Circular No. 166/2013/TT-BTC detailing administrative penalties for tax violations

CIRCULAR

Detailed regulations on administrative penalties for tax violations

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Pursuant to the Law on Tax Administration dated November 29, 2006;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration dated November 20, 2012;

Pursuant to the Law on Handling Administrative Offenses dated June 20, 2012;

Pursuant to Decree No. 129/2013/NĐ-CP dated October 16, 2013 of the Government stipulating administrative penalties for tax violations and enforcement of administrative decisions on tax;

Pursuant to Decree No. 109/2013/NĐ-CP dated September 24, 2013 of the Government on administrative sanctions for violations in the field of price, fees, charges, and invoices;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the State Revenue Administration,

The Minister of Finance shall issue a Circular detailing the administrative penalties for tax violations as prescribed by the Law on Tax Administration, the Law on Handling Administrative Violations, and Decree No. 129/2013/NĐ-CP dated October 16, 2013 of the Government regarding administrative penalties for tax violations and enforcement of administrative decisions on taxes.

PART I

GENERAL PROVISIONS

Article 1. Scope of regulation, subjects subject to administrative penalties for tax violations

1. This Circular details the administrative penalties for tax violations as prescribed by the Law on Tax Administration, the Law amending and supplementing certain articles of the Law on Tax Administration (hereinafter referred to as the Law on Tax Administration), Decree No. 129/2013/NĐ-CP dated October 16, 2013 of the Government mentioned above, and the provisions of this Circular.

2. Individuals and organizations with acts of administrative violation concerning taxes (hereinafter collectively referred to as violators), regardless of whether intentional or unintentional, shall be subject to administrative penalties for tax violations as prescribed by the Law on Tax Administration, the aforementioned Law amending and supplementing certain articles of the Law on Tax Administration, Decree No. 129/2013/NĐ-CP dated October 16, 2013 of the Government, and the provisions of this Circular. Subjects subject to administrative penalties for tax violations include:

a) Taxpayers who commit acts of administrative violation concerning taxes.

b) Credit institutions as defined by the Law on Credit Institutions (hereinafter referred to as credit institutions) who commit acts of administrative violation concerning taxes.

c) Other relevant organizations and individuals.

3. Acts of administrative violation concerning taxes include:

a) Acts of administrative violation concerning taxes of taxpayers:

Acts violating tax procedures: acts of late submission of tax registration files, late notification of changes in information in tax registration files beyond the prescribed deadlines; acts of incomplete declaration of contents in tax declaration forms; acts of late submission of tax declaration forms beyond the prescribed deadlines; acts of violation of regulations on providing information related to determining tax liabilities; acts of violation in compliance with decisions on tax inspection, audit, and enforcement of administrative decisions on taxes.

Acts of incorrect declaration leading to underpayment of tax due or overpayment of tax refunds.

Acts of tax evasion or tax fraud.

b) Acts of administrative violation concerning taxes of credit institutions and other related organizations and individuals:

Acts of collusion or shielding taxpayers from tax evasion or tax fraud;

Acts of failing to implement decisions on enforcement of administrative decisions on taxes;

Acts of failing to provide or providing inaccurate information related to determining tax liabilities of taxpayers; accounts of taxpayers owing taxes at credit institutions and state treasuries as prescribed by the Law on Tax Administration.

Article 2. Principles of administrative penalties for tax violations

1. All acts of administrative violation concerning taxes that are discovered and promptly prevented must be strictly dealt with. All consequences caused by administrative violations concerning taxes must be remedied in accordance with the law.

2. Administrative penalties for tax violations must be carried out swiftly, timely, openly, transparently, objectively, within the scope of authority, ensuring fairness, and in accordance with the law.

3. Administrative penalties for tax violations must be based on the nature, degree, consequences, subjects of violation, and mitigating or aggravating circumstances.

4. Individuals and organizations shall only be subject to administrative penalties for tax violations if they commit acts of administrative violation concerning taxes as prescribed by the law.

5. A single act of administrative violation concerning taxes shall only be penalized once, specifically:

a) If an act of administrative violation has already been decided upon by a competent authority for punishment or recorded in a penalty decision form, it shall not be punished again for the same act. In cases where the act of violation continues despite being ordered to cease by a competent authority enforcing duties, the aggravated penalty form shall be applied according to Clause 1, Article 3 of this Circular.

In cases where a taxpayer is assessed taxes, they will be penalized according to the nature and degree of violation as stipulated in this Circular.

b) If an act of administrative violation concerning taxes exhibits criminal characteristics and has been transferred for criminal prosecution, and the criminal investigation agency has made a decision to initiate a case before the competent authority has issued a decision on administrative penalties for tax violations, the person issuing the penalty decision must revoke the penalty decision; if no penalty decision has been issued, there shall be no administrative penalty for tax violations for such act.

c) When multiple people jointly commit a single act of administrative violation concerning taxes, each violator shall be penalized for the act.

In cases where an individual or organization authorizes an organization to declare and settle taxes based on the content of the authorization, if the act of violation falls under the responsibility of the authorized organization, the authorized organization shall be penalized according to this Circular depending on the degree of violation.

d) An individual committing multiple acts of administrative violation concerning taxes or repeatedly committing administrative violations concerning taxes shall be penalized for each act of violation.

In cases where a taxpayer fails to submit multiple tax declaration forms for different types of taxes at the same time, the taxpayer shall be penalized for each act of late submission of tax declaration forms for each type of tax;

In cases where a taxpayer fails to submit multiple tax declaration forms for different periods but the same type of tax at the same time, the act of late submission of tax declaration forms, which falls under the category of procedural violations, shall only be penalized once with an aggravated circumstance of repeated violations; if there is a tax declaration form submitted more than 90 days late, which falls under the category of tax evasion, it shall be penalized according to Article 13 of this Circular.

6. Competent authorities responsible for imposing administrative penalties for tax violations have the duty to prove the acts of administrative violation concerning taxes committed by individuals and organizations. Individuals and organizations subject to penalties have the right to prove their own non-violation or to have it proven through a legally authorized representative.

7. For the same act of administrative violation concerning taxes, the fine for organizations shall be twice the fine for individuals, except for the fine for incorrect declarations leading to underpayment of tax due or overpayment of tax refunds as stipulated in Article 107 of the Law on Tax Administration.

Article 3. Mitigating circumstances, aggravating circumstances

Mitigating and aggravating circumstances are implemented in accordance with Article 9 and Article 10 of the Law on Handling Administrative Violations.

Article 4. Statute of limitations for administrative penalties, period for recovery of taxes, and period considered as not having been administratively penalized for tax violations

1. Statute of limitations for administrative penalties for tax violations

a) For violations of tax procedures, the statute of limitations for administrative penalties is two years, from the date the violation is committed to the date of the decision on administrative penalty. The date of committing an administrative violation regarding tax procedures is the day following the deadline for performing tax procedures as prescribed by the Law on Tax Administration.

In cases where tax procedures are performed electronically, the date of committing an administrative violation regarding tax is the day following the deadline for performing tax procedures as prescribed by the competent authority.

b) For false declarations leading to underpayment of tax due or overpayment of refunded tax, exempted tax, reduced tax; acts of tax evasion, tax fraud not reaching the level of criminal prosecution, the statute of limitations for administrative penalties is five years, from the date the violation is committed to the date of the decision on administrative penalty. The date of committing the violation is the day following the last day of the deadline for submitting tax declaration forms for the tax period during which the taxpayer commits the violation.

In cases where the tax authority must issue a decision to refund tax, exempt tax, reduce tax according to the law, the date of determining false declarations leading to underpayment of tax due or overpayment of refunded tax, exempted tax, reduced tax, acts of tax evasion is the day following the date the competent authority issues a decision to refund tax, exempt tax, reduce tax.

If the tax period with violations is extended for tax payment, the statute of limitations for administrative penalties starts from the day following the extension of the deadline for submitting tax declaration forms to the date of the decision on handling.

c) In cases where the file is transferred by the criminal procedure agency to the competent authority for administrative penalties on tax violations for handling as stipulated in Article 25 of this Circular, the statute of limitations for administrative penalties shall be applied according to Points a and b Clause 1 of this Article. The time taken by the criminal procedure agency to handle and review is included in the statute of limitations for administrative penalties.

d) Within the statute of limitations specified in Points a, b, and c of this Clause, if the taxpayer deliberately avoids or obstructs the administrative penalty, the statute of limitations at Points a, b, and c of Clause 1 of this Article will not apply, and the statute of limitations for administrative penalties on tax violations will be recalculated from the date of committing a new violation or the date of ending the avoidance or obstruction of the administrative penalty.

The date of ending the avoidance or obstruction of the administrative penalty is the date when the violator voluntarily reports to the authority with the power to impose penalties and accepts the implementation of the penalty forms imposed by the authority. The authority must record this in a written report and retain one copy in the violation file, and give one copy to the violator.

2. Period for recovery of taxes

After the statute of limitations for administrative penalties on tax violations has expired, the taxpayer will not be subject to penalties but still must pay the full amount of underpaid tax, evaded tax, fraudulent tax, and late payment penalties into the state budget within ten years from the date of discovery of the violation.

