Official dispatch No. 5537/CT-CS The tax authority's November 25, 2025, document provides important guidance on the rights and responsibilities of businesses when underreporting taxes. The document includes regulations on late payment penalties, administrative fines, and cases where businesses are exempt from penalties, helping accountants and CFOs prepare legally compliant documentation.
According to statistics from the General Department of Taxation, on average, more than 121 businesses each year experience under-declaration of taxes due to accounting errors or mistakes in determining tax obligations. Circular No. 5537/CT-CS helps minimize this risk by providing specific guidance and clear legal basis. Read on to understand the details of how to apply the circular in accounting, auditing, and tax practice.
Overview of Official Dispatch No. 5537/CT-CS
Official Letter No. 5537/CT-CS was issued to guide enterprises to properly implement the provisions of the Law on Tax Administration 2019, especially related to tax under-declaration. This is an important legal document, helping enterprises clearly identify their rights and responsibilities when errors occur.
According to Articles 16, 59, 136, and 142 Tax Administration Law 2019, Enterprises must comply with the principles of additional declaration, late payment and administrative sanctions. Official dispatch No. 5537/CT-CS provides specific instructions on how to apply these regulations in accounting practice.
Why should businesses pay attention to Official Document No. 5537/CT-CS?
Official document No. 5537/CT-CS is a tax risk management tool that helps accountants, CFOs, and business owners:
- Understand your rights and responsibilities when underreporting taxes.
- Strictly adhere to the principles of penalties and late payment fees.
- Optimize costs, reduce legal risks.
According to the General Department of Taxation's 2024 data, 85% enterprises that have a good grasp of legal guidance can reduce an average of 30% in administrative fines for tax violations.
The right to exemption from penalties as per official document No. 5537/CT-CS
Understanding the right to avoid penalties under Official Letter No. 5537/CT-CS helps businesses reduce risks when underreporting taxes. According to Clause 11, Article 16 of the 2019 Tax Administration Law, if businesses comply with the guidance and decisions of the tax authorities, they will not be penalized and will not have to pay late payment fees. Adherence to this guidance ensures that businesses are exempt from penalties even when underreporting, helping accountants and CFOs manage taxes effectively, transparently, and legally.
Legal basis
According to Clause 11, Article 16 of the Law on Tax Administration 2019, enterprises will not be subject to administrative penalties and late payment fees if they comply with the instructions and decisions of the tax authority or competent state agency.
Practical application
In case the accountant performs correctly according to the guidance documents of the tax authority, if any under-declaration is discovered, the enterprise will be exempted from penalties. This is an important point that Official Letter No. 5537/CT-CS emphasizes to reduce unnecessary financial risks.
Responsibility for paying late payment penalties as per official letter No. 5537/CT-CS
The responsibility for paying late payment penalties as outlined in Official Letter No. 5537/CT-CS is crucial for businesses to understand. According to Article 59 of the 2019 Tax Administration Law, if a business is late in paying taxes, filing supplementary tax returns with increased tax amounts, or is found to have under-declared taxes, it must pay late payment penalties. The official letter provides guidance on calculating the late payment penalty at 0.031 TP3T/day and the payment deadline, helping accountants and CFOs prepare supplementary documents promptly, minimizing risks and ensuring legal compliance.
Legal basis
Article 59 of the 2019 Tax Administration Law stipulates that businesses must pay late payment penalties if:
- Late payment of taxes compared to the prescribed deadline.
- Filing a supplementary tax return increases the amount of tax payable.
- The tax authorities discovered that the tax authorities had underreported taxes.
| Content of violation | Tax arrears | Late payment fee 0.03%/day | Total amount payable |
| Under-declared VAT for May. | 100,000,000 VND | 900,000 VND (30 days) | 100,900,000 VND |
| Declaring insufficient corporate income tax second quarter | 200,000,000 VND | 1,800,000 VND (30 days) | 201,800,000 VND |
Application in businesses
Enterprises need to prepare additional documents in a timely manner to minimize fines and late payment fees. Official Letter No. 5537/CT-CS provides detailed instructions on how to calculate late payment fees and payment deadlines, helping CFOs and accountants prepare reasonable payment plans.
