Circular No. 25/2000/TT-BTC guiding the refund of revenues already paid to the State budget

CIRCULAR

Guidelines for Refunding State Budget Revenues Already Paid.

Pursuant to the State Budget Law dated March 20, 1996 and Decree No. 87/CPdated December 19, 1996 of the Government detailing the division of management,preparation, implementation, and settlement of the state budget.

Pursuant to the Law Amending and Supplementing Certain Provisions of theState Budget Law dated May 20, 1998 and Decree No. 51/1998/NĐ-CP dated July 18,1998 of the Government amending and supplementing certain provisions of DecreeNo. 87/CP dated December 19, 1996 of the Government detailing the division ofmanagement, preparation, implementation, and settlement of the state budget.

The Ministry of Finance provides guidelines for refunding state budgetrevenues already paid as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1.Enterprises, organizations, individuals (hereinafter referred to as units)are entitled to have the financial authority refund state budget revenues(already paid into account 741) when they meet the following conditions:

1.1The revenue in question has been inspected, reviewed, and a decision torefund issued by the Tax Authority, Customs Authority of provinces and cities,or other state agencies authorized to collect taxes (hereinafter referred toas collection agencies) within their respective jurisdictions in accordancewith their authority and regulations.

1.2The revenue in question has been actually paid into the state budget bythe unit (or by the collection agency on behalf of the unit) and confirmed bythe State Treasury.

1.3The amount to be refunded cannot be offset against future tax liabilitiesof the unit.

2.The implementation of offsets against future tax liabilities is regulatedas follows:

For enterprises currently operating:

Offsets can only be made against revenues of the same nature, not betweendifferent types of revenues such as: Value Added Tax (VAT) can only be offsetagainst VAT; business income tax can only be offset against business incometax (or VAT), but not against profit tax or corporate income tax...; importtax can only be offset against import tax, but not against VAT on importedgoods or special consumption tax on imported goods...

Offsets must be carried out immediately at the time of occurrence of therevenue to be refunded against the revenue that must be paid into the statebudget (for each separate revenue item) or carried out immediately within themonth, quarter, or according to the tax period (for revenues that must be paidin installments according to the tax period).

For enterprises undergoing dissolution, bankruptcy, or transferringbusiness locations from one area to another without future tax liabilities,there must be confirmation from the collection agency regarding the excessstate budget revenues to be refunded to the unit against the remaining taxliabilities that the unit still needs to pay, and the amount remaining afteroffsets by the collection agency must be proposed for further refund by thefinancial authority.

3.Units paying VAT under the deduction method shall have input VAT refundedaccording to the provisions of Clause I, Part D of Circular No. 89/1998/TT-BTCdated June 27, 1998 of the Ministry of Finance guiding the implementation ofDecree No. 28/1998/NĐ-CP dated May 11, 1998 of the Government detailing theimplementation of the Value Added Tax Law.

4.Revenues recorded in which level of the state budget shall be refundedfrom that level of the state budget. Revenues shared between different levels,state financial authorities at the highest level shall be responsible forreviewing and deciding on refunds.

5.Related agencies shall be responsible for accounting and settling statebudget revenues already refunded to units in accordance with prescribedregulations.

II. SPECIFIC PROVISIONS

1.Revenues already paid into the state budget and refunded by the financialauthority shall be implemented as follows:

1.1 The Ministry of Finance (Department of State Budget) shall carry outrefunds:

Revenues already paid into the state budget and recorded entirely in thecentral government budget.

Revenues already paid into the state budget, shared between the centralgovernment budget and local government budgets (the portion allocated to thecentral government budget).

1.2 Provincial Departments of Finance and Prices (collectively referred toas provincial departments) shall carry out refunds::

Revenues already paid into the state budget and recorded entirely in theprovincial government budget.

Revenues already paid into the state budget, shared between differentlevels of government budgets (the portion allocated to the provincialgovernment budget).

1.3 District Financial and Pricing Departments (collectively referred to asdistrict departments) shall carry out refunds::

Revenues already paid into the state budget and recorded entirely in thedistrict government budget.

Revenues already paid into the state budget, shared between differentlevels of government budgets (the portion allocated to the districtgovernment budget).

1.4 Commune Financial Committees (collectively referred to as communecommittees) shall carry out refunds:

Revenues already paid into the state budget and recorded entirely in thecommune government budget.

Revenues already paid into the state budget, shared between differentlevels of government budgets (the portion allocated to the communegovernment budget).

2.Application forms for refunds, prepared by the collection agency andsubmitted to the financial authority, include:

2.1 A formal letter requesting a refund (original copy) from the agencyissuing the refund decision to the financial authority, which must clearlyspecify the following:

Name of the entity to be refunded; account number; location where theaccount is opened (bank or State Treasury...).

Legal basis for determining the amount to be refunded to the entity.

Reason for direct refund from the state budget.

Total amount of state budget revenues already paid by the entity.

Total amount of state budget revenues to be refunded to the entityaccording to the decision of the competent state authority, including:

Amount of refund by offsetting.

Remaining amount to be requested for refund from the financial authority.

In cases where the entity to be refunded is an individual without anaccount opened at a bank or State Treasury, and the refund is to be made incash, the formal letter requesting a refund submitted to the financialauthority must clearly specify: name, address, and identity card number (...number, date... month... year... and place of issuance) of the person to berefunded.

