What is the request form for tax deduction in Vietnam for taxes paid overseas?

What subjects that have paid taxes overseas are eligible for tax deduction in Vietnam?

According to the provisions of Article 62 of Circular 80/2021/TT-BTC, the subjects eligible for tax deduction of taxes paid overseas against the taxes payable in Vietnam are organizations and individuals meeting the following conditions:

- Resident entities of Vietnam;

- Have paid taxes in a country that has a tax treaty with Vietnam;

- The amount of tax paid complies with the laws of the foreign country and the provisions of the tax treaty.

What is the request form for tax deduction in Vietnam for taxes paid overseas?

Based on Clause 3, Article 62 of Circular 80/2021/TT-BTC, the form for requesting the deduction of taxes paid overseas from taxes payable in Vietnam is as follows:

Procedures for tax exemption and reduction under the Double Taxation Agreement (Tax Agreement)

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3. Deduction of taxes paid overseas from taxes payable in Vietnam

Organizations and individuals who are residents of Vietnam and have paid taxes in a country that has a tax treaty with Vietnam, and the taxes paid comply with the laws of the foreign country and the provisions of the tax treaty, shall be entitled to deduct the taxes paid (or deemed to have been paid) in the country that has a tax treaty with Vietnam from the taxes payable in Vietnam. The procedure for deducting the taxes paid overseas from the taxes payable in Vietnam is as follows:

a) The taxpayer submits a dossier requesting the deduction of the taxes paid (or deemed to have been paid) overseas from the taxes payable in Vietnam to the directly managing tax authority. The dossier includes:

a.1) A request for the deduction of foreign taxes from the taxes payable in Vietnam under the tax treaty, using Form No. 02/HTQT, issued with Appendix I of this Circular, providing information on transactions related to the foreign taxes to be deducted from the taxes payable in Vietnam within the scope of the tax treaty.

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Thus, the request form for tax deduction in Vietnam for taxes paid overseas is Form No. 02/HTQT in Appendix I issued with Circular 80/2021/TT-BTC.

In this form, provide information on transactions related to the foreign taxes proposed to be deducted from the taxes payable in Vietnam under the tax treaty's scope.

Download the latest request form for tax deduction in Vietnam for taxes paid overseas 2024.

What is the request form for tax deduction in Vietnam for taxes paid overseas? (Image from Internet)

What is the processing time for the tax deduction dossier in Vietnam for taxes paid overseas?

The processing time for the tax deduction of taxes paid overseas is specified in Clause 3, Article 62 of Circular 80/2021/TT-BTC as follows:

Procedures for tax exemption and reduction under the Double Taxation Agreement (Tax Agreement)

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3. Deduction of taxes paid overseas from taxes payable in Vietnam

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a.2.3.3) A copy of the withholding tax return on dividends, certified by the taxpayer;

a.2.3.4) Certification from the foreign tax authority of the amount of tax paid on dividends and the corporate income tax paid before dividend distribution.

a.3) A power of attorney in case the taxpayer authorizes a legal representative to perform the tax treaty procedure.

b) The tax authority, based on the submitted dossier, reviews and processes the deduction of taxes paid overseas against the taxes payable in Vietnam according to the provisions of the tax treaty and this Circular within 10 working days from the date of receiving the complete dossier as specified in point a of this clause. The 10 working days do not include the time required for dossier supplementation and clarification.

4. Request for the application of the mutual agreement procedure under the Double Taxation Agreement

a) Taxpayers who are residents of Vietnam may request the application of the mutual agreement procedure with the Vietnamese tax authority if the resolution by the foreign tax authority has caused or is likely to cause the taxpayer to be taxed contrary to the provisions of the tax treaty. Taxpayers who are residents of foreign countries may request the application of the mutual agreement procedure with the foreign tax authority of the country where the taxpayer is a resident.

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Thus, according to the above provisions, the processing time for the tax deduction dossier in Vietnam for taxes paid overseas is 10 working days from the date of receiving the complete dossier. However, this is only the time for the tax authority's review once the dossier is complete.

*Note: The 10 working days do not include the time required for dossier supplementation and clarification.

This timeframe is only relative and can be shorter or longer in reality, depending on the volume of dossiers to be processed at the tax authorities.