Increased penalties for administrative violations of taxes and invoices from December 05, 12

The Government has just issued Decree 125/2020 / ND-CP regulating administrative penalties for tax and invoice violations, effective from December 05, 12, whereby many levels of tax penalties and invoices increase. strong.

Here are 8 important changes in sanctioning administrative violations in tax and 3 important changes in sanctioning administrative violations on invoices.

8 IMPORTANT CHANGES IN THE PENALTIES OF ADMINISTRATIVE VIOLATIONS ON TAX

Decreeh 125 increases the penalties for tax acts
1. Principles for determining the fine level when applying aggravating or mitigating circumstances

- Amend regulations on determination of fine levels when applying aggravating and mitigating circumstances for violations of tax procedures:

Current: Each aggravating or extenuating circumstance is calculated to increase or decrease by 20% of the average fine rate of the fine bracket.

New rules: Each aggravating or extenuating circumstance is calculated to increase or decrease 10% of the average fine level of the fine bracket (Point d, Clause 4, Article 7).

- Adding a clear provision on the principle of determining fines when applying an aggravating or mitigating circumstance for violations on invoices: each aggravating or mitigating circumstance is counted for an increase or decrease of 10% of the amount. average penalty of the fine bracket.

2. Acts of violating the time limit for tax registration, notification of suspension of business activities, notification of continuing business ahead of time (Article 10)

- Increasing fines for violations of time limit on tax registration:

+ Current: fine from 400.000 VND to 2.000.000 VND.

+ New regulation: a fine of from 1.000.000 VND to 10.000.000 VND, of which a fine of from 6.000.000 VND to 10.000.000 VND ”for acts of tax registration 91 days or more behind schedule.

- Additional sanctions for violations of the time limit for notification of business suspension, notice of continuing business ahead of time.

3. Violation of the time limit for notification of information change in tax registration (Article 11)

- Increasing fines for violations of the deadline for notification of information changes in tax registration:

+ Current: fine from 400.000 VND to 2.000.000 VND.

+ New regulation: Fine from 500.000 VND to 7.000.000 VND.

4. Acts of incorrect or incomplete declaration of information in the tax file does not lead to a lack of tax (Article 12)

- Increasing fines for acts of incorrectly declaring, incomplete declarations in tax dossiers:

+ Current: fine from 400.000 VND to 3.000.000 VND.

+ New regulation: Fine from 500.000 VND to 8.000.000 VND.

- Increasing fines for false declaration but does not lead to tax shortage or tax evasion:

+ Current: fine from 1.200.000 VND to 3.000.000 VND.

+ New regulation: Fine from 5.000.000 VND to 8.000.000 VND.

5. Acts of delayed submission of tax declaration dossiers compared to the prescribed time limit (Article 13)

 - Increasing fines for violations of the deadline for submitting tax declaration dossiers:

+ Current: fine 400.000 VND to 5.000.000 VND.

+ New regulation: Fine from 2.000.000 VND to 25.000.000 VND.

- Changes in regulations on the timeframe for late submission of tax returns:

+ Current: violations on the time limit for filing a tax return divided into 6 levels of delay: "from 01 to 10 days"; "From over 10 days to 20 days"; "From over 20 days to 30 days"; "From over 30 days to 40 days"; "From over 40 days to 90 days"; "Over 90 days".

+ New regulations: violations on the time limit for submitting tax declaration dossiers are divided into 4 levels of late payment: "from 01 to 30 days"; "From 31 days to 60 days"; "From 61 to 90 days"; "Over 90 days".

- Increasing fines for the act of filing a tax return more than 90 days but no arising amount payable and the act of not filing a tax return:

+ Current: fine from 2.000.000 VND to 5.000.000 VND.

+ New regulation: Fine from 8.000.000 VND to 15.000.000 VND.

- To supplement the sanction of "not submitting the annexes according to the regulations on tax administration for enterprises with associated transactions together with dossiers of corporate income tax finalization".

- New regulations on sanctions for “The act of submitting the tax declaration is more than 90 days overdue, arising the tax payable and the taxpayer has fully paid the tax amount, the late payment interest to the state budget before the time the tax agency announces the decision. tax examination, tax inspection or before the tax agency makes a record of late submission of tax declaration dossiers ” with the highest fine from 15.000.000 VND to 25.000.000 VND. If the fine is greater than the amount of tax incurred on the tax declaration dossier, the maximum fine amount for this act is equal to the amount of tax payable on the tax return but not lower than the average of the bracket. the fine specified in Clause 4, Article 13 (from VND 8.000.000 to VND 15.000.000).

6. Violations of regulations on provision of information related to determination of tax obligations (Article 14)

- Increasing fines for violations of regulations on providing information related to determination of tax obligations:

+ Current: fine from 400.000 VND to 2.000.000 VND.