If the taxpayer does not register for tax, they must pay the full amount of underpaid tax, evaded tax, fraudulent tax, and late payment penalties for the entire period before the date of discovery of the tax administrative violation. The date of discovering the tax administrative violation is the date of issuing the administrative violation report.

3. Period considered as not having been administratively penalized for tax violations

An individual or organization that has been administratively penalized for tax violations, if within six months from the date of completing the execution of the warning administrative penalty decision or one year from the date of completing the execution of the administrative penalty decision for tax violations in the form of a fine (the date of fulfilling all obligations and requirements stated in the administrative penalty decision or the date the administrative penalty decision is enforced compulsorily) or from the date the administrative penalty decision expires without repeating the violation, will be considered as not having been administratively penalized for that act.

Article 5. Cases Not Subject to Administrative Sanctions for Tax Violations

1. Cases as prescribed in Article 11 of the Law on Handling Administrative Violations.

2. In cases where there is incorrect declaration, the taxpayer has supplemented tax declaration documents and paid the full amount of tax due before the tax authority announces the decision to inspect or audit at the taxpayer's premises, or before the tax authority discovers the violation without conducting an inspection or audit at the taxpayer's premises, or before another competent authority discovers it.

Article 6. Forms of Administrative Sanctions for Tax Violations

1. Warning

Warning shall be applied to minor violations of tax procedures with mitigating circumstances as prescribed by the Law on Handling Administrative Violations. The warning sanction shall be decided in writing.

2. Fine

a) For violations of tax procedures: A fixed fine not exceeding 2 billion VND shall be imposed on organizations committing such procedural violations. The maximum fine for individuals committing procedural violations shall not exceed 1 billion VND as prescribed by the Law on Handling Administrative Violations.

The fines stipulated in Articles 7, 8, 9, 10, and 11 of this Circular apply to organizations. The fine for individuals shall be half the fine for organizations. For households, the fine shall be the same as for individuals.

When imposing a fine for a procedural violation, the specific amount of the fine shall be the midpoint of the penalty range prescribed for that violation. The midpoint of the penalty range is determined by dividing the sum of the minimum and maximum amounts of the fine by two.

When determining the fine for taxpayers who have both aggravating and mitigating circumstances, the mitigating circumstances shall offset the aggravating circumstances on a one-to-one basis. After applying this principle, if there are still mitigating circumstances, the fine may be reduced but not below the minimum of the penalty range. If there are still aggravating circumstances, the fine may be increased but not above the maximum of the penalty range. For procedural violations, each aggravating or mitigating circumstance shall increase or decrease the midpoint of the penalty range by 20%.

b) For incorrect declarations leading to underpayment of tax or over-refund of tax: A fine of 20% of the underpaid tax or over-refunded tax shall be imposed. This fine applies to organizations, households, and individuals as prescribed in Article 107 of the Law on Tax Administration.

c) For tax evasion or fraud: A fine of one to three times the amount of evaded tax shall be imposed for tax evasion or fraud. The fine stipulated in Article 13 of this Circular applies to organizations, while the fine for households and individuals shall be half the fine for organizations.

d) A fine corresponding to the amount not deposited into the state budget account shall be imposed for violations as prescribed in Article 14 of this Circular.

Chapter II

TAX ADMINISTRATIVE VIOLATIONS, FORMS OF

SANCTION AND REMEDIAL MEASURES FOR CONSEQUENCES

Section 1

ADMINISTRATIVE SANCTIONS FOR TAX VIOLATIONS

 FOR TAXPAYERS

Article 7. Sanctions for late submission of tax registration files or late notification of changes to information in tax registration files beyond the prescribed deadline

Clause 1. Warning shall be imposed on the act of submitting tax registration files or notifying changes to information in tax registration files to the tax authority beyond the prescribed deadline from one day to ten days if there are mitigating circumstances.

Clause 2. A fine of VND 700,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 400,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 1,000,000 for the act of submitting tax registration files or notifying changes to information in tax registration files to the tax authority beyond the prescribed deadline from one day to thirty days (except for cases stipulated in Clause 1 of this Article).

Clause 3. A fine of VND 1,400,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 800,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 2,000,000 for one of the following acts:

Point a. Submitting tax registration files or notifying changes to information in tax registration files beyond the prescribed deadline over thirty days.

Point b. Not notifying changes to information in tax registration files.

Point c. Not submitting tax registration files but no tax payable has arisen.

Article 8. Sanctions for the act of failing to fully declare all contents in tax declaration files

Clause 1. A fine of VND 700,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 400,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 1,000,000 for the act of preparing tax declaration files with missing or incorrect entries that serve as the basis for determining tax liabilities on invoices, goods, services purchased and sold or on other related documents.

Clause 2. A fine of VND 1,050,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 600,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 1,500,000 for the act of preparing tax declaration files with missing or incorrect entries that serve as the basis for determining tax liabilities on invoices and other related documents.

Clause 3. A fine of VND 1,400,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 800,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 2,000,000 for the act of preparing tax declaration files with missing or incorrect entries that serve as the basis for determining tax liabilities on tax declaration forms, annual settlement tax declaration forms.

Clause 4. A fine of VND 2,100,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 1,200,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 3,000,000 for one of the following acts:

Point a. Committing violations as prescribed in Clause 4, Article 12 and Clause 7, Article 13 of this Circular.

Point b. Falsely declaring leading to underpayment of taxes according to provisional tax declarations quarterly but before the deadline for submitting annual tax settlement declarations.

Article 9. Sanctions for late submission of tax declaration files beyond the prescribed deadline

Clause 1. Warning shall be imposed on the act of submitting tax declaration files beyond the prescribed deadline from one day to five days if there are mitigating circumstances.

Clause 2. A fine of VND 700,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 400,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 1,000,000 for the act of submitting tax declaration files to the tax authority beyond the prescribed deadline from one day to ten days (except for cases stipulated in Clause 1 of this Article).

Clause 3. A fine of VND 1,400,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 800,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 2,000,000 for the act of submitting tax declaration files to the tax authority beyond the prescribed deadline from more than ten days to twenty days.

Clause 4. A fine of VND 2,100,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 1,200,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 3,000,000 for the act of submitting tax declaration files to the tax authority beyond the prescribed deadline from more than twenty days to thirty days.

Clause 5. A fine of VND 2,800,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 1,600,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 4,000,000 for the act of submitting tax declaration files to the tax authority beyond the prescribed deadline from more than thirty days to forty days.

Clause 6. A fine of VND 3,500,000 shall be imposed, if there are mitigating circumstances then the minimum fine amount shall not be less than VND 2,000,000 or if there are aggravating circumstances then the maximum fine amount shall not exceed VND 5,000,000 for one of the following acts:

Point a. Submitting tax declaration files beyond the prescribed deadline from more than forty days to ninety days.

Point b. Submitting tax declaration files beyond the prescribed deadline over ninety days but no tax payable has arisen or in the case stipulated in Clause 9, Article 13 of this Circular.

Point c. Not submitting tax declaration files but no tax payable has arisen (except where laws provide that tax declaration files need not be submitted).

Point d. Submitting provisional quarterly tax declarations beyond the prescribed deadline over ninety days, starting from the end date of the tax declaration submission deadline but before the deadline for submitting annual tax settlement declarations.

Clause 7. The submission deadlines specified in this Article include the time granted for extension of tax declaration submission deadlines pursuant to decisions of competent authorities.

Clause 8. The sanctions prescribed in this Article shall not apply to cases where taxpayers are within the period granted for extension of tax declaration submission deadlines or tax payment deadlines.

Clause 9. Taxpayers who submit tax declaration files late and are subject to sanctions as prescribed in Clauses 1, 2, 3, 4, 5, and 6 of this Article, if such late submission leads to late payment of taxes, must pay late payment penalties for taxes according to Article 106 of the Law on Tax Administration and detailed implementing regulations thereof.

Where there is a delay in submitting tax declaration documents beyond the prescribed deadline and the tax authority has issued a decision to determine the amount of tax payable. Subsequently, within ninety days from the deadline for submitting tax declaration documents, if the taxpayer submits valid tax declaration documents and accurately determines the amount of tax payable for the tax period, the tax authority shall impose administrative penalties for the late submission of tax declaration documents according to Clauses 1, 2, 3, 4, 5, and Clause 6 of this Article and calculate interest on the late payment of taxes as prescribed. The tax authority must issue a decision to revoke the tax determination decision.

Article 10. Administrative penalties for violations related to providing information for determining tax liabilities but not falling under cases of underreporting, tax evasion, or tax fraud.

1. A fine of VND 700,000, with a minimum fine of at least VND 400,000 if there are mitigating circumstances, or a maximum fine of up to VND 1,000,000 if there are aggravating circumstances, for any of the following acts:

a) Providing information, documents, and legal files related to tax registration beyond the prescribed deadline by five working days or more upon notification by the tax authority.

b) Providing information, documents, and accounting books related to determining tax liabilities beyond the prescribed deadline by five working days or more upon notification by the tax authority.

c) Providing inaccurate information, documents, and accounting books related to determining tax liabilities after the deadline notified by the tax authority.

