What are regulations on guidelines on implementing the offset of excess tax, late payment interest, and fines in Vietnam?

What are regulations on guidelines on implementing the offset of excess tax, late payment interest, and fines in Vietnam?

Based on Subsection 21 of Section 1 of the Administrative Procedures issued with Decision 1462/QD-BTC of 2022, the procedures for offsetting excess tax, late payment interest, and fines are as follows:

Step 1. Taxpayers with excess payments offset against debts and payable items of the same economic content (subsection) and in the same budget collection area of other taxpayers when they have no outstanding debt as per the provisions at point a.4, clause 1, Article 25 of Circular 80/2021/TT-BTC, must submit a Request for handling excess tax, late payment interest, and fines according to form 01/DNXLNT issued with Appendix I of Circular 80/2021/TT-BTC to the tax authority.

In cases where taxpayers submit documents electronically: Taxpayers must access the electronic portal of their choice (the electronic portal of the General Department of Taxation/ The electronic portal of the competent state agency, including:

The national public service portal, ministry-level public service portals, provincial-level as per the regulations on implementing the one-stop and interconnected one-stop mechanism in administrative procedures and connected with the electronic portal of the General Department of Taxation (hereinafter referred to as the electronic portal of the competent state agency)/ the portal of T-VAN service provider) to prepare, submit records and accompanying appendices electronically (if any), digitally sign and send them to the tax authority via the electronic portal of the taxpayer's choice.

Step 2. The tax authority receives the request for handling excess tax, late payment interest, and fines from taxpayers:

- In cases where documents are submitted directly at the tax authority or sent by postal service: the tax authority shall receive documents according to regulations.

- In cases where documents are submitted to the tax authority electronically, the reception, verification, acceptance, and processing of documents shall be through the electronic data processing system of the tax authority:

+ Reception of documents: The e-portal of the General Department of Taxation sends a receipt notification or a reason for non-receipt to the taxpayer via the electronic portal chosen by the taxpayer to prepare and submit documents (e-portal of the General Department of Taxation/e-portal of the competent state agency or T-VAN service provider) no later than 15 minutes after receiving the taxpayer's electronic documents.

+ Verification and processing of documents: The tax authority checks and processes NNT's documents according to the provisions of the Tax Administration Law and guiding documents: The tax authority sends a Notice of Acceptance/Non-Acceptance of the Request for handling excess payment to the electronic portal chosen by the taxpayer to prepare and submit documents (e-portal of the General Department of Taxation/e-portal of the competent state agency or T-VAN service provider) within 03 (three) working days from the day of sending a receipt notification of the request for handling excess payment.

Step 3. The tax authority processes the request for handling excess tax, late payment interest, and fines:

In cases where the taxpayer's request does not match the data in the tax management system, the tax authority issues a Notification requesting clarification or additional information, documents according to form 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing certain articles of the Tax Administration Law to the taxpayer for explanation and additional information.

Step 4. The tax authority returns the result of the handling request for excess tax, late payment interest, and fines from taxpayers:

Within 05 working days from the receipt of complete documents from taxpayers, the tax authority issues a Notice on the handling of excess tax, late payment interest, and fines as requested by the taxpayer according to form 01/TB-XLBT issued with Appendix I of Circular 80/2021/TT-BTC.

What are regulations on guidelines on implementing the offset of excess tax, late payment interest, and fines in Vietnam? (Image from the Internet)

What are the records required for offsetting excess tax, late payment interest, and fines in Vietnam?

According to Article 25 of Circular 80/2021/TT-BTC and the list of forms in Appendix I issued with Circular 80/2021/TT-BTC include:

- Request for handling of excess tax, late payment interest, and fines according to form 01/DNXLNT

- Relevant documents (if any).

Is it necessary to pay late payment interest when submitting supplementary tax declarations in Vietnam?

As stipulated in clause 1, Article 59 of Tax Administration Law 2019, taxpayers who submit supplementary tax settlement declarations for personal income tax must pay late payment interest in the following cases:

Handling for late tax payment

1. Cases required to pay late payment interest include:

a) Taxpayers who delay paying tax compared to the prescribed deadline, tax payment extension deadline, deadline stated in the notification from the tax administration agency, deadline in tax assessment decisions, or handling decisions from the tax administration agency;

b) Taxpayers filing supplementary tax declarations that increase the payable tax amount or when discovered by the tax administration agency or competent state agency for under-declared tax amounts, must pay late payment interest for the increased tax amount from the day following the last day of the tax payment deadline for the tax period with errors or from the end of the deadline for the initial customs declaration;

c) Taxpayers filing supplementary tax declarations that reduce the tax amount refunded or discovered by the tax administration agency or competent state agency for a tax refund amount less than the refunded tax amount, must pay late payment interest for the over-refunded tax amount to be reclaimed from the date of receiving the refund from the state budget;

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taxpayers filing supplementary settlement declarations for personal income tax must pay late payment interest when falling under the stated regulations.

Furthermore, taxpayers filing supplementary tax declarations that reduce the payable tax amount or discovered by the tax administration agency or competent state agency for a decreased payable tax amount shall have the late payment interest adjusted corresponding to the decreased differential amount.

The rate of late payment interest according to clause 2, Article 59 of the Tax Administration Law 2019 is 0.03% per day calculated on the late payment amount.

The late payment interest period is continuously calculated from the day following the day the late payment arises until the day immediately before the day the tax debt, tax refund retrieval, additional tax amount, assessed tax, or delayed tax transfer is paid into the state budget.