According to the provisions of Decree125/2020/ND-CP dated October 19, 2020

Number

VIOLATIONS

PENALTIES

I

Penalties for violations of failing to submit tax returns

1

Failing to submit tax returns if none of additional taxes is incurre.

Fines ranging from VND 8,000,000 to VND 15,000,000

2

Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.

3

Failing to submit tax returns and incurring tax payable.

Penalties for violations oftax evasion

II

Penalties for violations against regulations on time limits for submission of tax returns (Article 13, Decree125/2020/NĐ-CP)

1

Submitting tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.

Penalties imposed in form of cautions

2

Submitting tax returns from 01 to 30 days after expiration of the prescribed time limits.

Fines ranging from VND 2,000,000 to VND 5,000,000

3

Submitting tax returns from 31 to 60 days after expiration of the prescribed time limits.

Fines ranging from VND 5,000,000 to VND 8,000,000

4

Submitting tax returns from 61 to 90 days after expiration of the prescribed time limits.

Fines ranging from VND 8,000,000 to

5

Submitting tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred.

6

Failing to submit tax returns if none of additional taxes is incurred.

7

Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.

5

Submitting tax returns more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax returns under the provisions of clause 11 of Article 143 in the Law on Tax Administration.

Fines ranging from VND 15,000,000 to VND 25,000,000

III

Penalties for the act of tax evasion (Article 17, Decree125/2020/NĐ-CP)

1

Failing to submit tax registration applications; failing to file tax returns or filing tax returns 90 days after the deadline or the extended deadline for submission of tax returns, except the cases prescribed in point b and c of clause 4 and 5 of Article 13 herein.

Compelling the full payment of evaded taxes into the state budget and additional fines as follows:

1.The fine which equals the amount of evaded tax shall be imposed on the taxpayer committing any of these violations and there are at least a mitigating circumstance.

2.The fine which is 1.5 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there are not an aggravating or mitigating circumstances.

3.The fine which is 2 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there is an aggravating circumstance.

4.The fine which is 2.5 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there are two aggravating circumstances

5.The fine which is 3 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there are least three aggravating circumstances.

2

Failing to keep accounting entries of amounts collected from the determination of taxes payable, any deficiency in taxes amounts due to non-declaration or false declaration or any increase in amounts of tax refund, exemption or reduction, except the acts prescribed in Article 16 herein.

3

Failing to issue invoices for sale of goods or provision of services, except the cases where the taxpayer has recorded taxes on sold goods or supplied services in the corresponding tax term; issuing invoices for sale of goods or provision of services in which the invoiced items and amounts based on which tax declaration is made are less than those that actually exist if this act is discovered after the deadline for submission of tax returns.

4

Using illegal invoices; illegally using invoices for declaring taxes with the intention of reducing taxes payable or increasing amounts of tax refund, exemption or reduction.

5

Using illegal evidencing documents; illegally using evidencing documents; using evidencing documents or records that do not correctly reflect the nature of transactions or actual values of these transactions for the purpose of falsely determining taxes payable, amounts of tax exemption, reduction or refund; preparing documents or records on destruction of supplies or goods which are not real, resulting in any reduction in taxes payable or any increase in amounts of tax refund, exemption or reduction;

6

Using goods not subject to taxes, or those qualified for tax exemption or consideration of tax exemption, to frustrate the prescribed purposes without informing tax authorities about the conversion of these purposes or registering tax declarations with tax authorities.

7

The violating taxpayer performs business activities during the period of business closure or temporary suspension without informing tax authorities, except the cases prescribed in point b of clause 4 of Article 10 herein.

IV

Penalties for acts of making false or incomplete declaration of information contained in tax dossiers that do not lead to any deficiency in taxes payable or any increase in amounts of tax exemption, reduction or refund (Article 12, Decree125/2020/NĐ-CP)

1

Acts of making false or incomplete declaration of information required in data fields of tax dossiers which are not related to the determination of tax obligations, except the acts prescribed in clause 2 of this Article.

Fines ranging from VND 500,000 to VND 1,500,000

2

Acts of making false or incomplete declaration of information required in data fields of tax declaration forms and enclosed annexes which are not related to the determination of tax obligations.

Fines ranging from VND 1,500,000 to VND 2,500,000

3

Falsely or incompletely filling out data fields related to the determination of tax obligations in tax dossiers;

Fines ranging from VND 5,000,000 to VND 8,000,000

4

Performing the acts prescribed in clause 3 of Article 16; clause 7 of Article 17 herein.

V

Penalties for act of making false declaration that causes any deficiency in taxes payable or any increase in amounts of tax exemption, reduction or refund (Article 16, Decree125/2020/NĐ-CP)

1

Making false declaration of tax bases or deductible tax amounts or incorrectly determining cases of tax exemption, reduction or refund, resulting in any deficiency in tax amounts payable or any increase in amounts of tax exemption, reduction or refund though economic activities have already been fully recorded in legitimate accounting books, invoices and evidencing documents.

