What are the procedures for checking the eligibility of tax refund claims and classifying eligible ones in Vietnam?
What are the procedures for checking the eligibility of tax refund claims and classifying eligible ones in Vietnam?
Under the provisions of Clause 3, Article 10 of the Process issued together with Decision 679/QD-TCT in 2023, the procedures for checking the eligibility of tax refund claims and the classification thereof in Vietnam are as follows:
- Checking the eligibility of tax refund claims
Immediately after the taxpayer's tax refund claim is transferred to the refund subsystem, the TMS claim system will automatically compare the data declared on the taxpayer’s PIT finalization declaration with the aggregated data of all tax authorities nationwide in the tax management database (including taxable income, payable tax, paid tax, tax deducted by payers, and personal and dependent deductions).
- An eligible tax refund claim shall have declared data that matches the aggregated finalization data in the tax management database or declared data that does not match the aggregated finalization data but has provided supplemental explanatory information that has been accepted by the declaration processing subsystem.
- An ineligible tax refund claim shall have declared data that does not match the aggregated finalization data in the tax management database without supplemental explanatory information accepted by the declaration processing subsystem.
- Classification of eligible tax refund claims should follow similar steps as guided in Clause 2, Article 7 of the Process issued together with Decision 679/QD-TCT in 2023.
What are the procedures for checking the eligibility of tax refund claims and classifying eligible ones in Vietnam?
What is the deadline for tax finalization dossiers if the taxpayer authorizes the employer for the 2023 PIT finalization?
Under Clause 2, Article 44 of the Law on Tax Administration 2019, the following rules apply:
Deadlines for submission of tax declaration dossiers
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2. For taxes declared annually:
a) For annual tax finalization dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year
b) For annual personal income tax finalizations prepared by income earners: the last day of the 4th month from the end of the calendar year;
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The deadline for tax finalization dossiers, if the taxpayer authorizes the employer for the 2023 PIT finalization, is March 31.
Is a PIT refund claim of the taxpayer authorizing the employer for the PIT finalization eligible for inspection before refund or refund before inspection?
According to Article 73 of the Law on Tax Administration 2019, the classification of tax refund claims is as follows:
Classification of tax refund claims
1. A tax refund claim might be eligible for refund before inspection or subject to inspection before refund.
2. The following tax refund claims are subject to inspection before refund:
a) 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.
b) Any claim submitted within 02 years from the day on which the penalties on the taxpayer’s tax evasion is imposed;
c) Claims submitted by organizations that are dissolved, bankrupt, shut down, sold or transferred to state-owned enterprises;
d) High-risk claims as classified by the risk management system;
dd) 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;
e) 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;
g) Claims for refund of tax on exports or imports subject to inspection before refund prescribed by the Government.
3. Claims other than those in the cases specified in Clause 2 of this Article shall be eligible for refund before inspection
Thus, if the taxpayer authorizes the employer for tax finalization, their PIT refund claims are not subject to inspection before refund. In this case, the PIT refund claim is subject to refund before inspection.
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