Administrative sanctioning competence of tax authorities from July 1, 2025

Decree No. 189/2025/ND-CP of the Government detailing the Law on Handling of Administrative Violations regarding the competence to impose administrative penalties specifies the sanctioning competence of tax authorities.

Article 13 of Decree 189/2025/ND-CP provides for the competence of tax authorities.

Accordingly, the competence of tax authorities to impose administrative penalties for acts such as making false declarations leading to a shortage of tax payable or an increase in tax exemptions, reductions, or refunds; tax evasion; and violations committed by commercial banks for failing to transfer funds from taxpayers’ accounts to the state budget as requested by tax authorities shall be exercised in accordance with the Law on Tax Administration.

For other administrative violations, the competence to impose penalties by tax authorities is specified as follows:

(1) Competence to impose penalties under the Law on Tax Administration

For the following acts:

• Making false declarations leading to a shortage of tax payable or an increase in tax exemptions, reductions, or refunds;

• Tax evasion;

• Commercial banks failing to transfer funds from taxpayers’ accounts as requested by the tax authority;

The competence to impose administrative penalties shall be implemented by the provisions of the Law on Tax Administration.

(2) Competence to impose penalties for other administrative violations

Depending on each level and title within the tax authority, the sanctioning competence is allocated as follows:

(2.1) Tax officials performing official duties shall have the competence to:

• Issue a warning;

• Impose a fine of up to 10% of the maximum fine level in the relevant sector as specified in Article 24 of the Law on Handling of Administrative Violations;

• Confiscate exhibits and means of violation with a value not exceeding twice the said fine level.

(2.2) Heads of local tax offices shall have the competence to:

• Issue a warning.

• Impose a fine of up to 50% of the maximum fine level;

• Confiscate exhibits and means of violation with a value not exceeding twice the said fine level;

• Apply remedial measures, including:

  • Restoration to the original state;

  • Destruction of goods;

  • Removal of goods from the territory of Vietnam;

  • Recovery of illegal proceeds.

(2.3) Directors of district-level tax sub-departments and heads of provincial/municipal tax authorities shall have the competence to:

• Issue a warning.

• Impose a fine of up to 80% of the maximum fine level;

• Confiscate exhibits and means of violation;

• Apply all remedial measures specified in Clause 1, Article 28 of the Law on Handling of Administrative Violations.

(2.4) Directors of Tax Departments shall have the competence to:

• Issue a warning.

• Impose a fine up to the maximum level specified in Article 24 of the Law on Handling of Administrative Violations in the tax sector;

• Confiscate exhibits and means of violation;

• Apply remedial measures in accordance with the law.