NEWSLETTER FROM 16 OCTOBER – 15 NOVEMBER 2020
| Penalties for administrative violations of tax and invoices
(Decree 125/2020/NĐ-CP dated 19/10/2020) Effective 05/12/2020 |
– Regulations on administrative violations, sanctioning forms, levels of penalties, remedial measures, competence to impose penalties, competence to make administrative violation records and some procedures for sanctioning administrative violations tax and invoice key.
– Not applicable to administrative violations of fees and charges; administrative violations of tax on exported and imported goods collected by the customs authority, and violated regulations on tax registration procedures, violations of regulations on notification of business suspension, notification to report on the continued business operation ahead of time with the business registration agency, the cooperative registration agency of the organizations and individuals that carry out tax registration together with the enterprise registration, the registration of cooperatives, Business Registration. – Penalties for violations against regulations on making, sending notices and reports on invoices: 1. A warning will be imposed on the act of submitting notices or reports on invoices 1 to 5 days behind schedule, as from the date of expiration of the prescribed time limit, there are mitigating circumstances. 2. A fine of between VND 1,000,000 and 3,000,000 shall be imposed for one of the following acts: a) Submit a notice or report on an invoice from 01 day to 10 days behind schedule, from the expiration of the time limit as prescribed, except for the case specified in Clause 1 of this Article; b) Making incorrect or incomplete contents of notices or reports on invoices according to regulations and sending them to tax authorities. In case organizations or individuals self-detect errors and make replaceable notices and reports in accordance with regulations and send them to tax offices before tax agencies or competent agencies issue tax inspection or examination decisions. Taxes at taxpayers’ offices are not sanctioned. 3. A fine of between VND 2,000,000 and VND 4,000,000 will be imposed on the act of submitting notices or reports on invoices to the tax agency 11 days to 20 days behind schedule, from the date of expiration of regulation. 4. A fine of between VND 4,000,000 and VND 8,000,000 shall be imposed for the act of submitting notices or reports on invoices to tax agencies 21 to 90 days behind schedule, from the date of expiration of the prescribed time limit. concentration. 5. A fine of between VND 5,000,000 and 15,000,000 shall be imposed for one of the following acts: a) Submit notices and reports on invoices to the tax authority 91 days or more behind schedule, from the expiration of the prescribed time limit; b) Failure to submit notices or reports on invoices to the tax authority as prescribed. |
| Detailed provisions on a number of articles of the Law on Tax Administration
(Decree 126/2020/ND-CP dated 19/10/2020) Effective 05/12/2020 |
– Detailed provisions for the implementation of a number of articles of the Law on Tax Administration applicable to the administration of taxes and other state budget revenues, except for the content of regulations on tax administration applicable to assigned enterprises. link translation, application of invoices and documents, sanctioning administrative violations in the field of tax and invoices, sanctioning administrative violations in the customs domain.
– The total amount of corporate income tax temporarily paid for the first three quarters of the tax year must not be lower than 75% of the payable corporate income tax amount according to the annual settlement. In case the taxpayer underpaid the tax amount to be temporarily paid in the first 3 quarters of the year, the late payment interest shall be calculated based on the underpaid tax amount from the day following the last day of the time limit for temporary payment of corporate income tax of the third quarter. by the date of paying the outstanding tax to the State budget. – Quarterly tax return criteria a) Quarterly declaration of value-added tax applicable to: a.1) The taxpayer is subject to the monthly VAT declaration specified at Point a, Clause 1, Article 8 of this Decree if the total revenue from the sale of goods and provision of services in the preceding year is from 50 VND billion or less, value added tax may be declared quarterly. Revenue from selling goods and providing services is determined as the total revenue on the value added tax returns of the tax periods in the calendar year. a.2) In case the taxpayer has just started operations, it may choose to declare value-added tax on a quarterly basis. After 12 months of production and business, the full 12 months from the following calendar year to the year, will be based on the turnover of the preceding calendar year (full 12 months) to make value-added tax declaration monthly or quarterly. b) Quarterly declaration of personal income tax as follows: b.1) If the taxpayer is eligible for the monthly personal income tax declaration specified at Point a, Clause 1, Article 8 of this Decree, if all the conditions for value-added tax are met on a quarterly basis, they may choose to declare PIT quarterly. b.2) The quarterly tax declaration is determined once from the first quarter when the obligation to declare tax arises and is applied stably throughout the calendar year. – Taxpayers are responsible for self-determining that they are subject to quarterly tax declaration to make tax declaration according to regulations. a) Taxpayers that satisfy the quarterly tax declaration criteria may choose to declare tax monthly or quarterly for the whole calendar year. b) If the taxpayer is making monthly tax declaration then he / she meets all the conditions for quarterly tax declaration and chooses to switch to quarterly tax declaration, he / she shall send the written request specified in Appendix I to this Decree in order to change the tax period to the supervisory tax authority no later than January 31 of the year when quarterly tax declaration starts. If after this time, the taxpayer does not send a document to the tax authority, then the taxpayer continue to make monthly tax declaration stably for the whole calendar year. c) If the taxpayer discovers that the condition is ineligible for the quarterly tax declaration, the taxpayer must make monthly tax declaration from the first month of the following quarter. Taxpayers are not required to return monthly tax declaration dossiers of the previous quarters but must submit the determination of the amount of tax payable on a monthly basis in addition to the quarterly declared amount specified in Appendix I enclosed herewith. according to this Decree and must charge a late payment interest as prescribed. |
| Regulations on sanctioning of administrative violations in the field of Customs
(Decree 128/2020/NĐ-CP dated 19/10/2020) Effective 10/12/2020 |
– This Decree prescribes the violation acts, the sanctioning forms, the sanctioning levels and the remedial measures; sanctioning competence; administrative sanctioning procedures; the application of measures to prevent and ensure the sanction of administrative violations in the customs domain.
