Proposal to add tax refund authority for large enterprises

(PLVN) - Instead of having to transfer documents to the Tax Departments of provinces and centrally-run cities for management according to current regulations, if approved by the National Assembly , enterprises managed by the Large Enterprise Tax Department (General Department of Taxation) that generate tax refunds will have the Large Enterprise Tax Department directly handle procedures...

11/04/2024 06:52

To get a tax refund, large enterprises must return to the local Tax Department to complete the procedures.

(PLVN) - Instead of having to transfer documents to the Tax Departments of provinces and centrally-run cities for management according to current regulations, if approved by the National Assembly, enterprises managed by the Large Enterprise Tax Department (General Department of Taxation) that generate tax refunds will have the Large Enterprise Tax Department directly handle procedures...

The Ministry of Finance said that the Tax Administration Law (QLT) No. 38/2019/QH14 has been effective since 2020. During this period, the large enterprise system has developed strongly, requiring appropriate amendments and supplements to the tax administration and refund work. Pursuant to Decision 1968/QD-BTC dated October 8, 2021, the Large Enterprise Tax Department is the direct tax administration agency for large enterprises assigned to manage by the Ministry of Finance.

However, Article 72 of the Tax Administration Law stipulates: "The tax authority directly managing the taxpayer shall receive tax refund dossiers for cases eligible for tax refunds according to the provisions of the tax law"; Clause 1, Article 76 of the Tax Administration Law on the authority to decide on tax refunds stipulates: "The General Director of the General Department of Taxation, the Director of the Tax Department of a province or centrally-run city shall decide on tax refunds for cases eligible for tax refunds according to the provisions of the tax law".

The above regulation has caused problems in tax refunds for large enterprises, which are corporations and general companies managed by the Large Enterprise Tax Department. Typically, when a request for VAT refund arises, these large enterprises must transfer the dossier to the Tax Department of the provinces and centrally-run cities for settlement instead of being handled by the Large Enterprise Tax Department. This has led to delays in tax refunds for large enterprises at times.

Accordingly, the Ministry of Finance believes that it is necessary to add the authority on tax refunds to the Large Enterprise Tax Department to manage, thereby creating favorable conditions for processing tax refund dossiers of large enterprises and related organizations and individuals.

Similarly, in the case of taxpayers directly managed by the Tax Department, the tax refund dossier is received by the Tax Department, but the Head of the Tax Department does not have the authority to decide on the tax refund. This has caused problems when having to make a decision on tax refund for taxpayers not managed by the Tax Department, while the Tax Department is the direct tax authority that will conduct an inspection at the taxpayer's headquarters to determine the amount of VAT that has not been fully deducted and is eligible for a refund, and the amount of excess tax paid at the time of ownership transfer, enterprise conversion, merger, consolidation, division, separation, dissolution, bankruptcy, and termination of operations.

To overcome these shortcomings, the Ministry of Finance has proposed to amend the regulations on the authority to decide on tax refunds by adding the authority to decide on tax refunds of the Director of the Large Enterprise Tax Department, the Director of the Tax Branch and the Director of the Regional Tax Branch.

Accordingly, the tax authority directly managing the taxpayer will be responsible for receiving the dossier and directly handling and deciding on tax refunds to create conditions for taxpayers to quickly handle tax refund dossiers.

This proposal is considered by the business community and taxpayers as an important step in the strategic roadmap for tax system reform. In addition, the decentralization of authority will contribute to improving the efficiency of tax management, removing obstacles, thereby contributing to promoting growth and economic stability; building a favorable and friendly environment, creating trust for taxpayers in accordance with the motto "Taxpayers are the center of service, truly becoming a trusted partner with taxpayers" that the entire tax sector always unanimously strives for.

Source: https://baophapluat.vn/de-xuat-bo-sung-tham-quyen-hoan-thue-doi-voi-doanh-nghiep-lon-post530733.html