Circular No. 45-TC/TCT guides the implementation of the Law on Business Income Tax.

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
NUMBER: 45/TC/TCT	Hanoi, August 1, 1996

 

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 45TC/TCT ON AUGUST 1, 1996 GUIDING THE IMPLEMENTATION OF GOVERNMENT DECREE NO. 22/CP OF APRIL 17, 1996 ON ADMINISTRATIVE PENALTIES FOR VIOLATIONS IN THE FIELD OF TAXES

Pursuant to Decree No. 22/CP dated April 17, 1996 of the Government on Administrative Sanctions for Violations in the Field of Taxation, the Ministry of Finance provides specific guidelines as follows:

I. GENERAL PROVISIONS

1. An administrative violation in the field of taxes is an act committed by organizations or individuals who violate provisions of tax laws, tax ordinances, regulations on issuing purchase and sale documents, opening and recording accounting books, regulations on fees and charges, and other current regulations on revenue collection for the State budget but not reaching the level of criminal prosecution, which must be subject to administrative penalties.

2. Subjects liable to administrative sanctions for violations in the field of taxation:

||| a) All Vietnamese organizations and individuals if they commit administrative violations in the tax domain.

||| b) Foreign organizations and individuals if they commit administrative violations in the tax domain. In cases where international treaties to which Vietnam is a party provide different provisions, such treaties shall be implemented.

||| 3. Tax collection agencies as stipulated in Decree No. 22/CP dated April 17, 1996 include tax authorities and customs offices (for export duties, import duties, and special consumption taxes).

||| 4. Principles and forms of administrative penalties for tax domain violations:

||| a) The principle of imposing administrative penalties for tax domain violations is carried out according to Article 3 of the Administrative Violation Handling Ordinance dated July 6, 1995.

||| b) Main forms of penalty: - Warning;

- Fine.

In cases where fines are imposed on organizations or individuals for multiple administrative violations in the field of taxes discovered in one inspection, each violation shall be penalized separately, and then the monetary penalties shall be aggregated.

||| - Confiscation of property or means used to commit administrative violations.

||| 5. Mitigating circumstances in the tax domain:

||| a) Organizations or individuals who have committed administrative violations and have taken measures to reduce the harm caused by the violation or voluntarily rectified and compensated for damages.

||| b) Violations occurring under particularly difficult objective circumstances.

||| 6. Aggravating circumstances in the tax domain:

||| a) Organized violations,

||| b) Recidivism or repeated violations,

||| c) Violations causing significant damage to assets,

||| d) Exploiting positions, powers, or natural disasters, epidemics, or enemy threats to commit violations,

||| e) Violations while serving a penalty decision, f) After committing a violation, engaging in evasive behavior or concealing the violation.

7. Cases Not Subject to Administrative Sanctions for Violations in the Field of Taxation:

||| a) Expiry of the period for administrative violation penalties:

- Administrative penalties shall not be imposed on organizations or individuals committing administrative violations in the field of taxes if more than two years have passed since the date of discovery. Within the statute of limitations for punishment, if the organization or individual commits new violations or intentionally evades or obstructs the punishment process, the statute of limitations mentioned above shall not apply. For acts of false declaration to evade taxes (as stipulated in Article 3 of the Decree), the statute of limitations for punishment is three years from the date of discovery.

- In cases where violations of the law have been initiated for prosecution, indictment, or a decision has been made to bring the case to trial under criminal procedure, but the investigative agencies decide to terminate the investigation or discontinue the case, if the act of violation still shows signs of administrative violation, the statute of limitations for punishment is three months from the date of the decision to terminate the investigation or discontinue the criminal case. If the organization or individual intentionally evades or obstructs the punishment process or commits further violations before the statute of limitations expires, the statute of limitations will be recalculated from the date the evasion or obstruction ends or the date of the new violation.