– The administrative violations in the customs domain specified in this Decree include: + Violation of the provisions of the law on customs procedures; + Violating the provisions of the law on customs inspection, supervision and control; + Administrative violations of tax administration on exported and imported goods; + Violation of other laws related to exported and imported goods. – For acts of violation of the law on management of exported, imported, in-transit goods, incoming, outgoing or in-transit transports occurring in the customs domain, the regulations shall apply. – The acts of making false statements include: + Incorrect declaration of quantity, name, type, quality, customs value, code of goods, tax rate, tax rate, origin; + Wrongly declaring non-taxable objects, tax-exempt subjects, goods subject to tariff quota management; + Incorrectly compiling and declaring contents in dossiers of tax exemption, tax exemption or reduction consideration, tax refund or non-collection, dossiers of handling overpaid tax or fine amounts; + Violation of regulations on management of raw materials, supplies, machinery, equipment, processed products, export production, export processing, resulting in insufficient inventory of goods compared to accounting records, accounting books payment and customs documentation for imported and exported goods; + Violation of regulations on management of goods in tax-suspension warehouses leads to insufficient inventory of goods compared with documents, accounting books, customs dossiers for exported and imported goods; + Make a settlement report on the quantity of imported raw materials, supplies and components used for production not in accordance with the reality used to manufacture processed products, exported products; + Declare imported goods according to the type of processing, production for export but there are no manufacturers of processed goods or facilities for export in the territory of the Socialist Republic of Vietnam; or have no machinery or equipment owned or have the right to use at the manufacturer in accordance with the imported raw materials, supplies or components for export processing or production. |
| Regulations on tax administration for enterprises with associated transactions
(Decree 132/2020/NĐ-CP dated 05/11/2020) Effective 20/12/2020 |
– Related transactions covered by this Decree are transactions of buying, selling, exchanging, renting, leasing, borrowing, lending, transferring, transferring goods or providing services; borrowing, lending, financial services, financial guarantees and other financial instruments; buying, selling, exchanging, renting, leasing, borrowing, lending, transferring, transferring tangible and intangible assets and agreeing to buy, sell, and use resources such as assets, capital, labor cost-sharing activities and sharing between affiliated parties, except for business transactions for goods and services subject to the State’s price adjustment scope, which comply with the law on prices.
– Associated parties are specified as follows a) One enterprise holds, directly or indirectly, at least 25% of the equity of the other enterprise; b) Both businesses have at least 25% of the owner’s equity held directly or indirectly by a third party; c) An enterprise is the largest shareholder in terms of the owner’s equity and holds directly or indirectly at least 10% of the total shares of the other enterprise; d) A business guarantees or lends money to another enterprise in any form (including third party loans secured from affiliated party’s financial resources and financial transactions in writing similar substances) provided that the loan is at least 25% of the equity of the borrower enterprise and accounts for more than 50% of the total value of the medium and long-term liabilities of the borrower; đ) An enterprise appoints members of the executive board or holds control of another enterprise provided that the number of members appointed by the first enterprise accounts for more than 50% of the total number of members of the management board, act or take control of the second firm; or a member appointed by the first firm has authority to decide the financial or business policies of the second firm; e) Two businesses that have more than 50% of board members or have a member of the board of directors who has the power to decide on financial policies or business activities is appointed by a third party; g) Two enterprises are operated or controlled in terms of personnel, finance and business activities by individuals in one of the spousal relationships; biological parents, adoptive parents, stepfather, stepmother, mother-in-law, parents-in-law; natural children, adopted children, stepchildren of spouse, daughter-in-law, son-in-law; brother, sister, sister-in-law, sibling of a half-parent, sibling, sister-in-law, brother-in-law, brother-in-law, sister-in-law, sister-in-law of the same parent, same mother of different father; paternal grandparents, maternal grandparents; grandchildren, grandchildren; aunt, uncle, uncle, uncle and nephew; h) Two business establishments have the relationship of head office and permanent establishment or are permanent establishments of the same foreign organization or individual; i) Enterprises are controlled by an individual through his / her capital contribution to that enterprise or directly participate in operating the enterprise; k) Other cases in which the enterprise is subject to the actual management, control and decision on the production and business activities of the other enterprise; l) The enterprise has transactions to transfer or receive the transfer of contributed capital of at least 25% of the equity of the enterprise in the tax period; borrowing, lending at least 10% of equity capital of the owner at the time of transactions in the tax period with the operator or controller of an enterprise or with an individual in a relationship as prescribed point g this clause. |
