What do the tax refund claims subject to tax refund before inspection in Vietnam include?

What do the tax refund claims subject to tax refund before inspection in Vietnam include?

According to Article 73 of the Law on Tax Administration 2019, tax refund claims subject to tax refund before inspection will not fall under the following cases:

- 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.

What do the tax refund claims subject to tax refund before inspection in Vietnam include? (Image from Internet)

What are the places for inspection of tax refund claims subject to tax refund before inspection in Vietnam?

Under Article 74 of the Law on Tax Administration 2019, the regulations are as follows:

Inspection place

1. Claims eligible for refund before inspection shall be inspected at tax authorities.

2. Claims subject to inspection before refund shall be inspected at the premises of the taxpayers or relevant entities.

Thus, tax refund claims subject to tax refund before inspection in Vietnam shall be inspected at tax authorities.

What is the time limit for processing tax refund claims in Vietnam?

According to Article 75 of the Law on Tax Administration 2019, the time limit for processing tax refund claims in Vietnam is as follows:

- 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 the Law on Tax Administration 2019 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 of the Law on Tax Administration 2019, 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.

Which authorities receive tax refund claims in Vietnam?

According to Clause 1, Article 72 of the Law on Tax Administration 2019, the tax authorities responsible for receiving tax refund claims include:

- 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.