+ New regulation: Fine from 2.000.000 VND to 5.000.000 VND.

7. Violations of regulations on compliance with decisions on tax examination and inspection, and enforcement of tax administrative decisions (Article 15):

- Increasing fines for violations of regulations on compliance with decisions on tax examination and inspection, and enforcement of tax administrative decisions.

+ Current: fine from 800.000 VND to 5.000.000 VND.

+ New regulation: Fine from 2.000.000 VND to 10.000.000 VND.

8. Tax evasion acts (Article 17)

- Remove the phrase "tax fraud".

- Amending regulations on fine levels applicable to organizations and individuals that commit acts of tax evasion:

Current: Applying the principle of fines of individuals equal to 1/2 times that of the organization.

New rules: Apply the same amount of fine to both individuals and organizations.

- Modify regulations on application of tax evasion to acts of tax evasion:

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Current

New rules

Fine 1 time tax evasion

The first violation or the second violation involving two or more extenuating circumstances.

Performing tax evasion and 1 mitigating circumstance.

Fine 1,5 time tax evasion

The first violation involves an aggravating circumstance or a second violation with one extenuating circumstance.

Committing an act of tax evasion and without aggravating or mitigating circumstances.

Fine 2 time tax evasion

Second offense without extenuating circumstances or a third offense but with one extenuating circumstance.

Committing tax evasion and having an aggravating episode.

Fine 2,5 time tax evasion

Second offense with one aggravating circumstance or a third violation without extenuating circumstances.

Committing tax evasion and two aggravating circumstances.

Fine 3 time tax evasion

2nd offense with two or more aggravating circumstances or the 3rd violation with an aggravating circumstance or 4th violation

Committing tax evasion and involving three or more aggravating circumstances.

- Additional remedial measures: forced adjustment of losses, deductible input value-added tax amounts on tax records (if any).

3 IMPORTANT CHANGES IN THE PENALTIES OF ADMINISTRATIVE VIOLATIONS ON BILLING

1. Acts of illegal use of invoices or illegal use of invoices (Article 28)

- Supplement clear provisions on the act of using illegal invoices, using illegal invoices (Article 4).

Article 4. Acts of using illegal invoices and documents; Illegal use of invoices and documents

1. Using invoices and vouchers in the following cases is the act of using illegal invoices and vouchers:

a) Fake invoices and vouchers;

b) Invoices and vouchers are not yet valid and no longer valid;

c) Invoices are stopped using during the enforcement period by stopping using invoices, unless they are permitted to use according to the tax authorities' notices;

d) Electronic invoices not registered for use with tax authorities;

dd) An e-invoice without the code of the tax authority in case of using an e-invoice with the code of the tax authority;

e) Goods or service purchase invoices have a date on the invoice from the date the tax agency determines that the seller does not operate at the business address registered with a competent state agency;

g) Invoices and vouchers of purchase of goods and services with the date on which the invoice or document is issued before the date on which the invoice issuer is determined, documents are not operating at the business address registered with the state agency. The authority or no notification of the tax authority on the fact that the invoicing party does not operate at the business address registered with the competent authority but the tax authority or the police or other authorities. Other functions have concluded that invoices and documents are not legal.

2. Using invoices and vouchers in the following cases is the act of using illegal invoices and vouchers:

a) Invoices and vouchers do not contain all compulsory contents as prescribed; invoice erasing, repairing improperly;

b) Invoices or vouchers are false (invoices and vouchers with items and contents of economic operations recorded but the purchase and sale of goods or services is partially or wholly untrue); Invoices that incorrectly reflect actual value arising or issue false invoices or fake invoices;

c) There is any difference in the value of goods or services or between the compulsory criteria of the invoice;

d) Turn-around invoices when transporting goods in circulation or use invoices of these goods or services to prove other goods or services;

dd) Invoices and vouchers of other organizations and individuals (except invoices issued by tax authorities and authorized to issue invoices) to validate purchased goods or services or sold goods or services. out;

e) Invoices and vouchers that the tax authority or the police or other authorities have concluded are illegal use of invoices and documents.

- Additional remedial measures: force to cancel used invoices.

2. Acts of violation of regulations on making, sending notices and reports on invoices (Article 29):

- Adding provisions on sanctioning warnings for the act of submitting notices and reports on invoices exceeding the prescribed time limit from 01 day to 05 days, from the date of expiration of the prescribed time limit, there are extenuating circumstances.

- Increase fines for the act of making false or incomplete contents of notices or reports on invoices according to regulations sent to tax authorities:

+ Current: fine from 200.000 VND to 1.000.000 VND

+ New regulation: Fine from 1.000.000 VND to 3.000.000 VND.

- Additional sanctions for the act of submitting notices and reports on invoices 01 to 10 days behind schedule.

