Amendments to the regulations on determining the tax amount eligible for tax refund in Vietnam

Amendments to the regulations on determining the tax amount eligible for tax refund in Vietnam

Decision 2201/QD-TCT dated December 31, 2024, has amended and supplemented Clause 1, Article 15 of the Tax Refund Procedure issued along with Decision 679/QD-TCT dated May 31, 2023, regarding the determination of eligible tax refund amounts concerning applications for tax refunds that are subject to prior refund in cases subject to tax refund by tax law regulations.

The department handling tax refund applications subject to prior refund bases its actions on the electronic tax refund files in the refund sub-system or paper-based refund files transferred by the tax file classification department and conducts Step 1 of cross-checking the tax refund files as follows:

Based on the tax refund files of the taxpayer; files, documents, information provided by the taxpayer; information about the taxpayer managed by the tax authority in the database, and information provided by competent state agencies related to the taxpayer to determine eligible subjects and cases for tax refund, specifically:

- In cases where it is determined that the tax refund files do not fall under eligible subjects and cases for tax refund, the refund sub-system generates and issues a Notice of Non-refund Eligibility (form number 04/TB-HT issued along with Circular 80/2021/TT-BTC) to the taxpayer following the One-stop Process.

- In cases where the tax refund files fall under eligible subjects and cases for tax refund, the tax authority compares the tax amount proposed for refund in the tax refund file with the tax declaration file, supplement declaration file, the status of tax obligation offsets in the taxpayer's business activities (if any), and the tax amount already refunded in the preceding consecutive period. The refundable tax amount must be declared according to the regulations of the Law on Tax Administration 2019 and its guiding documents.

- The reconciliation result must determine whether the case is eligible for a tax refund or not; the amount of tax eligible for refund; the tax amount not eligible for refund, tax amount not eligible for refund transferred for offset; or incomplete applications requiring supplementary information, explanations from the taxpayer. If eligible for refund, the refundable tax amount must be determined according to the provisions of Clause 1, Article 34 of Circular 80/2021/TT-BTC.

The reconciliation results are fully updated into the Proposal for Tax Refund Form (form number 03/Qtr-HT issued along with the Tax Refund Procedure under Decision 679/QD-TCT dated May 31, 2023).

More details can be found in Decision 2201/QD-TCT, effective from December 31, 2024.

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