In some cases tax payers may be refunded tax in accordance with relevant laws. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask when shall tax authorities refund tax? How can I prepare for tax refund dossiers? Thanks for answering me!”
Legal grounds
Viet Nam Law on Tax Administrations
What are cases of tax refund?
Cases of tax refund comprise:
– Tax authorities shall refund tax in the cases specified by tax laws.
– Tax authorities shall refund overpaid amounts in accordance with Clause 1 Article 60 of Law on Tax Administration.
Regulations on Tax refund application
– Taxpayers who have refundable tax may submit tax refund claims to competent tax authorities.
– A tax refund claim consists of:
- The claim form;
- Documents relevant to the refund claim
Receipt and processing of tax refund claims
– Tax authorities shall process tax refund claims as follows:
- Supervisory tax authorities of taxpayers shall receive tax refund claims in accordance with tax laws. Collecting tax authorities shall receive claims for refund of overpaid amounts. In case of refund of overpaid amounts under an annual/terminal statement of corporate income tax or personal income tax, the tax authority that received the statement shall provide the refund.
- Collecting customs authorities shall receive tax refund claims in accordance with tax laws. Customs authorities where exit procedures are followed shall receive tax refund claims submitted by foreigners and Vietnamese people residing overseas.
– Tax refund claims may be submitted:
- In person at tax authorities;
- By post;
- Electronically through online portals or tax authorities.
– Within 03 working days from the day on which the claim is received, the tax authority shall inform the taxpayer in writing of whether the claim is granted or rejected.
Classification of tax refund claims
– A tax refund claim might be eligible for refund before inspection or subject to inspection before refund.
– The following tax refund claims are subject to inspection before refund:
- Tax refund claims submitted for the first time in the cases specified by tax laws. If a taxpayer’s first tax refund claim is rejected, the next claim will be considered the first.
- Any claim submitted within 02 years from the day on which the penalties on the taxpayer’s tax evasion is imposed;
- Claims submitted by organizations that are dissolved, bankrupt, shut down, sold or transferred to state-owned enterprises;
- High-risk claims as classified by the risk management system;
- Any tax refund claim eligible for refund before inspection but the taxpayer fails to provide explanation or documents proving the declared tax, or the explanation or documents provided by the taxpayer is not convincing enough;
- Claims for refund of taxes on exports or imports that are not paid for via a commercial bank or credit institution as prescribed by law;
- Claims for refund of tax on exports or imports subject to inspection before refund prescribed by the Government.
– Claims other than those in the cases specified in Clause 2 of Article 73 shall be eligible for refund before inspection
Regulations on inspection place
– Claims eligible for refund before inspection shall be inspected at tax authorities.
– Claims subject to inspection before refund shall be inspected at the premises of the taxpayers or relevant entities.
Time limits for processing tax refund claims
– In case a claim is eligible for refund before inspection, within 06 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund, demand inspection before refund in the cases mentioned in Clause 2 Article 73 of Law on Tax Administration, or reject the claim if it is unqualified.
In case information on the tax refund claim is different from that of the tax authority, the tax authority shall request the taxpayer in writing to provide explanation and additional information. The time needed for providing explanation and additional information shall not be included in the time limit for processing tax refund claims.
– In case a claim is subject to inspection before refund, within 40 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund or reject the claim.
– If the tax authority fails to issue the tax refund decision by the deadline specified in Clause 1 and Clause 2 of Article 75, the tax authority shall pay an interest at 0,03% per day on the refundable and the number of days late. The interest shall be paid by central government budget in accordance with regulations of law on state budget.
Power to decide tax refund
– The Director of the General Department of Taxation, Directors of Provincial Departments of Taxation shall decide tax refund in eligible cases as prescribed by tax laws.
– The heads of tax authorities receiving claims for refund of overpaid tax shall decide refund of overpaid tax in accordance with Law on Tax Administration.
– The Director of the General Department of Customs, Directors of Customs Departments and Sub-departments of Customs to which tax is overpaid shall decide tax refund in accordance with tax laws.
– The Minister of Finance shall provide for tax refund procedures.
Regulations on post-refund inspection
– Tax authorities shall inspect claims eligible for refund before inspection according to tax-related risk management within 05 years from the issuance of the tax refund decisions.
– Procedures, power and responsibility of tax authorities for inspection of tax refund claims are specified in Law on Tax Administration and the Law on Inspection.
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Frequently asked questions
Tax authorities shall inspect claims eligible for refund before inspection according to tax-related risk management within 05 years from the issuance of the tax refund decisions.
The Director of the General Department of Taxation, Directors of Provincial Departments of Taxation shall decide tax refund in eligible cases as prescribed by tax laws.
Claims eligible for refund before inspection shall be inspected at tax authorities.
Conclusion: So the above is Tax refund procedures under Viet Nam Law on Tax Administration. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
