Pursuant to Decree 125/2020/ND-CP, effective from December 5, 2020:
I. Penalties for violations of tax registration deadlines; notice of business suspension; notice to resume business ahead of time
1. A warning shall be imposed for the act of tax registration; notice of business suspension; notice of business resumption before the announced date from 01 day to 10 days and there are extenuating circumstances.
2. A fine of between VND 1,000,000 and VND 2,000,000 shall be imposed for one of the following acts:
a) Tax registration; notice of business resumption before the announced date from 01 day to 30 days, except for the case specified in Clause 1 of this Article;
b) Notice of business operation suspension beyond the prescribed time limit, except for the case specified in Clause 1 of this Article;
c) Failing to announce the suspension of business operation.
3. A fine of between VND 3,000,000 and VND 6,000,000 shall be imposed for tax registration; notice of business resumption before the announced date from 31 to 90 days.
4. A fine of between VND 6,000,000 and VND 10,000,000 shall be imposed for one of the following acts:
a) Tax registration; notice of business resumption before the announced date by 91 days or more;
b) Failure to notify the resumption of business activities before the announced date, but no tax payable is incurred.
II. Penalties for violations of the time limit for notification of changes in tax registration information
1. A warning shall be imposed for one of the following acts:
a) Notice of change of tax registration information beyond the prescribed time limit from 01 to 30 days but without changing the tax registration certificate or tax identification number notice with extenuating circumstances;
b) Notice of change of tax registration information beyond the prescribed time limit from 01 day to 10 days, causing changes to the tax registration certificate or tax identification number notice with extenuating circumstances.
2. A fine of between VND 500,000 to VND 1,000,000 shall be imposed for notifying changes in tax registration information within 01 to 30 days but without changing the tax registration certificate or tax identification number notice, except for the case of sanction under Point a, Clause 1 of this Article.
3. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed for one of the following acts:
a) Notice of change of tax registration information beyond the prescribed time limit from 31 to 90 days but without changing the tax registration certificate or tax identification number notice ;
b) Notice of change of tax registration information beyond the prescribed time limit from 01 day to 30 days, causing changes to the tax registration certificate or tax identification number notice, except for the case specified at Point b, Clause 1 of this Article.
4. A fine of between VND 3,000,000 and VND 5,000,000 shall be imposed for one of the following acts:
a) Notice of change of tax registration information beyond the prescribed time limit by 91 days or more, but without changing the tax registration certificate or tax identification number notice;
b) Notice of change of tax registration information beyond the prescribed time limit from 31 to 90 days, causing changes to the tax registration certificate or tax identification number notice.
5. A fine of between VND 5,000,000 and VND 7,000,000 shall be imposed for one of the following acts:
a) Notice of change of tax registration information beyond the prescribed time limit by 91 days or more, causing changes to the tax registration certificate or tax identification number notice;
b) Failure to notify changes of information in the tax registration dossier.
6. The provisions of this Article do not apply to the following cases:
a) Non-business individuals who have been granted a personal income tax identification number are slow to change their national ID card information when they are issued with a citizen ID card;
b) The income-paying agency is late in notifying the change of national ID card information when individual income taxpayers who are authorized to finalize personal income tax are issued with citizen ID card;
c) Notice of change of information in the tax registration dossier about the taxpayer’s address beyond the prescribed time limit due to the change of administrative boundaries according to the Resolution of the Standing Committee of the National Assembly or the Resolution of the National Assembly.
7. Remedial measures: Forced submission of dossiers of change in tax registration information for the acts specified at Point b, Clause 5 of this Article.
III. Penalties for making false declarations or incomplete declarations of information in tax dossiers that do not lead to a lack of payable tax amounts or an increase in exempted, reduced or refunded tax amounts.
1. A fine of between VND 500,000 to VND 1,500,000 shall be imposed for making false declarations or incomplete declarations of items on the tax dossier but not related to the determination of tax liability, except for the acts specified in Clause 2 of this Article. this.
2. A fine of between VND 1,500,000 to VND 2,500,000 shall be imposed for making false declarations or incomplete declarations of items on the tax return and the appendices attached to the tax return but not related to the determination of tax liability.
3. A fine of between VND 5,000,000 and VND 8,000,000 shall be imposed for one of the following acts:
a) False declaration or incomplete declaration of items related to the determination of tax liability in the tax dossier;
b) Acts specified in Clause 3, Article 16; Clause 7 Article 17 of this Decree.
