How will commercial banks, and tax payment guarantors be penalized for tax-related administrative violations?

Individuals and enterprises can outsource their tax payments to commercial banks or guarantors. When these entities violate tax administrative regulations, then pursuant to Article 18, Decree 125/2020/ND-CP, the following penalties shall be imposed:

1. Fines equaling the amounts of tax, the deferred amounts of tax, or the fines not paid into the state budget (minus minimum balances of demand accounts subject to regulations of commercial banks providing fiduciary payment services for taxpayers) shall be imposed upon commercial banks defaulting on liabilities to withdraw money from taxpayer’s accounts to pay into the state budget’s accounts upon tax authority’s request, except when taxpayer’s accounts opened at these commercial banks have zero balance, or all balance has been left zero due to the remittance of all money left in taxpayer’s accounts to the state budget’s accounts if such remittance is not sufficient to pay off all taxes owed by the taxpayer.

2. Guarantors must act on taxpayers’ behalf to pay taxes, deferred taxes, fines, and amounts of interest on late payment of fines (if any) according to terms and conditions of deeds of guarantee if these taxpayers fail to pay into the state budget.

Upon expiration of the term of guarantee, if guarantors have not yet discharged guarantee obligations to taxpayers that fail to pay or have not yet paid outstanding taxes, deferred taxes, fines, or amounts of interest on late payment of fine, guarantors shall be charged interest on late payment of taxes, fines and shall be subject to law enforcement measures prescribed in the Law on Tax Administration.

As an established company in the field of tax and legal consulting, Vinasc hopes to adequately inform our customers to help them mitigate the risk during operation in Vietnam. Should there be any further concerns, please contact Vinasc’s Customer Care department for timely support.