What is the time limit for fines of tax or invoice-related violations?

Many enterprises may wonder how long the time limits for tax and invoice-related fines would last and what impact the acts of evasion or militation against penalties would have on the time limits. Pursuant to Clause 1, 2, 3, 4, Article 8, Decree 125/2020/ND-CP of the Government, the time limits for the imposition of tax and invoice-related administrative penalties are stipulated as follows:

1. Time limits for the imposition of invoice-related administrative penalties

a) Time limit for imposition of an invoice-related administrative penalty shall be 01 year.

b) Start dates of time limits for the imposition of invoice-related administrative penalties shall be regulated as follows:

As for in-progress administrative violations which are stipulated in point c of this clause, the time limits for the imposition of administrative penalties for these violations shall start from the dates on which competent law enforcement officers detect such violations.

As for completed administrative violations which are stipulated in point d of this clause, the time limits for the imposition of administrative penalties for these violations shall start from the dates on which these violations terminate.

c) In-progress invoice-related administrative violations constitute those prescribed in clause 4 of Article 21; point b of clause 2 and clause 3 of Article 23; clause 2 and 5 of Article 24; point b of clause 3 of Article 25; point b of clause 2 and point b, c and d of clause 3 of Article 27; point b of clause 5 of Article 29; point b of clause 3 of Article 30 herein.

d) Invoice-related administrative violations which are not classified as those prescribed in point c of this clause constitute completed administrative violations. The time of termination of an act of violation is the date of commission of that act.

As for acts that cause the loss, burning of, or damage to invoices, if the occurrence date cannot be defined, the time of termination of such act shall be the date of discovery of these events.

As for acts of violation against regulations on invoice-related notification or reporting time limits referred to in clause 1 and 3 of Article 21; point a and b of clause 1, point c and d of clause 2 of Article 23; clause 1 and 2 and point a of clause 3 of Article 25; clause 1, point a of clause 2, 3 and 4 and point a of clause 5 of Article 29 herein, the time of termination of these acts shall be the date on which taxpayers submit invoice-related notifications or reports.

2. Time limits for the imposition of tax-related administrative penalties

a) Time limit for imposition of penalties for administrative violations against regulations on tax-related procedures shall be 02 years from the date of commission of these violations.

The date of commission of an administrative violation against regulations on tax procedures shall be the date succeeding the statutory deadline for completion of regulatory tax-related procedures under laws on tax administration, except the following cases:

As for acts prescribed in clause 1, point a and b of clause 2, clause 3 and point a of clause 4 of Article 10; clause 1, 2, 3, 4 and point a of clause 5 of Article 11; clause 1, 2, 3 and point a, b of clause 4, clause 5 of Article 13 herein, the date of commission of any of these acts which is accepted as the start date of that time limit shall be the date on which taxpayers apply for tax registrations or notify tax authorities or file tax returns.

As for acts prescribed in point c of clause 2, point b of clause 4 of Article 10; point b of clause 5 of Article 11; point c and d of clause 4 of Article 13 herein, the date of commission of these acts which is accepted as the start date of that time limit shall be the date on which competent law enforcement officers detect these acts.

b) Time limit for imposition of administrative penalties for the act of tax evasion committed not to the extent that a criminal action is brought, or the act of making false declarations leading to the underpaid tax amount or the increased amount of tax exemption, reduction or refund, shall be 05 years from the date of commission of any of such acts.

The date of commission of the act of making false declaration resulting in the underpaid tax amount or the increased amount of tax exemption, reduction or refund or the act of tax evasion (except the act prescribed in point a of clause 1 of Article 17 herein) is the date following the deadline for submission of tax returns within the tax term for which violating taxpayers make declarations causing tax shortfall, tax evasion, or the date succeeding the date of a competent authority’s issuance of the tax refund, exemption or reduction decision.

As for acts of failure to submit tax registration applications or failure to submit tax returns as prescribed in point a of clause 1 of Article 17 herein, the date of commission of these acts which is accepted as the start date of that time limit shall be the date on which competent law enforcement officers detect these acts. As for the act of submitting tax returns after the prescribed 90-day duration prescribed in point a of clause 1 of Article 17 herein, the date of commission of this act which is accepted as the start date of that time limit shall be the date on which taxpayers submit their tax returns.

3. For legal matters or cases that are accepted and settled by criminal procedure-conducting agencies

If they then issue the decision not to institute criminal proceedings, the decision to cancel the decision to institute criminal proceedings, the decision to terminate the investigation or dismiss the case, against the act showing any sign of a tax or invoice-related administrative violation, within 03 days from the date of issuance of any of such decisions, they must transfer any of the stated decisions, enclosing relevant documents, exhibits and means of commission of the violation, and the request for imposition of administrative penalties to the persons having jurisdiction to sanction tax and invoice-related administrative violations. Time limits for the imposition of administrative penalties shall be subject to regulations laid down in clauses 1 and 2 of this Article. The period of acceptance and consideration of these legal matters or cases shall be included in the time limit for imposition of administrative penalties.

4. Within time limits specified in clauses 1 and 2 of this Article, if a violating entity or person evades or militates against penalties, time limits for the imposition of administrative penalties shall be reset, starting from the time of abandonment of acts of evading or militating against penalties.

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.