Vietnam tax authorities increase enforcement and penalties

Tax authorities in Vietnam are intensifying enforcement measures regarding tax compliance and information disclosure. In Hue, the local tax office has issued notices to the Immigration Department of the Ministry of Public Security to temporarily suspend the exit of several legal representatives. These individuals belong to businesses that have been inactive at their registered addresses for over 120 days without completing the necessary procedures to restore or terminate their tax identification numbers.

Separately, the Hanoi Tax Office has announced strict penalties for failing to provide required information. Under Decree 252, organizations that collude to obstruct tax authorities from verifying information may face fines between 50 million and 100 million VND. The regulations mandate that credit institutions, foreign bank branches, and payment service providers must provide financial account information for non-resident taxpayers. Additionally, foreign company branches in Vietnam are required to disclose information regarding the legal and beneficial owners of their overseas parent companies.