- Increasing fines for the act of submitting notices or reports on invoices and sending them 91 days or more behind schedule, from the date of expiration of the prescribed time limit; The act of failing to submit notices or reports on invoices to tax authorities according to regulations:

+ Current: fine from 4.000.000 VND to 8.000.000 VND

+ New regulation: Fine from 5.000.000 VND to 15.000.000 VND.

3. Additional acts of violating regulations on data transfer of e-invoices (Article 30)

1. A fine of between VND 2.000.000 and 5.000.000 shall be imposed for the act of transferring e-invoice data to the tax agency from 01 to 05 working days after the expiration of the prescribed time limit.

2. A fine of between VND 5.000.000 and VND 8.000.000 for one of the following acts:

a) Transfer e-invoice data to the tax authority from 06 to 10 working days from the expiration date as prescribed;

b) Switching the e-invoice data sheet that does not contain enough invoices made in the period.

3. A fine of between VND 10.000.000 and VND 20.000.000 for one of the following acts:

a) Transfer e-invoice data to the tax authority 11 working days or more behind schedule, from the expiration date as prescribed;

b) Failure to transfer e-invoice data to the tax authority within the prescribed time limit.

4. Remedy: Forcible transfer of e-invoice data to the tax agency, for acts specified at Point b, Clause 2 and Point b, Clause 3 of this Article.

The latest system of documents to sanction tax-related administrative violations

Name of DocumentEffective dateExpiration date
Decree 129_2013_NĐ_CP stipulates the sanctioning of tax-related administrative violations and enforcement of tax administrative decisions15/12/13From December 05, 12, Chapter I and Chapter III of Decree No. 2020 cease to be effective
Consolidated document 16_VBHN_BTC consolidates 2 decrees 129_2013_NĐ_CP and 100_2016_NĐ_CP on penalties for tax administrative violations and enforcement of tax administrative decisionsBy prescription of incorporated textBy prescription of incorporated text
Decree No. 109_2013_NĐ_CP dated September 24, 9 of the Government stipulating the sanctioning of administrative violations in the field of price management, fees, charges and invoices09/11/13From December 05, 12, Clause 2020 Article 2 Chapter 4, Chapter 1 and Article 4 Chapter 44 of Decree No. 5 cease to be effective. Remove the phrase "invoice" in the Name, Bases of issue, Chapter 109, Point b, Clause 1 of Article 2, Clause 41 of Article 2; the phrase "in the field of invoices is 45 year" in Clause 01, Article 1 of Decree No. 4.
Consolidated document 11_VBHN_BTC consolidates 2 decrees 109_2013_NĐ_CP and 49_2016_NĐ_CP to penalize administrative offices in the areas of price, fees, charges and invoices.By prescription of incorporated textBy prescription of incorporated text
Circular 166_2013_TT-BTC detailing the sanctioning of tax-related administrative violations.01/01/1404/12/20
Circular 10_2014_TT_BTC guiding sanctioning of administrative violations on invoices.02/03/1404/12/20
Circular 176_2016_TT_BTC amending and supplementing Circular 10_2014_TT_BTC on sanctioning of administrative violations on invoices15/12/1604/12/20
Decree 125_2020_NĐ_CP sanctioning administrative violations of tax, invoices05/12/20

See More Official Letter 4818 / TCT-PC dated 12/11/2020 introducing new points of Decree 125/2020 / ND-CP on the sanctioning of administrative violations of tax and invoices issued by the General Department of Taxation.

What businesses need to do to avoid penalties for administrative violations of tax and invoices

A. To submit tax declaration dossiers on time according to the Tax Administration Law as follows:

1. The time limit for submission of tax declaration dossiers for taxes declared on a monthly or quarterly basis is specified as follows:

a) At the latest the 20th of the following month on a monthly basis, the tax liability arises in case of declaration and monthly payment;

b) At the latest the last day of the first month of the following quarter you arise a tax liability for the case of declaration and payment quarterly.

2. The time limit for submission of tax declaration dossiers for taxes with annual tax periods is specified as follows:

a) At the latest the last day of the third month from the end of the calendar year or fiscal year for annual tax finalization dossiers; No later than the last day of the first month of the calendar year or fiscal year, for annual tax declaration dossiers;

3. The deadline for submission of tax declaration dossiers for the tax declared and paid according to each time the tax liability arises is the latest 10th day from the date of arising of the tax liability.

4. The deadline for submission of tax declaration dossiers for cases of termination of operation, contract termination or reorganization of enterprises is the latest. 45 from the date of the event.

B. Organize the system of internal control on the tax system to avoid the above and other violations according to the provisions of the tax administration law.

C. Use Expertis' professional tax service to ensure compliance with tax administration regulations.

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