The end date of the act of evasion or obstruction of the punishment process is the date when the party voluntarily reports to the tax authority and accepts the punishment decision of the tax authority. The tax authority must record this in a written report.

||| b) Administrative violations in the tax domain that, according to the law, indicate criminal offenses and the tax authority has transferred the case file to competent authorities for resolution.

||| c) Individuals under the age of majority who commit administrative violations will be handled according to Article 6 of the Administrative Violation Handling Ordinance dated July 6, 1995.

||| d) Committing administrative violations while suffering from mental illness or other diseases that impair cognitive or behavioral control.

II. VIOLATIONS AND AMOUNTS OF SANCTIONS:

||| Based on the provisions of Articles 1, 2, 3, 4, and 5 of Chapter I of Decree No. 22/CP dated April 17, 1996 of the Government, specific forms and levels of penalties for administrative violations in the tax domain are as follows:

1. Violations concerning business registration procedures, tax payment registration, tax declaration, accounting bookkeeping, and retention of invoices and documents related to tax calculation, collection, and payment.

1.1. A first-time violation is subject to a warning; if it is a second-time violation, a fine of VND 20,000 to VND 200,000 shall be imposed. If there are aggravating circumstances, a fine up to VND 1,000,000 may be imposed for one of the following behaviors:

a) Violation of regulations on business registration; failure to register tax payment and declare to the tax authority within the time limit prescribed in current guiding documents for implementing tax laws, tax ordinances, fees, and other revenue payments to the State budget.

b) Failing to fill in all required items in tax declaration forms or in accounting documents provided to the tax authority.

||| 1.2. A fine of between 40,000 VND and 200,000 VND for the first violation. If there is a second violation, a fine of between 600,000 VND and 1,000,000 VND will be imposed for one of the following behaviors:

- Not fully complying with the management and usage regulations for sales invoices as prescribed by the State.

- Failing to fully record the required elements according to the regulations of each invoice, receipt, and tax stamp model when selling goods or providing services to customers.

1.3. A fine of between 100,000 VND and 1,000,000 VND for the first violation; if there is a second violation, a fine of between 2,000,000 VND and 4,000,000 VND may be imposed, with a possible increase to 6,000,000 VND if there is one aggravating circumstance, and up to 10,000,000 VND if there are two or more aggravating circumstances, for one of the following acts:

a) Failing to present accounting books, documents, and materials related to the tax authority's request.

b) Failure to submit tax declarations and accounting reports to the tax collection agency within the time limits prescribed in current guiding documents for implementing tax laws and regulations on revenue collection for the State budget.

||| c) Failure to fully implement or implement accounting bookkeeping systems as prescribed by Accounting and Statistics Ordinance.

||| d) Transporting goods without accompanying tax documents required for each type of business (purchase records, valid documents, other legitimate papers).

1.4. A fine of between 1,000,000 VND and 10,000,000 VND for the first violation; if there is a second violation, a fine of up to 13,000,000 VND may be imposed, with a possible increase to 20,000,000 VND if there is an aggravating circumstance, for one of the following acts:

- Intentionally failing to submit tax declarations, accounting reports, and other documents to the tax collection agency as prescribed by law.

Intentional non-submission means that after the deadline for submitting the required documents, the tax collection agency sends the first notice (attached model) requesting submission of these documents. If the entity does not submit the documents within ten days from the date of the first notice, the tax collection agency sends a second notice. If the entity still does not submit the documents within ten days after the second notice, the tax collection agency may impose these fines.

- Selling goods without issuing invoices to customers as prescribed by the State.

||| - Organizations or individuals purchasing or using invoices or receipts not issued by the Ministry of Finance or not permitted for use.

- Losing or allowing others to misuse their invoices for illegal activities or tax evasion.

1.5. A fine of VND 2,000,000 to VND 10,000,000 for the first violation; if there is a second violation, a fine of up to VND 15,000,000 shall be imposed, and if there is an aggravating circumstance, a fine of up to VND 20,000,000 may be imposed for the following acts:

+ Destroying vouchers, registers, and accounting reports related to tax calculation and collection before the expiration of the retention period as prescribed.

+ Damaging vouchers, registers, and accounting reports related to tax calculation and collection to the extent that they cannot be restored (unreadable, unphotocopiable).

