On October 19, 2020, the Government issued Decree 125/2020/ND-CP (“Decree 125/2020/ND-CP“) on sanctioning of administrative violations of taxs and invoices. Here are some noteworthy contents of Decree 125/2020/ND-CP on: The level of fines for the administrative violation of taxes and invoices.

Clause 1, Article 7 of Decree 125/2020/ND-CP prescribes The level of fines for the administrative violation of taxes and invoices as follows:

In addition to the maximum fine for organizations and individuals in the tax procedures and invoices mentioned above, Decree 125/2020/ND-CP also stipulates the fine level in 03 special cases as follows:

• For false declarations leading to understatement of payable tax amounts or increase in tax amounts to be exempt, reduced, or refunded: The fine level is 20% of the understated tax amount or the higher tax exemption, reduction or refund in accordance with the law.
• For tax evasion: The fine is from 1 to 3 times the evaded tax amount.
• For the act of not deducting from the account of the state budget (Penalties for administrative tax violations in the case of commercial banks, guarantors paying tax): The fine is corresponding to the amount not deducted from the state budget account.

Thus, it can be seen that, Decree 125/2020/ND-CP has provided specific and detailed regulations on the fine level for administrative violations of taxes and invoices that were previously scattered or not yet regulated in the circulars of the Ministry of Finance, namely Circular 166/2013/TT-BTC (guidance on sanctioning administrative violations of tax issued by the Minister of Finance); Circular 10/2014/TT-BTC (guidance on sanctioning administrative violations on invoices issued by the Minister of Finance).

Decree 125/2020/ND-CP takes effect from December 5, 2020.

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