2. A fine of VND 1,400,000, with a minimum fine of at least VND 800,000 if there are mitigating circumstances, or a maximum fine of up to VND 2,000,000 if there are aggravating circumstances, for any of the following acts:

a) Failing to provide complete and accurate information, documents, vouchers, invoices, and accounting books related to determining tax liabilities within the tax declaration period; account numbers and account balances when requested by the competent authority.

b) Failing to provide complete and correct indicators and data related to tax liabilities that must be registered with the tax authority as prescribed, discovered but not reducing the tax liability to the state budget.

c) Failing to provide; providing incomplete and inaccurate information, documents related to deposit accounts at credit institutions, State Treasury, third-party receivables and payables within three working days from the date of request by the tax authority.

Article 11. Administrative penalties for violations related to compliance with decisions on inspection, audit, and enforcement of administrative decisions on tax.

1. A fine of VND 1,400,000, with a minimum fine of at least VND 800,000 if there are mitigating circumstances, or a maximum fine of up to VND 2,000,000 if there are aggravating circumstances, for any of the following acts:

a) Refusing to accept decisions on audit, inspection, and enforcement of administrative decisions on tax.

b) Failing to comply with decisions on audit and inspection of tax beyond three working days from the date of issuance of the decision by the competent authority.

c) Refusing, delaying, or evading the provision of documents, vouchers, invoices, accounting books related to tax liabilities beyond six hours from the time of receiving the request of the competent authority during the inspection and audit at the taxpayer's premises.

d) Providing inaccurate information, documents, and accounting books related to determining tax liabilities as required by the competent authority during the inspection and audit of tax at the taxpayer's premises.

2. A fine of VND 3,500,000, with a minimum fine of at least VND 2,000,000 if there are mitigating circumstances, or a maximum fine of up to VND 5,000,000 if there are aggravating circumstances, for any of the following acts:

a) Failing to provide data, documents, and accounting books related to determining tax liabilities as required by the competent authority during the inspection and audit of tax at the taxpayer's premises.

b) Failing to implement or improperly implementing decisions on sealing documents, safes, warehouses, materials, raw materials, machinery, equipment, workshops as evidence for verifying tax liabilities.

c) Arbitrarily removing or changing the seal legally established by the competent authority as evidence for verifying tax liabilities.

d) Failing to sign the inspection and audit report within five working days from the date of receipt of the report.

đ) Failing to comply with the conclusions of the inspection and audit of tax, and enforcement of administrative decisions on tax by the competent authority.

Article 12. Sanctions for acts of false declaration leading to underpayment of tax due or overpayment of tax refund

1. Acts of false declaration leading to underpayment of tax due or overpayment of tax refund, including:

a) False declaration acts leading to underpayment of tax due or overpayment of tax refund, increase in tax exemption or reduction, but the taxpayer promptly and fully records economic transactions generating tax obligations in accounting books, invoices, and supporting documents when preparing financial statements and tax settlement reports.

b) False declaration acts by taxpayers reducing tax due or increasing tax refund, tax exemption or reduction, without timely adjustment and full recording in accounting books, invoices, and tax declaration documents, but upon discovery by competent authorities, the violator voluntarily pays the underpaid tax into the state budget before the tax authority issues a tax inspection report.

c) False declaration acts by taxpayers reducing tax due or increasing tax refund, tax exemption or reduction, which have been recorded in tax inspection reports and audit conclusions as acts of false declaration or tax evasion, but if it is the first violation with mitigating circumstances and the taxpayer voluntarily pays the underpaid tax into the state budget before the tax authority issues a penalty decision, the tax authority will record this in a report and impose penalties according to the level of fines for false declarations leading to underpayment of tax due or overpayment of tax refund, tax exemption or reduction.

d) Using illegal invoices or supporting documents to record the value of purchased goods or services to reduce tax due or increase tax refund, tax exemption or reduction, but when discovered by the tax authority, the buyer has documentation proving that the illegal invoice error belongs to the seller and the buyer has fully recorded it in accordance with regulations.

2. The level of sanctions for violations stipulated in Clause 1 of this Article is 20% of the amount of underpaid tax or overpaid tax refund, tax exemption or reduction, higher than the prescribed levels in tax laws.

3. In cases of violations stipulated in Clause 1 of this Article, in addition to being sanctioned according to Clause 2 of this Article, the violator must also take corrective measures by paying all outstanding taxes, underpaid taxes, and late payment penalties into the state budget.

The tax authority determines the amount of underpaid tax, number of days of late payment, late payment penalties, amount of fines, and issues a penalty decision against the taxpayer.

The tax authority bases its determination on the date of payment into the state budget recorded on payment receipts or bank transfer confirmations from the treasury or credit institutions to verify whether the taxpayer has paid taxes into the state budget and the number of days of late payment to calculate the late payment penalties.

4. If a taxpayer engages in false declaration acts as stipulated in Clause 1 of this Article but does not lead to underpayment of tax or non-refund of tax, tax exemption, or tax reduction, they shall not be penalized according to this Article but shall be penalized according to Clause 4 of Article 8 of this Circular.

Article 13. Penalty for tax evasion and fraud

A taxpayer who commits acts of tax evasion or fraud as prescribed by law shall be penalized according to the number of times based on the amount of tax evaded or fraudulently avoided as follows:

1. Imposing a fine of one time the amount of tax evaded or fraudulently avoided for a taxpayer committing such violations for the first time (excluding cases subject to penalties for incorrect declarations leading to underpayment of taxes as stipulated in Clause 1, Article 12 of this Circular) or for the second violation if there are two or more mitigating circumstances among the following violations:

a) Failure to submit tax registration documents; failure to submit tax declaration documents or submitting such documents later than 90 days from the deadline for submission of tax declaration documents as prescribed in Clauses 1, 2, 3, and 5 of Article 32 of the Law on Tax Administration or from the deadline for extension of the submission of tax declaration documents as prescribed in Article 33 of the Law on Tax Administration, except for cases stipulated in Clause 6 of Article 9 of this Circular and Clause 9 of this Article.

b) Using illegal invoices or documents; using invoices or documents illegally; using invoices without value for tax declaration purposes to reduce the amount of tax payable or increase the amount of tax refund, tax exemption, or reduction.

c) Establishing procedures or documents to cancel materials or goods or reducing the quantity or value of materials or goods not in accordance with reality to reduce the amount of tax payable or increase the amount of tax refund, tax exemption, or reduction.

d) Issuing invoices incorrectly regarding the quantity or value of goods or services sold as the basis for declaring and paying less tax than the actual amount.

đ) Failing to record in accounting books transactions related to determining the amount of tax payable; failing to declare, declaring incorrectly, or not truthfully, resulting in a reduction in the amount of tax payable or an increase in the amount of tax refund, tax exemption, or reduction.

e) Not issuing invoices when selling goods or services or recording the value on sales invoices lower than the actual payment value of the sold goods or services and being discovered after the deadline for submitting tax declaration documents for the tax period.

g) Using goods exempted from tax or granted tax exemption (including those not subject to tax) contrary to the intended purpose without declaring the change in use or declaring taxes to the tax authority.

h) Altering, erasing accounting records or accounting books to reduce the amount of tax payable or increase the amount of tax refund, tax exemption, or reduction.

i) Destroying accounting records or accounting books to reduce the amount of tax payable or increase the amount of tax refund, tax exemption, or reduction.

k) Using illegal invoices, documents, or materials in other situations to determine the incorrect amount of tax payable or tax refund; making incorrect tax calculation bases leading to tax evasion or fraud.

l) A taxpayer who is within the period of requesting suspension of business operations but continues to operate in reality.

m) Goods transported without legal invoices or documents.

2. Imposing a fine of one and a half times the amount of tax evaded for a taxpayer who commits any of the acts of tax evasion or fraud as prescribed in Clause 1 of this Article in the following cases: first-time violation, aggravating circumstances, or second-time violation with one mitigating circumstance.

3. Imposing a fine of two times the amount of tax evaded for a taxpayer who commits any of the acts of tax evasion or fraud as prescribed in Clause 1 of this Article in the following cases: second-time violation without mitigating circumstances or third-time violation with one mitigating circumstance.

4. Imposing a fine of two and a half times the amount of tax evaded for a taxpayer who commits any of the acts of tax evasion or fraud as prescribed in Clause 1 of this Article in the following cases: second-time violation with one aggravating circumstance or third-time violation without mitigating circumstances.

5. Imposing a fine of three times the amount of tax evaded for a taxpayer who commits any of the acts of tax evasion or fraud as prescribed in Clause 1 of this Article in the following cases: second-time violation with two or more aggravating circumstances, third-time violation with one aggravating circumstance, or fourth-time violation and beyond.

6. Acts of tax evasion or fraud as prescribed in Clauses 1, 2, 3, 4, and 5 of this Article shall also be subject to measures to rectify consequences, which include paying the full amount of tax evaded or fraudulently avoided into the state budget.

The amount of tax evaded or fraudulently avoided as prescribed in this Article is the amount of tax that should have been paid into the state budget according to the law, as determined by the competent authority in inspection reports or conclusions.

