In recent years, the private economic sector, especially the individual economic sector and business households, has continued to develop strongly and contributed significantly to economic growth, creating jobs and revenue for the state budget.
Along with the explosion of the digital economy, e-commerce, and social networks, more and more individuals and households are participating in production and business activities with a large scale and large revenue.
However, according to the tax authority, the reality shows that there are still a number of business households that are not fully aware of legal obligations during operations, especially regulations related to business registration, tax registration and information declaration. These violations not only pose legal risks to business households but also affect a transparent and equal business environment.
In order for taxpayers in the area to clearly understand and proactively prevent violations, Hanoi Tax has specifically noted the violations and the penalty levels according to current regulations.
Fine from 5 to 10 million VND for many common violations
According to Article 62 of Decree No. 122/2021/ND-CP of the Government on administrative sanctions in the field of planning and investment, many violations of business household registration can be subject to fines from VND 5,000,000 to VND 10,000,000.
Accordingly, this penalty applies to acts such as: Individuals or members of a household registering to do business with more than one business household; cases that are not eligible to establish a business household but still conduct registration; not registering to establish a business household while the law stipulates that registration is required; or not registering to change the content of the Business Household Registration Certificate within 10 days from the date of change.
These are quite common violations, especially for small business households, online businesses or changing locations and occupations but have not promptly updated information with the business registration agency.
Dishonest statements can be fined up to 20 million VND
Notably, Decree 122/2021/ND-CP stipulates a fine of VND 10,000,000 to VND 20,000,000 for more serious violations in business registration.
In particular, dishonest and inaccurate declaration of business registration documents or registration documents to change the content of business registration will be punished in this high range.
In case of incorrect declaration leading to violations of tax laws, business households may also be subject to additional handling according to the provisions of the law on administrative sanctions for violations in the tax field.
In addition, continuing to do business in a conditional investment and business profession when there is a request for temporary suspension by the business registration agency is also subject to heavy penalties.
Warnings and recommendations from tax authorities
The tax authority recommends that business households proactively review their legal status, from business registration, tax registration to declaration of information on the industry, location, and scale of activities.
Full and honest compliance not only helps avoid unfortunate fines but also creates favorable conditions for expanding operations and accessing State support policies.
In the context of increasingly modern tax management, data connection and enhancing post-inspections, acts of "taking advantage" of registration and declaration that are not true to reality will increasingly inevitably be discovered.
Complying with regulations from the beginning is considered a safe and sustainable solution for business households in the long-term operation process.
