What are procedures for automatically processing the tax refund in Vietnam in 2025?

What are procedures for automatically processing the tax refund in Vietnam in 2025?

According to Article 5 of Decision 108/QD-TCT 2025, the procedure for resolving the 2025 automatic personal income tax refund is as follows:

(1) Determining eligibility for automatic tax refunds

The system will check and determine whether the taxpayer's (NNT) file meets the conditions for automatic tax refund processing. A file is automatically approved when it meets the following conditions:

(i) At the time of resolving the NNT's personal income tax refund file, the income-paying organization has completed the obligation of remitting the deducted personal income tax or the total personal income tax paid by the NNT individual into the state budget at the financial settlement period that the NNT requested a tax refund;

(ii) The personal income tax refund file has the indicator "Total taxable income" correctly matched with the aggregated data in the tax settlement database of the Tax sector at the time of resolving the file and the indicator "Total amount of tax requested for refund" is less than or equal to the aggregated data in the tax settlement database of the Tax sector at the time of resolving the file;

(iii) The receiving account information for the NNT's refund is verified and linked with the tax management database of the Tax sector.

(2) Cases of eligible files

If the file fully meets the conditions, the system will automatically perform the following steps:

- Create a Tax Refund Proposal.

- Prepare a Tax Refund Decision or a Decision for refund cum state budget offset.

- Prepare an Order for reimbursement of state budget revenues or an Order for reimbursement cum state budget offset.

This information will be sent to the Head of the tax agency (CQT) for electronic signature. After signing, the system sends a Notification of receipt of the tax refund file to the NNT.

This entire process is conducted entirely automatically through the Tax sector's information technology application.

(3) Cases of non-eligible files

For cases where the NNT's personal income tax refund file does not meet one of the conditions, the information technology application system of the Tax sector automatically assigns and emails the department leader and the assigned tax officer to process the personal income tax refund file for awareness and further file processing.

Based on the inspection results, information provided by the TMS application, and specific personal income tax refund files, the GQHS department will consider and handle each case as follows:

(i) If the personal income tax refund file of the NNT has already included additional explanatory documents, the GQHS department checks, compares the additional explanatory documents provided by the NNT, and if accepted, the GQHS department creates a Tax Refund Decision (or Decision for refund cum state budget offset) and an Order for reimbursement of state budget revenues (or an Order for reimbursement cum state budget offset) for submission to the Head of the CQT for electronic signature.

(ii) If further determination and clarification of the discrepancy between the NNT's declared data and the aggregated data of the tax agency are required, the GQHS department creates a Notification requesting explanation, supplementation of information, documents (form no. 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP from the Government of Vietnam) for submission to the Head of the CQT for signing and sending to the NNT.

Upon receipt of the explanation, additional information from the NNT, the personal income tax refund GQHS department executes:

+ Case of accepting the explanation, supplementation:

If the NNT has explained or supplemented information, documents proving that the tax amount requested for refund is correct, the personal income tax refund GQHS department creates a refund proposal on the TMS application, a Tax Refund Decision (or Decision for refund cum state budget offset), and an Order for reimbursement of state budget revenues (or an Order for reimbursement cum state budget offset) for submission to the Head of the CQT for signature and issuance.

+ Case of rejecting the explanation, supplementation:

In case the NNT has explained or supplemented information, documents but there is insufficient basis to determine that the NNT’s refund file is eligible for refund or the deadline according to the Notification requesting explanation, supplementation of information, documents has passed without explanation, supplementation, or the explanation, supplementation is still insufficient as basis for the CQT to determine the tax eligible for refund or to prove the declared tax was correct, the personal income tax refund GQHS department creates a Notification of insufficient conditions for tax refund/not eligible for tax refund (form no. 04/TB-HT issued with Circular 80/2021/TT-BTC) on TMS and submits to the Head of the CQT for signature and issuance, sending to the NNT.

(iii) Case of determining that the tax refund file is not eligible for refund

The personal income tax refund GQHS department drafts a Notification of insufficient conditions for tax refund/not eligible for tax refund (form no. 04/TB-HT issued with Circular 80/2021/TT-BTC) on TMS and submits to the Head of the CQT for signature and issuance, sending to the NNT.

