Tax Evasion & Avoidance

Tax evasion is defined as the act of avoiding one’s tax responsibilities to the government. Not confined toVietnam, tax evasion is frequent in all countries, resulting in a detrimental influence on the economy, causingsocial inequality and a loss of government revenue. However, the laws of each country have different regulations concerning the offence of tax evasion.

In Vietnam, beginning on January 1, 2018 (the date the 2015 Penal Code, amended and supplemented in 2017 took effect), individuals and commercial legal entities are both subject to criminal prosecution for tax evasion. Tax evasion crimes comprise both active behavior and inactive behavior. For an individual, the minimum tax evasion amount which is prosecuted for penal liability is one hundred million Vietnamese dongs, and for a commercial legal entity, this amount is two hundred million Vietnamese dongs (if the individual or legal entity has not been administratively sanctioned or has no previous conviction which has not been expunged for offences in economic, financial, and tax-related fields). The maximum penalty for individual tax evasion is seven years in prison or a fine of between 1.5 billion Vietnamese dongs and 4.5 billion Vietnamese dongs.  For commerical legal entities, the maximum punishment is a fine of between 03 billion Vietnamese dongs and 10 billion Vietnamese dongs or suspension of operations.

Le & Tran is a law firm with vast experience in corporate consulting, offering advice, solutions and warnings so that businesses can anticipate and prevent risks related to tax evasion. We also have a team of top criminal defense lawyers who can assist businesses in resolving issues and problems, as well as representing and protecting them in the process of verifying denunciations and reports of crimes.  The Firm also safeguards its clients during the investigation process by government agencies related to the enterprise’s alleged activities on tax evasion.