Refund to payers of overpaid (collected) tax amounts by territorial offices of the Federal Tax Service

The Russian Ministry of Finance, in its letter dated December 23, 2015, No. 02-08-10/76221 regarding the refund to taxpayers of overpaid (recovered) tax amounts by territorial offices of the Federal Tax Service noted the following.

According to paragraph 6 of Article 78 of the Russian Tax Code (hereinafter - NKR), the amount of overpaid tax is subject to refund upon the taxpayer's application within one month from the date the tax authority receives such an application.

An application for a refund of the overpaid tax amount may be submitted by the taxpayer within three years from the date of payment of that amount.

A refund of the overpaid tax amount to the taxpayer is carried out only after offsetting the amount of overpaid tax against outstanding arrears (debts) in other taxes of the same type, as well as debts for corresponding penalties and fines subject to collection under the provisions of the NKR, provided that the taxpayer has such arrears or debts.

According to paragraph 8 of Article 78 of the NKR, a refund of the overpaid tax amount to the taxpayer is carried out by the territorial office of the Federal Treasury in accordance with the budget legislation of the Russian Federation upon an order for the refund of this amount, issued on the basis of the tax authority's decision regarding the refund of such tax amount.

Under current conditions of business entities' activities, extending the period for refunding overpaid tax amounts (granting installment plans for such refunds), as well as imposing restrictions on refunds depending on sources, appear to be unjustified.