Note: The execution time for the tasks mentioned in (3) is no later than 3 working days from the date of Notification of receipt of the refund request file.

(4) The Tax sector's information technology application system supports the automatic drafting of Notifications, Decisions, and Refund Orders as prescribed in clauses 2, 3 for transfer to the Electronic Signature application and email notification to the GQHS department and Head of the CQT.

- The Head of the CQT executes electronic signature on the Tax Refund Decision (or Decision for refund cum state budget offset); Order for reimbursement of state budget revenues (or Order for reimbursement cum state budget offset); Notification of insufficient conditions for tax refund/not eligible for tax refund; Notification of explanation, supplementation of information, documents. The Tax sector's information technology application supports batch signing of documents, which are transferred to the HCVT department to issue the documents according to regulations.

- For the Tax Refund Decision (or Decision for refund cum state budget offset) and the Order for reimbursement of state budget revenues (or Order for reimbursement cum state budget offset)

+ The TTGQ TTHC system transfers the issued tax refund order to the State Treasury's electronic portal to execute the reimbursement for the NNT as prescribed.

+ The automatic personal income tax refund module receives, checks, and accounts for the Tax Refund Order transferred by the State Treasury that matches correctly with the Tax Refund Order on the application as guided in the tax declaration, payment, and management obligation procedure of the NNT while automatically accounting the Tax Refund Decision, updating the refund file status, and automatically transferring the Tax Refund Decision (or Decision for refund cum state budget offset) to send to the NNT.

In case the information on the Tax Refund Order transferred by the State Treasury does not match correctly with the Tax Refund Order on the application, the GQHS department processes the Tax Refund Order according to the Error Code List and principles for handling refund orders as stipulated in table 2.3 attached to the tax refund procedure per Decision 679/QD-TCT 2023 by the Director-General of the General Department of Taxation.

What are procedures for automatically processing the tax refund in Vietnam in 2025? (Image from the Internet)

What are cases of Personal Income Tax refund in Vietnam in 2025?

Based on clause 2, Article 8 of the Law on Personal Income Tax 2007 and Article 28 of Circular 111/2013/TT-BCT stipulating the personal income tax refund as follows:

Individuals who have registered and have a tax code at the time of filing the financial settlement are eligible for tax refunds in the following cases:

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

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

- Other cases in accordance with decisions of competent state agencies.

Note:

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

The income-paying organization or individual offsets excess and insufficient taxes of individuals. After offsetting, if there is an excess tax amount, it is carried forward to the next period or refunded if requested.

- Individuals who are required to declare directly with the tax agency have a choice of refund or offset to the next period at the same tax agency.

- In cases where individuals are eligible for personal income tax refunds but delay the filing of the financial settlement declaration as prescribed, no penalty is applied for administrative violations of late tax settlement declarations.

How many forms of Personal Income Tax Refund in Vietnam?

According to Article 28 of Circular 111/2013/TT-BTC regarding tax refunds as follows:

Tax Refund

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

2. For individuals who have authorized tax settlement to organizations or individuals paying income to settle on their behalf, the individual's tax refund is conducted through the income-paying organization or individual. The income-paying organization or individual offsets excess and insufficient taxes of the individuals. After offsetting, if there is an excess tax amount, it is carried forward to the next period or refunded if requested.

3. Individuals who declare directly with the tax agency can choose to refund or forward to the next period at the same tax agency.

4. In the case where individuals are eligible for personal income tax refunds but delay the submission of the financial settlement declaration as prescribed, no penalty is imposed for administrative violations of delayed tax settlement declarations.

Thus, there are two forms of personal income tax refunds including:

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

The income-paying organization or individual offsets excess and insufficient taxes for individuals. After offsetting, if there is an excess tax amount, it is carried forward to the next period or refunded if requested.

- Individuals who declare directly with the tax authority have a choice of refund or forwarding to the next period at the same tax authority.