At  Article 10,  Decree 129/2013/ND-CP dated October 16, 2013, of The Government on penalties for violations pertaining to taxation and enforcement of administrative decisions on taxation, prescribe :

1. The cases of understatement of tax payable and overstatement of refundable tax include:

a) The taxpayer understates the amount of tax payable or overstates the amount of tax refunded, exempted, or reduced, but the operations that incur tax are sufficiently recorded in accounting books, invoices and receipts.

b) The taxpayer mentioned in Point a Clause 1 of this Article has paid the outstanding tax to government budget when the understatement or overstatement is discovered by a competent authority before a record on administrative violations pertaining to taxation is made by the competent authority or record on tax inspection is made by the tax authority.

c) The false statement of the taxpayer has been confirmed and considered tax invasion by the tax inspector, but it is the offence of the taxpayer under mitigating circumstances, and the taxpayer has voluntarily pay tax to government budget before a decision on penalties is issued by the competent authority. In this case the tax authority shall make a record on insufficient tax statement.

d) Illegal invoices and receipts are used for recording values of purchased goods and services in order to reduce the amount of tax payable or increase the amount of tax refunded, exempted, or reduced, but the buyer proves that the sellers are responsible for the use of illegal invoices, and bookkeeping has been sufficiently done by the buyer.

2. The fines for the violations mentioned in Clause 1 of this Article is 20% of the outstanding tax, the excess refund, reduction, or exemption of tax as prescribed by legislation on taxation.

3. The tax authority shall calculate outstanding tax, the number of days of late payment, the late payment interest, fines, and issue a decision on penalties for administrative violations.

4. In the cases mentioned in Clause 1 of this Article, the outstanding tax and late payment interest shall be paid to government budget apart from the penalties mentioned in Clause 2 of this Article.

5. If the false statement made by the taxpayer does not lead to an increase in the amount of tax payable or a decrease in the amount of tax exempted or reduced, or tax refund has not been given, no penalty shall be imposed as prescribed in this Article, and Clause 4 Article 6 of this Decree shall apply.