Doctors, lawyers, brokers: How far back can tax audits go in Vietnam?

Five-year statute of limitations for penalties, late-payment interest calculated up to 10 years

The clarification comes after Ho Chi Minh City's tax authority announced a campaign to review and recover unpaid taxes from high-income professionals in healthcare, education, culture, legal services, and real estate.

Many taxpayers have since questioned how far back tax authorities can recover unpaid taxes and calculate penalties.

Under Article 137 of the Law on Tax Administration No. 38/2019, the statute of limitations for penalties is two years for violations of tax administrative procedures.

The limitation period is five years for tax evasion that does not warrant criminal prosecution, incorrect tax declarations that result in underpaid tax, or false declarations leading to excessive tax exemptions, reductions, refunds or non-collection.

After the five-year penalty period expires, taxpayers are no longer subject to administrative penalties.

However, they must still pay all unpaid or evaded taxes, along with any tax amounts that were wrongly exempted, reduced, refunded or not collected.

They must also pay late-payment interest on outstanding tax liabilities for up to 10 years before the violation is detected.

The Law on Tax Administration No. 108/2025, which took effect on July 1, 2026, retains the same provisions.

Taxpayers who fail to register for tax must pay all unpaid taxes and late-payment interest for the entire period before the violation is detected.

Should taxpayers who voluntarily pay unpaid taxes be exempt from penalties?

Speaking to Tuoi Tre (Youth) online newspaper, Nguyen Thai Son, former head of the Personal Income Tax Division under the Ho Chi Minh City tax department, said many organizations paying occasional income fail to withhold personal income tax as required.

He cited the case of a doctor who worked at a hospital while also teaching at medical institutions and undertaking other professional work.

The organizations did not withhold tax even though the payments exceeded the withholding threshold, Son said.

The doctor also failed to consolidate all income sources when filing an annual personal income tax return.

The case resulted in a large tax arrears assessment and penalties, Son said.

He said tax authorities now have access to comprehensive data from businesses' tax declarations.

Citizens' identification numbers also serve as tax identification numbers, allowing the taxman to track income from multiple sources.

Son urged taxpayers to fully declare their income and meet their tax obligations to avoid back taxes, penalties, and late-payment interest.

He said Ho Chi Minh City's inspection plan is likely to prompt many people in the targeted professions to voluntarily declare and pay outstanding taxes before being contacted by tax authorities.

He proposed allowing affected taxpayers one to two months to voluntarily declare and pay outstanding taxes before inspections begin.

He also suggested waiving penalties or reducing late-payment interest for taxpayers who voluntarily correct their declarations before the taxman detects violations.

Still, those who deliberately evade taxes should face severe penalties, Son said.