7. Violations prescribed in points b, c, d, đ, e, g, h, i, k of Clause 1 of this Article, discovered within the deadline for submitting tax declaration documents for the tax period or discovered after the deadline for submitting tax declaration documents, but not resulting in a reduction in the amount of tax payable or tax refund, or an increase in tax exemption or reduction, and not constituting tax evasion, shall be penalized for procedural tax violations as prescribed in Clause 4, Article 8 or administrative offenses in the field of accounting.

8. In cases where a taxpayer is entitled to tax exemption or tax refund according to the law, but declares incorrectly the basis for determining the amount of tax exempted or refunded without causing damage to the state budget's tax revenue, they shall not be penalized for tax evasion but shall be penalized for procedural tax violations as prescribed in this Circular with the highest penalty.

9. In cases where a taxpayer submits tax declaration documents later than 90 days from the deadline for submission of tax declaration documents and voluntarily pays the full amount of tax payable into the state budget before the tax authority issues an administrative violation notice for late submission of tax declaration documents, they shall be penalized for late submission of tax declaration documents as prescribed in Clause 6, Article 9 of this Circular. In cases where a taxpayer has submitted tax declaration documents but declared incorrectly or engaged in tax fraud leading to underpayment of tax, in addition to being penalized for procedural tax violations, they shall also be penalized for underreporting tax or tax evasion as prescribed in Articles 12 and 13 of this Circular.

10. In case a taxpayer who pays tax under the declaration method is enjoying the tax exemption period for corporate income tax and is found to have committed violations such as falsely declaring increased expenses to artificially increase losses, reduce profits, decrease expenses to increase profits, or incorrectly determining the conditions for enjoying corporate income tax exemption, then:

a) If the violation is detected during the tax exemption period for corporate income tax, it shall not be penalized as tax evasion but shall be penalized for administrative violations related to tax procedures or accounting practices;

b) If the violation has not been detected and the individual or organization does not correct the consequences to reduce the corporate income tax amount of the following year after the tax exemption period ends, they shall be penalized for tax evasion.

Section 2

ADMINISTRATIVE PENALTIES FOR TAX VIOLATIONS AGAINST FINANCIAL INSTITUTIONS AND OTHER INDIVIDUALS AND ORGANIZATIONS INVOLVED

 FINANCIAL INSTITUTIONS AND OTHER INDIVIDUALS AND ORGANIZATIONS INVOLVED

Article 14. Administrative penalties for financial institutions violating tax regulations

1. Financial institutions that fail to transfer funds from taxpayers' accounts into the state budget account according to the compulsory collection decision of the tax authority, when there is a balance in the taxpayer's account at the time of the decision, shall be subject to administrative penalties for tax violations.

Within ten days from the date the deadline for transferring funds from the taxpayer's account at the financial institution expires, the tax authority must issue an administrative violation notice and impose a penalty on the financial institution. The penalty amount corresponds to the amount not transferred into the state budget account according to the compulsory collection decision. In this case, the tax authority still needs to apply measures to collect the full amount of taxes, late payment fees, fines, and late payment penalties owed by the taxpayer.

2. Financial institutions will not be penalized if, at the time of the decision, the deposit account of the taxpayer has no remaining balance or all the account balance has been transferred into the state budget account but still does not cover the amount of taxes, late payment fees, fines, and late payment penalties owed by the taxpayer.

Upon receiving the compulsory enforcement decision for tax administrative decisions, the financial institution must issue a confirmation document regarding the account balance of the enforced party or indicate that there is no remaining balance and submit it to the tax authority within three days from the date of receipt of the tax authority's decision.

Article 15. Administrative penalties for tax violations against other organizations and individuals involved

1. Organizations and individuals involved who collude with taxpayers to evade taxes, falsify tax declarations, or fail to implement compulsory enforcement decisions for tax administrative decisions (except for the failure to transfer funds from taxpayers' accounts as stipulated in Article 14 of this Circular) shall be fined according to the nature and severity of the violation, specifically as follows:

a) A fine of 3,750,000 VND for individuals, with a minimum fine of no less than 2,500,000 VND if there are mitigating circumstances, and a maximum fine of no more than 5,000,000 VND if there are aggravating circumstances;

b) A fine of 7,500,000 VND for organizations, with a minimum fine of no less than 5,000,000 VND if there are mitigating circumstances, and a maximum fine of no more than 10,000,000 VND if there are aggravating circumstances.

2. Organizations and individuals who fail to provide or provide inaccurate information related to taxpayers' tax obligations or their debt accounts at financial institutions or state treasuries as prescribed by the Law on Tax Administration shall be penalized according to Clause 1 of this Article.

3. Guarantors of tax obligations must pay the tax, late payment fees, fines, and late payment penalties (if applicable) on behalf of the taxpayer according to the commitment in the guarantee document if the taxpayer fails to pay these amounts into the state budget account.

Based on the tax guarantee file, the tax authority will notify the guarantor of the tax amount, late payment fees, fines, and late payment penalties (if applicable), and the payment deadlines for taxes, fines, and late payments so that the guarantor can make the payments on behalf of the guaranteed party into the state budget.

If, upon the due date for paying taxes, late payment fees, fines, and late payment penalties, the taxpayer fails to pay these amounts into the state budget and the guarantor has not paid them on behalf of the taxpayer according to the commitment in the guarantee document, the guarantor must pay late payment fees at a rate of 0.07% per day on the overdue tax amount and 0.05% per day on the overdue fine amount and be subject to compulsory enforcement of tax administrative decisions according to the law.

Chapter III

AUTHORITY TO IMPOSE PENALTIES; PROCEDURES FOR IMPOSING AND ENFORCING DECISIONS ON ADMINISTRATIVE VIOLATIONS OF TAXES

Section 1

AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES FOR TAX VIOLATIONS

Article 16. Competence to impose administrative penalties for tax violations

1. Tax officials performing their duties have the right:

a) To issue a warning.

b) To impose a fine up to 1,000,000 dong for violations of tax procedures as stipulated in this Circular.

2. The Head of the Tax Team within the scope of their functions and tasks has the right:

a) To issue a warning.

b) To impose a fine up to 5,000,000 dong for violations of tax procedures as stipulated in this Circular.

3. The Director of the Tax Revenue Office within the scope of their management area has the right:

a) To issue a warning.

b) To impose a fine up to 50,000,000 dong for violations of tax procedures as stipulated in Articles 7, 8, 9, 10, 11, and 15 of this Circular.

c) To impose a fine for violations as stipulated in Articles 12, 13, and 14 of this Circular.

d) To apply measures to rectify consequences as stipulated in Clause 3, Article 12 and Clause 6, Article 13 of this Circular.

4. The Director of the Provincial Tax Department within the scope of their management area has the right:

a) To issue a warning.

b) To impose a fine up to 140,000,000 dong for violations of tax procedures as stipulated in Articles 7, 8, 9, 10, 11, and 15 of this Circular.

c) To impose a fine for violations as stipulated in Articles 12, 13, and 14 of this Circular.

d) To apply measures to rectify consequences as stipulated in Clause 3, Article 12 and Clause 6, Article 13 of this Circular.

5. The Director General of the State Tax Administration has the right:

a) To issue a warning.

b) To impose a fine up to 200,000,000 dong for violations of tax procedures as stipulated in Articles 7, 8, 9, 10, 11, and 15 of this Circular.

c) To impose a fine for violations as stipulated in Articles 12, 13, and 14 of this Circular.

d) To apply measures to rectify consequences as stipulated in Clause 3, Article 12 and Clause 6, Article 13 of this Circular.

6. The competence to impose administrative penalties for violations of tax procedures as provided for in Clauses 1, 2, 3, 4, and 5 of this Article applies to one violation committed by an organization; In cases where an individual commits a violation of tax procedures and is fined, the authority to impose such penalty on the individual shall be half the authority to impose the penalty on the organization. The authority to impose penalties for the act of misreporting leading to underpayment of taxes due or overpayment of refundable, exempted, or reduced taxes; acts of tax evasion and tax fraud as stipulated in Point c, Clause 3, Point c, Clause 4, and Point c, Clause 5 of this Article shall apply to both individuals and organizations violating as prescribed in Clause 2, Article 109 of the Law on Tax Administration.

Article 17. Competence of Chairpersons of People's Committees at all levels to impose administrative penalties for tax violations

The competence of Chairpersons of People's Committees at all levels to impose administrative penalties for tax violations shall be implemented in accordance with the provisions of the law on handling administrative violations.

Article 18. Delegation of Authority to Impose Administrative Penalties for Tax Violations

1. Persons with the authority to impose administrative penalties for tax violations as stipulated in Clause 2, 3, 4, and 5 of Article 16 of this Circular may delegate such authority to their deputies to perform the authority to impose administrative penalties for tax violations.

2. The delegation of authority to impose administrative penalties for tax violations shall be carried out regularly or on a case-by-case basis and must be documented in writing (decision), specifying clearly the scope, content, and duration of the delegation.

