Tax Evasion in Vietnam: When Does It Become a Criminal Offense?

This is a major concern for many foreigners when working with Vietnamese authorities. Is there a specific threshold? And what should you do to minimize legal risks?

When Does Tax Evasion Become a Criminal Offense in Vietnam?

Receiving a working invitation from the police or tax authorities in Vietnam can be stressful for many foreigners. Questions often arise:

• “Will I be criminally prosecuted?”
• “What amount of tax evasion is considered a crime?”

These concerns are completely valid. However, the answer is not based solely on a number. It depends on multiple legal factors, and misunderstanding the situation may expose you to greater risks.

Legal Threshold for Tax Evasion Under Vietnamese Law

Under the Vietnamese Criminal Code 2015 (as amended in 2017), specifically provisions on tax evasion:

An individual or legal entity may face criminal liability if:

• The evaded tax amount is VND 100 million (approx. USD 4,000) or more, OR
• The amount is below VND 100 million, but the offender has:
  • Previously been administratively sanctioned for tax evasion, or
  • Previously convicted of tax evasion without having their criminal record expunged

This means: You do not need to evade a “large amount” to face criminal charges. Even smaller amounts may lead to prosecution if there is a repeated violation.

The law also provides different penalty brackets:

• From VND 100 million to under VND 300 million
• From VND 300 million to under VND 1 billion
• Over VND 1 billion

Penalties range from fines and non-custodial reform to imprisonment, depending on severity.

It’s Not Just About the Amount: Risk Factors to Consider

In practice, many foreign clients assume that “below VND 100 million is safe.” This is a common misconception.

Authorities may also evaluate:

• Whether the act was organized (e.g., shell companies, fake invoices)
• The intent (deliberate evasion vs. accounting errors)
• Whether the violation was repeated or prolonged
• Any cross-border elements, such as international transactions

For foreigners, additional issues may also be reviewed, including:

• Visa status
• Work permits
• Business operations in Vietnam

What Should Foreigners Do If They Are Under Investigation for Tax Evasion?

If you (or someone close to you) are being invited for questioning, investigated, or charged with tax evasion in Vietnam, the most important thing is not to panic, but to understand your situation clearly and act promptly.

Common Mistakes That Can Worsen the Situation

From our experience working with international clients, the following mistakes are very common:

• Providing explanations without a lawyer
  → You may unintentionally give statements that harm your position
• Signing documents without fully understanding them
  → Especially risky due to language barriers
• Delays in cooperation or document submission
  → May be viewed as lack of good faith
• Transferring assets or leaving Vietnam during investigation
  → Could raise suspicion and lead to stricter preventive measures

These actions rarely help and may complicate your case further.

Safe Approach and Legal Strategy

Instead of guessing the law, a safer approach includes:

1. Accurately Assess Your Legal Position

Each tax evasion case is different:

• Is it an accounting error or intentional conduct?
• What is the officially determined evaded amount?
• Are there mitigating factors?

This assessment should be conducted by a lawyer experienced in Vietnamese criminal and tax law.

2. Develop a Proper Strategy for Working with Authorities

A well-planned legal strategy may include:

• Preparing supporting documents and favorable evidence
• Providing explanations aimed at mitigating liability
• Proactively remedying consequences (e.g., paying back taxes and penalties)

In many cases, early remediation is a key factor in reducing criminal liability.

3. Protect Your Rights as a Foreigner

Foreign nationals in Vietnam are entitled to certain procedural rights:

• The right to legal counsel
• The right to an interpreter
• The right to notify your consulate

However, without proper legal guidance, these rights are often overlooked.

DEDICA Law – Legal Support for Foreigners in Criminal Cases in Vietnam

In cases involving tax evasion and economic crimes, especially those with foreign elements, choosing the right lawyer early can make a significant difference.

DEDICA is a law firm based in Ho Chi Minh City with strong experience in:

• Advising and defending foreign clients under criminal investigation in Vietnam
• Supporting clients in working with police and prosecution authorities
• Developing legal strategies to minimize risks and protect legitimate rights

We understand that for foreigners, a criminal case in Vietnam is not just a legal issue—it also involves challenges related to language, culture, and an unfamiliar legal system.

That is why DEDICA’s approach goes beyond handling the case. We accompany, explain, and guide you clearly at every step.

Legal Disclaimer: This article is for informational purposes only and does not constitute legal advice. Each case has unique circumstances that may lead to different legal outcomes under Vietnamese law.

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!