2. Acts of false declaration to evade taxes:

2.1. Organizations and individuals who make false declarations or evade taxes as defined in the Value Added Tax Law, Income Tax Law, Special Consumption Tax Law, Export and Import Tax Law, Agricultural Land Use Tax Law, and Land Use Right Transfer Tax Law; in addition to paying the full amount of tax as prescribed by the relevant tax law, they will also be fined according to the number of times specified in that law. In addition to the aforementioned tax laws, if organizations or individuals commit false declarations or evade other types of taxes, in addition to paying the full amount of evaded tax, they will be fined according to the number of times the tax was evaded at the following levels, but the maximum fine shall not exceed 100,000,000 VND.

2.2. A fine equal to the amount of evaded tax, and if there is an aggravating circumstance (except in cases where the violator has already been punished for tax evasion and continues to violate), a fine of up to twice the amount of evaded tax may be imposed for the following acts:

a) Making false declarations regarding the basis for calculating tax as prescribed for each type of tax.

b) Establishing accounting books and invoices incorrectly with respect to actual transactions.

c) Excluding data from accounting records or improperly posting to accounts as prescribed, causing the basis for calculating tax to deviate from reality.

d) Requesting temporary suspension of business operations to reduce or exempt taxes but continuing to operate in reality.

In cases where organizations or individuals violate points a, b, and c of Section 2.2 of this Circular, if discovered before the deadline for tax settlement or payment as prescribed by the law, they will not be punished according to this point but will instead be subject to the penalties prescribed in Clause 2, Article 2 of Government Decree No. 22/CP dated April 17, 1996.

2.3. A fine of twice the amount of evaded tax, and if there is an aggravating circumstance (except in cases where the violator has already been punished for tax evasion and continues to violate), a fine of up to three times the amount of evaded tax may be imposed for the following act:

a) Goods transported without complete documentation proving tax payment or management by the tax authority as prescribed for each type of business. This act is identified as false declaration to evade tax and will be punished according to the provisions of Point 2.3.

In cases where, through inspection, the tax authority finds doubts and can conduct additional investigations but not exceeding the period allowed by the tax authority for obtaining sufficient documentation. If the required documentation is not provided within the permitted period, it will be considered an act of false declaration to evade tax and will be punished according to Point 2.3.

In cases where the transporter provides complete and valid documentation within the period allowed by the tax authority, the authorized tax authority can only issue a penalty decision according to Point b, Clause 2, Article 2 of Government Decree No. 22/CP dated April 17, 1996.

In cases where the goods owner does not comply with the tax authority's handling decision or fails to pay tax and fines to reclaim the goods within one day for fresh food and five days for other goods from the date of the handling decision, the tax authority will transfer the matter to the financial department at the same level or higher to establish an auction committee to sell the temporarily detained goods to enforce the decision.

b) Engaging in business without declaring or registering with the tax authority.

c) Counterfeiting sales invoices, receipts, tax vouchers, cargo transportation slips, and other documents related to tax calculation.

2.4. For organizations and individuals engaged in production, business, import, and export activities, if they violate the provisions set out in Sections 2.2 and 2.3 of this Circular, depending on the nature of the violation, they shall be fined from two to five times the amount of evaded tax.

2.5. In cases where a large amount of tax is evaded or where an individual or entity has been administratively punished for tax evasion and continues to commit violations, the tax collection agency shall transfer the case file to the People's Procuratorate at the same level to request criminal prosecution under Article 169 of the Penal Code.

3. Violations of the system for collecting and paying taxes and fines:

3.1. A fine of VND 100,000 to VND 500,000 for the first violation; for the second violation, a fine of VND 500,000 to VND 800,000 may be imposed; if there is one aggravating circumstance, the fine may reach up to VND 3,000,000; if there are two or more aggravating circumstances, the fine may reach up to VND 7,000,000 for the following conduct:

Not to accept tax collection notices, tax collection orders, administrative violation penalty decisions when the tax authority delivers them directly.