The decision delegating authority must be numbered, dated, signed, and stamped; In cases where the Head of the Tax Team delegates authority to their deputy to impose administrative penalties for tax violations, the decision delegating authority must bear the seal of the Tax Revenue Office where the person with the authority to impose penalties is located.

The legal basis for issuing decisions to impose administrative penalties for tax violations by those delegated authority must clearly state the number, date, month, year, and summary of the decision delegating authority.

3. Those delegated authority to impose administrative penalties for tax violations must be responsible for their decisions to impose administrative penalties for tax violations before their superiors and the law. The person delegated authority may not further delegate authority or authorize any other person.

Section 2

PROCEDURES FOR IMPOSING ADMINISTRATIVE PENALTIES FOR TAX VIOLATIONS

Article 19. Compelling the cessation of administrative violations related to tax

When a tax officer discovers an organization or individual committing an administrative violation related to tax while performing their duties, they shall compel such organization or individual to cease the administrative violation related to tax.

The act of compelling the cessation of administrative violations related to tax can be carried out through oral communication, written documentation, or other forms as prescribed by law.

Article 20. Administrative penalty for tax violations without creating a record

1. An administrative penalty for tax violations without creating a record shall be applied in cases where a warning or a fine up to VND 250,000 for individuals and VND 500,000 for organizations is imposed, and the authority imposing the penalty must issue the penalty decision on the spot.

2. The administrative penalty decision issued on the spot must clearly state: the date of issuance; the name, position of the person issuing the penalty decision; the name, address of the individual violating or the name, address of the organization violating; the violation behavior; the location where the violation occurred; evidence and circumstances related to the resolution of the violation; the article and clause of the legal document being applied. In case of a fine, the amount of the fine must be clearly stated in the administrative penalty decision.

Article 21. Administrative penalty with a record

1. An administrative penalty for tax violations with a record shall be applied to individuals or organizations that commit administrative violations related to tax, except for cases stipulated in Clause 1 of Article 20 of this Circular.

2. In cases where the taxpayer has committed an administrative violation related to tax which has been discovered, recorded in the inspection or audit report, and concluded in the audit report by the tax authority, there is no need to create a record before issuing the administrative penalty decision. The authority imposing the penalty bases the decision on the inspection or audit report and the audit conclusion to issue the administrative penalty decision.

3. The administrative penalty for tax violations with a record must be documented in an administrative penalty file by the authority imposing the penalty. The file includes the administrative violation record, the administrative penalty decision, relevant documents and papers, and must be indexed.

Article 22. Creating an administrative violation record for tax

1. The authority imposing the penalty, when discovering an administrative violation related to tax during the performance of their duties, is responsible for creating a record according to the prescribed model (except for cases where a penalty without creating a record is applied as stipulated in Article 20 of this Circular) and promptly transferring it to the authority imposing the penalty.

In cases where an individual or organization commits multiple administrative violations related to tax in the same incident or commits violations repeatedly, the administrative violation record for tax penalties must fully reflect all the violation behaviors or the number of times violated.

2. The administrative violation record for tax must clearly state the date, month, year, and location of the record creation; the name, position of the person creating the record; the name, address, occupation of the violator or the name, address of the organization violating; the time, date, month, year, and location where the violation occurred; the administrative violation behavior related to tax; the statement of the violator or representative of the organization violating; if there are witnesses, victims, or representatives of the victimized organization, their names, addresses, and statements must be clearly recorded; the rights and deadlines for explaining the administrative violation of the violator; the agency receiving explanations.

3. The record must be signed by the person creating the record and the violator or representative of the organization violating; if the violator cannot sign, then a fingerprint must be placed; if there are witnesses, they must also sign the record; in cases where the record consists of multiple pages, the person creating the record must sign each page of the record. If the violator or representative of the organization violating is not present at the location of the violation or does not sign the administrative violation record for tax or due to objective reasons cannot sign the record, the record must have the signature of a representative of the grassroots authority (representative with authority of the People's Committee of the commune or representative authorized by the People's Committee of the commune) where the violation occurred or of two witnesses. In cases where the individual, representative of the organization violating, or witness refuses to sign the record, the person creating the record must clearly state the reason in the record.

The administrative violation record for tax must be created in at least two copies. One copy is given to the individual or organization committing the administrative violation; one copy serves as the basis for issuing the penalty decision. In cases where the administrative violation related to tax does not fall within the jurisdiction of the person creating the record or exceeds the jurisdiction of the person creating the record, the record must be immediately transferred to the authority imposing the penalty to proceed with the penalty.

Article 23. Explanation of organizations and individuals violating administrative tax regulations

1. For organizations and individuals with acts of incorrect declaration leading to underpayment of taxes due or overpayment of tax refunds, they shall be subject to penalties at the percentage rate (%) prescribed in Article 107 of the Law on Tax Administration; acts of tax evasion shall be penalized according to the number of times of tax evasion as stipulated in Article 108 of the Law on Tax Administration; acts of failing to transfer funds from taxpayers' accounts as required by tax authorities as provided for in Article 114 of the Law on Tax Administration shall be recorded in the administrative violation notice; such organizations and individuals have the right to explain directly or in writing to the person authorized to impose administrative penalties for tax violations.

2. The person authorized to impose penalties has the responsibility to consider the explanations of the violators before making a decision on penalties, except in cases where the individual or organization does not request an explanation within the time limit specified in Clause 3 of this Article.

3. Time limit and procedures for explaining administrative tax violations

a) In cases of written explanation: organizations and individuals violating tax administration must submit their written explanation to the person authorized to impose administrative penalties for tax violations within five days from the date of issuance of the administrative violation notice. In cases where the case involves many complex circumstances, the person authorized to impose penalties may extend the deadline by up to five additional days upon the request of the violator. If the person authorized to impose penalties agrees to extend the explanation period for the violator, it must be documented in writing.

Organizations and individuals violating tax administration may themselves or authorize their legally recognized representatives to submit written explanations.

b) In cases of direct explanation: organizations and individuals violating tax administration must submit a written request for direct explanation to the person authorized to impose administrative penalties for tax violations within two working days from the date of issuance of the administrative violation notice.

The person authorized to impose administrative penalties for tax violations must notify in writing the violator about the time and place of the direct explanation session within five days from the date of receipt of the violator's request.

The person authorized to impose administrative penalties for tax violations organizes the direct explanation session and is responsible for presenting legal grounds and relevant circumstances and evidence related to the administrative violation, the form of penalty, and the proposed measures to mitigate consequences. Individuals and organizations violating tax administration, along with their legally recognized representatives, have the right to participate in the explanation session and present opinions and evidence to protect their legitimate rights and interests.

The direct explanation session must be recorded in a protocol and must bear the signatures of all parties involved; if the protocol consists of multiple pages, each party must sign each page of the protocol. This protocol must be kept in the administrative penalty file and given to the violator or their legally recognized representative one copy.

Article 24. Transfer of Violation Case Files Indicating Criminal Offenses for Criminal Liability Pursuit

1. During the process of imposing administrative penalties for tax violations, if it is found that organizations and individuals violating tax laws have indications of criminal offenses, the person authorized to impose penalties must immediately transfer the case file to the criminal prosecution agency.

2. In cases where the person authorized to impose penalties has issued a decision on administrative penalties for tax violations and the decision is being enforced, if the violation act is discovered to have indications of criminal offenses without having exceeded the statute of limitations for criminal liability pursuit, then the person who issued the administrative penalty decision must issue a decision to temporarily suspend enforcement of that decision and within three days from the date of issuing the temporary suspension decision, must transfer the case handling file to the competent criminal prosecution agency for processing; in cases where the administrative penalty decision has been fully executed, the person authorized to impose administrative penalties for tax violations must transfer the violation case file to the criminal prosecution agency for processing.

The transferred files include: the decision to transfer the case file to the criminal prosecution agency for processing; copies of the administrative violation notice or inspection and audit reports; copies of investigation and verification results (if any); other related documents; copies of the administrative penalty decision (if any); the decision to temporarily suspend enforcement of the administrative penalty decision in cases where the decision has not yet been enforced. The transfer of files must be recorded in a protocol.

3. According to Article 62 of the Law on Administrative Sanctions, the criminal prosecution agency receiving the case file pursuant to Clauses 1 and 2 of this Article is responsible for examining and concluding the case and notifying the result in writing to the person who transferred the file within the time limit prescribed by criminal procedure law; in cases where no criminal case is initiated, within three days from the date of the decision not to initiate a criminal case, the criminal prosecution agency must return the case file to the person who transferred the file.

In cases where the criminal prosecution agency decides to initiate a criminal case, the person authorized to impose administrative penalties for tax violations must revoke the administrative penalty decision and transfer the documentation regarding the execution of the decision to the criminal prosecution agency.

4. The transfer of case files of violations with signs of criminal offenses for criminal responsibility pursuit must be notified to the violator.

5. In case the authorized authority for administrative penalties has transferred the file to the criminal proceedings agency, but within three days from the expiration date of issuing the decision to initiate a criminal case or not to initiate a criminal case according to the law on criminal procedure, the authorized authority for administrative penalties has not received notification from the criminal proceedings agency regarding the initiation or non-initiation of a criminal case, then the authorized authority for tax administrative penalties shall issue a written request to the criminal proceedings agency that received the file, requesting the return of the violation file so that the authorized authority for tax administrative penalties can issue a decision on administrative penalty for tax violations or continue to enforce the administrative penalty decision issued when transferring the file, provided that the authorized authority for tax administrative penalties had issued a decision to temporarily suspend enforcement of the administrative penalty decision at the time of transferring the file.

