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

How to receive and respond to tax refund claims in Vietnam?

According to Article 72 of the 2019 Law on Tax Administration, the reception and response to tax refund claims are regulated as follows:

- The tax administration authority has the duty to receive tax refund claims according to the following regulations:

+ The tax authority directly managing the taxpayer receives the tax refund claim for cases where taxes are refunded according to tax law provisions. The tax authority managing the collection receives the excess payment refund dossiers.

In cases of refunding excess payments according to the enterprise income tax finalization, personal income tax finalization, the tax authority receives the enterprise income tax finalization dossier, personal income tax finalization dossier from the taxpayer for refunding excess payments.

+ The customs authority where the collection is managed receives the tax refund claim for cases of tax refund according to tax law provisions.

In cases where foreigners or overseas Vietnamese exiting the country with goods eligible for tax refund, the customs office where the exit procedures are processed receives the tax refund claim.

- Taxpayers submit the tax refund claim through the following forms:

+ Submit the dossier directly at the tax administration authority;

+ Send the dossier by postal service;

+ Send the electronic dossier through the electronic transaction portal of the tax administration authority.

- Within 03 working days from the date of receiving the tax refund claim, the tax administration authority classifies the dossier and notifies the taxpayer about the acceptance of the dossier and the processing time for the tax refund claim, or informs in writing if the dossier is incomplete.

What is the time limit for processing a tax refund claim in Vietnam? (Image from the Internet)

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

Based on Article 75 of the 2019 Law on Tax Administration, the processing time for tax refund claims is regulated as follows:

- For dossiers entitled to tax refund first, no later than 06 working days from the date the tax administration authority notifies the acceptance of the dossier and the processing time for the tax refund claim, the tax administration authority must decide to refund the tax to the taxpayer or notify the transfer of the taxpayer's dossier to pre-refund inspection as stipulated in Clause 2, Article 73 of the 2019 Law on Tax Administration or notify the taxpayer if the dossier is not eligible for a tax refund.

If the information declared in the tax refund claim differs from the information managed by the tax administration authority, the tax authority informs the taxpayer in writing to provide an explanation and additional information.

The time for clarification and additional information is not included in the time for processing the tax refund claim.

- For dossiers subject to pre-refund inspection, no later than 40 days from the date the tax administration authority provides a written notification regarding the acceptance of the dossier and the processing time for the tax refund claim, the tax administration authority must decide to refund the tax to the taxpayer or notify the taxpayer if the dossier is not eligible for a tax refund.

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

The source of the interest payment is funded from the central budget according to the regulations of the law on the state budget.

Who has the authority to decide on the refund of overpaid taxes in Vietnam?

According to Article 76 of the 2019 Law on Tax Administration, it is regulated as follows:

Authority to Decide on Tax Refund

1. The General Director of the General Department of Taxation, Director of the Provincial Tax Departments decide on tax refunds in cases eligible for tax refunds according to tax law provisions.

2. The head of the tax office where the excess payment refund dossier is received decides on the refund of overpaid taxes in accordance with this Law.

3. The General Director of the General Department of Customs, Director of the Provincial Customs Departments, Head of the Customs Sub-Departments where the tax refund amount arises decide on the tax refund in cases eligible for tax refunds according to tax law provisions.

4. The Minister of Finance regulates the procedures for tax refunds.

The authority to decide on the refund of overpaid taxes belongs to the head of the tax office where the excess payment refund dossier is received.