When tax officers directly hand over tax payment notices, tax collection orders, or tax penalty decisions to taxpayers or violators, and the parties refuse to accept them, the tax authority shall prepare an administrative violation record, clearly stating the reasons as grounds for punishment.

3.2. A fine of VND 200,000 to VND 500,000 for the first violation; for the second violation, a fine of VND 500,000 to VND 1,000,000 may be imposed; if there is one aggravating circumstance, the fine may reach up to VND 5,000,000; if there are two or more aggravating circumstances, the fine may reach up to VND 10,000,000 for one of the following acts:

- Paying tax or fines late as recorded in the tax payment notice or in the tax violation handling decision issued by the tax authority.

Tax officers, organizations, or individuals entrusted with tax collection, and bank officials who fail to promptly deposit tax payments into the State Treasury due to lack of responsibility shall be subject to late payment penalties as provided herein.

When enterprises pay taxes through bank transfers, if the accounts of these enterprises have sufficient balances to cover the tax payments but the banking institution delays transferring the tax payment from the enterprise's account to the state treasury account, the banking institution will also be subject to late payment penalties according to this regulation.

- Delaying tax payments or fines:

Delays in tax payments or fines exceeding 30 days beyond the deadline specified in tax payment notices or administrative penalty decisions are considered delays in tax payments or fines.

3.3. Organizations and individuals who violate the provisions set out in Section 3.2, Part II of this Circular, in addition to being penalized according to the provisions of Section 3.2, Part II of this Circular, shall also be fined at a rate of 0.2% per day of the overdue amount. Specifically, for late payment of agricultural land tax and related penalties, a daily fine of 0.1% of the overdue amount will apply.

4. Violations of inspection systems and sealing of goods: 4.1. A fine of VND 100,000 to VND 400,000 for the first violation; for the second violation, a fine of VND 500,000 to VND 1,000,000 may be imposed; if there is one aggravating circumstance, the fine may reach up to VND 3,000,000; if there are two or more aggravating circumstances, the fine may reach up to VND 7,000,000 for the following act:

Refusing to allow the tax authority to inspect goods in transit, warehouses, or raw materials at production and business sites.

4.2. A fine of VND 200,000 to VND 500,000 for the first violation; for the second violation, a fine of VND 600,000 to VND 1,200,000 may be imposed; if there is one aggravating circumstance, the fine may reach up to VND 5,000,000; if there are two or more aggravating circumstances, the fine may reach up to VND 10,000,000 for the following act:

Unauthorized removal of seals from warehouses, raw material storage, machinery, factories during the sealing period imposed by tax authorities.

III. AUTHORITY - PROCEDURES FOR ADMINISTRATIVE PENALTIES IN THE TAX FIELD

1. Authority to impose administrative violation penalties in the tax field:

The authority to impose administrative penalties in the field of taxation is stipulated in Articles 7, 8, and 9 of Decree No. 22/CP dated April 17, 1996. Further guidance is provided as follows:

a) Tax collection agencies at all levels are authorized to impose administrative penalties for all violations in the field of taxation within their jurisdiction. If a case exceeds their authority, it must be transferred to a higher authority for resolution. If the case does not fall within the jurisdiction of the tax department, the head of the tax agency must transfer the case file to the competent authority for resolution; however, a written recommendation regarding the form and level of the penalty must be provided.

b) The heads of village, town, or district tax teams established pursuant to Circular No. 64/TC/TCCB dated October 29, 1992, of the Ministry of Finance have the same authority to impose administrative penalties for violations in the field of taxation as the station chiefs under Clause 1, Article 7 of Decree No. 22/CP dated April 17, 1996.

c) Other agencies such as market management, public security, border defense, forest rangers, specialized state inspection agencies, during the course of performing their functions, if they discover administrative violations in the field of taxation, they have the right to impose penalties after obtaining the agreement of the tax authority at the same level.

If an administrative violation in the field of taxation falls under the authority of multiple agencies to impose penalties, the agency that first takes charge of the case shall be the authority to impose administrative penalties according to tax laws after obtaining the agreement of the tax authority.

