July 01, 2022 violate regulations on e-invoices, they shall be sanctioned in accordance with this Decree.

3. From the effective date of this Decree, the following regulations shall expire:

a) Chapters I and III of the Government’s Decree No. 129/2013/ND-CP dated October 16, 2013 on prescribing the sanctioning of administrative violations related to taxation and enforcement of administrative decision on taxation;

b) Clause 2, Article 4, Chapter 1; Chapter 4; Clause 44, Chapter 5 of the Government’s Decree No. 109/2013/ND-CP dated September 24, 2013 on prescribing the sanctioning of administrative violations in the field of price, charges, fees and invoices;

c) Article 3 of the Decree No. 49/2016/ND-CP dated May 27, 2016 on amending and supplementing a number of articles of the Decree No. 109/2013/ND-CP;

d) The Circular No. 166/2013/TT-BTC dated November 15, 2013, the Circular No. 10/2014/TT-BTC dated January 17, 2014 and the Circular No. 176/2016/TT-BTC dated October 31, 2016 of the Ministry of Finance.

4. To annul the word “invoice” in the title; bases for promulgation; Chapter 1; Point b, Clause 2, Article 41; Clause 2, Article 45; the phrase “in the field of invoices shall be 01 year” in Clause 1, Article 4 of the Government’s Decree No. 109/2013/ND-CP dated September 24, 2013 on prescribing the sanctioning of administrative violations in the field of price, charges, fees and invoices.

5. To annul the word “invoice” in the title; bases for promulgation; Clauses 2 and 3, Article 4; the phrase “suspension of the right to print invoices or the right to create electronic invoices; suspension of invoice printing”, “destruction of invoices; implementation of procedures for invoice issuance as prescribed” in Clause 1, Article 1 of the Government’s Decree No. 49/2016/ND-CP dated May 27, 2016 on amending and supplementing a number of articles of the Government’s Decree No. 109/2013/ND-CP dated September 24, 2013 on prescribing the sanctioning of administrative violations in the field of price, charges, fees and invoices.

6. Regulations on sanctioning of administrative violations that has not been defined in this Decree shall comply with law on handling of administrative violations.

Article 45. Transitional provisions

1. To comply with Chapter XV of the Law No. 38/2019/QH14 dated June 13, 2019; the Government’s Decree No. 129/2013/ND-CP dated October 16, 2013 on prescribing the sanctioning of administrative violations related to taxation and enforcement of administrative decision on taxation; the Government’s Decree No. 109/2013/ND-CP dated September 24, 2013 on prescribing the sanctioning of administrative violations in the field of price, charges, fees and invoices and the Government’s Decree No. 49/2016/ND-CP dated May 27, 2016 on amending and supplementing a number of articles of the Decree No. 109/2013/ND-CP, for the acts of administrative violations related to tax, invoices that are committed from July 01, 2020 until the date preceding the effective date of this Decree.

If a tax- and invoice-related administrative violation is committed before the effective date of this Decree and ends at the effective date of this Decree or after, the legal documents on sanctioning of administrative violations related tax and invoices which take effect at the time of committing such violation shall be applied.

2. Regulations of sanctioning prescribed in Chapters I, II and III of this Decree; regulations on postponement or exemption of execution of sanctioning decisions that are favorable to organizations and individuals committing administrative violations related tax and invoices shall be applied to sanction violations which are committed before the effective date of this Decree, and are later uncovered, or which are being considered and settled.

3. In case administrative violations related tax and invoices have been sanctioned before the effective date of this Decree but individuals and organizations lodge complaints or initiate lawsuits, the handling of such lodging of complaints or initiation of lawsuits shall comply with law on sanctioning of administrative violations related tax and invoices and relevant regulations that are in force at the time of committing the violations.

Article 46. Forms of written records and decisions to be made in the sanctioning of administrative violations related tax and invoices

Attached to this Decree are appendices of forms of written records and sanctioning decisions used in the sanctioning of administrative violations related tax and invoices. Depending on each specific case, lines and norms may be added to fully reflect the contents of the violations in the process of making records and issuing sanctioning decisions, but ensuring compliance with law.

When necessary, to meet the requirements of state management, the Minister of Finance may issue form of records, decisions and other forms after reaching agreement with the Minister of Justice.

Article 47. Implementation responsibility

Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies and Chairpersons of People’s Committees of provinces and central affiliated cities and related organizations, individuals shall take responsibilities for the implementation of this Decree./.

* All Appendices are not translated herein.