Newsletter

Some new points of Decree No. 310/2025/ND-CP issued by the Government on 2 December 2025, amending Decree No. 125/2020 on administrative penalties for tax and invoice violations, effective from 16 January 2026

1. Expansion of the concept of administrative violations related to taxation

Article 1, Decree No. 310/2025/ND-CP expands the scope and further clarifies the concept of administrative violations related to taxation as follows:

“1. Administrative tax violations refer to culpable acts committed by organizations and individuals in violation of regulations of the legislation on tax administration, tax legislation, and other revenues payable into the state budget collected by the tax administration responsible for tax collection (land use levy; land rent and water surface rent; charges for mineral extraction rights; charges for water resource extraction rights; after-tax profits remaining after appropriation of funds of enterprises wholly owned by the State; dividends and distributed profits representing state capital invested in joint-stock companies or multiple-member limited liability companies; revenues under regulations of the legislation on management and investment of state capital in enterprises), which are not criminal offences and, as prescribed by law, must be subject to administrative penalties.”

2. Addition of subjects subject to administrative penalties for tax and invoice violations

Decree No. 310/2025/ND-CP adds cases in which third parties are still subject to administrative penalties if they fall under the following circumstances:

• Authorized parties performing tax obligations on behalf of taxpayers: If a violation occurs, the authorized organization or individual shall be subject to administrative penalties.
• Organizations or individuals obligated to register for tax, declare tax, and pay tax on behalf of taxpayers: In case of violations, they shall be subject to administrative penalties for tax-related violations.
• Constituent entities responsible for tax declaration under global anti–base erosion regulations: If violations occur, they shall be subject to direct administrative penalties.

3. Supplementation of regulations on force majeure circumstances in the imposition of administrative penalties for tax and invoice violations as stated in Clause 10, Article 2 of Decree No. 125/2020/ND-CP

“10. Force majeure events include natural disasters, catastrophes, epidemics, fires, unexpected accidents, wars, riots, strikes, or events occurring objectively and unforeseeably that taxpayers are unable to remedy despite having applied all necessary measures and permissible capabilities.”

4. Addition of 03 cases where penalties are not imposed for each individual violation committed by organizations or individuals involved in multiple administrative violations

Decree No. 125/2020/ND-CP only specified 04 exceptional cases where penalties are not imposed for each individual violation committed by organizations or individuals involved in multiple administrative violations under Clause 3, Article 5. Decree No. 310/2025/ND-CP has added 03 more cases. Accordingly, the current cases where penalties are not imposed for each individual violation committed by organizations or individuals involved in multiple administrative violations are as follows:

• In cases where, on the same day, the taxpayer makes incorrect declarations in one or more items on tax applications, the incorrect declaration falling under the sanctionable tax procedural violations shall be subject to a single penalty, applying the highest fine bracket among the incorrect-declaration acts committed, in accordance with this Decree;
• In cases where, on the same day, the taxpayer is late in filing multiple tax returns for the same type of tax, the taxpayer shall be subject to a single penalty for late filing, applying the highest fine bracket among those applicable to the late-filing acts committed, in accordance with this Decree. Where any tax return among the late-filed tax returns falls under tax evasion, such return shall be separately handled for tax evasion;
• In cases where, on the same day, the taxpayer is late in submitting multiple notices or reports of the same type concerning invoices, the taxpayer shall be subject to a single penalty for late submission of the notice or report concerning invoices that carries the highest fine bracket among the late-submission acts committed, and an aggravating circumstance of repeated administrative violations will be applied;
• Violations related to the use of illegal invoices or the illegal use of invoices, which are subject to penalties under Article 16 and Article 17 of Decree No. 125/2020/ND-CP, shall not be subject to penalties under Article 28 of Decree No. 125/2020/ND-CP.
• In cases where the taxpayer commits multiple acts of issuing invoices at an incorrect time, and all acts remain within the statute of limitations for penalties and are handled in one administrative violation case, the taxpayer shall be penalized once for issuing invoices at an incorrect time, with the corresponding fine bracket applied to the number of invoices issued at an incorrect time under Clause 2 Article 24 of Decree No. 125/2020/ND-CP;
• In cases where the taxpayer commits multiple acts of failure to issue invoices, and all acts remain within the statute of limitations for penalties and are handled in one administrative violation case, the taxpayer shall be penalized once for failure to issue invoices, with the corresponding fine bracket applied to the number of invoices not issued under Clause 3 Article 24 of Decree No. 125/2020/ND-CP;
• In cases where the taxpayer makes multiple incorrect declarations in a single tax application that fall under the sanctionable tax procedural violations, the taxpayer shall be subject to a single penalty, applying the highest fine bracket among the incorrect-declaration acts committed. Where the taxpayer makes multiple incorrect declarations in a single tax application that fall both under the sanctionable tax procedural violations and under the sanctionable violations prescribed in Article 16 or Article 17 of Decree No. 125/2020/ND-CP, the taxpayer shall be subject to a single penalty in accordance with Article 16 or Article 17 of Decree No. 125/2020/ND-CP.

5. Amendment of regulations on the form of monetary penalties and the principles for applying monetary fines

Regarding the form of monetary penalties:

• The maximum fine for an administrative act relating to tax and invoice procedures shall comply with the legislation on handling of administrative violations.
• A fine equal to 20% of the underpaid tax amount or the tax amount excessively exempted, reduced or refunded shall be imposed for the act of making incorrect declarations that result in an underpayment of tax payable or an increase in the tax amount exempted, reduced or refunded.
• A fine of 1 to 3 times the evaded tax amount shall apply to acts of tax evasion.
• A fine corresponding to the amount not transferred into the state budget account shall apply to the act prescribed in Clause 1 Article 18 of Decree No. 125/2020/ND-CP

Regarding the principles for applying monetary fines:

• According to Decree No. 125/2020/ND-CP, when applying a monetary fine, each mitigating circumstance reduces the fine by 10% and each aggravating circumstance increases the fine by 10% of the average fine within the penalty range, but the fine must not be lower than the minimum or higher than the maximum of the penalty range.
• Decree No. 310/2025/ND-CP has set a limit: if there are two or more mitigating circumstances, the minimum penalty within the range will be applied; if there are two or more aggravating circumstances, the maximum penalty will be applied. This regulation makes it much easier to decide on the fine level for violations.