- If there is no unified opinion, it must be reported to the higher-level tax agency for resolution.

2. Procedures for imposing administrative violation penalties in the tax field:

a) Warning shall be applied to individuals who commit a first-time violation or whose violation is due to multiple objective reasons or has multiple mitigating circumstances (two or more) as stipulated in Section 6, Part I of this Circular.

The decision to impose a warning shall be made in writing, and when deemed necessary, the competent authority shall send the penalty decision to the local government where the violator resides or to the managing agency of the violator.

b) Fine:

- If the fine is up to VND 20,000, the person authorized to impose the penalty shall issue the penalty decision on the spot and issue a receipt for the fine. The penalty decision must clearly state the name, address of the person committing the violation, the amount of the fine, the place of payment, and the name of the person issuing the penalty decision; the receipt for the fine must be handed over to the violator with one copy.

- If the fine exceeds VND 20,000, the agency (person) authorized to impose the penalty shall prepare an administrative violation record (according to the attached model). Within fifteen days from the date of preparing the record, the agency authorized to impose the penalty must issue the penalty decision (according to the attached model).

- In cases where the decision on administrative penalty for fines of 2,000,000 dong or more must be sent to the People's Procuracy at the same level with one copy.

c) The enforcement of the Decision on Administrative Penalties in the Field of Taxation is carried out according to Article 11 of Decree No. 22/CP dated April 17, 1996. Further guidance is provided as follows:

- The penalty decision must be sent to the person or organization being penalized no later than three days from the date of issuance of the penalty decision. Organizations and individuals penalized for administrative violations in the field of taxation must immediately execute the penalty decision from the date they receive it.

- If beyond five days from the date the penalty decision is delivered, the individual or organization being penalized fails to voluntarily comply, the head of the tax agency that issued the penalty decision may take the following enforcement measures:

+ Seize funds from the accounts of individuals or organizations at banks to pay taxes and fines.

The tax agency sends a letter along with the decision to process so that the bank deducts the amount from the account of the entity deposited at the bank to pay the tax and penalty. The bank is responsible for implementing the priority system for deducting tax and penalty payments.

+ To temporarily detain goods and evidence to ensure the collection of sufficient tax and fine payments. This measure shall only be applied in cases where the temporary detention of goods and evidence is necessary to collect the tax and fine payments.

All cases of temporary detention of goods and evidence must be based on a written decision by the head of the tax collection agency at the district level (or equivalent) or higher. When implementing the decision to temporarily detain goods and evidence, a receipt for temporarily detained goods (model CTT30) must be established. In cases requiring sealing, it must be done in the presence of the owner of the goods or a representative of the business establishment. Goods and evidence temporarily detained must be handed over with procedures between tax officers, and the custodian shall be responsible if there is any substitution, loss, damage, or deterioration.

+ To seize assets for auction.

In cases where it is necessary to seize assets as a penalty, the tax authority issuing the penalty decision must report and seek opinions from the People's Committee at the same level and the superior tax collection agency. After being signed off by the People's Committee at the same level, the tax authority will cooperate with police forces and the People's Procuracy to seize assets worth the amount of fines and taxes to sell them at auction according to the law. The proceeds from selling goods and evidence violating administrative tax regulations, when the owner has abandoned them or their ownership is unclear, shall be handled in the following order: first, cover the costs of investigation, verification, transportation, loading and unloading, sale, etc. (if applicable), but must have valid receipts; then, a portion may be awarded as a reward according to the regulations on the amount of evaded taxes discovered. The remaining funds must be fully deposited into the State Budget.

- For all cases of administrative violations subject to fines, when collecting fines, the fine-imposing agency must use revenue receipts issued by the Ministry of Finance. The collected fines must be deposited into the State Budget according to the specified chapter, type, item, and sub-item as stipulated in the State Budget Manual. The management system for revenue receipts and the principle of rewarding actual collected fines shall be implemented according to current state regulations.

The handling of evidence and means of transportation involved in administrative violations is carried out according to Article 52 of the Administrative Violations Handling Ordinance.

