CIRCULAR
Guidelines for Refunding State Budget Revenues Already Paid

Pursuant to the State Budget Law on March 20, 1996, and Decree No. 87/CP dated 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 the State Budget Law on May 20, 1998, and Decree No. 51/1998/NĐ-CP dated July 18, 1998, of the Government amending and supplementing certain provisions of Decree No. 87/CP dated December 19, 1996, of the Government detailing the division of management, preparation, implementation, and settlement of the state budget.

The Ministry of Finance issues guidelines for refunding state budget revenues already paid as follows:

I/ GENERAL PROVISIONS

1. Enterprises, organizations, individuals (hereinafter referred to collectively as units) shall be refunded state budget revenues (account 741) that have been paid into the state budget when they meet the following conditions:

1.1- The revenue has been inspected and reviewed by tax authorities, customs offices of provinces and cities, or other state agencies authorized to collect (hereinafter referred to collectively as collection agencies), which have issued a decision to refund and a letter requesting a refund sent to the financial agency.

1.2- The revenue has been actually paid into the state budget by the unit (or by the collection agency on behalf of the unit).

1.3- The refund cannot be made through offsetting against future revenue due from the unit or has been offset but still requires a refund from the state budget.

2. Revenue recorded in a particular level of the state budget fund shall be examined and resolved by the financial agency at that level. For revenue divided among different levels of the state budget, the highest-level financial agency shall examine and resolve it and notify lower-level financial agencies to implement it.

3. Value-added tax refunds (including overpaid value-added tax by units) shall be processed from the value-added tax refund fund as stipulated in Part D of Circular No. 122/2000/TT-BTC dated December 29, 2000, of the Ministry of Finance guiding the implementation of Decree No. 79/2000/NĐ-CP dated December 29, 2000, of the Government detailing the implementation of the Value-Added Tax Law.

4. Refunds of corporate income tax for reinvestment under the Foreign Investment Law shall be carried out according to the provisions in Item 6, Point II, Part Two of Circular No. 13/2001/TT-BTC dated March 8, 2001, of the Ministry of Finance guiding the implementation of tax regulations for investment forms under the Foreign Investment Law in Vietnam.

5. Refunds of export fuel fees for units shall be carried out according to the provisions in Circular No. 63/2001/TT-BTC dated August 9, 2001, of the Ministry of Finance supplementing and amending Circular No. 06/2001/TT-BTC dated January 17, 2001, of the Ministry of Finance guiding the implementation of Decree No. 78/2000/NĐ-CP dated December 26, 2000, of the Government on fuel fees.

6. Units paying into the state budget in foreign currency: When refunded, it shall be converted into Vietnamese dong at the average inter-bank foreign exchange rate published by the State Bank of Vietnam at the time of refund by the financial agency.

7. Relevant agencies and units shall record and settle state budget revenues already refunded to units in accordance with the prescribed regulations.

II. SPECIFIC PROVISIONS

1. The application for refund includes:

1.1- The refund decision (original according to the current model) of the collection agency as stipulated in Item 1.1, Point 1, Part I of this Circular.

1.2- The letter requesting a refund (original) of the collection agency sent to the financial agency (according to Model 01 attached to this Circular). 1.3- The confirmation letter (original) of the State Treasury confirming the amount subject to refund that has been actually paid into the state budget (according to Model 02 attached to this Circular); for units engaged in import and export activities, the confirmation letter of the State Treasury may be replaced by the payment receipt into the state budget according to Model 01 of Circular No. 12/1999/TT-BTC dated February 1, 1999, of the Ministry of Finance guiding amendments and supplements to certain points in Circular No. 41/1998/TT-BTC dated March 31, 1998, of the Ministry of Finance on concentrating the management of state budget revenues through the State Treasury (original or certified copy with confirmation of the State Treasury). In cases where the collection agency pays on behalf of multiple units in the same payment receipt, a list of the units making payments must be attached. The confirmation on the certified copy of the payment receipt must clearly indicate the amount to be refunded to the unit and that it has been actually paid into the state budget (signed by the director of the State Treasury, with full name and stamp).

2. Refund process:

2.1- The collection agency is responsible for issuing the refund decision and preparing the refund file in accordance with Point 1, Part II of this Circular and sending it to the financial agency for processing. The file should be sent to the financial agency at the level corresponding to the state budget revenue level; if the revenue is allocated to multiple levels of the state budget, it should be sent to the highest-level financial agency.

- For the refund of corporate income tax for reinvestment under the Foreign Investment Law, after the Minister of Finance issues the refund decision, the General Department of Taxation shall send the original refund decision to the State Budget Department to process the refund for the unit.

- For the refund of fuel fees, after the Director of the Tax Administration issues the refund decision for fuel fees, the Tax Administration shall send the original decision along with all required files as stipulated in Circular No. 63/2001/TT-BTC dated August 9, 2001, of the Ministry of Finance and the letter requesting a refund of fuel fees (according to Model 04 attached to this Circular) to the Ministry of Finance to process the refund for the unit.

