Shall personal income tax be refunded when submitting a late tax statement in Vietnam?

When is the deadline for submitting personal income tax statement prepared by income earners in Vietnam?

Pursuant to Clause 2, Article 44 of the Law on Tax Administration 2019, which regulates the deadline for submitting tax declaration dossiers for taxes with an annual tax period, as follows:

Deadline for submitting tax declaration dossier

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2. The deadline for submitting tax declaration dossiers for taxes with an annual tax period is regulated as follows:

a) No later than the last day of the third month from the end of the calendar or fiscal year for annual tax settlement dossiers; no later than the last day of the first month of the calendar or fiscal year for annual tax declaration dossiers;

b) No later than the last day of the fourth month from the end of the calendar year for personal income tax statement dossiers of individuals directly finalizing tax;

c) No later than December 15 of the previous year for flat tax declaration dossiers of business households or individuals paying tax under the flat rate method; in case of new business households or individuals, the deadline for flat tax declaration is no later than 10 days from the commencement of business.

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Thus, the deadline for personal income tax statement prepared by income earners is determined to be no later than the last day of the fourth month from the end of the calendar year.

Shall personal income tax be refunded when submitting a late tax statement in Vietnam?

Pursuant to Clause 4, Article 28 of Circular 111/2013/TT-BTC, which regulates personal income tax refund, as follows:

Tax Refund

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4. In cases where an individual has a personal income tax refund but submits the tax statement late according to regulations, no penalty is applied for the administrative violation of late tax statement.

Thus, for individuals with a personal income tax refund but who submit the tax statement late, no administrative penalty for late tax statement is applied.

Therefore, if an individual submits a tax statement beyond the deadline, the tax authority will still process the personal income tax refund procedure if the individual has a refund request dossier.

Shall personal income tax be refunded when submitting a late tax statement in Vietnam? (Image from the Internet)

What are the regulations for personal income tax refund dossiers for income from wages and salaries in Vietnam?

Pursuant to Clause 1, Article 42 of Circular 80/2021/TT-BTC, which regulates personal income tax refund dossiers for income from wages and salaries, includes:

(1) In cases where organizations or individuals paying income from wages and salaries finalize for individuals who have authorized them:

- A written request for handling overpaid tax, late payment interest, and fines according to form No 01/DNXLNT issued with Appendix 1 of Circular 80/2021/TT-BTC;

- A power of attorney according to legal regulations in case the taxpayer does not directly handle the tax refund procedure, except in cases where a tax agent submits the tax refund dossier as per a contract signed between the tax agent and the taxpayer;

- A list of tax payment vouchers according to form No 02-1/HT issued with Appendix 1 of Circular 80/2021/TT-BTC (applicable to organizations or individuals paying income).

(2) In cases where individuals with income from wages and salaries directly finalize tax with the tax authority, have overpaid tax, and request a refund on the personal income tax statement declaration, they are not required to submit a tax refund dossier.

How long is the processing time for personal income tax refund dossiers in Vietnam?

Pursuant to Article 75 of the Law on Tax Administration 2019, which regulates the processing time for personal income tax refund dossiers, as follows:

- For dossiers eligible for tax refund prior: No later than 6 working days from the date the tax authority issues a notification of dossier acceptance and the deadline for dossier processing, the tax authority must decide to refund tax to the taxpayer or notify the transfer of the taxpayer's dossier to pre-refund inspection or notify not to refund tax to the taxpayer if the dossier does not meet the refund conditions.

In cases where the information declared on the tax refund dossier differs from that managed by the tax authority, the tax authority shall notify in writing for the taxpayer to explain or supplement information. The time for explanation or supplementation is not included in the tax refund dossier processing time.

- For dossiers subject to pre-refund inspection: No later than 40 days from the date the tax authority issues a written notification of dossier acceptance and the processing timeframe, the tax authority must decide to refund tax to the taxpayer or not to refund tax if the dossier does not meet the refund conditions.