What about penalties for late tax payments and delays in tax refunds for citizens?

Many VietNamNet readers have expressed their desire for the General Department of Taxation to listen to the legitimate needs of taxpayers and soon implement an automatic tax refund feature as simple as a bank transfer.

We must be fair to taxpayers.

Following the publication of the article "Automatic tax refund reduces inconvenience for both citizens and tax officials: Why not implement it?", many readers shared additional information about the shortcomings in the personal income tax refund procedure and expressed their desire for the Tax Department to soon implement the automatic tax refund feature.

Many people are hoping to receive automatic tax refunds soon. Photo: Nam Khanh

Reader Chien Bui recounts: “I experienced a tax refund process in early 2023, struggling to find the solution online, downloading additional apps, and then rushing to the tax office to request reactivation or cancellation of my tax return… It was so exhausting that I finally opted for a service, connecting a service provider with the officer handling my case. After some time, they calculated and informed me, ‘This is all you can get.’ Overwhelmed by the lengthy process of 6 or 7 months, I accepted the refund amount to get it over with.”

Reader Hung Nguyen Van also had a negative experience with tax refund procedures: “In 2023, when settling personal income tax on the system, I was entitled to a refund of over 5 million VND, but I couldn't complete the declaration and update the system no matter how many times I tried. It kept showing that item 11 or 12 required me to fill in the information, even though I had already entered all the necessary information. Overall, I think the software is not good and needs improvement to simplify procedures for citizens.”

Reader Nguyen Cuong expressed his frustration: When settling personal income tax, if there is a shortfall in the amount due, the tax authorities will scrutinize all sources of income, regardless of where it comes from. Meanwhile, to claim a tax refund, one must meet requirements such as a citizen identification card (even though a tax identification number is already available), an employment contract (even though income verification receipts are already provided), a termination notice (if no longer employed), and a commitment stating that there is no other source of income. The tax authorities may know all the income sources of a particular tax identification number. Yet, tax officials keep saying one thing is missing today and another thing tomorrow, discouraging those seeking a tax refund.

More fortunate than many others, reader Thanh Long Bui successfully submitted his application online. The system recorded it, but it remained unprocessed for over 3 months. When it finally started processing, they claimed the documents were incomplete, so he had to resubmit additional documents and wait again.

Similarly, a reader from Can Tho also submitted all the necessary documents, but the tax authorities still claim something is missing, and the tax refund has not been processed for several months.

Unlike some others, reader Thanh submitted her tax refund application for 2023 in April 2024, but to date, it has only shown as "received," with no information on its accuracy or completeness.

Sharing the same question, "Is it fair that people are fined for late tax payments, while tax refunds are granted indefinitely?", reader Dao Tuyet commented: "I fully declared my taxes as notified on the tax system, but after a month, the tax authority notified me that my claim was rejected because the data on the system differed, without specifying which data, and required me to go to the tax office in person..."

The complicated tax refund mechanism has caused many taxpayers to "give up." Reader TM Hung Huy is an example: "I still have a few million dong in tax refunds from previous years, but the procedures are so cumbersome that I'm too discouraged to bother with the refund process. I just leave the money there, but I still have to pay the full amount of tax this year."

Reader Cong calculated that the total amount of money lost over the years due to complicated procedures was nearly 10 million VND. “So where is that money now? The amount of money remaining (for those who haven’t received their tax refunds) must be very large, not small,” reader Cong questioned.

"If people are late in paying taxes, they are charged interest and fined. Why is it that tax authorities are not held accountable for delays in refunding taxes (holding back refunds) to the public? Only when tax authorities also bear the interest and the staff responsible are held accountable for the delays will the refund process be expedited," reader Immica questioned.

Automatic tax refunds will reduce bureaucracy and corruption.

According to reader Van Long Nguyen , many people would certainly like to receive automatic tax refunds: After paying taxes, if there is any surplus, it can be refunded or added to the tax for the year that was short, simply like a bank transfer.

Reader Ha Thu also hopes for the implementation of automatic tax refunds, which would save time for citizens, businesses, and tax authorities (as there is a lot of paperwork involved...).

Reader Nguyendungphuoctq hopes the Tax Department will soon implement automatic tax refunds. If the tax payment and refund system is simple and convenient, surely no one will be unaware of their tax debts and be penalized.

A reader with the nickname Inbox shared: “Taxes, social insurance, health insurance, temporary residence declarations, property registration… should be reformed towards simplicity and transparency to save billions of hours of people's labor. If those billions of hours of labor are saved, Vietnam's labor productivity will increase significantly. We should focus on reforming those things.”

Reader Do Quan expressed his opinion: "Now that modern technology and software are fully interconnected, and people can pay taxes online, we hope the General Department of Taxation will implement an automatic tax refund feature."

Reader Thinh asserted that technology can solve everything; it's just a matter of whether the tax authorities want to implement it or not.

Reader Thoa Nguyen notes that the lack of automatic tax refunds would create opportunities for intermediaries, causing inconvenience and wasting taxpayers' time.

"Hopefully, the General Department of Taxation will be open-minded and listen to the legitimate needs of the people... the goal is simply to improve the overall work. If all operations can be done online, tax office staff will have less work to do," reader Luong Xuan Nghia expressed.

Source: https://vietnamnet.vn/cham-nop-thue-bi-phat-cham-hoan-thue-cho-dan-thi-sao-2334157.html