Tax Evasion Penalties in Vietnam: Jail, Fines or Deportation?

Tax evasion penalties in Vietnam can be severe. Are you under investigation? Could you face imprisonment, heavy fines, or even deportation? Understanding the law properly is the first step to protecting your rights.

Penalties for Tax Evasion Under Vietnamese Criminal Law

When hearing the term “tax evasion,” many people—especially foreigners doing business in Vietnam—often assume it is merely an administrative violation. However, in many cases, this conduct can lead to criminal liability with serious consequences.

So, what exactly are the penalties for tax evasion under Vietnamese criminal law? When does tax evasion become a criminal offense? And what risks do foreigners often overlook?

When Does Tax Evasion Become a Criminal Offense?

Under the Vietnamese Criminal Code 2015 (as amended in 2017), tax evasion may be prosecuted if:

• The evaded tax amount is VND 100 million or more, or
• The amount is below VND 100 million but the offender has previously been administratively sanctioned or convicted for the same offense and has not yet had their criminal record expunged

Common acts of tax evasion include:

• Failure to declare or under-declaration of revenue
• Use of illegal invoices
• Concealment of income or profits
• Failure to issue invoices for goods or services

For foreigners, these violations often arise during:

• Company formation in Vietnam
• Operating restaurants, e-commerce businesses, or service companies
• Cross-border transactions

In many cases, violations are not intentional, but stem from a lack of understanding of Vietnam’s tax regulations—yet still result in serious legal consequences.

Specific Penalty Framework Under Current Law

The penalties for tax evasion are divided into different levels depending on the amount of tax evaded and the nature of the offense:

Level 1: Basic Penalties

• 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: Aggravated Penalties

• 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
• The offense is committed in an organized manner or repeatedly

Level 3: Serious Penalties

• 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:

• Additional fines from VND 20 million to VND 100 million
• Prohibition from holding certain positions or conducting business
• Deportation (for foreign nationals)

This is a critical point many foreigners overlook:
The consequences are not limited to fines or imprisonment—they may directly affect your residency status and ability to operate a business in Vietnam.

What Should Foreigners Do If They Are Investigated for Tax Evasion?

Receiving a summons from the police or tax authorities can be overwhelming:

“Am I going to be arrested?”
 “Should I cooperate or remain silent?”
 “Will Vietnamese law protect me?”

In reality, how you respond at this stage can significantly impact the outcome of your case.

Common Legal Risks If Handled Incorrectly

Based on practical experience, many foreigners make critical mistakes such as:

• Providing explanations without fully understanding the case file
• Signing documents without careful review or without an interpreter
• Giving statements that may be unfavorable to themselves
• Not engaging a lawyer early

These mistakes may lead to:

• Escalation from administrative violation to criminal prosecution
• Increased legal liability
• Loss of opportunities for mitigation

In tax evasion cases, documents, accounting data, and financial transactions are often complex. Without proper legal guidance, you may easily find yourself in a disadvantaged position.

Safe Legal Solutions and Proper Approach

If you or someone close to you is facing such a situation, the most important steps are:

1. Stay Calm and Avoid Making Assumptions

Not all tax evasion cases lead to imprisonment.
 The outcome depends on:

• The severity of the violation
• Efforts to remedy the consequences
• How you work with the authorities

A proper legal strategy may help:

• Shift the case from criminal to administrative handling
• Reduce liability
• Protect your residency status in Vietnam

Note: Each case is different. Outcomes depend on specific facts, evidence, and the assessment of competent authorities.

2. Engage a Lawyer as Early as Possible

This is especially crucial for foreign nationals.

A lawyer can assist with:

• Explaining Vietnam’s criminal procedure
• Participating in meetings with investigation authorities
• Developing an appropriate defense strategy
• Protecting your legal rights throughout the process

3. Prepare Documents and Evidence Strategically

Providing more documents is not always better. What matters is:

• Submitting the right documents at the right time
• Clarifying lack of intent (if applicable)
• Demonstrating cooperation and goodwill

DEDICA Law – Legal Support for Foreigners in Vietnam

In practice, criminal cases involving foreigners in Vietnam often involve additional complexities such as:

• Language barriers
• Differences in legal systems
• Psychological pressure when dealing with authorities

DEDICA Law, a professional law firm based in Ho Chi Minh City, with lawyers experienced in international law firms and multinational corporations, has:

• Advised and defended foreign clients in criminal investigations in Vietnam
• Supported clients in cases involving tax evasion, finance, and corporate matters
• Represented clients before authorities, ensuring they understand their rights and obligations

We understand that what clients need is not only legal knowledge, but also a practical, safe, and tailored legal strategy.

Are You Facing a Similar Situation?

If you or your loved ones are foreigners who are:

• Invited to work with authorities regarding tax issues
• Under investigation or facing criminal charges
• Concerned about the risk of imprisonment or deportation

Do not wait until the situation escalates.

Contact DEDICA Law today for a legal strategy tailored to your case.

Contact DEDICA Law Firm for Professional Legal Support

📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)

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Contact us today for a free initial consultation with our experienced lawyers!