Guidance on handling of overpaid tax, late payment interest and fines in Vietnam According to the Law on Tax Administration 2019

Guidance on handling of overpaid tax, late payment interest and fines in Vietnam According to the Law on Tax Administration 2019 (Image from the Internet)

1. Guidance on handling of overpaid tax, late payment interest and fines in Vietnam According to the Law on Tax Administration 2019

Article 60 of the Law on Tax Administration 2019 prescribes the handling of handling of overpaid tax, late payment interest and fines in Vietnam as follows:

- Taxpayers with handling of overpaid tax, late payment interest and fines greater than the payable amount are entitled to offset the overpaid amounts against the tax, late payment interest, and penalties due for the subsequent tax period or to receive a refund when the taxpayer no longer has tax, late payment interest, and penalty arrears.

In cases where a taxpayer requests an offset of handling of overpaid tax, late payment interest and fines against the outstanding amount, no late payment interest will be calculated on the offset amount from the date the overpayment arises until the tax administration authority completes the offset.

- In cases where a taxpayer requests a refund of handling of overpaid tax, late payment interest and fines, the tax administration authority must issue a decision for the refund or provide a written explanation for the refusal to refund within 5 working days from the date of receiving the refund request.

- handling of overpaid tax, late payment interest and fines will not be refunded, and the tax administration authority will settle the overpayment in the accounting record and electronic data system under the following circumstances:

+ The tax administration authority has notified the taxpayer of the refundable overpaid amount, but the taxpayer declines to receive the refund in writing;

+ The taxpayer is no longer operating at the registered address with the tax authority, has been notified of the overpaid amount through public media, and has not responded in writing requesting a refund within 1 year from the notification date;

+ The overpaid amount exceeds a period of 10 years from the date of payment into the state budget, and the taxpayer neither offsets the tax obligation nor requests a refund.

- In cases where the taxpayer is no longer operating at the registered business address with handling of overpaid tax, late payment interest and fines, and also owes tax, late payment interest, and penalties, the tax administration authority will offset the overpaid amounts against the owed amounts.

2. Authority to Handle overpaid tax, late payment interest and fines

Clause 2, Article 10 of the Law on Tax Administration 2019 specifies the authority to handle overpaid tax, late payment interest and fines in Vietnam:

- Director-General of the General Department of Customs, Directors of Provincial/Municipal Departments of Customs, Directors of Post-clearance Audit Departments, Directors of Anti-smuggling Investigation Departments in cases of issuing tax assessment decisions, and penalty decisions.

- Heads of Customs Branches and Heads of Post-clearance Audit Branches where the handling of overpaid tax, late payment interest and fines, and other state budget collections exceed the payable amounts.

- Heads of the Customs Offices where the handling of overpaid tax, late payment interest and fines arise based on the resolution decision of a competent authority or a court judgment or decision.

To Quoc Trinh

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