Decisions to confiscate evidence and means of transportation involved in administrative violations valued at 5,000,000 dong or more must be immediately sent to the People's Procuratorate at the same level.

3. Complaints, reports, and the resolution of complaints and reports:

The procedure for lodging complaints and resolving complaints against decisions on administrative penalties in the field of taxation; the procedure for handling reports of abuse of power or other illegal acts by tax collection agencies and persons authorized to impose administrative penalties in the field of taxation shall be carried out in accordance with Article 13 of Decree No. 22/CP dated April 17, 1996.

IV. OPENING ACCOUNTS AND COLLECTING PENALTIES:

Tax agencies at all levels, including the General Department of Taxation, Provincial Tax Departments, and District Tax Offices, are allowed to open temporary holding accounts at the Treasury of the same level to deposit and settle the amounts of evaded taxes and fines directly detected and discovered by the tax authorities.

Provincial Customs Departments under the central government are permitted to open separate temporary holding accounts at the provincial treasury to deposit and settle the amounts of evaded taxes and fines directly detected and discovered by the customs authorities.

Provincial Departments of Finance and Prices under the central government are required to open temporary holding accounts at the provincial treasury to deposit and settle the amounts of evaded taxes and fines directly detected and discovered by market management agencies, public security organs, forest rangers, border guards, specialized state inspection bodies.

a) Regarding confiscated goods and evidence:

When selling seized goods, the revenue receipt form issued by the Ministry of Finance (CTT11) must be used. All proceeds from the sale must be deposited into the temporary holding account opened at the State Treasury.

The file of confiscated goods and evidence includes: Receipts for temporarily detained goods, decisions on handling by competent authorities, revenue receipts (CTT11), export certificates for confiscated goods and evidence, payment vouchers to the State Budget, auction records, fund establishment decisions, and other expense receipts (if applicable) such as investigation costs, loading and unloading, transportation, storage, testing, appraisal, and auction organization costs.

b) Regarding tax evasion and fines (excluding late payment fines):

- For fines, based on the decision on administrative penalty, revenue receipts (CTT11) must be issued to the penalized party, and the fines must be deposited into the temporary holding account at the State Treasury.

- Regarding the amount of evaded taxes, based on the revenue receipt, the competent authority issues a decision to recover the amount of evaded taxes and simultaneously sends this decision to the entity subject to the penalty to request immediate payment of the evaded taxes into the temporary holding account at the State Treasury.

Evaded taxes that have been discovered and recovered are additional taxes found beyond the declared tax returns, outside the quarterly and annual financial reports of enterprises, and outside the monthly tax records of the tax authorities. Taxes collected from trading activities during circulation shall not be included (except in cases where taxes are recovered together with penalties for evading turnover tax and profit tax during circulation for traders who did not pay turnover tax and profit tax before transporting goods).

V. REWARD - VIOLATION HANDLING

A reward may be extracted from the concealed tax amount discovered after the penalty decision or the appeal decision becomes effective.

The reward extraction rate is as follows:

- Two percent (2%) for cases of concealed tax discovered in state-owned economic sectors.

- Five percent (5%) for cases of detecting tax evasion in the non-state economic sector.

Agencies allowed to open accounts at the State Treasury to monitor the establishment and use of funds to combat false declarations and tax evasion include: Market Management, Public Security, Customs, Tax, Border Guards, Forest Rangers, and Specialized State Inspection Bodies.

Agencies entitled to establish funds must comply with the following principles: Funds can only be established after a decision by a competent state authority and there are no complaints within the time frame prescribed by law. If there are complaints, the fund can only be established after the complaint has been resolved.

The reward fund will be distributed as follows:

- Allocate 25% to establish the unit's reward fund.

- Allocate 65% to establish the supplementary operating fund for anti-tax evasion activities of the unit. If multiple agencies cooperate in inspections, the leading agency retains the funds to establish the fund.

- Allocate 10% to the direct superior agency of the unit handling the case to establish a fund to combat false declarations and tax evasion to reward the cooperating department. If there is no direct superior agency, the funds can be retained by the unit to supplement operational expenses.

