What are cases of PIT refund in Vietnam for 2025? How to determine the amount of tax refund in Vietnam?

What are cases of PIT refund in Vietnam for 2025?

According to Clause 2, Article 8 of the Personal Income Tax Law 2007 and Article 28 of Circular 111/2013/TT-BCT, the regulations on personal income tax refunds are as follows:

Individuals who have registered and have a TIN at the time of filing the tax finalization dossier are eligible for a tax refund in the following cases:

- The amount of tax paid exceeds the amount of tax payable;

- The individual has paid tax but the taxable income does not reach the threshold of tax payment;

- Other cases decided by competent state agencies.

Note:

- For individuals who have authorized tax finalization to organizations or individuals paying income on their behalf, the individual’s tax refund is conducted through the organization or individual paying the income.

The organization or individual paying the income shall offset the overpaid or underpaid tax of the individuals. After offsetting, if there is any excess tax paid, it can be offset in the subsequent period or refunded if requested.

- For individuals who declare directly with the tax authority, they may choose to request a tax refund or offset in the subsequent period at the same tax authority.

- In case an individual has incurred a personal income tax refund but submits the tax finalization return late as prescribed, an administrative penalty for late submission is not imposed.

What are cases of PIT refund in Vietnam for 2025? (Image from the Internet)

How to determine the amount of tax refund in Vietnam?

According to regulations in the Personal Income Tax Law 2007 and the content of sample form 02/QTT-TNCN issued with Circular 80/2021/TT-BTC, personal income tax refunds are calculated as follows:

Where:

+ Total PIT Paid: is the amount that has been deducted and paid into the state budget by the individual.

+ Tax Payable according to Finalization = (Total Taxable Income – Total Deductions) x Tax Rate

This is the amount of tax that the individual must pay according to tax finalization. It is calculated based on legal regulations on taxable income, deductions, and tax rates.

In order to calculate the PIT refundable amount, one must accurately know how much tax has been temporarily paid and the amount that needs to be paid.

Vietnam: What does the 2025 PIT refund claim for income from wages and salaries include?

According to Clause 1, Article 42 of Circular 80/2021/TT-BTC, regulations on the PIT refund claim for income from wages and salaries are as follows:

(1) In cases where the organization or individual paying income from wages and salaries conducts finalization for individuals who have authorized them, the dossier includes:

- A written request for handling of overpaid tax, late payment penalties, and fines according to form 01/DNXLNT issued with Appendix 1 of Circular 80/2021/TT-BTC;

Download Form 01/DNXLNT... Here

- A power of attorney according to legal regulations in case the taxpayer does not directly perform the refund procedures, except when a tax agency submits the refund claim based on a contract signed between the tax agent and the taxpayer;

- A list of tax payment vouchers according to form 02-1/HT issued with Appendix 1 of Circular 80/2021/TT-BTC (applicable to organizations, individuals paying income).

Download Form 02-1/HT... Here

(2) In cases where individuals with income from wages and salaries directly finalize with the tax authority, have overpaid tax, and request a refund on the personal income tax finalization return, there is no need to submit a refund claim.

The tax authority resolves the overpayment refund based on the individual income tax finalization dossier according to regulations.

When is the deadline for processing a 2025 PIT refund claim in Vietnam?

Based on Article 75 of the Tax Administration Law 2019 (some content annulled by Clause 13 Article 6 of the Law amending the Law on Securities, the Law on Accounting, the Independent Audit Law, the State Budget Law, the Law on Management, Use of Public Property, the Tax Administration Law, the Personal Income Tax Law, the National Reserve Law, the Law on Handling Administrative Violations 2024), the deadline for processing a tax refund claim is as follows:

Deadline for processing a tax refund claim

1. For dossiers eligible for pre-refund, no later than 06 working days from the date the tax management agency announces acceptance of the dossier and the deadline for processing the refund claim, the tax management agency must decide to refund tax to the taxpayer or notify the taxpayer’s dossier is transferred for pre-refund inspection when falling under the provisions of Clause 2 Article 73 of this Law, or notify non-refund of tax to the taxpayer if the dossier does not meet the refund conditions.

In cases where the information declared in the tax refund claim differs from the management information of the tax management agency, the tax management agency shall notify in writing for the taxpayer to explain and supplement information. The time for explanation and supplementation is not counted in the refund claim processing period.

2. For dossiers eligible for pre-refund inspection, no later than 40 days from the date the tax management agency announces in writing the acceptance of the dossier and the deadline for processing the refund claim, the tax management agency must decide to refund tax to the taxpayer or not refund tax to the taxpayer if the dossier does not meet the refund conditions.

Corresponding to each type of tax refund claim, the deadline for processing a 2025 PIT refund claim, is different, specifically:

(1) In cases where dossiers are eligible for pre-refund:

- The deadline for processing a personal income tax refund is no later than 06 working days from the date the tax management agency announces acceptance of the dossier and the deadline for processing the refund claim.

- The tax management agency decides to refund tax to the taxpayer or notifies the transfer of the taxpayer’s dossier for pre-refund inspection if the dossier does not qualify for a refund.

(2) In cases where dossiers are eligible for pre-refund inspection:

- The deadline for processing a personal income tax refund is no later than 40 working days from the date the tax management agency issues a written notice of dossier acceptance and refund processing period.

- The tax management agency performs the refund for the taxpayer or does not perform the refund if the dossier does not qualify for a refund.

Note:

- The time limit for resolving a personal income tax refund is counted in working days, not including public holidays, Tet, or weekends.

- In cases where the personal income tax refund claim is not eligible for refund resolution, the tax management agency must notify the taxpayer and provide reasons.

- In cases where the tax management agency does not resolve the personal income tax refund within the prescribed period, it is considered a delay in processing the refund claim.