When is the timing for determining overpaid tax for offsetting or refunding in Vietnam?

When is the timing for determining overpaid tax for offsetting or refunding in Vietnam?

According to point c, clause 1, Article 25 of Circular 80/2021/TT-BTC regarding the timing for determining overpayment for offsetting or refunding, as follows:

- In case the taxpayer self-calculates, self-declares, and self-pays tax according to the declared tax amount, the time for determining overpayment is the date the taxpayer deposits the money into the state budget; if the taxpayer pays before submitting the tax declaration dossier, the time for determining overpayment is the date of submitting the tax declaration dossier, and if there is a supplementary declaration dossier, the time for determination is the submission date of the supplementary dossier.

- In case the taxpayer determines the tax obligation based on the payment notification from the tax authority or competent state agency, the time for determining overpayment is the date the taxpayer deposits the money into the state budget; if the taxpayer pays before the notification date, the determination is based on the issuance date of the tax authority's payment notification, and if there are adjustments or supplements, it is the issuance date of the adjusted or supplementary notification.

- In case the taxpayer pays based on the Decision of the tax authority or the Decision or Document from a competent state agency, the time for determining overpayment is the date the taxpayer deposits the money into the state budget; if the taxpayer pays before the Decision or Document release date, the determination is based on the issuance date, and if there are multiple Decisions or Documents, the last one serves as the basis for determination.

- In cases where the taxpayer has paid into the state budget but subsequently adheres to the Court's Judgment or Decision, the time for determining overpayment is the effective date of the Judgment or Decision.

When is the timing for determining overpaid tax for offsetting or refunding in Vietnam? (Image from Internet)

What are cases where overpaid tax amount is not be refunded in Vietnam?

According to clause 3, Article 60 of the Law on Tax Administration 2019, overpaid tax, late-payment interest, and penalties shall not be refunded and the tax authority shall carry out the liquidation of the surplus amount on the accounting books, on the electronic data system in the following cases:

Handling of overpaid tax, late-payment interest, and penalties

...

3. The overpaid tax, late-payment interest, and penalties shall not be refunded, and the tax authority shall carry out the liquidation of the surplus amount on the accounting books, on the electronic data system in the following cases:

a) The tax authority has notified the taxpayer about the refundable overpaid amounts, but the taxpayer refuses to receive the refund in writing;

b) The taxpayer is not operating at the address registered with the tax authority and has been notified about the overpaid amounts via mass media, yet after 01 year from the notification date, the taxpayer does not provide a written response requesting a refund;

c) The overpaid amount has exceeded 10 years from the payment date into the state budget without offsetting tax obligations or refund request.

Thus, there will be no refund for overpaid tax, and the tax authority will carry out the liquidation of the surplus amount on the accounting books, on the electronic data system in the following instances:

- The tax authority has notified the taxpayer, but the taxpayer refuses to receive the surplus in writing;

- The taxpayer is not operating at the registered address with the tax authority and after being notified of the surplus via mass media, fails to respond within 1 year from the notification date;

- The surplus amount exceeds a 10-year period since payment into the state budget without offsetting tax obligations or requesting a refund.

How many additional days can the tax payment deadline be deferred in Vietnam?

According to Article 62 of the Law on Tax Administration 2019, it is stipulated as follows:

Tax deferral

1. The tax deferral is considered based on a taxpayer's request in the following cases:

a) Suffering material damage directly affecting production and business due to force majeure circumstances specified in clause 27, Article 3 of this Law;

b) Having to suspend operations due to relocation of production and business facilities as requested by competent authorities, affecting the production and business results.

2. Taxpayers under the cases entitled to tax payment extension specified in clause 1 of this Article are allowed to extend for a part or the whole tax amount due.

3. The extension period is specified as follows:

a) Not exceeding 02 years from the end of the tax payment period for the case stipulated in point a, clause 1 of this Article;

b) Not exceeding 01 year from the end of the tax payment period for the case stipulated in point b, clause 1 of this Article.

4. Taxpayers shall not be fined or charged late payment interest on the outstanding tax during the deferred period.

5. The head of the directly managing tax authority decides the amount to be deferred and the time of tax payment extension based on the extension dossier.

Thus, the tax payment deadline can be deferred as follows:

- No more than 02 years from the end of the tax payment period in case of material damage due to force majeure such as:

+ Material damage due to natural disasters, calamities, epidemics, fires, unexpected accidents;

+ Other force majeure cases as stipulated by the Government of Vietnam.

- No more than 01 year from the end of the tax payment period in cases of operational suspension due to relocation of production and business facilities at the request of competent authorities affecting the production and business results.