Taxpayers should note the principles of sanctioning administrative violations in tax management from July 1, 2026

On December 10, 2025, the 15th National Assembly, 10th session, passed the Law on Tax Administration 2025, effective from July 1, 2026.

Accordingly, the principle of sanctioning administrative violations in tax management is stipulated in Article 44 of the 2025 Law on Tax Administration as follows:

- The handling of administrative violations of tax management is carried out in accordance with the provisions of the law on tax management and the law on handling administrative violations.

- In case of not sanctioning administrative violations of tax management:

+ In case the taxpayer has acts of incorrect declaration as prescribed in Clause 2, Article 45 of this Law but has supplemented the tax declaration dossier and has voluntarily paid the full amount of tax payable before the tax authority announces the tax inspection decision, another competent authority announces the inspection and examination decision at the taxpayer's headquarters or before the tax authority detects it without tax inspection at the taxpayer's headquarters or before another competent authority detects it; the individual directly finalizing personal income tax is late in submitting the personal income tax finalization dossier and incurs the amount of tax refunded and cases not subject to other administrative penalties specified in this Law, other relevant legal regulations and other cases as prescribed by the Government;

+ In case the taxpayer has made incorrect declarations as prescribed in Clause 3, Article 45 of this Law but has made supplementary declarations before the time the customs authority notifies the direct inspection of customs dossiers for goods undergoing customs procedures; The taxpayer shall make supplementary declarations within 60 days from the date of customs clearance and before the time of decision to inspect and examine goods that have been cleared, post-customs clearance inspection and other cases as prescribed by the Government.

- The application of fines in administrative violations of tax management is implemented as follows:

+ A fine of 10% calculated on the amount of tax declared missing the amount of tax payable or the amount of tax declared increased in cases of exemption, reduction, refund, and non-collection of tax for the acts specified in point a, clause 3, Article 45 of this Law;

+ A fine of 20% calculated on the amount of tax declared missing the amount of tax payable or the amount of tax declared increased in cases of exemption, reduction, refund, non-collection of tax for acts specified in Clause 2 and Points b, c Clause 3 Article 45 of this Law;

+ A fine of 01 to 03 times the amount of tax evaded for the acts specified in Clause 4, Article 45 of this Law.

- For the same administrative violation of tax management, the penalty level for organizations is 02 times the penalty level for individuals. Specifically, for acts of incorrect declaration leading to a shortage of tax payable or increasing the amount of tax exempted, reduced, refunded, and not collected, and acts of tax evasion, the penalty level is not distinguished between organizations and individuals.

- In case taxpayers are taxed according to the provisions of Article 24 and Article 25 of this Law, depending on the nature and severity of the violation, they may be administratively sanctioned for tax management violations according to the provisions of this Law.

- In case of violations of tax management laws to the extent that criminal prosecution is required, it shall be implemented according to the provisions of criminal law.

- For acts of violating tax procedures, the penalty period is 02 years. For acts of tax evasion that have not reached the level of criminal prosecution, acts of false declaration leading to a shortage of tax payable or an increase in the amount of tax exempted, reduced, refunded, or not collected, the penalty period is 05 years. The time to calculate the penalty period for administrative violations shall be implemented according to the provisions of law on handling administrative violations.

- After the statute of limitations for sanctioning administrative violations of tax management, taxpayers are not penalized but still have to pay the full amount of tax arrears, tax evasion amounts, tax amounts exempted, reduced, refunded, not collected incorrectly, late payments to the state budget within 10 years or more from the date of detecting the violation. In case the taxpayer does not register for tax, they must pay the full amount of tax arrears, tax evasion amounts, late payments for the entire period or earlier from the date of detecting the violation.

- Taxpayers who are fined for administrative violations of tax management and suffer damage in force majeure cases specified in Clause 21, Article 4 of this Law are exempt from fines. The total amount of exemption from fines does not exceed the value of damaged assets and goods. Not exempt from fines for administrative violations of tax management for cases where the decision to sanction administrative violations of tax management of the tax management agency or competent state agency has been completed.

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