Vietnam: decree on tax penalties

December 12, 2013

Decree 129/2013/ND-CP, which is effective from 15 December 2013, revises the tax administrative rules on penalties for administrative violations.

The key amendments are summarized below.

Statute of limitations (SOL)

The SOLs for procedural offences and for underpayment of tax remain unchanged at two years and five years respectively.

Decree 129, however, clarifies that the SOL runs from the date the offence is committed, which (for the two preceding situations) is defined as the day after the applicable tax filing date or the date the tax refund is issued.

Further, Decree 120 provides that the SOL applicable for the collection of outstanding taxes is 10 years from the date the violation is detected.

Additionally, there is no SOL in respect of unregistered taxpayers with outstanding tax liabilities due.


The maximum penalty for procedural violations has doubled as follows:

  • VND200 million if the taxpayer is a business entity
  • VND100 million if the taxpayer is an individual

Underpayment of taxes or excessive tax refund claims will be subject to a tax penalty of 20% of the actual tax due.

The penalty for tax evasion (100%–300% of tax evaded) remains unchanged.

The penalty on late payment of taxes is replaced by a late payment interest of 0.05% per day for the first 90 days and 0.07% thereafter.

The SOL on the interest due is 10 years.

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