Since the day of paying the fines, when will the enterprise no longer regarded to have violated administrative regulations on tax and invoices? How long is the reversal period of unpaid back taxes?

Tax and invoice-related administrative violations may be due to undesirable mistakes and every enterprise wants to have an opportunity to start anew and improve in the future. Pursuant to Clause 5, Article 8, Decree 125/2020/ND-CP, the duration for considering none of penalties for tax or invoice-related administrative violations is 6 months from the date of the completed execution of the decision to impose a penalty in form of a caution or within 01 year from the completed execution of other administrative penalty decisions, or after the expiry date of the time limit for execution of penalty decisions, it shall be considered that they have not been subject to any administrative penalty for such violations.

The date of the completed execution of the decision to impose a penalty in form of a caution is the date on which an administrative penalty decision is given or sent to sanctioned entities or persons under the provisions of Article 39 herein.

Pursuant to Clause 6, Article 8, Decree 125/2020/ND-CP of the Government, reversal period of unpaid back taxes is:

a) After the time limit for imposition of tax-related administrative penalties expires, taxpayers shall not be sanctioned, but remain obligated to fully pay the state budget all back taxes (underpaid tax amounts, evaded tax amounts, higher-than-prescribed amounts of tax exemption, reduction or refund, or deferred tax amounts) that have accrued over a period of 10 years before the date of discovery of violations. Taxpayers that do not make tax registration shall have to fully pay underpaid tax amounts, evaded tax amounts or deferred tax amounts that accrue over the entire period before the date of discovery of violations.

b) Regulations on the reversal period of unpaid back taxes laid down in point a of this clause shall only be applied to taxes subject to tax legislation and other collections which entities or persons must, on their own, declare and pay the state budget.

As for land-derived or other collection, if financial obligations of entities or persons arising from these collections are determined under competent regulatory authorities’ jurisdiction, these authorities shall determine the reversal period of back taxes under land and other relevant legislation which is not less than the reversal period prescribed in point a of this clause.

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.