4. Remedial measures:
a) Forced re-declaration and additional submission of documents in the tax dossier, for the acts specified in Clauses 1, 2 and Point a, Clause 3 of this Article;
b) Forced adjustment of losses, deductible input value-added tax amounts (if any) for the acts specified in Clause 3 of this Article.
IV. Penalties for violations of the deadline for submitting tax returns
1. A warning will be imposed for the act of submitting tax returns beyond the deadline from 01 day to 05 days and there are extenuating circumstances.
2. A fine of between VND 2,000,000 to VND 5,000,000 shall be imposed for submitting tax returns beyond the deadline from 01 day to 30 days, except for the case specified in Clause 1 of this Article.
3. A fine of between VND 5,000,000 to VND 8,000,000 shall be imposed for submitting tax returns beyond the deadline from 31 days to 60 days.
4. A fine of between VND 8,000,000 and 15,000,000 shall be imposed for one of the following acts:
a) Submitting tax returns beyond the deadline from 61 days to 90 days;
b) Submitting tax returns 91 days or more past the deadline but no tax payable is incurred;
c) Failing to submit tax returns but not generating payable tax amounts ;
d) Failing to submit the appendices according to regulations on tax administration for enterprises having associated transactions together with the enterprise income tax finalization dossiers.
5. A fine of between VND 15,000,000 to VND 25,000,000 shall be imposed for submitting tax returns overdue for more than 90 days from the deadline for submitting tax returns, generating payable tax amounts and the taxpayers have paid the full amount of tax and late payment interest to the state budget before the time the tax agency announces the decision on tax inspection or before the time the tax authority makes a record on the act of late submission of tax returns according to the provisions of Clause 11 Article 143 of the Law on Tax Administration.
In case the fine amount, if applied under this Clause, is larger than the tax amount incurred on the tax return, the maximum fine amount in this case is equal to the arising tax payable on the tax return, but not lower than the average of the fine bracket specified in Clause 4 of this Article.
6. Remedial measures:
a) Forced payment of the late tax payment amount to the state budget, for violations specified in Clauses 1, 2, 3, 4 and 5 of this Article in case the taxpayer is late in submitting the tax return which leads to late payment of tax;
b) Forced submission of tax returns and appendices together with tax returns, for the acts specified at Points c and d, Clause 4 of this Article.
V. Penalties for violations against regulations on making, sending notices and reports on invoices
1. A warning will be imposed for the act of submitting notices and reports on invoices beyond the prescribed time limit from 01 day to 05 days from the expiration of the prescribed time limit, but there are extenuating circumstances.
2. A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed for one of the following acts:
a) Submitting notices and reports on invoices beyond the prescribed time limit from 01 day to 10 days from the expiration of the prescribed time limit, except for the case specified in Clause 1 of this Article;
b) Making incorrect or incomplete contents of notices and reports on invoices according to regulations and sending them to tax authorities.
In case organizations or individuals self-detect errors and make a replacement notice or report in accordance with regulations, they shall send it to the tax authority before the tax authority or competent authority issues a decision on tax inspection at the taxpayer’s office, they will not be penalized.
3. A fine of between VND 2,000,000 to VND 4,000,000 shall be imposed for submitting notices and reports on invoices to tax authorities within the prescribed time limit from 11 days to 20 days from the expiration of the prescribed time limit.
4. A fine of between VND 4,000,000 to VND 8,000,000 shall be imposed for submitting notices and reports on invoices to tax authorities beyond the prescribed time limit from 21 days to 90 days from the expiration of the prescribed time limit.
5. A fine of between VND 5,000,000 and VND 15,000,000 shall be imposed for one of the following acts:
a) Submitting notices and reports on invoices to tax authorities beyond the prescribed time limit from 91 days or more from the expiration of the prescribed time limit;
b) Failing to submit notices and reports on invoices to tax authorities as prescribed.
6. Acts of violation on making, sending notices and reports on invoices specified in Articles 23 and 25 of this Decree shall not be applied with this Article when sanctioning administrative violations.
7. Remedial measures: Forced making, sending notices and reports on invoices for acts specified at Point b, Clause 2 and Point b, Clause 5 of this Article.