What are the cases where an overpaid PIT is not refundable in Vietnam?

What are the cases where an overpaid PIT is not refundable in Vietnam?

According to Clause 3, Article 60 of the Law on Tax administration 2019, provisions are made regarding non-refundable excess payments of personal income tax and the tax administration authority will settle the excess payment on accounting books and electronic data systems in the following cases:

- The tax authority has notified the taxpayer of the refundable excessive payment, but the taxpayer refuses to receive back the excessive payment in writing.

- The taxpayer is not operating at the address registered with the tax authority, and the tax authority has announced the excess payment through public information channels, yet after one year from the date of the announcement, the taxpayer does not respond in writing requesting a refund of excessive tax with the tax authority.

- The excessive payment has been outstanding for more than 10 years since the payment to the state budget, without the taxpayer offsetting tax obligations or claiming a refund.

What are the cases where an overpaid PIT is not refundable in Vietnam? (Image from the Internet)

What are the cases where an individual is eligible for a personal income tax refund in Vietnam?

Based on Article 8 of the Personal Income Tax Law 2007, individuals are eligible for a tax refund in the following cases:

tax administration and Tax Refund

1. Taxpayer registration, declaration, deduction, payment, settlement, refund, violation handling, and other tax administration measures are carried out according to laws on tax administration.

2. Individuals are eligible for a tax refund in the following cases:

a) The tax paid is greater than the tax payable;

b) The individual has paid tax but the taxable income is not sufficient to incur tax liability;

c) Other cases as decided by the competent state authority.

Thus, according to the above regulation, individuals will be eligible for a tax refund in the cases where:

- The tax paid is greater than the tax payable.

- The individual has paid tax but the taxable income is not sufficient to incur tax liability.

- Other cases as decided by the competent state authority.

Who are subject to personal income tax in Vietnam?

According to Article 2 of the Personal Income Tax Law 2007, the subjects of taxation are defined as follows:

Subjects of Taxation

1. Subjects of personal income tax include resident individuals with taxable income as prescribed in Article 3 of this Law arising both within and outside the territory of Vietnam, and non-resident individuals with taxable income as prescribed in Article 3 of this Law arising within the territory of Vietnam.

2. A resident individual is a person who satisfies one of the following conditions:

a) Staying in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam;

b) Having a regular residence in Vietnam, including registered permanent residence or rented accommodation in Vietnam under a term rent contract.

3. A non-resident individual is a person who does not satisfy the conditions specified in clause 2 of this Article.

Thus, subjects of personal income tax include resident individuals with taxable income arising both within and outside the territory of Vietnam, and non-resident individuals with taxable income as prescribed, arising within the territory of Vietnam.

A resident individual is someone who meets the following conditions:

- Staying in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam.

- Having a regular residence in Vietnam, including registered permanent residence or rented accommodation in Vietnam under a term rent contract.

A non-resident individual is a person who does not satisfy the following conditions:

- Staying in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam.

- Having a regular residence in Vietnam, including registered permanent residence or rented accommodation in Vietnam under a term rent contract.