Article 25. Transfer of Violation File for Administrative Penalty for Tax Violations

1. According to Article 63 of the Law on Handling Administrative Violations, if a criminal case is handled and resolved by the criminal proceedings agency, but subsequently there is a decision not to initiate a criminal case, a decision to revoke the decision to initiate a criminal case, a decision to terminate investigation, or a decision to terminate the case, and if the violation involves signs of a tax administrative violation, then within three days from the date of issuance of these decisions, the criminal proceedings agency shall transfer these decisions along with the file, evidence of the violation, and a request for administrative penalty to the authorized authority for tax administrative penalties.

In cases where the State Audit Agency, inspection agencies, or other agencies conducting inspections and audits discover tax administrative violations by taxpayers but lack the authority to impose tax administrative penalties, they must transfer the file and request for administrative penalty to the authorized authority for tax administrative penalties within three days from the date of the conclusion on the tax administrative violation.

In cases where an inspection agency conducts inspections within its functions and duties and discovers tax administrative violations during the inspection process and has the authority to impose administrative penalties, it must issue a decision on administrative penalty according to regulations. If the lower-level inspection agency exceeds its authority to impose penalties, it shall transfer the file to the direct superior management agency for handling according to regulations.

In cases where tax administrative violations fall under the authority of multiple persons to impose penalties, the administrative penalty case shall be handled by the first person to accept it.

2. The authorized authority for tax administrative penalties shall base its decision on the administrative penalty for tax violations on the file of the violation transferred by the aforementioned agency. If necessary, the authorized authority for administrative penalties may conduct additional verification of circumstances to serve as grounds for issuing a decision on administrative penalty for tax violations.

3. The deadline for issuing a decision on administrative penalty for tax violations is thirty days from the date of receipt of the decisions specified in Clause 1 and 2 of this Article along with the file of the violation. If additional verification is required according to Clause 2 of this Article, the maximum deadline for issuing the administrative penalty decision shall not exceed forty-five days from the date of receipt of the aforementioned decisions.

Article 26. Cases where administrative penalty decisions for tax violations shall not be issued and decisions on administrative penalties shall be revoked

1. Administrative penalty decisions for tax violations shall not be issued in the following cases:

a) The case provided for in Article 5 of this Circular.

b) The subject of the tax administrative violation cannot be identified.

c) The statute of limitations for administrative penalties for tax violations has expired as prescribed in Article 4 of this Circular, or the deadline for issuing the administrative penalty decision has expired as prescribed in Article 27 of this Circular.

d) The individual who committed the tax administrative violation has died or gone missing, or the organization that committed the administrative violation has been dissolved or declared bankrupt during the period of considering the issuance of the administrative penalty decision.

đ) Transfer the case file of the violation with signs of criminal offenses to pursue criminal responsibility according to the provisions of Article 24 of this Circular.

2. In cases where administrative penalty decisions for tax violations are not issued as prescribed in Clause 1 of this Article, the authorized authority shall not issue such decisions but may apply measures to remedy consequences as prescribed. The decision must clearly state the reasons for not issuing the administrative penalty decision for tax violations; the remedial measures applied, responsibilities and deadlines for implementation.

3. Revocation of administrative penalty decisions in the following cases:

a) The person issuing the administrative penalty decision does not have the appropriate authority.

b) The administrative penalty decision in the cases provided for in Points a, b, c, d of Clause 1 of this Article.

c) The investigative agency has issued a decision to initiate a criminal investigation in the case provided for in Point đ, Clause 1 of this Article.

Article 27. Time limit for issuing administrative penalty decisions for tax violations

1. The authorized authority to impose administrative penalties for tax violations must issue the administrative penalty decision within seven days from the date of recording the administrative violation record.

2. For cases with many complex circumstances that do not fall under the explanation category or for cases falling under the explanation category as prescribed in Article 23 of this Circular, the maximum time limit for issuing the administrative penalty decision is thirty days from the date of recording the administrative violation record.

3. In cases of particularly serious matters with many complex circumstances and falling under the explanation category as prescribed in Article 23 of this Circular, if the authorized authority considers it necessary to extend the time for verification and evidence collection, the authority handling the case must report in writing to their direct superior for an extension; the extension must be in writing; the extended time shall not exceed thirty days.

4. In cases where the case file of the violation is transferred by the criminal investigative agency to the authorized authority to issue administrative penalty decisions for tax violations, the time limit for issuing the administrative penalty decision shall be implemented according to the provisions of Clause 3 of Article 25 of this Circular.

5. If the time limit prescribed in Clauses 1, 2, 3, and 4 of this Article is exceeded, the authorized authority shall not issue the administrative penalty decision but still decide to apply the remedial measures prescribed in Clause 2 of Article 26 of this Circular.

If the authorized authority to impose penalties is negligent in exceeding the time limit without issuing the administrative penalty decision, they may be disciplined, criminally prosecuted, and required to compensate for losses caused, depending on the severity of the violation, as prescribed by law.

Article 28. Decision on Administrative Sanctions for Tax Violations

1. The decision on administrative sanctions for tax violations must be in writing. In the decision on administrative sanctions, the following main contents must be clearly recorded: place name, date of issuance; legal basis for issuance; administrative violation record, investigation results, explanatory documents from individuals or organizations committing the violation or meeting minutes and other documents (if any); delegation document (if any); full name and position of the person issuing the decision; full name, address, occupation of the individual committing the violation or the name and address of the organization committing the violation; administrative violation act; aggravating circumstances, mitigating circumstances; article and clause of the applicable legal document; form of administrative sanction, measures to remedy consequences (if any); right to appeal or file a lawsuit against the decision on administrative sanctions; effect of the decision, time limit and place for enforcing the decision on administrative sanctions, place for paying the fine; responsibility for enforcing the decision on administrative sanctions and enforcement measures in case the individual or organization does not voluntarily comply with the decision; full name and signature of the person issuing the decision on administrative sanctions.

2. The time limit for enforcing the decision on administrative sanctions is ten days from the date of receipt of the decision on administrative sanctions; if the decision on administrative sanctions specifies a longer enforcement period than ten days, it shall be enforced according to that period.

3. In cases where an individual commits multiple acts of administrative violations, the competent authority shall issue only one decision on administrative sanctions in which the form and level of administrative sanctions for each act of violation are decided; if the forms of administrative sanctions are fines, they shall be combined into a total fine amount.

Article 29. Stamping of Decisions on Administrative Sanctions for Tax Violations

1. The decision on administrative sanctions issued by the competent authority shall be stamped with the seal of the authority issuing the decision for such violation.

2. For decisions used in administrative sanctions issued by the competent authority as stipulated in Clauses 3, 4, and 5, Article 16 of this Circular, the stamp shall be affixed at one-third (one third) of the signature towards the left side of the signature of the competent authority issuing the decision.

3. For decisions used in administrative sanctions issued by competent authorities without direct stamping authority, the decision shall be stamped with the seal of the issuing authority in the upper left corner of the decision, where the name of the sanctioning authority and the number and code of the decision on administrative sanctions are recorded.

Section 3

ENFORCEMENT OF DECISIONS ON ADMINISTRATIVE SANCTIONS

VIOLATIONS OF TAX LAWS

Article 30. Enforcement of Decisions on Administrative Sanctions for Tax Violations Without an Administrative Violation Record

1. A decision on administrative sanctions for tax violations without an administrative violation record must be handed over to the individual or organization being sanctioned one copy.

2. Individuals or organizations committing the violation must pay the fine on the spot to the competent authority imposing the sanction. The person collecting the fine has the responsibility to provide the payment receipt to the individual or organization paying the fine and must directly deposit the fine into the state treasury within two working days from the date of collection.

If the individual or organization committing the violation is unable to pay the fine on the spot, they must pay the fine at the state treasury or deposit it into the state treasury account specified in the decision on administrative sanctions within the time limit set out in Point a, Clause 1, Article 40 of this Circular.

Article 31. Delivery of Administrative Offense Penalty Decision for Enforcement in Cases Where an Inspection Report is Prepared

1. Within two working days from the date of issuance of the administrative offense penalty decision with an inspection report, the authority issuing the penalty decision must deliver the decision to the individual or organization being penalized, the agency collecting fines, and other relevant agencies (if any) for enforcement.

2. The administrative offense penalty decision shall be delivered directly or sent via registered mail and notified to the individual or organization being penalized.

a) In cases where the penalty decision is delivered directly, the civil servant delivering the penalty decision must prepare a record of the delivery of the penalty decision. If the decision is delivered directly but the individual or organization violating the law deliberately refuses to accept it, the authority issuing the decision must prepare a record of non-receipt with confirmation from local authorities, which will be considered as the decision having been delivered.

b) In cases where the decision is sent via registered mail, if after ten days from the third attempt to send the decision through postal service due to the deliberate refusal of the individual or organization violating the law to accept it, and the decision has been posted at the place of residence of the individual or the headquarters of the organization being penalized, or there is evidence that the violator has evaded acceptance of the decision, then the decision will be considered as having been delivered.