2.2- After receiving the refund application file from the collection agency, the financial agency shall promptly review the file and process the refund for the unit. Specifically:

- If the file does not comply with the requirements set forth in Point 1, Part II of this Circular, within three working days, a letter shall be sent to the requesting agency to complete the file in accordance with the regulations.

In case the file is not complete as prescribed in Point 1, Part II of this Circular, within the latest three working days, a letter must be sent to the requesting agency to return the file for completion in accordance with the regulations.

- If the file is complete as prescribed in point 1, Part II of this Circular, within the latest seven working days, the financial authority shall implement the refund to the unit in accordance with Clause 4.2, Point 4, Part IV of Circular No. 103/1999/TT-BTC dated July 18, 1999, of the Ministry of Finance, and transfer it to the State Treasury at the same level for implementation of the refund to the unit; simultaneously send a letter notifying the revenue collection agency (in accordance with Model No. 03 attached to this Circular).

- For revenues divided among budget levels, the highest-level financial authority shall examine the file and implement the refund of the portion allocated to its own budget, and simultaneously issue a letter to the lower-level financial authority. The lower-level financial authority, upon receipt of the letter from the higher-level financial authority, shall implement the refund to the unit from the portion allocated to its own budget.

2.3- Upon receiving the refund voucher (refund order or payment order) from the same-level financial authority, the State Treasury shall conduct inspection, control, and promptly process the payment to the unit.

- If the voucher is incomplete or not in compliance with current regulations, within the latest two working days, return the voucher to the same-level financial authority along with a notification of the reasons for refusing payment.

- If the voucher is complete and in compliance with current regulations, promptly process the payment to the unit, specifically:

+ For refunds made through a payment order from the state budget, within the latest two working days, the same-level State Treasury shall be responsible for transferring the refunded amount directly into the account of the unit being refunded and record the expenditure under Chapter 160 (A, B, C, D), Type 10, Item 10, Section 132, and corresponding Subsection of the current fiscal year.

+ For refunds made through a refund order from the state budget, within the latest two working days, the same-level State Treasury shall be responsible for transferring the refund order to the State Treasury where the unit (or the agency collecting on behalf of the unit) deposited funds into the state budget.

The State Treasury where the unit (or the agency collecting on behalf of the unit) deposited funds into the state budget, upon receipt of the refund order from the financial authority transferred by the higher-level State Treasury, within the latest two working days, shall transfer the refunded amount directly into the unit's account and record the reduction in revenue under the relevant Chapter, Type, Item, Section, and Subsection of the current fiscal year.

3/The offsetting between refunded revenues and future revenues payable to the state budget by the unit is regulated as follows:

- The revenue collection agency shall offset revenues of the same nature. Specifically, customs agencies may also offset three types of taxes: export tax, import tax, and special consumption tax on imported goods.

- For units engaged in import and export activities, the customs agency shall offset according to each shipment.

- For units engaged in domestic production, business, and service activities, the revenue collection agency shall offset according to the tax period (month, quarter, year, etc.).

4/ In cases where the unit being refunded still owes the state budget (for revenues of different natures), the revenue collection agency must clearly and detailedly specify the amounts owed to the state budget and the amounts refunded by the state budget in the request letter sent to the financial authority. The financial authority shall consider and implement the refund to the unit, while simultaneously paying the state budget on behalf of the unit.

5/ For units that have been dissolved, declared bankrupt, or moved their business location from one area to another without any future revenue obligations, a written request from the revenue collection agency to the financial authority regarding overpaid revenues and future revenue obligations must be submitted. After the revenue collection agency has implemented offsets, the remaining amount to be refunded from the state budget to the unit shall be processed.

6/ For non-commercial goods at border gates (such as luggage, postal packages, postal items, etc.), if cash refunds are required for individuals without bank accounts or State Treasury accounts, the border gate customs shall directly refund the individual from the cash collected at the border gate that has not yet been paid into the state budget, in accordance with the prescribed regulations. The customs agency is responsible for implementing this refund and regularly reports to the competent authority as stipulated.

7/ In cases where the recipient of a cash refund does not have a bank or State Treasury account (excluding non-commercial goods at border gates), the revenue collection agency must clearly specify the name, permanent address, ID number, date of issuance, and place of issuance of the ID card of the person being refunded in the request letter sent to the financial authority. After approval by the financial authority, the State Treasury shall directly pay the recipient in accordance with the regulations governing cash management.

III/ IMPLEMENTATION

This Circular replaces Circular No. 25/2000/TT-BTC dated March 30, 2000, of the Ministry of Finance, and takes effect fifteen days after the date of signature; all previous provisions contrary to this Circular are abolished.

Cases that have completed the application file for refund in accordance with Circular No. 25/2000/TT-BTC dated March 30, 2000, of the Ministry of Finance, will continue to be submitted to the financial authority for resolution within thirty days from the effective date of this new Circular.

The General Department of Taxation, the General Customs Department, the state agencies authorized to collect, the Central State Treasury, financial authorities at all levels, and units, individuals entitled to refunds are responsible for implementing and guiding subordinate units to implement in accordance with the provisions of this Circular.

During the implementation process, if there are difficulties or obstacles, please report them promptly to the Ministry of Finance for research, guidance, and supplementation or amendment./.