Receipt and processing of tax refund claims in Vietnam 2023

Receipt and processing of tax refund claims in Vietnam 2023 (Internet image)

1. Cases of tax refund in Vietnam 2023

Article 70 of the Law on Tax Administration 2019 stipulates the following cases of tax refund:

- Tax authorities shall refund tax in the cases specified by tax laws.

- Tax authorities shall refund overpaid amounts in accordance with Clause 1 Article 60 of the Law on Tax Administration 2019.

2. Tax refund application in Vietnam 2023

Pursuant to Article 71 of the Law on Tax Administration 2019, the tax refund application includes:

- Taxpayers who have refundable tax may submit tax refund claims to competent tax authorities.

- A tax refund claim consists of:

+ The claim form;

+ Documents relevant to the refund claim

3. Receipt and processing of tax refund claims in Vietnam 2023

Step 1: Taxpayers who have refundable tax may submit tax refund claims to competent tax authorities.

Tax refund claims may be submitted:

- In person at tax authorities;

- By post;

- Electronically through online portals or tax authorities.

Step 2: Receiving tax refund application

Tax authorities shall process tax refund claims as follows:

- Supervisory tax authorities of taxpayers shall receive tax refund claims in accordance with tax laws. Collecting tax authorities shall receive claims for refund of overpaid amounts.

In case of refund of overpaid amounts under an annual/terminal statement of corporate income tax or personal income tax, the tax authority that received the statement shall provide the refund.

- Collecting customs authorities shall receive tax refund claims in accordance with tax laws.

Customs authorities where exit procedures are followed shall receive tax refund claims submitted by foreigners and Vietnamese people residing overseas.

Step 3: Receiving and responding to tax refund applications

Within 03 working days from the day on which the claim is received, the tax authority shall inform the taxpayer in writing of whether the claim is granted or rejected.

(Article 72 of the Law on Tax Administration 2019)

4. Tax refund appication inspection place in Vietnam 2023

Article 74 of the Law on Tax Administration 2019 stipulates the following tax refund inspection place as follows:

- Claims eligible for refund before inspection shall be inspected at tax authorities.

- Claims subject to inspection before refund shall be inspected at the premises of the taxpayers or relevant entities.

5. Time limits for processing tax refund claims in Vietnam

Pursuant to Article 75 of the Law on Tax Administration 2019 stipulating the time limits for processing tax refund claims as follows:

- In case a claim is eligible for refund before inspection, within 06 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund, demand inspection before refund in the cases mentioned in Clause 2 Article 73 of the Law on Tax Administration 2019, or reject the claim if it is unqualified.

In case information on the tax refund claim is different from that of the tax authority, the tax authority shall request the taxpayer in writing to provide explanation and additional information.

The time needed for providing explanation and additional information shall not be included in the time limit for processing tax refund claims.

- In case a claim is subject to inspection before refund, within 40 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund or reject the claim.

- If the tax authority fails to issue the tax refund decision by the deadline specified in Clause 1 and Clause 2 of Article 75 of the Law on Tax Administration 2019 , the tax authority shall pay an interest at 0,03% per day on the refundable and the number of days late.

The interest shall be paid by central government budget in accordance with regulations of law on state budget.

Vo Ngoc Nhi

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