2.2 Original copy of the refund decision issued by the competent authorityin accordance with tax laws and current guiding documents of the state.

2.3 Confirmation letter from the State Treasury (original copy) regardingthe revenue already paid into the state budget. This confirmation letter isissued upon request by the entity (or by the collection agency on behalf ofthe entity) at the State Treasury where the entity (or the collection agencyon behalf of the entity) deposited the money into the state budget, inaccordance with the model attached to this Circular.

3.Refund process:

3.1 The authority responsible for collecting and submitting refund files of budget revenues already deposited to the state treasury under its management authority (as stipulated in point 2, Part II of this Circular) shall submit such files to the financial authority for processing refunds.

3.2 Financial authorities at all levels, upon receiving the refund request file from the revenue collection agency, must examine, review, and process:

If the file is not complete as prescribed in point 2, Part II of this Circular, they must issue a written notice to the requesting agency to supplement the file within the latest three working days.

If the file is complete as prescribed in point 2, Part II of this Circular, they must issue an order to refund state budget revenues (for revenues deposited in the current fiscal year) or issue a payment order from the state budget (for revenues deposited in previous fiscal years) and transfer it to the State Treasury for immediate refund to the entity, while sending a written notice (in accordance with the model attached to this Circular) informing the requesting agency.

3.3 If the revenue is shared among different levels of the budget, the refund file must be submitted to the highest level financial authority.

Upon receipt of the file, the highest level financial authority must examine, review, decide on the refund, and send a written notice along with one set of the refund file (a copy) as prescribed in point 2, Part II of this Circular to the lower-level financial authority.

Upon receipt of the written notice and the refund file from the higher-level financial authority, the lower-level financial authority must process the refund of the revenue deposited into the lower-level budget as prescribed in point 3.2 above.

3.4 The State Treasury, upon receipt of the refund document (order to refund or payment order) from the same-level financial authority, must check and control the document:

If the document is incomplete, unclear, or does not comply with the current regulations, it must return the document to the same-level financial authority within the latest two working days, accompanied by a notification of the reasons for rejecting the payment so that the financial authority can correct the document.

If the document is complete, clear, and complies with the current regulations, it must proceed with the procedure to transfer the money to the entity, specifically:

For the amount refunded through a payment order from the state budget, the State Treasury at the same level must transfer the refunded amount directly into the account of the entity being refunded and record the expenditure from the current fiscal year within the latest two working days.

For the amount refunded through an order to refund state budget revenues, the State Treasury at the same level has the responsibility to transfer the refund order to the State Treasury where the entity (or the agency collecting on behalf of the entity) deposited the revenue into the state budget, and within the latest two working days, the State Treasury where the entity (or the agency collecting on behalf of the entity) deposited into the state budget must transfer the refunded amount directly into the entity's account and reduce the revenue recorded in the current fiscal year according to the Chapter, Category, Clause, Section, and Subsection where the revenue was originally recorded.

For the amount refunded in cash, the State Treasuries at all levels have the responsibility to guide the entities being refunded to comply with the current regulations on cash refunds.

4. Responsibilities of relevant state agencies in refunding state budget revenues to entities:

4.1 Tax authorities, customs authorities, and other agencies authorized to collect revenue are responsible for:

Issuing refund decisions and ensuring that the refunded revenues are accurate, within their authority, and in compliance with the regulations.

Preparing and submitting the refund request file (as prescribed in point 2, Part II of this Circular) for state budget revenues under their management authority to the financial authority responsible for processing refunds.

In case of discovering that the decision to refund state budget revenues to entities is not in accordance with the law, the issuing agency and the entity requesting the refund must bear legal responsibility for their violations; meanwhile, the entity being refunded must immediately deposit the refunded amount back into the state budget.

4.2 The State Treasury is responsible for:

Issuing a confirmation document regarding the revenue actually deposited into the state budget (in accordance with the model attached to this Circular) when requested by the entity (or the agency collecting on behalf of the entity).

Bearing legal responsibility for the contents confirmed.

Processing the transfer of funds to the entity in accordance with the provisions of point 3.2, Part II of this Circular.

Guiding entities (or agencies collecting on behalf of the entity) to comply with the provisions of Circular No. 41/1998/TT-BTC dated March 31, 1998, and Circular No. 12/1999/TT-BTC dated February 1, 1999, of the Ministry of Finance on the concentration and management of state budget revenues through the State Treasury.

4.3 Financial authorities are responsible for:

Processing the transfer of funds to the entity in accordance with the provisions of point 3.1, Part II of this Circular.

Sending a written notice (in accordance with the model attached to this Circular) informing the requesting agency about the completion of the refund to the entity.

This Circular takes effect fifteen days after the date of signature. All previous regulations contrary to this Circular are abolished.

The General Department of Taxation, the General Department of Customs, agencies authorized to collect revenue, the Central State Treasury, financial authorities at all levels, and entities being refunded are responsible for implementing and guiding subordinate units to comply with the provisions of this Circular. During implementation, if there are difficulties or obstacles, they should promptly report to the Ministry of Finance for research, guidance, and supplementation or amendment./.