Article 32. Publicizing Information on Administrative Offenses Related to Tax

1. The tax authority shall publicize and disclose information on administrative offenses related to tax of taxpayers in the following cases:

a) Evading taxes, fraudulently underreporting taxes, or aiding in tax evasion.

b) Refusing to comply with the requirements of the tax authority as stipulated by law, such as refusing to provide information or documents to the tax authority; failing to comply with inspection, audit decisions and other requirements of the tax management agency as stipulated by law.

2. The authority responsible for imposing penalties for administrative offenses related to tax shall have the responsibility to publicize and disclose such administrative offenses in accordance with Clause 1 of this Article.

3. Public disclosure shall be carried out on the website or newspaper of the central or provincial-level management agency where the administrative offense related to tax occurred.

If the authority imposing the penalty is the Director of the General Department of Taxation, the public disclosure of information on administrative offenses related to tax shall be carried out on the website or newspaper of the Ministry of Finance or the website or journal of the General Department of Taxation. If the authority imposing the penalty is the Director of the Provincial Tax Department, the Director of the District Tax Office, or the Head of the Tax Team, the public disclosure of information on administrative offenses related to tax shall be carried out on the website or tax bulletin of the Provincial Tax Department or the website or newspaper of the provincial government where the administrative offense related to tax occurred.

4. The content of public disclosure includes: the name, address, and occupation of the individual who violated the law or the name and address of the organization committing the administrative offense related to tax, main business activities; the act of administrative offense related to tax or the reason for public disclosure; consequences caused by the violation or the impact of the violation; form of punishment, measures to remedy consequences, and time limit for implementation.

5. Regarding the responsibility of the person in charge of the newspaper or website for posting information; the responsibility of the head of the agency or unit for the disclosed information, the procedures and formalities for public disclosure on mass media shall be implemented in accordance with Article 8 of Decree No. 81/2013/NĐ-CP dated July 19, 2013 of the Government detailing certain provisions and implementing measures of the Law on Handling Administrative Violations.

Article 33. Enforcement of Administrative Sanction Decisions on Tax Violations

1. Individuals and organizations subject to administrative sanctions must comply with the administrative sanction decision on tax within ten days from the date of receiving the administrative sanction decision on tax; if the administrative sanction decision specifies a longer period than ten days, it shall be implemented according to that period. In cases where individuals or organizations intentionally refuse to accept the administrative sanction decision, the decision shall be enforced within ten days from the date of delivering the administrative sanction decision.

If individuals or organizations subject to administrative sanctions file complaints or initiate lawsuits against the administrative sanction decisions on tax, they still have to comply with such decisions, except when during the process of handling complaints or lawsuits, it is determined that enforcing the administrative sanction decision on tax will cause irreparable consequences, in which case the person handling the complaint or lawsuit shall issue a decision to temporarily suspend the enforcement of that decision in accordance with the law.

2. The authority issuing the administrative sanction decision has the responsibility to monitor and inspect the compliance with the administrative sanction decision by the individuals and organizations subject to sanctions.

Article 34. Time Limit for Enforcement of Administrative Sanction Decisions on Tax

1. The time limit for enforcing administrative sanction decisions on tax is one year, starting from the date of issuance of the administrative sanction decision; beyond this period, the administrative sanction decision will not be enforced, except in cases where the administrative sanction decision applies measures to remedy consequences, in which case such measures will still be applied.

2. In cases where individuals or organizations subject to sanctions intentionally evade or delay, the time limit for enforcing the administrative sanction decision starts from the date the evasive or delaying behavior ceases.

Article 35. Enforcement of Administrative Sanction Decisions on Tax in Cases Where the Person Subject to Sanctions Dies, Goes Missing, or the Organization Subject to Sanctions Dissolves or Becomes Bankrupt

1. In cases where the individual subject to sanctions dies or goes missing, or the organization subject to sanctions dissolves or becomes bankrupt, and the administrative sanction decision remains enforceable, the monetary fine portion of the decision will not be enforced, but the remedial measures specified in the decision will still be enforced.

The authority issuing the administrative sanction decision must issue a decision to partially enforce the administrative sanction decision within sixty days from the date the individual subject to sanctions dies or goes missing, or the organization subject to sanctions dissolves or becomes bankrupt.

If the administrative sanction decision does not include provisions for applying remedial measures, the authority issuing the administrative sanction decision shall issue a decision to suspend the enforcement of the administrative sanction decision.

2. Criteria for determining death, disappearance, dissolution, or bankruptcy of individuals or organizations:

a) Death certificate for cases of individual death.

b) Court decision declaring an individual missing for cases of individual disappearance.

c) Dissolution decision for cases of organizational dissolution.

d) Court decision declaring a business or cooperative bankrupt for cases of business or cooperative bankruptcy.

3. The partial enforcement decision includes the following contents: suspension of the monetary fine enforcement, reasons for suspension; remaining portions of the administrative sanction decision that need to be enforced, names of organizations or individuals responsible for continuing enforcement; enforcement deadline.

4. Succession of obligations to implement remedial measures for deceased individuals, those who have gone missing, or dissolved or bankrupt organizations.

a) Those entitled to inherit have the responsibility to enforce the remaining portion of the administrative sanction decision regarding remedial measures within the scope of the estate left by the deceased, except in cases of other agreements.

If the inheritance has not yet been divided, the continuation of enforcing the remaining portion of the administrative sanction decision regarding remedial measures left by the deceased shall be carried out by the estate manager according to the agreement of the heirs.

If the inheritance has already been divided, each heir shall enforce the remaining portion of the administrative sanction decision regarding remedial measures left by the deceased corresponding to their share but not exceeding the assets they have received, except in cases of other agreements.

If the State, agencies, or organizations inherit the estate according to a will, they have the responsibility to enforce the remaining portion of the administrative sanction decision regarding remedial measures left by the deceased as if they were individual heirs.

If there are no heirs under the will or under the law, or if there are but they refuse to accept the inheritance, the provisions of civil law shall apply.

b) The person appointed by the court to manage the property of the declared missing individual has the responsibility to enforce the remaining portion of the administrative sanction decision (remedial measures) within the scope of the managed property on behalf of the missing individual.

c) For dissolved or bankrupt organizations, the partial enforcement decision of the administrative sanction decision must be sent to the agency, organization, or individual with the authority to handle the dissolution or bankruptcy; the legal representative of the dissolved or bankrupt organization to enforce.

If the dissolved organization is a dependent accounting unit of a business, the dissolved organization cannot be exempted from enforcing the monetary fine portion of the administrative sanction decision.

d) In cases where the individual dies, goes missing, or the organization becomes bankrupt and falls under the category of tax debt and penalty cancellation according to the Law on Tax Administration, the overdue tax, penalties, late payment interest on taxes, and late payment interest on penalties shall be canceled according to the law.

Article 36. Suspension of Execution of Fine Decisions

1. In cases where individuals are fined VND 3,000,000 or more and are experiencing particular and sudden economic difficulties due to natural disasters, catastrophes, fires, epidemics, serious illnesses, accidents, confirmed by the People's Committee of the commune where they reside or the organization where they study or work, such individuals may be eligible for suspension of execution of fine decisions. For individuals suffering from serious illnesses, only a determination result regarding the serious illness from the medical facility where the individual receives treatment is required.

2. Individuals must submit a request for suspension of execution of administrative violation fines to the authority issuing the fine decision. The request for suspension of execution of fine decisions must clearly state the reasons for economic hardship preventing timely payment of the fine, with confirmation from the organizations mentioned in Clause 1 of this Article.

Within five days from receiving the request for suspension of execution of fine decisions, the authority issuing the fine decision shall consider the suspension of execution of the fine decision. The period of suspension of execution of fine decisions shall not exceed three months from the date of the decision suspending the execution of the fine decision.

3. The decision to suspend the execution of fine decisions must specify the date, month, year of issuance; the name, position of the issuer; the name, address, occupation of the individual whose execution of the fine decision is suspended; the reason for suspension; the suspension period, and the signature of the issuer of the decision to suspend the execution of the fine decision.

Article 37. Exemption and Reduction of Administrative Violation Fines on Tax Matters

1. Individuals who are administratively fined for tax violations with a fine amount of VND 3,000,000 or more and are experiencing particular and sudden economic difficulties due to natural disasters, fires, catastrophes, accidents, epidemics, serious illnesses have the right to request exemption or reduction of administrative violation fines on tax matters.

2. The maximum amount of exemption or reduction of fines equals the remaining fine amount in the fine decision and does not exceed the value of damaged property or goods, and medical expenses.

