What are cases of personal income tax refund in Vietnam in 2024?

What are cases of personal income tax refund in Vietnam in 2024?

Pursuant to Clause 2, Article 8 of the Law on Personal Income Tax 2007, the cases for a personal income tax refund are specified as follows:

- The amount of personal income tax already paid is greater than the tax liability;

- Individuals have paid personal income tax but have taxable income below the taxable threshold;

- Other cases as decided by competent state authorities.

What are cases of personal income tax refund in Vietnam in 2024? (Image from the Internet)

When shall the overpaid personal income tax not be refunded in Vietnam?

According to Clause 3, Article 60 of the Law on Tax Administration 2019, regulations concerning cases where overpaid personal income tax is non-refundable are as follows:

- The tax administration agency has notified the taxpayer of the refundable excess tax amount, but the taxpayer refuses to receive the excess payment in writing.

- The taxpayer is not operating at the registered tax address, and the tax administration agency has publicized the excess payment on mass media. If, after one year from the notification date, the taxpayer does not provide written feedback requesting a refund, the tax administration agency will not process the refund.

- The excess payment has exceeded the 10-year limit from the date of payment into the state budget without the taxpayer offsetting tax obligations or requesting a refund.

What is the deadline for processing a tax refund application?

According to Article 75 of the Law on Tax Administration 2019, specific regulations on the timeline for processing tax refund applications are as follows:

- For applications eligible for a prior refund, no later than 6 working days from the day the tax administration agency notifies the acceptance of the application and the timeline for processing the tax refund, the tax administration agency must decide on the refund or notify the transfer of the taxpayer's application for prior inspection if applicable under Clause 2, Article 73 of the Law on Tax Administration 2019, or notify the denial if the application does not qualify for a refund.

- If the information declared in the tax refund application differs from the information managed by the tax administration agency, they will notify the taxpayer in writing to clarify and supplement information. The time spent clarifying and supplementing is not included in the processing deadline of the tax refund application.

- For applications subject to prior inspection before a refund, no later than 40 days from the day of written notification accepting the application, the tax administration agency must decide on the refund or deny it if the application does not meet the refund criteria.

- Beyond the deadlines specified in Clauses 1 and 2, Article 75 of the Law on Tax Administration 2019, if the delay in refund decision issuance is due to the tax administration agency's fault, the agency must pay interest at 0.03% per day on the refundable amount for the period of delay. The interest payment is from the central budget as per state budget laws.

Vietnam: What does the application for refund of overpaid personal income tax from salary and wages include?

According to Clause 1, Article 42 of Circular 80/2021/TT-BTC, the specific regulations on tax refund applications are as follows:

Tax refund application for personal income tax from salary and wages

[1] For organizations and individuals that settle taxes for individuals with authorization

The application includes:

- A letter requesting the handling of tax, late payment charges, excess fines using Form No. 01/DNXLNT issued along with Appendix I of Circular 80/2021/TT-BTC.

Form No. 01/DNXLNT....download

- A power of attorney according to legal regulations if the taxpayer does not directly complete the refund procedure unless a tax agency files the refund application under a signed contract with the taxpayer;

- A list of tax payment documents using Form No. 02-1/HT issued with Appendix I Circular 80/2021/TT-BTC (applies to organizations and individuals paying income).

[2] For individuals directly finalizing taxes from salary, wages with excess tax paid and requesting a refund on the personal income tax finalization declaration, there is no need to submit a refund application.

The tax agency will resolve the refund based on the personal income tax finalization documents according to the regulations.