Vietnam: What are the types of personal income tax from sub-items 1003 to 1049 according to Circular 324?

Vietnam: What are the types of personal income tax from sub-items 1003 to 1049 according to Circular 324?

Based on Appendix 3 List, sub-items issued together with Circular 324/2016/TT-BTC supplemented by Clause 5, Article 1 of Circular 93/2019/TT-BTC regulating the personal income tax sub-item 2024, which includes sub-item 1003. Specifically:

Thus, the types of personal income taxes from sub-item 1003 to 1049 under Circular 324 are as follows:

1001: Income Tax from Salaries and Wages

1003: Income Tax from Individual's Production and Business Activities

1004: Income Tax from Individual's Capital Investment

1005: Income Tax from Capital Transfer (excluding securities transfer)

1006: Income Tax from Real Estate Inheritance and Gifts as Real Estate

1007: Income Tax from Winnings

1008: Income Tax from Royalties, Franchises

1012: Income Tax from Inheritance, Gifts, Other Presents Except Real Estate

1014: Income Tax from Property Leasing Activities

1015: Income Tax from Securities Transfer

1049: Other Personal Income Taxes.

Vietnam: What are the types of personal income tax from sub-items 1003 to 1049 according to Circular 324? (Image from the Internet)

If the person has delegated the income payer to settle tax in Vietnam, how shall the tax refund be made?

According to Clause 2, Article 28 of Circular 111/2013/TT-BTC, the regulation on PIT refunds is as follows:

Tax Refund

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

2. For individuals who have authorized tax finalization to an organization, the income-paying organization or individual carries out the finalization on their behalf, the individual's tax refund shall be processed through the income-paying organization or individual. The income-paying organization or individual offsets the overpaid and underpaid taxes of the individuals. After the offset, if there is still an overpaid tax amount, it can be offset against the subsequent period or be refunded upon request.

3. Individuals who directly declare with the tax authority can choose to receive a tax refund or offset against the subsequent period at the same tax authority.

4. In cases where an individual incurs a personal income tax refund but submits the tax finalization declaration late according to the regulations, no penalty for administrative violations regarding late tax finalization declaration will be applied.

Thus, for individuals who have authorized tax finalization to an organization and the income-paying organization or individual finalizes on their behalf, the individual's tax refund is processed through the income-paying organization or individual.

What are procedures for tax administration and tax refund in Vietnam? How to respond to tax refund claims?

tax administration and tax refund are based on Clause 2, Article 8 of the Personal Income Tax Law 2007, stipulating that individuals are eligible for tax refunds in the following cases:

- The taxpayer registration, declaration, tax deduction, payment, tax finalization, tax refund, handling of tax law violations, and tax administration measures are implemented according to the provisions of tax administration law.

- Individuals are eligible for tax refunds in the following cases:

+ The amount of tax paid exceeds the tax payable;

+ The individual has paid tax but has taxable income not reaching the threshold to pay tax;

+ Other cases according to the decision of a competent state agency.

In addition, the response to tax refund claims shall be carried out according to Clause 2, Article 72 of the Tax Administration Law 2019 stipulating as follows:

- Tax administration agencies are tasked with receiving tax refund claims as follows:

+ The direct tax administration agency of the taxpayer receives the tax refund claims for the cases eligible for tax refunds according to tax law. The tax agency managing the collection receives the dossier for the refund of overpaid amounts; in the case of a refund of overpaid amounts according to corporate income tax finalization, personal income tax finalization, the tax agency receives the corporate income tax finalization, personal income tax finalization dossier from the taxpayer to process the refund of overpaid amounts;

+ The customs office managing the collection receives the tax refund claims for the cases eligible for tax refunds according to tax law; in cases where foreigners or overseas Vietnamese residents exiting the country have goods eligible for tax refund, the customs office where exit procedures are conducted receives the tax refund claims.

- Taxpayers submit tax refund claims through the following methods:

+ Directly submit the dossier at the tax administration agency;

+ Send the dossier via postal service;

+ Submit the electronic dossier through the tax administration agency's electronic transaction portal.

- Within 3 working days from the date of receiving the tax refund claim, the tax administration agency shall classify the dossier and notify the taxpayer of the acceptance of the dossier, the timeframe for processing the tax refund claim, or notify in writing if the dossier is incomplete.