List of 10 Acts Considered Tax Evasion from 1 July 2026

The Law on Tax Administration 2025, effective from 1 July 2026, sets out under Clause 4, Article 45 a comprehensive list of 10 acts deemed as tax evasion. These provisions aim to help enterprises and individuals better identify non-compliant behaviors and mitigate potential penalty risks.

The 10 acts of tax evasion include:

1. Failure to submit tax registration dossiers; failure to submit tax declarations; or submission of tax declarations more than 90 days after the statutory or extended deadline, resulting in underpaid tax liabilities or overstated tax exemptions, reductions, or refunds.
2. Failure to record revenues in accounting books that are relevant for determining tax liabilities.
3. Failure to issue invoices and declare taxes upon the sale of goods or services as required; or understating the value on sales invoices compared to the actual transaction value for tax declaration purposes.
4. Use of illegal invoices or supporting documents, or illegal use thereof, to account for input goods and services, thereby reducing tax payable or increasing tax exemptions, reductions, credits, refunds, or non-taxable amounts.
5. Use of documents or records that do not reflect the true nature or actual value of transactions, leading to incorrect determination of tax liabilities or tax benefits.
6. Misdeclaration of exported or imported goods, where the violating party fails to voluntarily remedy the consequences by fully paying the tax due.
7. Intentional failure to declare or deliberate misdeclaration of taxes related to exported or imported goods.
8. Collusion with consignors to import goods for the purpose of tax evasion.
9. Misuse of goods eligible for non-taxation, tax exemption, or conditional tax exemption for improper purposes without notifying the tax authorities of the change in use.
10. Conducting business activities during a period of suspension or temporary cessation without notifying the tax authorities.

Note: Taxpayers will not be subject to penalties for tax evasion but instead administrative penalties for tax procedure violations in certain cases, including: failure to submit tax registration or tax declaration dossiers; submission of tax declarations more than 90 days late without arising tax payable; or late submission beyond 90 days with tax payable, where the taxpayer has fully settled the tax and late payment interest before the tax authority issues a tax inspection decision or records the violation.