How many years in prison can tax evasion in Vietnam lead to? Can foreigners be criminally prosecuted? If you are under investigation, what should you do to minimize legal risks?
How Many Years of Imprisonment Can Individuals Face for Tax Evasion in Vietnam?
Many foreigners working, doing business, or investing in Vietnam often underestimate their tax obligations. It is only when they receive a summons from the police or tax authorities that the concern begins: “Could I go to prison?”
This fear is entirely valid. In Vietnam, tax evasion is not only subject to administrative penalties but, in many cases, may also result in criminal prosecution. However, the level of punishment varies depending on several factors, including the amount of tax evaded, the nature of the violation, and the offender’s level of cooperation.
In this article, DEDICA will help you understand the legal nature of tax evasion offenses and the potential penalties involved—so you can take appropriate action if you or your loved ones are facing a similar situation.
What Is Tax Evasion Under Vietnamese Law?
According to Article 200 of the 2015 Criminal Code (amended in 2017), tax evasion refers to acts where an individual or organization intentionally fails to fulfill or improperly fulfills tax obligations in order to reduce the amount of tax payable.
Common acts considered tax evasion include:
- Failure to declare taxable income
- Use of fake invoices or documents
- Misreporting to reduce tax liability
- Failure to issue invoices for goods/services
- Transfer pricing or concealment of revenue
For foreigners, whether you are an individual, expert, investor, or business owner in Vietnam, if tax obligations arise within Vietnam, you are still subject to Vietnamese law.
When Does Tax Evasion Lead to Criminal Liability?
Not all tax evasion cases result in imprisonment. Vietnamese law clearly distinguishes between administrative penalties and criminal prosecution.
Generally, criminal liability applies when:
- The evaded tax amount is from VND 100 million or more, or
- The amount is below VND 100 million but the offender has previously been administratively sanctioned for the same violation
This means that first-time violations of a minor nature may only result in administrative penalties. However, if the amount is significant or the conduct is serious, the risk of criminal prosecution becomes much higher.
Criminal Penalties for Tax Evasion in Vietnam
After understanding when criminal liability applies, the most common concern is: “If prosecuted, how long could I be imprisoned?”
The answer depends on the applicable penalty bracket under the law.
Penalty Framework Under Current Law
Under the Criminal Code, individuals committing tax evasion may face the following penalties:
Level 1 (Least Severe)
- Fine from VND 100 million to VND 500 million
- Or imprisonment from 03 months to 01 year
Applicable when:
- The evaded tax amount is from VND 100 million to under VND 300 million
Level 2 (Moderate)
- Fine from VND 500 million to VND 1.5 billion
- Or imprisonment from 01 year to 03 years
Applicable when:
- The evaded tax amount is from VND 300 million to under VND 1 billion
- Or the offense involves organized conduct or repeat violations
Level 3 (Most Severe)
- Fine from VND 1.5 billion to VND 4.5 billion
- Or imprisonment from 02 years to 07 years
Applicable when:
- The evaded tax amount is VND 1 billion or more
In addition, offenders may also face:
- Prohibition from conducting business or practicing certain professions
- Obligation to repay the full evaded tax amount along with penalties
Are Foreigners Subject to the Same Criminal Penalties?
Yes.
Vietnamese criminal law applies to all individuals committing offenses within Vietnamese territory, regardless of nationality. This means:
- Foreigners can be investigated, prosecuted, and tried in Vietnam
- They may be detained during the investigation process
- After serving their sentence, they may be deported
This is why many foreign clients feel overwhelmed when first dealing with Vietnam’s legal system.
What Should You Do If You Are Under Investigation for Tax Evasion?
If you or your loved ones are undergoing a tax inspection, have been summoned by authorities, or are even under criminal investigation, the most important thing is not panic—but taking the right actions from the beginning.
Common Mistakes That Can Worsen the Situation
From DEDICA’s experience assisting foreign clients, some common mistakes include:
- Providing statements without legal counsel
- Signing documents without fully understanding their content
- Failing to cooperate or providing inaccurate information
- Delaying remedial actions (such as paying outstanding taxes and penalties)
These actions may negatively affect how authorities assess your attitude, potentially impacting the outcome of your case.
Practical Steps to Minimize Legal Risks
In tax evasion cases, factors such as good faith remediation and a proper legal strategy can make a significant difference.
You should consider:
- Engaging a lawyer as early as possible
- Reviewing all accounting and tax records
- Proactively remedying violations if any are identified
- Preparing appropriate explanations in line with legal regulations
Important Disclaimer: No lawyer can guarantee that you will “definitely avoid imprisonment.” Each case depends on its specific circumstances and multiple factors. However, having the right legal strategy from the outset can significantly help minimize your risks.
DEDICA – Legal Support for Foreigners in Criminal Cases in Vietnam
DEDICA is a law firm based in Ho Chi Minh City, with experienced lawyers who have:
- Defended foreigners in criminal cases
- Advised and worked with investigation authorities
- Protected clients’ rights in tax and financial matters
We understand that for foreigners, facing a criminal case in Vietnam is not only a legal issue—but also a challenge involving language, culture, and psychology.
DEDICA not only provides legal solutions but also helps you:
- Clearly understand your rights and obligations
- Work effectively with authorities
- Build a defense strategy tailored to each stage of your case
Contact DEDICA Law Firm for Professional Legal Support
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
🕒 Working Hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our experienced lawyers!
