Penalties for Representative Offices of Foreign Traders in Vietnam. The level of sanction for representative offices of foreign traders in Vietnam. Let us learn about this topic with LSX Law firm below:
Penalties for Representative Offices of Foreign Traders in Vietnam
The level of sanction for representative offices of foreign traders in Vietnam; specified in Article 67 of Decree 98/2020/ND-CP; as follows:
Penalties for acts of dishonest declaration
Penalties for Representative Offices of Foreign Traders in Vietnam; for acts of dishonestly declaring contents in the application file for the grant; re-grant, adjustment or extension of the representative office establishment license; (such as making false declarations, giving information that is not true to the facts in the records, etc.); and the act of failing to make a public listing under regulations when terminating the operation of the representative office; (when the representative office has terminated; according to the provisions of law but the representative office does not make public listing); shall administratively sanctioned with a fine ranging from VND 5,000,000 to VND 10,000,000.
Penalties for acts such as failure to comply with the declaration obligation
Penalties for Representative Offices of Foreign Traders in Vietnam for acts such as:
Failure to perform the reporting obligation on the absence of a representative office location; or sub-lease the head office of the representative office; or that representative office operates at the wrong address stated in the representative office establishment license; do not make periodic reports also; or dishonestly report on the operation of the representative office to the competent state management agency that has granted the permission as prescribed; failing to report also; provide documents or explain issues related to the operation of the representative office at the request of the competent state management agency as specified also; the representative office’s behavior does not carry out adjustment procedures; or re-grant the license to establish a representative office in cases prescribed by law also; and the act of adding, erasing, or correcting changes the contents stated in the granted representative office establishment license.
In these cases, the representative office will be fined from VND 10,000,000 to VND 20,000,000. These are violations of the declaration, operation; performance of obligations on adjustment of administrative procedures for licensing the establishment of representative offices; which will affect the management of competent agencies.
Penalties for acts related to documents for Representative Offices of Foreign Traders in Vietnam
Penalties for Representative Offices of Foreign Traders in Vietnam for the following acts:
Forging papers and documents in the application file; re-issuance, adjustment, and extension of representative office establishment license in case of not being prosecuted for penal liability; the representative office does not operate under the contents stated in the license of the representative office; acts of leasing, borrowing or leasing or lending a representative office establishment license; or the action of the head of a representative office concurrently acting; as the legal representative of an economic organization established under the laws of Vietnam; shall fined from VND 20,000,000 to VND 30,000,000. These are acts related to the representative office’s documents; records, and activities, causing deviations from the contents stated in the business registration certificate.
Penalties for acts related to the term of activity for representative Offices of Foreign Traders in Vietnam
For acts such as: continuing to operate after the foreign trader has terminated its operation; continue to operate after the competent state management agency revokes the license to set up a representative office or the license expires; If not extended, the representative office will fined from VND 30,000,000 to VND 50,000,000
In addition to the main penalties, there are also additional sanctions for representative offices of foreign traders in Vietnam, including sanctions such as confiscation of material evidence of violations for acts as prescribed in law; forfeit the right to use the license to establish a representative office from 01 months to 03 months for violations as defined. In addition, there are remedial measures prescribed by law, that is, forcing the return of illegal profits obtained from committing breaches under the law.
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Related questions
The location of the head office of a representative office of a foreign trader must conform to the provisions of Vietnamese law on security, order, occupational safety, and health conditions, and other conditions as prescribed by law. the law. In addition, representative offices are not allowed to lend or sublease their headquarters.
We can say that the accounting of a representative office depends on the enterprise. The enterprise bears all financial obligations arising from the operation of the representative office. Therefore, this office has no revenue and expenditure activities, so it will not process tax returns.
In case there is a purchase of goods and direct payment for operational purposes, an invoice can be issued in the name of the representative office. Then they will transfer the invoice to the head office for processing of making a tax return.
If in the case of a purchase of goods, but those expenses are directly paid by the head office, the invoice will write the information of the head office in the form “name, address, tax code of the buyer.”
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