3. The documents for requesting exemption or reduction of administrative violation fines on tax matters include:

a) A request for exemption or reduction of fines, specifying the reasons for requesting exemption or reduction of fines; the income of the individual or household; the value of damaged property or goods due to natural disasters, fires, catastrophes, accidents, epidemics, and medical expenses for serious illnesses; the amount of fines requested to be exempted or reduced.

b) If the damage to property or medical expenses are compensated by an insurance agency (if applicable), a certified copy of the compensation certificate and the payment receipt for medical expenses from the insurance agency (if applicable) must be attached. The documents define the responsibility of organizations or individuals to compensate for damages (if applicable).

c) Confirmation from the People's Committee of the commune where the individual resides or where the damaged property is located. For individuals suffering from serious illnesses, only a determination result regarding the serious illness from the medical facility where the individual receives treatment is required; medical expenses must be supported by complete documentation according to regulations.

4. Authority to Exempt or Reduce Fines

The immediate superior of the authority issuing the administrative violation fine decision has the right to review and decide on the exemption or reduction of administrative violation fines on tax matters.

5. Procedure and Formalities for Exemption or Reduction of Fines

Individuals specified in Clause 1 of this Article must submit a request for exemption or reduction of the remaining or entire fine along with supporting documents to the authority issuing the fine decision. Within three days from receiving the request for exemption or reduction of fines, the authority issuing the administrative violation fine decision must forward the request and supporting documents to the immediate superior of the authority issuing the fine decision for review and decision on exemption or reduction of fines.

Within five days from receiving the request and supporting documents for exemption or reduction of fines, the authority responsible for exemption or reduction of fines must review and decide on exemption or reduction of fines and notify the authority issuing the fine decision and the individual submitting the request of the decision; if the authority responsible for exemption or reduction of fines disagrees with the exemption or reduction of fines, it must specify the reasons.

6. Exemption or reduction of administrative violation fines on tax matters shall not apply to cases where the fine decision has been fully executed or the time limit for lodging complaints has expired according to the law.

Article 38. Decision on the application of measures to remedy consequences in cases where no administrative penalty decision for tax violations is issued

1. In cases where the statute of limitations for imposing administrative penalties for tax violations has expired or the deadline for issuing an administrative penalty decision has passed as prescribed, the competent authority shall not issue an administrative penalty decision but must still issue a decision to apply measures to remedy consequences.

2. The decision on applying measures to remedy consequences must be in writing according to the prescribed form. The decision must clearly state: the date of the decision; the name, position of the person making the decision; the name, address, occupation of the violator or the name, address of the violating organization; the administrative violation; relevant circumstances related to the handling of the violation; the provisions of the legal document applied; reasons for not applying a form of punishment; the measures to remedy consequences applied; the time limit for implementing the decision on applying measures to remedy consequences; the signature of the person issuing the decision.

Article 39. Transfer of administrative penalty decisions for tax violations and decisions on applying measures to remedy consequences for enforcement

1. In cases where individuals or organizations commit administrative violations in an administrative unit within this province but reside or have their headquarters in another province and do not have the conditions to comply with the penalty decision at the place of punishment, the decision shall be transferred to the competent tax authority at the same level where the individual resides or the organization has its headquarters to organize enforcement.

2. In cases where the violation occurs in a district area within the scope of a mountainous, island, or remote and isolated region where travel is difficult and the individual or organization committing the violation does not have the conditions to comply with the penalty decision at the place of punishment, the decision shall be transferred to the competent tax authority at the same level where the individual resides or the organization has its headquarters to organize enforcement.

3. The competent authority with the power to impose administrative penalties for the cases stipulated in Clause 1 and 2 of this Article shall be responsible for transferring all relevant files and papers related to the administrative penalty decision for tax violations to the receiving authority for enforcement in accordance with regulations. Individuals and organizations committing the violation shall bear the cost of transporting the administrative violation files.

4. In cases where the tax authority transfers the administrative penalty decision for tax violations and the decision on applying measures to remedy consequences to another agency for enforcement as provided for in Clause 1 and 2 of this Article, the individual or organization being penalized shall be responsible for paying the fine, back taxes, late payment interest on taxes, and late payment interest on fines into the State Treasury at the location where the receiving authority handles the penalty file and the decision on applying measures to remedy consequences for enforcement.

Article 40. Payment of Administrative Penalties for Tax Violations

1. Procedures for paying administrative penalties for tax violations

a) Within ten days from the date of receipt of the penalty decision, the individual or organization being penalized must pay the fine at the State Treasury or deposit it into the account of the State Treasury specified in the penalty decision, except in cases where the fine has been paid as provided for in Points b and c of Clause 1 of this Article.

If the penalty decision specifies a longer period than ten days as provided for in Article 73 of the Law on Handling Administrative Violations, the organization or individual committing the violation shall be responsible for paying the fine within the period specified in the penalty decision, starting from the date of receipt of the penalty decision.

b) In cases where the individual or organization being penalized in remote areas, border regions, mountainous areas where travel is difficult may pay the fine to the authorized person imposing the penalty, the authorized person imposing the penalty shall be responsible for collecting the fine on the spot and depositing it into the State Treasury or the account of the State Treasury within seven days from the date of collection.

c) Individuals and organizations violating tax laws who are fined must pay the fine in one lump sum, except in cases provided for in Clause 2 of this Article.

2. Payment of fines in installments shall be applied when the following conditions are met:

a) Being fined VND 20,000,000 or more for individuals; VND 200,000,000 or more for organizations;

b) Individuals or organizations being penalized are experiencing special economic difficulties and have submitted a request to pay the fine in installments.

The request of an individual must be confirmed by the People's Committee of the commune where they reside or the agency or organization where they study or work regarding their special economic difficulties; for the request of an organization, it must be confirmed by the superior agency or organization (if any) or the direct tax management agency. In cases where the organization being penalized does not have a superior agency or organization and the head of the direct tax management agency is the person issuing the penalty decision, the organization submitting a request to pay the fine in installments shall send the request to the person who issued the penalty decision, stating the reasons for economic difficulties for the person issuing the penalty decision to consider and resolve.

3. The time limit for paying fines in installments shall not exceed six months from the date the penalty decision takes effect; the maximum number of installment payments shall not exceed three times. The minimum amount of the first installment payment shall be 40% of the total fine amount.

4. The person who issued the fine decision has the right to decide on the payment of fines in installments. The decision on paying fines in installments must be in writing.

Article 41. Handling of late payment of tax and fines

1. Handling of late payment of tax shall be carried out in accordance with the provisions of the Law on Tax Administration and detailed implementing regulations of the Law on Tax Administration.

In cases where underreported taxes are discovered through inspection or examination, interest for late payment of tax shall be calculated at a rate of 0.05% per day based on the amount of underreported tax for the period of delay. If the taxpayer fails to pay the additional tax within 90 days from the date they are required to pay the additional tax into the State budget according to the deadline specified in the administrative penalty decision or the additional tax collection decision, then the taxpayer shall be subject to interest for late payment of tax at a rate of 0.07% per day based on the amount of tax paid late.

2. Handling of late payment of fines

a) Individuals and organizations that are administratively penalized and fail to pay the fine within the time limit stipulated in Article 33 of this Circular for the implementation of administrative penalties for tax violations shall pay the full amount of the fine and interest for late payment of the fine at a rate of 0.05% per day based on the total amount of unpaid fine.

b) Interest for late payment of fines shall not be calculated during the period of considering and deciding to waive or reduce the remaining fine or allowing installment payments; individuals who violate tax administration laws may have their administrative penalty decisions suspended according to the provisions of the law.

3. The number of days for late payment of fines includes holidays and rest days as prescribed and is counted from the day following the last day of the fine payment deadline or the suspension of the administrative penalty decision until the day before the individual or organization pays the fine into the State budget.

Chapter IV

IMPLEMENTING PROVISIONS

Article 42. Effective Date

1. This Circular takes effect from January 1, 2014.

2. This Circular replaces Circular No. 61/2007/TT-BTC dated June 14, 2007, issued by the Ministry of Finance, guiding the implementation of handling of tax law violations.

3. Application of administrative penalty regulations for tax violations

a) Administrative penalties for tax violations that occurred before December 15, 2013, shall be applied according to the provisions of the law in effect at the time of the violation.

b) The provisions on administrative penalties; provisions on suspending the execution of administrative penalty decisions, waiving or reducing administrative fines, and other provisions beneficial to individuals and organizations violating tax laws as stipulated in this Circular shall apply to tax violations that occurred before December 15, 2013, but were only discovered or are being considered and resolved thereafter.

c) For administrative penalty decisions for tax violations that have been issued or fully executed before the effective date of this Circular, if individuals or organizations still have objections, the provisions of the law in effect at the time of the violation shall be applied to resolve them.

Article 43. Implementation

1. The Director of the General Department of Taxation shall organize and direct the imposition of administrative penalties for tax violations; inspect compliance with the law to ensure consistent implementation throughout the sector in accordance with the law.

2. The immediate head of the person authorized to impose penalties shall be responsible for organizing inspections of administrative penalties for tax violations imposed by subordinates.

3. Model records and model decisions accompanying this Circular may be supplemented with additional lines in the relevant indicators as necessary to adequately reflect the contents of the violation acts during the process of recording and issuing administrative penalty decisions.

4. During the implementation process, if there are any difficulties, organizations and individuals are requested to report to the Ministry of Finance for timely resolution./.