What are the regulations on handling overpaid tax, late payment interest and fines in Vietnam?

What are the regulations on handling overpaid tax, late payment interest and fines in Vietnam?

Under Article 60 of the Law on Tax Administration 2019, the handling of overpaid tax, late payment interest and fines in Vietnam is specified as follows:

- If the tax, late payment interest or fine paid by a taxpayer is greater than the amount payable, the overpaid amount may be offset against the outstanding tax, late payment interest or fine, or against the tax, late payment interest or fine payable next time, or may be refunded if the taxpayer no longer has outstanding tax, late payment interest or fine.

In case the taxpayer wishes to have the overpaid amount be offset against the outstanding tax, late payment interest or fine, late payment interest shall not be charged over the period from the date on which the overpaid amount is paid to the day on which these amounts are offset by the tax authority.

- In case the taxpayer claims a refund, the tax authority shall issue a refund decision or, if the claim is rejected, provide explanation within 05 working days from the receipt of the.

- The overpaid tax, late payment interest or fine shall not be refunded in the following cases:

+ In case the taxpayer fails to pay tax, late payment interest and fines within 30 days from the deadline for making such payment, the tax authority shall inform the taxpayer of the amount payable and the number of days behind schedule.

+ The taxpayer no longer operates at the registered address, the overpaid amount has been announced through mass media and the taxpayer does not claim the refund within 01 years from the date of announcement.

+ The overpaid amount has been paid for more than 10 years and the taxpayer does not request an offsetting or refund.

- In case the taxpayer no longer runs business at the address which has both overpaid and outstanding tax, late payment interest or fine, the tax authority shall offset the overpaid amount against the outstanding amount.

What are the regulations on handling overpaid tax, late payment interest and fines in Vietnam? (Image from the Internet)

Who has the power to handle overpaid tax, late payment interest and fines in Vietnam?

Under Clause 2, Article 10, of Circular 06/2021/TT-BTC, the power to handle overpaid tax, late payment interest and fines in Vietnam is specified as follows:

- The Director General of the General Department of Customs, the Director of the Provincial/municipal Department of Customs, the Director of the Post-Clearance Inspection Department, and the Director of the Anti-Smuggling Investigation Department for cases involving tax assessment decisions and penalty imposition decisions.

- The heads of District-level Customs Sub-Departments, and the heads of District-level Post-Clearance Inspection Sub-Departments where taxpayers have overpaid tax, late payment interest and fines.

- The heads of customs offices where the overpaid amounts arise based on the complaint settlement decisions of the competent authorities or court judgments and decisions.

What are the procedures for offsetting overpaid tax, late payment interest and fines in Vietnam?

Under Clause 2, Article 25, of Circular 80/2021/TT-BTC, the procedures for offsetting overpaid tax, late payment interest and fines are as follows:

- The taxpayer who has an overpaid amount to be offset against debts or new amounts payable according to points a.1, a.2, a.3 Clause 1, Article 25, of Circular 80/2021/TT-BTC is not required to submit the application for offsetting to the tax authority.

The tax authority shall automatically offset the overpaid amount on the tax administration system in the cases specified in Point a.1, Point a.2 Clause 1 of this Article and provide information for the taxpayer in accordance with Article 69 of Circular 80/2021/TT-BTC.

- The taxpayer who has an overpaid amount to be offset against debts or new amounts payable according to point a.4 Clause 1, Article 25, of Circular 80/2021/TT-BTC shall submit an application which shall contain: the application form No. 01/DNXLNT in Appendix I hereof and relevant documents to the tax authority specified in Clause 3, Article 25 of Circular 80/2021/TT-BTC.

- The tax authority shall receive and process the taxpayer's application for offsetting in accordance with Clause 3 of Article 25 of Circular 80/2021/TT-BTC.

Within 05 working days from the receipt of the satisfactory application, the tax authority shall compare the overpaid amount, debts and new amounts payable specified in the taxpayer's application with those on the tax administration system:

+ If the information matches, the tax authority shall offset the overpaid amount against the debts and new amounts payable as requested by the taxpayer and send a notification to the taxpayer according to Form No. 01/TB-XLBT attached to Appendix 1 of Circular 80/2021/TT-BTC.

+ If the taxpayer is not eligible for offsetting as prescribed in Clause 1 of this Article, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-XLBT attached to Appendix 1 of Article 25 of Circular 80/2021/TT-BTC and provide explanation.

If information in the taxpayer's application does match that on the tax administration system, the tax authority shall request the taxpayer to provide explanation and supplementary documents according to Form No. 01/TB-BSTT-NNT enclosed with Decree 126/2020/ND-CP and send it to the taxpayer.

The explanation and supplementation time shall be excluded from the application processing time. If the taxpayer's explanation and supplementary documents match information on the tax administration system, carry out the offsetting according to point c.1 of Clause 2, Article 25 of Circular 80/2021/TT-BTC.

If the taxpayer fails to provide explanation or supplementary documents by the deadline imposed by the tax authority or information in the taxpayer's application does not match information on the tax administration system, the tax authority shall send the taxpayer a notification according to Form No. 01/TB-XLBT attached to Appendix 1 of Circular 80/2021/TT-BTC and provide explanation for not offsetting the overpaid amount.