Is there a fine for person eligible for the refund of personal income tax that submits the tax settlement behind schedule in Vietnam?

Is there a fine for person eligible for the refund of personal income tax that submits the tax settlement behind schedule in Vietnam?

Based on Article 28 of Circular 111/2013/TT-BTC regulating personal income tax refunds as follows:

Tax Refund

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

2. For individuals who have authorized tax finalization to the entity or individual paying the income, tax refunds for these individuals are performed through the entity or individual paying the income. The entity or individual pays income by offsetting excess tax against tax underpayments of individuals. After offsetting, if there is still excess tax paid, it can be offset against the following period or refunded if requested.

3. For individuals who directly declare to the tax authority, they can choose to have the tax refunded or offset to the following period at the same tax authority.

4. In the case of individuals with personal income tax refunds arising but late in submitting tax finalization declarations as prescribed, administrative penalties for late tax finalization declaration are not applied.

Thus, individuals with personal income tax refunds arising but late in filing tax finalization as prescribed will not be penalized for administrative violations due to late tax finalization declaration.

Is there a fine for person eligible for the refund of personal income tax that submits the tax settlement behind schedule in Vietnam? (Image from the Internet)

When is personal income tax refunded in Vietnam?

Based on Article 75 of the Law on Tax Administration 2019 as follows:

Deadline for settling tax refund dossiers

1. For dossiers in the category of refunding taxes first, no later than 06 working days from the date the tax administration authority notifies about accepting the dossier and the time of settling the tax refund dossier, the tax administration authority must decide on the tax refund for the taxpayer or notify the transfer of the taxpayer’s dossier to an inspection before refunding taxes if falling into cases stipulated in Clause 2, Article 73 of this Law or notify non-refund if the dossier is not eligible for a tax refund.

In cases where the information declared on the tax refund dossier differs from the information managed by the tax administration authority, the tax administration authority must notify in writing for the taxpayer to explain and supplement information. The time for explanation and information supplementation is not counted in the time limit for settling tax refund dossiers.

2. For dossiers in the category of inspection before refunding taxes, no later than 40 days from the date the tax administration authority has a written notice about accepting the dossier and the time of settling the tax refund dossier, the tax administration authority must decide on the tax refund for the taxpayer or not for the taxpayer if the dossier is not eligible for a tax refund.

3. Beyond the deadlines specified in Clauses 1 and 2 of this Article, if the delay in issuing the tax refund decision is due to the fault of the tax administration authority, in addition to the refunded tax amount, the tax administration authority must also pay interest at the rate of 0.03%/day on the refundable amount and the number of days of delay. The source for interest payment is allocated from the central budget according to the state budget law.

Thus, **** the personal income tax refund time as prescribed is as follows:

- For dossiers in the personal income tax refund category first, no later than 06 working days from the date the tax administration authority notifies about accepting the dossier and the time of settling the tax refund dossier, the tax administration authority must decide on the tax refund for the taxpayer.

- For dossiers in the category of inspection before personal income tax refund, no later than 40 days from the date the tax administration authority has a written notice about accepting the dossier and the time of settling the personal income tax refund dossier.

What to prepare for personal income from salaries and wages in Vietnam?

According to Clause 1, Article 42 of Circular 80/2021/TT-BTC regulating personal income tax refund dossiers for income from salaries and wages include:

- In case organizations or individuals paying income from salaries and wages finalize for individuals with authorization

The dossier includes:

+ A request document for handling excess tax, late payment, and penalty amounts according to form No. 01/DNXLNT issued with Appendix I of this Circular;

+ A letter of authorization according to legal regulations in case the taxpayer does not directly perform the tax refund procedures, except for cases where the tax agent submits tax refund dossiers according to the contract signed between the tax agent and the taxpayer;

+ List of tax payment vouchers according to form No. 02-1/HT issued with Appendix I of this Circular (applicable to organizations or individuals paying income).

- In case individuals with income from salaries and wages directly finalize taxes with the tax authority and have excess tax paid, requesting a refund on the personal income tax finalization declaration, then tax refund dossiers are not required.

The tax authority resolves the refund based on the personal income tax finalization dossier to settle excess payment for the taxpayer according to regulations.

Download Form 01/DNXLNT here.

Download Form 02-1/HT here.