The fine and handling of violations of business registration and tax registration according to regulations will remain the same. However, the declaration, calculation of taxes, tax deduction, and payment of taxes according to the new method has made many business households and individuals worry about "faulting".
Article 62 of Decree No. 122/2021/ND-CP of the Government clearly states the violation of business registration:
Fine from 5 - 10 million VND for one of the following acts:
Individuals and members of a household registered to do business with more than one business household;
Not authorized to establish a business household but still establish a business household;
Not registering to establish a business household in cases where registration is required according to regulations;
Not registering to change the content of the business registration certificate with the district-level business registration agency within 10 days from the date of change.
Fine from 10 - 20 million VND for one of the following acts:
Declaring dishonestly and accurately the business registration file or the registration file changing the content of the business registration.
In case of violations of tax laws, they will be handled according to regulations on administrative sanctions in the tax field;
Continue to do business in conditional business lines and occupations when there is a request for temporary suspension by the district-level business registration agency.
In order to avoid errors from the first steps of registration, business households are required to register to establish establish according to regulations.
At the same time, business households are required to register to change the content of the Registration Certificate in case they have not registered for the violation.
Article 10 of Decree No. 125/2020/ND-CP stipulates penalties for violations of tax registration deadlines; notification of temporary suspension of business operations; announcement of continued business before the deadline, specifically:
Warning for tax registration; notification of temporary suspension of business operations; notification of continued business before the notice period has exceeded the prescribed deadline by 01 day to 10 days and there are mitigating circumstances.
Fine from 1-2 million VND for one of the following acts:
Tax registration; notification of continued business before the notified deadline from 01 day to 30 days, except for the case specified in Clause 1 of this Article.
Notice of temporary suspension of business operations beyond the prescribed time limit, except for the case specified in Clause 1 of this Article.
No notice of temporary suspension of business operations.
Fine from 3 million VND - 6 million VND for tax registration; notify to continue trading before the announced deadline of 31 to 90 days.
Fine from 6-10 million VND for one of the following acts:
Tax registration; notification of continued business activities before the notified deadline of 91 days or more.
Not notifying to continue business activities before the announced deadline but not incurring the tax payable.
Administrative sanctions for tax evasion are prescribed in Article 17 of Decree No. 125/2020/ND-CP.
Firstly, warning shall be applied to non-serious violations of tax and invoice procedures, with mitigating circumstances and subject to the application of warning penalties as prescribed in this Decree.
Second, apply the fine.
The maximum fine for an organization committing an administrative violation of invoices shall not exceed 100 million VND. The maximum fine is not more than 50 million VND for individuals who commit administrative violations of invoices.
The maximum fine is not more than 200 million VND for taxpayers who are organizations that violate tax procedures. The maximum fine is not more than 100 million VND for taxpayers who are individuals who violate tax procedures.
Fine 20% of the missing tax amount or the amount of tax that has been exempted, reduced, or refunded higher than prescribed for incorrect declaration leading to a shortage of tax payable or an increase in the amount of tax exempted, reduced, or refunded.
Fine from 1 to 3 times the amount of tax evasion for tax evasion.
Fine corresponding to the amount not taken into the state budget account for the violation as prescribed in Clause 1, Article 18 of this Decree.
In order to avoid being handled for violations in the process of business registration and tax registration, households and individuals need to fully understand the provisions of tax law and relevant laws to comply with and comply with regulations.