Principles for imposing administrative penalties according to Official Letter No. 5537/CT-CS
The principles for administrative penalties outlined in Official Letter No. 5537/CT-CS help businesses understand the penalties for under-declaring taxes. According to Article 136 of the 2019 Tax Administration Law, penalties are implemented according to tax management regulations and the law on handling administrative violations; if a violation of invoices leads to under-declaration of taxes, the business will only be penalized for the tax itself, not for the invoices. The letter also provides guidance on mitigating penalties when businesses file supplementary declarations and pay the full amount of taxes, helping accountants and CFOs manage tax records effectively.
Legal basis
According to Article 136 of the 2019 Law on Tax Administration, administrative sanctions are implemented according to tax administration regulations and the law on handling administrative violations. If violations of illegal invoices lead to tax arrears, enterprises will only be subject to tax administration sanctions, not invoice sanctions.
| Violation | Maximum penalty |
| Incorrect declarations lead to tax evasion. | 40% additional tax payable |
| Tax evasion | 3 times the amount of tax evaded |
| Falsely declaring an increase in the amount of exemption, reduction, or refund. | 20% additional tax amount |
Note for businesses
Accountants and CFOs need to carefully check documents and invoices before submitting tax documents to avoid being fined. Official Letter No. 5537/CT-CS provides guidance on reducing fines if businesses make additional declarations and pay full taxes.
Handling of incorrect declarations leading to tax shortfalls according to Official Letter No. 5537/CT-CS
The handling of incorrect tax declarations leading to tax shortfalls is guided by Official Letter No. 5537/CT-CS, which instructs businesses on how to correct errors when discovered. According to Article 142 of the 2019 Tax Administration Law, if an incorrect declaration is made and has been fully reflected in the accounting records and legal documents, the business must file a supplementary declaration, pay the full tax and late payment penalties, and may also be subject to administrative penalties. Practical examples show that complying with this official letter significantly reduces penalties, ensures legal compliance, and effectively manages tax risks.
Legal basis
Article 142 of the 2019 Law on Tax Administration stipulates: if a false declaration leads to a shortage of tax payable and is fully reflected in accounting books and legal documents, the enterprise must:
- File supplementary tax returns and pay all taxes in full.
- Late payment.
- You may be subject to administrative penalties for tax management violations.
Real life example
A trading company under-declared VAT of VND100 million, filed additional documents and paid late payment within 15 days. Thanks to compliance with Official Letter No. 5537/CT-CS, the company was only fined VND20 million instead of VND40 million.
Another important note from official document No. 5537/CT-CS
To properly apply the guidance in Official Dispatch No. 5537/CT-CS, businesses need to pay attention to some important points related to documents, tax authority instructions and accounting systems. Correctly implementing these notes helps minimize the risk of sanctions and ensure compliance with the law.
| Note | Detailed content |
| Storing legal documents | Invoices and supporting documents must be complete and legally valid to provide proof during tax audits, ensuring you avoid penalties. |
| Comply with tax authority guidelines. | Businesses should follow the guidelines carefully to avoid unnecessary penalties, adhering to the core principles of the official document. |
| Fully reflected in the accounting system. | All supplementary declarations must be accurate and complete in the accounting system to avoid a lack of transparency that could lead to heavier penalties. |
The relationship between document No. 5537/CT-CS and auditing.
In financial statement audits, underreporting of taxes, if not addressed promptly, can affect accounting figures and risk assessment. Circular No. 5537/CT-CS helps auditors accurately assess payable taxes, late payment penalties, and fines, ensuring truthful and legal financial reporting.
Practical applications of Official Document No. 5537/CT-CS in accounting and taxation.
- Plan to pay your taxes on time to avoid late payment penalties.
- Submitting supplementary information when errors are discovered will reduce the penalty.
- Controlling documents and invoices is crucial to exercising the right to avoid penalties.
- The detailed guidance from the official document helps businesses comply with the law, reduce risks, and optimize costs.
Conclude
Official Letter No. 5537/CT-CS is an important legal document that helps businesses understand their rights and responsibilities when under-declaring taxes. Mastering the official letter helps accountants and CFOs ensure compliance with the law, minimizing risks of late payment and administrative fines.
Application of Official Document No. 5537/CT-CS in practice tax accounting – audit – Tax helps businesses create transparent records, timely declarations and optimize costs. MAN – Master Accountant Network is ready to support consulting, implementing comprehensive accounting, auditing and tax services, helping businesses comply with the law and minimize risks.
Service contact information at MAN – Master Accountant Network
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Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
