What is the tax refund period for cases subject to pre-tax refund examination in Vietnam?

What is the tax refund period for cases subject to pre-tax refund examination in Vietnam?

Pursuant to Article 75 of the Law on Tax Administration 2019:

Tax Refund Processing Timeframe

1. For cases where the tax refund is processed before examination, no later than 6 working days from the date the tax administration authority issues a notification of acceptance of the application and the tax refund processing timeframe, the tax administration authority must decide to refund tax to the taxpayer or notify the transfer of the taxpayer's application to pre-tax refund examination if falling under the provisions of Clause 2, Article 73 of this Law, or notify the taxpayer of the rejection of a tax refund if the application does not meet the refund conditions.

If the information declared in the tax refund application differs from the information managed by the tax administration authority, the tax administration authority shall notify in writing for the taxpayer to explain and supplement information. The time for explanation and supplementing information is not counted in the tax refund processing timeframe.

2. For cases subject to pre-tax refund examination, no later than 40 days from the date the tax administration authority issues a written notification of acceptance of the application and the tax refund processing timeframe, the tax administration authority must decide to refund tax to the taxpayer or notify the taxpayer of the rejection of a tax refund if the application does not meet the refund conditions.

3. If the deadline stipulated in Clauses 1 and 2 of this Article is exceeded due to the fault of the tax administration authority, in addition to the tax amount to be refunded, the tax administration authority must also pay interest at the rate of 0.03% per day on the refundable amount and the days of delay. The source of interest payment is allocated from the central budget in accordance with the law on state budget.

For applications subject to pre-tax refund examination, no later than 40 days from the date the tax administration authority issues a written notification of acceptance of the application and the tax refund processing timeframe, the tax administration authority must decide to refund tax to the taxpayer or notify the taxpayer of the rejection of a tax refund if the application does not meet the refund conditions.

Note: If the specified timeframe is exceeded due to the fault of the tax administration authority, in addition to the tax amount to be refunded, the tax administration authority must also pay interest at the rate of 0.03% per day on the refundable amount and the days of delay.

What is the tax refund period for cases subject to pre-tax refund examination in Vietnam? (Image from the Internet)

Which are cases subject to pre-tax refund examination in Vietnam?

Pursuant to Clause 2, Article 73 of the Law on Tax Administration 2019, the cases subject to pre-tax refund examination include the following 7 cases:

- Applications for tax refund from taxpayers requesting a refund for the first time for each tax refund case as per tax law. If a taxpayer submits a tax refund application to the tax administration authority for the first time but does not qualify for a refund as prescribed, the subsequent tax refund request will still be considered as the first-time refund request;

- Applications for tax refund from taxpayers requesting a refund within 2 years from the time of being penalized for tax evasion;

- Applications from organizations undergoing dissolution, bankruptcy, termination of operations, sale, transfer, or handover of state enterprises;

- Tax refund applications classified as high risk in tax management risk categorization;

- Tax refund applications under the category of pre-tax refund but past the written notification timeframe without explanation or additional tax refund documentation from the taxpayer or the explanations and additional documents provided do not substantiate the declared tax amount;

- Tax refund applications for export and import goods not carried out through commercial bank payments or other financial institutions as per the law;

- Tax refund applications for export and import goods subject to pre-tax refund examination as per the Government of Vietnam regulations.

In what cases can individuals receive a personal income tax refund in Vietnam?

Pursuant to Article 8 of the Law on Personal Income Tax 2007:

Tax Administration and Refund

1. Taxpayer registration, tax declaration, tax deduction, tax payment, tax finalization, tax refund, handling of tax law violations, and other tax management measures are to be carried out in accordance with the law on tax administration.

2. Individuals are eligible for tax refunds in the following cases:

a) The amount of tax paid exceeds the tax payable;

b) Individuals who have paid tax but have taxable income below the tax threshold;

c) Other cases as decided by the competent state authority.

Individuals are eligible for tax refunds in the following cases:

- The amount of tax paid exceeds the tax payable;

- Individuals who have paid tax but have taxable income below the tax threshold;

- Other cases as decided by the competent state authority.