If the fine amount is larger than the amount in administrative penalty decision, can excess amount be returned in Vietnam?

If the fine amount is larger than the amount in administrative penalty decision, can excess amount be returned in Vietnam?

Pursuant to Clause 2, Article 6 of Circular 18/2023/TT-BTC (effective from May 5, 2023) regulating whether the fine amount larger than the fine amount in the correction decision can be returned. Excess money is as follows:

Calculation method and handling of differences between fines

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2. Handling of a difference between fines

Where the amount of fine specified in the decision on rectification, revision or cancellation of an existing administrative penalty decision, or a new administrative penalty decision, is greater than the amount of fine that a violator has paid into the state budget (B>A), the violator is required to pay the outstanding balance according to the procedures for payment into the state budget defined in Article 4 in the Decree No. 11/2020/ND-CP.

Where the amount of fine specified in the decision on rectification, revision or cancellation of an existing administrative penalty decision, or a new administrative penalty decision, is less than the amount of fine that a violator has paid into the state budget (B

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Thus, if the fine amount is larger than the fine amount in the correction decision, if the excess is returned, the violating individual or organization will be refunded the overpaid fine in Vietnam.

If the fine amount is larger than the amount in administrative penalty decision, can excess amount be returned in Vietnam? (Image from the Internet)

When is time to refund the fine amount greater than the fine amount in administrative penalty decision in Vietnam?

According to Article 7 of Circular 18/2023/TT-BTC (effective from May 5, 2023) on the refund of fines under decisions of competent state authorities, there are provisions as follows:

Refund of fines under decisions of competent state authorities

1. Administratively penalized entities or persons may appeal against or sue for an administrative penalty decision as per laws; persons may denounce any violation against laws arising from handling of administrative violations prescribed in laws.

2. Any entity or person stated in clause 1 of this Article may claim a refund for a wrongly collected fine within 15 days from the date of issuance of an appeal resolution decision, or upon receipt of an adjudication decision from the competent authority.

An adjudication decision may include a decision of a competent administrative regulatory body or a judgement or award of a jurisdictional Court defined in laws.

3. Sources of funding for refunds and refunding procedures:

a) Sources of funding for refunds of fines shall be subject to Article 10 in the Circular No. 328/2016/TT-BTC that is amended and supplemented in clause 9 of Article 1 in the Circular No. 72/2021/TT-BTC; refunding procedures shall be as defined in Article 5 in the Decree No. 11/2020/ND-CP, Article 10 in the Circular No. 328/2016/TT-BTC amended and supplemented in clause 9 of Article 1 in the Circular No. 72/2021/TT-BTC (except as prescribed in point b of this clause);

b) Sources of funding for refunds and refunding procedures applied to tax-related fines shall be subject to the Circular No. 80/2021/TT-BTC; those applied to customs-related fines shall be subject to the Circular No. 38/2015/TT-BTC.

Accordingly, individuals and organizations will be refunded the incorrectly collected fine amount within 15 days from the date of issuance of the decision to resolve the complaint or from the date of receipt of the handling decision from the competent authority.

What is responsibility of agencies and units to refund the fine amount greater than the fine amount in the administrative penalty decision in Vietnam?

Article 15 of Circular 18/2023/TT-BTC (effective from May 5, 2023) stipulates responsibilities of the subjects of application of this Circular are as follows:

1. The State Treasury shall be responsible for collecting fines according to administrative penalty decisions issued by competent persons; ensuring that all fines are fully and promptly accounted for, and strictly controlled. Each month, the State Treasury shall be responsible for submitting the detailed declaration of fines, including late payment interest amounts (if any), to the corresponding employer of the person having jurisdiction to issue administrative penalty decisions for checking and comparison purposes.

2. Upon receipt of the detailed declaration of fines from the State Treasury, the employer of the person having jurisdiction to issue administrative penalty decisions shall check and compare data on collection of fines, monitor and inspect payment of fines and late payment interest (if any) of violating entities and persons. If it is discovered that those data do not match, the employer of the person having jurisdiction to issue administrative penalty decisions shall send the State Treasury the written notification of such situation for any action to be taken in accordance with regulations.

3. The General Department of Taxation shall act as the presiding body providing guidance on management and utilization of receipts for fines prescribed in clause 1 and clause 2 of Article 8 herein nationwide. Departments of Taxation shall be responsible for printing and notifying the publication of receipts for fines in accordance with regulations. Departments of Taxation and Sub-departments of Taxation shall dispense receipts for fines as legally required.

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