Based on the amount deposited into the temporary holding account as reported by the State Treasury and related files, the Tax Agency, Customs Department, and Provincial Department of Finance and Prices, as the holders of the temporary holding account, shall pay any related expenses (if applicable). Issue a decision to allocate funds to the unit according to the prescribed ratio. Fund allocation is based on each individual case that has been resolved.

- Prepare documentation to send to the State Treasury where the temporary holding account is opened to transfer the allocated funds from the temporary holding account to the unit's fund account. Simultaneously, immediately complete the procedures to deposit the remaining full amount into Item 30 (for cases handled by the Tax sector), Item 33 (for cases handled by the Customs sector), and Item 47 (for cases handled by other sectors) according to the chapter, type, and sub-item of the State Budget Manual.

If the inspected entity must pay both evaded taxes and fines at the same time, the inspecting unit must clearly record each type of payment in the inspection report and decision to avoid confusion when allocating funds.

If the inspecting unit deliberately violates the rules, such as converting fines into evaded taxes to obtain rewards, in addition to having to refund the improperly allocated funds, they will also face disciplinary action, administrative penalties, or criminal prosecution.

If multiple agencies cooperate in inspections, the agency organizing the inspection retains the right to allocate the fund and is responsible for rewarding cooperating units.

Using the fund: the head of the agency that establishes the fund shall be responsible for examining and awarding bonuses to individuals directly and indirectly involved in combating false declarations and tax evasion. The highest level of individual bonus shall not exceed 300,000 VND per case and not more than 900,000 VND per month per person.

In cases where an inspection extends over several months, the number of months eligible for examination and award shall be calculated based on the number of months recorded in the inspection report. It is strictly prohibited to divide a large case into multiple smaller cases to qualify for awards based on separate incidents. Awards must be finalized for each individual case. It is strictly prohibited to offset between cases with fewer awards and those with more awards to achieve the maximum award level.

External staff participating in joint inspections are entitled to rewards similar to internal staff.

For indirect staff (staff engaged in supervisory, consolidation, and support work), if they are recommended for examination and award by the inspection units, they may receive up to 150,000 VND per case and not more than 500,000 VND per month per person. The remaining amount after the awards have been made shall be retained in the bonus fund to be used for awarding staff who have achieved results in performing inspection tasks throughout the year.

* The Supplementary Operating Fund for Anti-Evasion Activities is used for the following purposes:

- Supplementing procurement costs for working equipment.

- Costs for summarizing and promoting competition.

- Supplement funds for propaganda activities.

- Allocate rewards to cooperating units and indirect participants in combating tax evasion.

- Supplementing difficult areas financially to enhance anti-evasion efforts.

* The industry fund is used for the following purpose:

- Supplement publicity efforts.

- Supplement the purchase of work equipment.

- Supplement rewards for competition, annual reviews of industry operations, and awards for other industries participating in tax evasion prevention.

The heads of all levels of tax agencies shall establish a reward fund responsible for awarding individuals directly or indirectly involved in combating business tax evasion.

Administrative violations in the field of taxation shall be handled according to Article 91, Article 92 of the Administrative Violations Handling Ordinance dated July 6, 1995; Article 14 of Decree No. 22/CP dated April 17, 1996. In cases where an incorrect penalty has been imposed and the fine has been deposited into a temporary account at the Treasury, the authority issuing the penalty decision must issue a decision to revoke the incorrect penalty decision and simultaneously request the State Treasury to refund the incorrectly paid fine.

VI. IMPLEMENTATION ORGANIZATION:

1. Based on the guidelines in this Circular, the Ministers of the Ministries, the heads of agencies equivalent to ministries, and the heads of government-affiliated agencies, and the Chairpersons of People's Committees at all levels shall be responsible for organizing, directing, and inspecting the implementation of Decree No. 22/CP dated April 17, 1996.

