What are procedures for offsetting of overpaid tax, late payment interest and fines in Vietnam?

What are procedures for offsetting of overpaid tax, late payment interest and fines in Vietnam?

Pursuant to Clause 2, Article 25 of the Circular 80/2021/TT-BTC stipulating procedures for offsetting of overpaid tax, late payment interest and fines in Vietnam as follows: 

2. Procedures for offsetting overpaid tax, late payment interest and fines

a) The taxpayer who has an overpaid amount to be offset against debts or new amounts payable according to Point a.1, Point a.2, Point a.3 Clause 1 of this Article is not required to submit the application for offsetting to the tax authority. The tax authority shall automatically offset the overpaid amount on the tax administration system in the cases specified in Point a.1, Point a.2 Clause 1 of this Article and provide information for the taxpayer in accordance with Article 69 of this Circular.

b) The taxpayer who has an overpaid amount to be offset against debts or new amounts payable according to Point a.4 Clause 1 of this Article shall submit an application which shall contain: the application form No. 01/DNXLNT in Appendix I hereof and relevant documents to the tax authority specified in Clause 3 of this Article.

c) The tax authority shall receive and process the taxpayer's application for offsetting in accordance with Clause 3 of this Article. Within 05 working days from the receipt of the satisfactory application, the tax authority shall compare the overpaid amount, debts and new amounts payable specified in the taxpayer's application with those on the tax administration system:

c.1) If the information matches, the tax authority shall offset the overpaid amount against the debts and new amounts payable as requested by the taxpayer and send a notification to the taxpayer according to Form No. 01/TB-XLBT in Appendix I hereof.

c.2) If the taxpayer is not eligible for offsetting as prescribed in Clause 1 of this Article, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-XLBT in Appendix I hereof and provide explanation.

If information in the taxpayer's application does match that on the tax administration system, the tax authority shall request the taxpayer to provide explanation and supplementary documents according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP and send it to the taxpayer. The explanation and supplementation time shall be excluded from the application processing time. If the taxpayer's explanation and supplementary documents match information on the tax administration system, carry out the offsetting according to Point c.1 of this Clause.

If the taxpayer fails to provide explanation or supplementary documents by the deadline imposed by the tax authority or information in the taxpayer's application does not match information on the tax administration system, the tax authority shall send the taxpayer a notification according to Form No. 01/TB-XLBT in Appendix I hereof and provide explanation for not offsetting the overpaid amount.

Which authorities in Vietnam have competence in offseting overpaid amounts?

Pursuant to Clause 3, Article 25 of the Circular 80/2021/TT-BTC stipulating competence in offseting overpaid amounts in Vietnam as follows: 

3. Competence in offseting overpaid amounts

a) Supervisory tax authorities shall:

a.1) Offset the overpaid amount against the debts and new amounts payable of taxpayers under their management in the cases specified in Point a.1 and Point a.2 Clause 1 of this Article.

a.2) Receive, process applications for settlement of taxpayers' overpaid amounts in the cases specified in Point a.4 Clause 1 of this Article that are collected by supervisory tax authorities or managed by tax authorities of the receiving provinces according to Point b Clause 6 Article 3 of this Circular.

b) State budget revenue-managing tax authorities shall:

b.1) Offset on the tax administration system the overpaid amounts of the taxpayers under their management in the cases specified in Point a.1 and Point a.2 Clause 1 of this Article.

b.2) Receive, process applications for settlement of taxpayers' overpaid amounts in the cases specified in Point a.4 Clause 1 of this Article that are under their management.

c) The tax authority of the receiving province prescribed in Point b Clause 6 Article 3 of this Circular shall:

c.1) Offset the overpaid amount against the debts and new amounts payable under their management in the cases specified in Point a.1 and Point a.2 Clause 1 of this Article.

c.2) Cooperate with supervisory tax authorities in offsetting overpaid amounts against the debts and new amounts under their management according to Point a.4 Clause 1 of this Article.

Best regards!