Enterprises Entitled to Additional Interest if Tax Authority Delays Tax Refund

This is a notable content regulated in the Law on Tax Administration 2019, passed by the XIV National Assembly at the 7th session on June 13, 2019.

To be specific, Article 75 of the Law on Tax Administration 2019 stipulates:

- For documents under the pre-refund inspection category, within 06 working days from the date the tax administration agency issues a notice of acceptance and processing time for the tax refund dossier, the tax administration agency must decide to refund the tax to the taxpayer or notify the transfer of the taxpayer's documents for pre-refund inspection if it falls under the cases specified in clause 2, Article 73 of this Law or notify the taxpayer of non-refund if the dossier does not meet the refund conditions.

In case the information declared on the tax refund dossier differs from the information managed by the tax administration agency, the tax administration agency must notify in writing so that the taxpayer can provide explanations and additional information. The time for explanations and additional information is not included in the timeframe for processing the tax refund dossier.

- For documents under the pre-refund inspection category, within 40 days from the date the tax administration agency issues a written notice of acceptance and processing time for the tax refund dossier, the tax administration agency must decide to refund the tax to the taxpayer or not refund the tax if the dossier does not meet the refund conditions.

- Beyond the aforementioned time limits, if the delay in issuing the tax refund decision is due to the fault of the tax administration agency, in addition to the tax amount to be refunded, the tax administration agency must also pay interest at 0.03%/day calculated on the refunded amount and the number of delayed refund days. The interest payment source is allocated from the central budget in accordance with the law on state budget.

Refer to the detailed content at the Law on Tax Administration 2019 effective from July 01, 2020.

Duy Thinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE