How will enterprises be penalized if they inadequately declared the information in tax dossiers but still sufficiently paid off tax payables?

Misstatement and incomplete declaration of information in tax dossiers will be penalized in two ways depending on the properties of the violations. The following article will inform about the 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 pursuant to Article 12, Decree 125/2020/ND-CP:

1. Fines ranging from VND 500,000 to VND 1,500,000 shall be imposed for 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.

2. Fines ranging from VND 1,500,000 to VND 2,500,000 shall be imposed for 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.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for one of the following violations:

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

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

4. Remedies:

a) Compelling the provision of corrected information and the submission of supplementary documents or records in tax dossiers in case of commission of the acts prescribed in clause 1 and 2 and point a of clause 3 of this Article;

b) Compelling the re-adjustment of losses, the carried-forward amounts of input VAT deductions (if any) in case of commission of the acts prescribed in clause 3 of this Article.

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 concern, please contact Vinasc’s Customer Care department for timely support.