1.A fine which equals 20% of the underpaid tax amount or the higher-than-prescribed amount of tax exemption, reduction or refund, and

2.Compelling the full payment of underpaid or deficient taxes or higher-than-prescribed amounts of tax refund, exemption or reduction, or deferred taxes, into the state budget

2

Making false declaration causing any reduction in payable tax amounts or any increase in amounts of tax exemption, reduction or refund, which does not fall into the case specified at point a of this clause though the violating taxpayer has voluntarily made a supplementary declaration and fully paid unpaid back taxes or tax arrears to the state budget prior to the deadline for the tax authority’s tax inspection and examination at taxpayers' offices or premises.

3

Making false declarations leading to any reduction in payable tax amounts or any increase in amounts of tax exemption, reduction or refund which have been determined by competent agencies’ tax inspection and examination or administrative violation records as an act of tax evasion if the violating taxpayer commits the first administrative violation regarding tax evasion, has made additional declarations and fully paid tax amounts owed to the state budget before the time of the competent agency’s issuance of the sanctioning decision, and the tax authority has made a written record stating that this act is an act of false declaration leading to any deficiency or underpayment of taxes payable.

4

Making false declarations leading to any deficiency or underpayment of taxes payable or any increase in amounts of tax exemption reduction or refund in case of related-party transactions though the taxpayer has made market price determination dossiers, or has made and sent annexes to tax authorities as per regulations on tax administration applicable to enterprises with related- party transactions.

5

Using illegal invoices or evidencing documents for keeping accounting records of values of purchased goods or services to reduce taxes payable or increase amounts of tax refund, reduction or refund but, after the tax authority’s discovering this act through their tax inspection and examination, the buyer succeeds in proving that this act is performed through the seller’s fault and fully keeping accounts of these values in accordance with regulations.

VI

Penalties for violations against regulations on tax registration time limits; notification of temporary business suspension; notification of premature business continuation (Article 10, Decree125/2020/NĐ-CP)

1

Violations arising from making tax registration; notifying the temporary business suspension; notifying the premature business continuation from 1 to 10 days after expiration of the prescribed time limits under mitigating circumstances.

A warning shall be imposed

2

Making tax registration; notifying the premature business continuation from 1 to 30 days after expiration of the prescribed time limits(except the cases prescribed in clause 1 of this Article).

Fines ranging from 1.000,000 VND to 2,000,000 VND

3

Notifying the temporary business suspension after expiration of the time limits (except the cases prescribed in clause 1 of this Article).

4

 Failing to notify the temporary business suspension.

5

Making tax registration; notifying the premature business continuation from 31 to 90 days after expiration of the prescribed time limits.

Fines ranging from VND 3,000,000 to VND 6,000,000

6

Making tax registration; notifying the premature business continuation from at least 91 days after expiration of the prescribed time limits;

Fines ranging from VND 6,000,000 to VND 10,000,000

7

Failing to notify the premature business continuation without any more taxes incurred.

VII

Penalties for violations against regulations on the provision of information about the determination of tax obligations(Article 14, Decree 125/2020/NĐ-CP)

1

Providing statutory information, documents and records related to tax registration according to notifications issued by tax authorities at least 05 working days after expiration of the prescribed time limits.

Fines ranging from VND 2,000,000 to VND 3,000,000

2

Providing statutory accounting information, documents and records related to the determination of tax obligations according to notifications issued by tax authorities at least 05 working days after expiration of the prescribed time limits.

3

Failing to provide, or incompletely or inaccurately providing, information, documents, records, invoices or accounting books related to the determination of tax obligations; incompletely or inaccurately providing account numbers, balances of deposit accounts, checking accounts for competent authorities upon their request.

Fines ranging from VND 3,000,000 to VND 5,000,000

4

Failing to provide, or incompletely or wrongly providing, information or data related to tax obligations of which registration must be made under regulations on condition that this act does not result in any reduction in tax obligations to the state budget.

5

Failing to provide, or incompletely or inaccurately providing, information, documents related to deposit accounts, checking accounts opened at credit institutions, state treasuries, or debts of related third parties, for competent tax authorities upon their request.

VIII

Penalties for violations against regulations on time limits for notification of changes in tax registration information(Article 11, Decree 125/2020/NĐ-CP)

1

Notifying changes in tax registration information from 01 to 30 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications under mitigating circumstances.

A warning shall be imposed

2

Notifying changes in tax registration information from 01 to 10 days after expiration of the prescribed time limits if such changes entail any change in tax registration certificates or tax identification number notifications under mitigating circumstances.

3

Notifying changes in tax registration information from 01 to 30 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications, except the cases specified in point a of clause 1 of this Article.

Fines ranging from VND 500,000 to VND 1,000,000

4

Notifying changes in tax registration information from 31 to 90 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications.

Fines ranging from VND 1,000,000 to VND 3,000,000

5

Notifying changes in tax registration information from 01 to 30 days after expiration of the prescribed time limits if such changes entail any change in tax registration certificates or tax identification number notifications, except as specified in point b of clause 1 of this Article.

6

Notifying changes in tax registration information at least 91 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications.

Fines ranging from VND 3,000,000 to VND 5,000,000

7

Notifying changes in tax registration information from 31 to 90 days after expiration of the prescribed time limits if these changes entail any change in tax registration certificates or tax identification number notifications.

8

Notifying changes in tax registration information at least 91 days after expiration of the prescribed time limits if these changes entail any change in tax registration certificates or tax identification number notifications.

Fines ranging from VND 5,000,000 to VND 7,000,000

9

Failing to notify changes of information contained in tax registration applications.