What are the supplements to regulations on power to decide tax refund in Vietnam from January 1, 2025?

What are the supplements to regulations on power to decide tax refund in Vietnam from January 1, 2025?

Pursuant to Article 76 of the Law on Tax Administration 2019, which stipulates the power to decide tax refund, as follows:

Power to decide tax refund

1. The General Director of the General Department of Taxation and the Directors of the Provincial and Municipal Tax Departments under the central government shall decide on tax refunds in cases of tax refunds pursuant to tax laws.

2. The head of the tax authority receiving the overpayment refund dossier shall decide on tax refunds for cases of overpayment refunds as stipulated in this Law.

3. The General Director of the General Department of Customs, Directors of the Provincial Customs Departments, and Heads of the Customs Sub-departments where the refundable tax amount arises shall decide on tax refunds in cases of tax refunds pursuant to tax laws.

Simultaneously, based on Clause 11, Article 6 of the Law amending the Law on Securities, Law on Accounting, Law on Independent Auditing, Law on State Budget, Law on Management and Use of Public Property, Law on Tax Administration, Law on Personal Income Tax, Law on the National Reserves, Law on Handling of Administrative Violations 2024 (effective from January 1, 2025), which stipulates the amendment and supplementation of several articles of the Law on Tax Administration as follows:

Amendment and Supplementation of Several Articles of the Law on Tax Administration

...

Amend Clause 1, Article 76 as follows:

"1. The General Director of the General Department of Taxation, Directors of the Tax Departments, Heads of the Tax Sub-departments, and Heads of Regional Tax Sub-departments shall decide on tax refunds for cases of tax refunds pursuant to tax laws."

Thus, starting from when the Law amending the Law on Securities, Law on Accounting, Law on Independent Auditing, Law on State Budget, Law on Management and Use of Public Property, Law on Tax Administration, Law on Personal Income Tax, Law on the National Reserves, Law on Handling of Administrative Violations 2024 takes effect on January 1, 2025, the power to decide tax refund will be expanded to include Heads of the Tax Sub-departments and Heads of Regional Tax Sub-departments, unlike previously when only the General Director of the General Department of Taxation and the Directors of the Tax Departments had this authority.

What are the supplements to regulations on power to decide tax refund in Vietnam from January 1, 2025? (Image from the Internet)

When are taxpayers eligible for tax refunds in Vietnam?

According to Article 70 of the Law on Tax Administration 2019, taxpayers are eligible for tax refunds under the following circumstances:

- Tax authorities execute tax refunds for organizations and individuals eligible for tax refunds as prescribed by tax laws.

- The tax authority refunds overpaid amounts when taxpayers have paid more to the state budget than the required amount as stated in Clause 1, Article 60 of the Law on Tax Administration 2019.

What are regulations on tax refund claims in Vietnam?

Based on Article 73 of the Law on Tax Administration 2019, tax refund claims are classified as follows:

- tax refund claims are classified into those subject to prior inspection before refund and those eligible for refund before inspection.

- Dossiers subject to prior inspection before refund include:

+ Dossiers of taxpayers requesting the first-time refund for each tax refund case as prescribed by tax laws. If a taxpayer submits a tax refund claim to a tax management agency for the first time but is not eligible for a refund as prescribed, the subsequent refund request is still considered a first-time refund request;

+ Dossiers of taxpayers requesting a refund within two years from the date of being penalized for tax evasion;

+ Dossiers of dissolved, bankrupted, ceasing operations, sold, transferred, or handed over state enterprises;

+ tax refund claims classified as high tax risk according to risk management classification in tax management;

+ tax refund claims eligible for refund before inspection but expire according to a written notice by the tax management agency where taxpayers do not explain or supplement the refund dossier or do so but cannot prove the declared tax amount is correct;

+ tax refund claims for exported or imported goods not settled through commercial banks or other credit institutions as prescribed by law;

+ tax refund claims for exported or imported goods subject to prior inspection before tax refund according to the Government of Vietnam regulations.

- Dossiers eligible for prior refund are those of taxpayers not subject to the aforementioned cases.