How to settle overpaid tax, late payment interest and fines in Vietnam?

How to settle overpaid tax, late payment interest and fines in Vietnam?

Pursuant to Clause 1.a and 1.b, Article 25 of the Circular 80/2021/TT-BTC stipulating settlement of overpaid tax, late payment interest and fines in Vietnam as follows:

1. Overpaid tax, late payment interest or fine (hereinafter referred to as "overpaid amount") specified in Clause 1 Article 60 of the Law on Tax Administration shall be handled as follows:

a) Offsetting against the outstanding tax, late payment interest, fines (hereinafter referred to as "debts") or offset against tax, late payment interest, fines payable next time (hereinafter referred to as "new amounts payable") in the following cases:

a.1) Offset against the taxpayer's debts that belong to the same category and area as those of the overpaid amount.

a.2) Offset against the taxpayer's new amount payables that belong to the same category and area as those of the overpaid amount.

a.3) The income payer that has the overpaid PIT shall offset it in accordance with Point a.1 and Point a.2 of this Clause. Overpaid PIT equals (=) overpaid PIT of the authorizing individual minus (-) PIT payable of the authorizing individual; the income payer shall return the overpaid PIT to the authorizing individual when it finalizes PIT.

a.4) Offset against another taxpayer's debts or new amount payables that belong to the same category and area as those of the overpaid amount if the current taxpayer has no more debt.

a.5) In case the taxpayer's overpaid amount is in a foreign currency as prescribed in Article 4 of this Circular, it shall be converted into VND at the selling rate at the beginning of the day quoted by Vietcombank on the day on which overpaid tax is determined.

b) Refund, refund combined with budget offsetting

In case the overpaid amount cannot be completely offset according to Point a of this Clause or the taxpayer does not have any debt, the taxpayer may submit an application for refund or refund combined with state budget offsetting in accordance with Article 42 of this Circular. The overpaid amount will be refunded when the taxpayer has no debt.

What are regulations on the date of determination of overpaid amount for offsetting or refund in Vietnam?

Pursuant to Clause 1.c, Article 25 of the Circular 80/2021/TT-BTC stipulating date of determination of overpaid amount for offsetting or refund in Vietnam as follows:

c) Date of determination of overpaid amount for offsetting or refund:

c.1) If the taxpayer calculate, declare and pay the declared tax themselves, the date of determination of overpaid amount shall be the day on which tax is paid to state budget; In case the taxpayer pays tax before submitting the tax declaration dossier, it shall be the day on which the tax declaration dossier is submitted. In case of supplementary declaration, it shall be the date the supplementary tax declaration dossier is submitted.

c.2) If the taxpayer calculate, declare and pay the declared tax themselves, the date of determination of overpaid amount shall be the day on which tax is paid to state budget; In case the taxpayer pays tax before submitting the tax declaration dossier, it shall be the day on which the tax declaration dossier is submitted. In case of supplementation of the tax declaration dossier, it shall be the date the supplementary documents are submitted.

c.3) If the taxpayer pays tax according to a decision issued by the tax authority, a decision or document issued by a competent authority, the date of determination of overpaid amount shall be the day on which tax is paid to state budget; In case the taxpayer pays tax before the decision or document is issued, it shall be the issuance date of the decision or document. In case of multiple decisions or documents, it shall be the issuance date of the last decision or document.

c.4) In case the taxpayer has paid tax before having to implement a court's judgment or decision, the date of determination of overpaid amount shall be the effective date of the court's judgment or decision.

Best regards!