Tax Consulting Services

After tax inspection and examination from Tax authorities, enterprises whose mistakes are discovered will receive administrative fines and be collected taxes arrears. Occurrence of minor mistakes is unavoidable, but there are also offences that can lead to risks and serious damage for the businesses, such as:

• Fail to comply with invoices, records mode, including sale receipts and taxable revenue records within accounting period.
• Enterprises do not calculate or do calculate but fail to explain product prices and cost price of services.
• Enterprises do not prepare documents for inspection of related transactions.
• Enterprises calculate and benefit from tax credit unrightfully.
• Enterprise are not best-prepared in terms of documents, or do not review their documents before inspected by tax authorities.
• Lack of experienced and knowledgeable accountants in terms of business documents to explain to tax authorities.

Tax authorities shall impose tax payable, separate elements or tax calculation bases.And tax liability will be imposed if the taxpayer violates one of the following tax offences:

• Fails to apply for taxpayer registration; fails to declare tax; fails to provide supplementary tax documents at the request of the tax authority; fails to declare fully and/or accurately the tax calculation bases;
• Fails to record or fully and/or accurately record data on the accounting books;
• Fails to present the accounting books, invoices and necessary documents relevant to the determination of tax payable within a certain time limit;
• Fails to comply with the tax inspection or tax audit decision;
• Buys, sells, trades goods and record values thereof against their market prices;
• Buys or trades goods using illegal invoices; illegally uses invoices for real goods from which revenue has been declared for tax calculation as investigated by a competent authority;
• Is suspected of absconding or selling assets to evade tax;
• Makes false transactions to reduce tax liability; or
• Fails to fulfill the responsibility to declare and valuate related-party transactions; fails to provide information about enterprises having related-party transactions according to tax administration laws

Tax Consulting Services

Pursuant to Clause 5, Article 24, Decree 125/2020/NĐ-CP on administrative sanctions for taxes and invoices, sale of goods and provision of services without issuing invoices will be penalized as follows:

Fines ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for any act of failing to issue invoices upon sale of goods or provision of services to buyers as required by laws.

The solution is issuing invoices as required by laws. This issuance of invoices means enterprises must pay value-added tax; corporate income tax as incurred.

Pursuant to Article 13, Decree 125/2020/NĐ-CP on administrative sanctions for taxes and invoices, late submission of tax returns will be penalized as follows:

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.

2. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax returns from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of this Article.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax returns from 31 to 60 days after expiration of the prescribed time limits.

4. Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:

a) Filing tax returns from 61 to 90 days after expiration of the prescribed time limits;

b) Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;

c) Failing to submit tax returns if none of additional taxes is incurred;

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

5. Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing 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.

In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.

Pursuant to Article 26, Decree 125/2020/NĐ-CP on administrative sanctions for taxes and invoices, the act of causing loss, burning or damage of invoices will be penalized as follows:

1. Cautions shall be given as a form of penalty imposed for the following violations:

a) Causing the loss, burning or damage of issued invoices (except the replicas intended for clients) during use, or of invoices already used for tax declaration or payment purposes, even though documents or records evidencing the sale of goods or the provision of services exist and such violation is committed under mitigating circumstances;

b) Causing the loss, burning or damage of invoices with incorrect or deleted information though sellers issue other replacement invoices.

2. Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for the act of causing the loss, burning or damage of issued invoices (the replicas intended for clients) during use although sellers have already declared or paid taxes based on these invoices, or have had documents or records evidencing the sale of goods or the provision of services, and such violation is committed under mitigating circumstances.

If such loss, burning or damage takes place through the buyer’s fault, both the seller and the buyer must keep a record of such incident.

3. Fines ranging from VND 4,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

a) Causing the loss, burning or damage of invoices already released or purchased from tax authorities even though they have not been issued yet;

b) Causing the loss, burning or damage of issued invoices (the replicas intended for clients) during use although sellers have already declared or paid taxes, or have had documents or records evidencing the sale of goods or the provision of services.

If such loss, burning or damage takes place through the buyer’s fault, both the seller and the buyer must keep a record of such incident.

4. Fines ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for the act of causing the loss, burning and damage of issued invoices, or invoices already submitted for completion of tax declaration or payment procedures, or those are in use or storage, except the cases specified in clause 1, 2 and 3 of this Article.

5. In the cases of loss, burning or damage of invoices prescribed in clause 2 and point b of clause 3 of this Article which is caused through the third party’s fault, if the third party performs transactions with the seller, then the seller shall be sanctioned; if the third party performs transaction with the buyer, then the buyer shall be sanctioned.

The seller or the buyer and the third party must make a report on the loss, burning or damage of invoices.

Pursuant to Article 22, Decree 125/2020/NĐ-CP on administrative sanctions for invoices and records:

1. Fines ranging from VND 15,000,000 to VND 45,000,000 shall be imposed for one of the following violations:

a) Giving or selling externally ordered invoices which have not yet been released;

b) Giving or selling invoices ordered by clients to other entities or persons.

2. Fines ranging from VND fines VND 20,000,000 to VND 50,000,000 shall be imposed for the act of giving or selling invoices bought from tax authorities, but not yet been issued.

3. Remedies: compelling the cancellation of used invoices