The Government issues Decree No. 296 regulating the enforcement of administrative violation penalty decisions.
This Decree stipulates the principles, order, and procedures for applying enforcement measures to execute administrative violation penalty decisions, decisions on confiscation of exhibits and means of violation.
Enforcement is only carried out with a written decision
It also covers decisions to apply remedial measures for consequences caused by administrative violations in cases where no administrative penalty decision is issued, the reimbursement of costs to agencies that have implemented remedial measures in urgent cases requiring immediate rectification of violation consequences (enforcement), enforcement costs, and responsibilities for executing and ensuring the execution of enforcement decisions.
The Decree specifically stipulates the principles for applying enforcement measures. Accordingly, enforcement may only be carried out when there is a written enforcement decision issued by a competent person. The competent person issuing the enforcement decision is responsible for issuing the enforcement decision based on the monitoring, urging, or proposal of the person with penalty authority.
The Decree stipulates that within 2 working days from the date of issuing the enforcement decision, the issuer must send the enforcement decision to the individual or organization subject to the enforcement measure, the agency or organization implementing the enforcement, and relevant individuals or organizations.
Notably, the Decree specifically stipulates the sources of money to be deducted and assets to be inventoried for organizations, business households, family households, cooperative groups, and residential communities subject to enforcement measures.
For business households, family households, and cooperative groups, money is deducted, assets are inventoried, and enforcement activity costs are paid from the common money and assets of the business household, family household, or cooperative group.
If the common assets are insufficient to execute the enforcement decision, money is deducted and assets of members within the business household, family household, or cooperative group are inventoried, unless otherwise stipulated by the cooperation contract or relevant laws.
For residential communities, money is deducted, assets are inventoried, and enforcement activity costs are paid from the common money and assets of the residential community.
Enforcement Measures
The Decree stipulates that for organizations which are state agencies, armed forces units, political organizations, socio-political organizations, public non-business units without revenue that are guaranteed operational funding from the state budget and are subject to enforcement measures involving deduction of money and payment of enforcement costs, they must self-ensure the source of money to execute the enforcement decision and are not allowed to use state budget money or money originating from the state budget.
For the aforementioned organizations that have revenue or are allowed to organize revenue-generating activities as per law, when subject to deduction of money, inventory of assets, and payment of enforcement costs, it shall be taken from the revenue and assets generated by these activities.
For social organizations, professional social organizations, non-governmental organizations, social funds, and charitable funds, money is deducted, assets are inventoried, and enforcement activity costs are paid from the money and assets of that organization or fund.
For enterprises, dependent units of enterprises, cooperative alliances, and cooperatives, money is deducted, assets are inventoried, and enforcement activity costs are paid from the money, assets, or income in money or assets of that enterprise, its dependent unit, cooperative alliance, or cooperative.
The Decree takes effect from January 1, 2026. For enforcement decisions already issued or fully executed before January 1, 2026, where the enforced individual or organization still files a complaint, the provisions of the Law on Handling of Administrative Violations shall apply.
The National Assembly officially passed the income threshold for tax calculation for business households at 500 million VND per year, applicable from 2026, while completely abolishing lump-sum tax. This is an important turning point, promoting millions of business households across the country.