Organizations shall thoroughly disseminate the basic contents of these documents to leadership levels, tax management and collection staff, relevant industries, production and business establishments, and widely publicize among the general population to strictly implement Decree No. 22/CP dated April 17, 1996 and this Circular.

2. According to Article 15 of the Law on Export Tax and Import Tax dated December 26, 1991, and Article 18 of Decree No. 97/CP dated December 27, 1995 of the Government detailing the implementation of the Special Consumption Tax Law and laws amending and supplementing certain provisions of the Special Consumption Tax Law; the General Customs Department shall be responsible for collecting export taxes, import taxes, and special consumption taxes. The Customs Authority is the competent authority to impose administrative penalties in the field of taxation for violations related to export taxes, import taxes, and special consumption taxes.

3. This Circular takes effect from the date of issuance. Circular No. 11 TC/TCT dated February 24, 1993, and previous regulations of the Ministry of Finance that conflict with this Circular are hereby abolished.

During the implementation process, if difficulties or obstacles arise, they should be reported promptly to the Ministry of Finance (General Department of Taxation) for research, guidance, and resolution.

Vu Mong Giao (Signed)

 

GENERAL DEPARTMENT OF TAXATION Tax Department

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

 

Tax Office Month Day Year 19

No.: /GB

NOTICE

(The nth time:...)

Respectfully submitted to:

Fax:

Based on point b, Clause 3, Article 2 of Decree No. 22/CP dated April 17, 1996 on administrative penalties in the field of taxation and item 1.4 Part II of Circular No. 45/TC/TCT dated August 1, 1996 guiding the implementation of Decree No. 22/CP dated April 17, 1996;

Tax Bureau:... (Tax Branch ...)

Request Mr./Ms.... to immediately submit the tax declaration form (accounting report...) to the tax authority.

If Mr./Ms. does not comply with the above request, Mr./Ms. will be subject to administrative penalties according to the law.

(Tax Branch)

(Director of Tax Branch)

TAX BUREAU Tax Branch

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

 

No.: /QD Date Month Year 19

DECISION TO IMPOSE ADMINISTRATIVE PENALTY

Director of Tax Bureau:

Director of Tax Branch:

- Based on Decree No. 281/HĐBT dated August 7, 1990 of the Council of Ministers on the establishment of the national tax collection system under the Ministry of Finance.

- Based on Decree No. 22/CP dated April 17, 1996 of the Government regarding the handling of administrative violations in the field of taxation.

Based on Circular No. 38 TC/TCT dated August 25, 1990 of the Ministry of Finance on the functions, tasks, and organizational structure of the national tax collection system under the Ministry of Finance.

Considering the nature and degree of violation of ...as recorded in the Administrative Violation Record No.... dated...

DECISION:

Article 1: Imposing a fine according to point clause Article

Imposing a fine according to point clause Article

Total amount: VND (in words...)

For Mr./Ms.:

Fax:

Article 2: Mr./Ms. representing

shall be responsible for paying the amounts of fines listed in Article 1 into the State Budget at ... within five days from the date of receipt of the Decision. You are responsible for implementing this Decision; if you fail to comply voluntarily, the tax authority will apply coercive measures in accordance with current laws.

Article 3: This Decision takes effect from the date of signature.

Name, position of the decision maker
* Individuals need confirmation from local authorities

TAX BUREAU Tax Branch

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

 

No.: /BB Date Month Year 19

ADMINISTRATIVE VIOLATION RECORD

Today, at... hours on...day...month...year...

in

We include:

1. Position:

Decree

2.

Decree

3.

Decree

Conducting the preparation of the Administrative Violation Record for the incident occurring on...day...month...year...

Location of the violation:

Witnessed by Mr./Ms.

Fax:

ID card number issued on...Issued by...

Name of the violator (or representative of the violating organization):

Fax:

Content of the violation:

Statement of the violator:

This record is made in two copies, one copy given to the party involved.

During the inspection, the inspection team did not damage or lose any property of the establishment.

The record was read aloud for everyone to hear and agreed upon by signatures.

Violator Witness Recorder

(or representative (if any) (full name)
of the violating organization)