New Decree guiding the administrative penalties in Taxation and CustomsOn 15 October 2013 and 16 October 2013, the Government issued Decree No.127/2013/ND-CP and Decree No.129/2013/ND-CP guiding the administrative penalties and enforcement of administrative decisions for customs and taxation, respectively.

The administrative penalty for customs and taxations has been updated pursuant to the Amended Law on Tax Administration dated 20 November 2012, specifically as follows:

Penalties on Taxation:

■ Violations of tax procedures: Penalty level increases to VND200 million at maximum (current penalty level is VND100 million).

■ Wrong declarations resulting in underdeclaration of tax liabilities or higher amount of refund: Penalty level is 20% of the under-declaration or higher refund amount (current penalty level is 10%).

■ For tax evasion and fraud: The level of penalty remains unchanged as currently from 1 to 3 times of the deemed amount of evaded and fraudulent tax liabilities.

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