How shall personal income tax refund claims be submitted in Vietnam?

Who is eligible for personal income tax refund in Vietnam?

Pursuant to the provisions in Article 28 of Circular 111/2013/TT-BTC, regulations on personal income tax refunds are as follows:

Tax Refund

1. Personal income tax refunds apply to individuals who have registered and obtained a tax identification number at the time of submitting the tax finalization dossier.

2. For individuals who have authorized the tax finalization on their behalf to the income-paying organization or individual, the tax refund is processed through the income-paying organization or individual. The organization or individual paying income offsets the tax overpaid or underpaid amounts of individuals. After offsetting, if there is still an overpaid tax amount, it can be carried forward to the next period or refunded upon request.

3. For individuals filing directly with the tax authority, they may choose to have the tax refunded or offset it to the next period with the same tax authority.

4. In cases where an individual is entitled to a personal income tax refund but files a late tax finalization return in accordance with regulations, no penalties for late filing of tax returns will be applied.

Based on these provisions, personal income tax refunds apply to individuals who have registered and obtained a tax identification number at the time of submitting the tax finalization dossier.

How shall personal income tax refund claims be submitted in Vietnam? (Image from the Internet)

When shall employees receive a personal income tax refund in Vietnam?

Pursuant to the provisions of clause 2, Article 8 of the 2007 Law on Personal Income Tax, individuals are eligible for personal income tax refunds in the following cases:

Tax Management and Refunds

1. Taxpayer registration, declaration, tax deduction, payment, finalization, refund, handling of tax-related legal violations, and tax management measures are carried out according to tax management laws.

2. Individuals are eligible for tax refunds in the following cases:

a) The tax amount paid exceeds the payable tax amount;

b) Individuals have paid tax but have taxable income that does not reach the taxable threshold;

c) Other cases as decided by competent state authorities.

Thus, employees are eligible for personal income tax refunds in the following circumstances:

- The tax amount paid exceeds the payable tax amount;

- Individuals have paid tax but have taxable income that does not reach the taxable threshold;

- Other cases as decided by competent state authorities.

How shall personal income tax refund claims be submitted in Vietnam?

Pursuant to the provisions of clause 2, Article 72 of the 2019 Law on Tax Administration regarding the receipt and response to tax refund documentation as follows:

Receipt and Response to Tax Refund Documentation

1. Tax administration agencies are responsible for receiving tax refund claims as per the following regulations:

a) The tax authority directly managing the taxpayer receives the tax refund dossier for cases eligible for a refund according to tax laws. The tax authority managing the collection receives the dossier for overpayment refund; for overpayments due to corporate or personal income tax finalization, the tax authority receives the corporate or personal income tax finalization dossier of the taxpayer along with the overpayment refund dossier;

b) Customs authorities where the collection is managed receive tax refund claims for cases eligible for a refund according to tax laws; for foreigners or overseas Vietnamese exiting the country with goods eligible for a refund, the customs authority processing the exit formalities receives the tax refund dossier.

2. Taxpayers submit tax refund claims through the following methods:

a) Direct submission at the tax administration agency;

b) Postal mail;

c) Electronic submission via the electronic transaction portal of the tax administration agency.

3. Within 03 working days from the date of receipt of the tax refund dossier, the tax administration authority classifies the dossier and notifies the taxpayer of the acceptance and timeline for processing the tax refund dossier or provides a written notice to the taxpayer if the dossier is incomplete.

4. The Minister of Finance shall specify the details of this Article.

Thus, employees may submit personal income tax refund claims through the following methods:

- Direct submission at the tax administration agency;

- Postal mail;

- Electronic submission via the electronic transaction portal of the tax administration agency.