How will late tax registration, notification of temporary business suspension or notification of premature business continuation be penalized?

Tax registration is utterly crucial for enterprises and needs to be strictly complied with. The same applies for notification of temporary business suspension and notification of premature business continuation.

To avoid being fined for violations against the time limits, enterprises need to consider these followings points pursuant to Article 10, Decree 125/2020/ND-CP of the Government:

1. Penalties imposed in form of cautions shall be imposed for violations arising from making tax registration; notifying the temporary business suspension; notifying the premature business continuation from 1 to 10 days after expiration of the prescribed time limits under mitigating circumstances.

2. Fines ranging from VND 1,000,000 to VND 2,000,000 shall be imposed for one of the following violations:

a) Making tax registration; notifying the premature business continuation from 1 to 30 days after expiration of the prescribed time limits, except the cases prescribed in clause 1 of this Article;

b) Notifying the temporary business suspension after expiration of the time limits, except the cases prescribed in clause 1 of this Article;

c) Failing to notify the temporary business suspension.

3. Fines ranging from VND 3,000,000 to VND 6,000,000 shall be imposed for violations arising from making tax registration; notifying the premature business continuation from 31 to 90 days after expiration of the prescribed time limits.

4. Fines ranging from VND 6,000,000 to VND 10,000,000 shall be imposed for one of the following violations:

a) Making tax registration; notifying the premature business continuation from at least 91 days after expiration of the prescribed time limits;

b) Failing to notify the premature business continuation without any more taxes incurred.

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.