Many violations of business registration and tax registration
In the context of increasingly vibrant production and business activities in the private sector, especially the rapid development of the digital economy, business opportunities for households and individuals are increasing. However, according to warnings from tax authorities, a significant number of individual business households are still not aware of violations of the law during production and business activities.
To avoid violating the law on business registration and tax registration as prescribed, the tax authority should pay attention to taxpayers for violations and fines for violations of business households and individuals in business registration and tax registration.
According to Decree No. 122/2021/ND-CP, violations of business household registration can be fined from 5 to 10 million VND if individuals or households register to do business with more than one business household; establish an illegal business household; do not register a business in case of necessity; or do not carry out procedures to change the content of business household registration on time.
A fine of 10 - 20 million VND applies to more serious acts such as dishonest, inaccurate declaration of records or continued business in a conditional industry even if requested to temporarily suspend.
In the tax sector, according to Decree No. 125/2020/ND-CP, individuals who register for tax or announce temporary suspension or continue to do business late will be fined from 1 to 10 million VND, depending on the level of delay. In cases of tax evasion or violation of tax declaration obligations, the fine can be up to three times the amount of tax evasion.
Heavy fines for tax evasion
According to Article 17 of Decree 125/2020/ND-CP, the act of not submitting tax registration dossiers, not submitting tax declaration dossiers or paying after 90 days will be sanctioned from 1 to 3 times the amount of tax evasion, depending on whether or not the circumstances are aggravated and slightly reduced. In serious cases, the authorities may transfer the file to the investigating agency for handling in accordance with Article 200 of the Penal Code.
Tax evasion of VND100 million or more or recidivism can be fined up to VND500 million or imprisoned from 3 months to 2 years. If there is an organization, the amount of money evaded ranges from 300 million VND to less than 1 billion VND, or committed a crime many times, the violator can be imprisoned from 1 to 3 years. In case the amount of tax evasion is from 1 billion VND or more, the fine can be up to 4.5 billion VND or imprisonment from 2 to 7 years.
The offender may also be banned from practicing, banned from holding a position for 1 to 5 years or have part and all of his/her assets confiscated.
The tax authority recommends that, to ensure business activities in accordance with the law, individual business households and individuals need to proactively study and understand regulations related to business registration, tax registration, tax declaration and payment on time. Compliance not only helps limit legal risks but also ensures the legitimate rights of taxpayers in the long term.
