The Government has issued Decree 129/2013/ND-CP dated 16 October 2013 to replace Decree 98/2007/ND-CP dated 7 June 2007 and Decree 13/2009/ND-CP dated 13 February 2009 on penalties for tax administrative violations.

Below are some notable changes under Decree 129:

  • The status of limitations for sanctioning is still two (2) years for tax procedures and five (5) years for tax under-declaration, counting from the date the act of violation is committed to the date of the penalty sanctioning decision. Under Decree 98, it is counted from the date the act of violation is committed to the date of tax audit minutes.
  • Past the statute of limitations for sanctioning tax-law violations, a violator is not sanctioned but still must pay the additional tax liabilities to the State Budget. The limitation for collection of outstanding tax is 10 years, from the date when the violation is discovered.
  • Tax under-declaration discovered by the tax authorities is subject to administrative penalties of 20%

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