What are the applicable PIT rates during 2024 in Vietnam?

What are the applicable PIT rates during 2024 in Vietnam?

Under Law on PIT 2007 and related guiding documents, the PIT tariff during 2024 is as follows:

(1) Partially progressive tariff:

Pursuant to Article 22 of the Law on PIT 2007, the partially progressive tariff is stipulated as follows:

The partially progressive tariff applies to taxable income from salaries and remunerations:

Pursuant to Clause 1 Article 21 of the Law on PIT 2007 (amended by Clause 5 Article 1 of Law on Amendments to Law on PIT 2012), taxable income from salaries and remunerations is determined by the total taxable income specified in Article 10 of the Law on PIT 2007 (amended by Clause 4 Article 2 of the Law on Amendments to Laws on Tax 2014) and Article 11 of the Law on PIT 2007 minus contributions to social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions mandatory to participate in, voluntary pension funds, and other deductions.

(2) Whole income tariff

Pursuant to Article 23 of the Law on PIT 2007 (amended by Clause 7 Article 2 of the Law on Amendments to Laws on Tax 2014), the whole income tariff is stipulated as follows:

Note: The whole income tariff applies to taxable income stipulated in Clause 2 Article 21 of the Law on PIT 2007, including:

Taxable income from capital investment, capital transfer, real estate transfer, winning prizes, royalties, franchising, inheritance, and gifts as stipulated by the Law on PIT 2007.

What are the applicable PIT rates during 2024 in Vietnam? (Image from the Internet)

Will overpaid PIT in Vietnam be refunded?

Under Clause 2 Article 8 of the Law on PIT 2007 regulating tax administration and tax refund:

Tax administration and tax refund

1. Tax registration, declaration, withholding, payment, finalization and refund, handling of violations of the tax law, and tax administration measures comply with legal provisions on tax administration.

2. Individuals are entitled to tax refund in the following cases:

a/ Their paid tax amounts are larger than payable tax amounts;

b/ They have paid tax but their taxed incomes do not reach a tax-liable level;

c/ Other cases decided by competent state agencies.

Thus, according to these regulations, if an individual has overpaid PIT, meaning the amount already paid is greater than the payable tax amount, they are eligible for overpaid PIT refund.

What are the methods of submitting PIT refund applications by employees in Vietnam?

Under Clause 2 Article 72 of the Law on Tax Administration 2019:

Receipt and processing of tax refund claims

1. Tax authorities shall process tax refund claims as follows:

a) Supervisory tax authorities of taxpayers shall receive tax refund claims in accordance with tax laws. Collecting tax authorities shall receive claims for refund of overpaid amounts. In case of refund of overpaid amounts under an annual/terminal statement of corporate income tax or personal income tax, the tax authority that received the statement shall provide the refund.

b) Collecting customs authorities shall receive tax refund claims in accordance with tax laws. Customs authorities where exit procedures are followed shall receive tax refund claims submitted by foreigners and Vietnamese people residing overseas.

2. Tax refund claims may be submitted:

a) in person at tax authorities;

b) by post;

c) electronically through online portals or tax authorities.

3. Within 03 working days from the day on which the claim is received, the tax authority shall inform the taxpayer in writing of whether the claim is granted or rejected.

4. The Minister of Finance shall elaborate this Article.

Thus, employees can submit their PIT refund applications through the following methods:

- Submit applications directly at the tax authority;

- Send applications via postal service;

- Send electronic applications through the e-portal of the tax authority.