What are the conditions for personal income tax refund in Vietnam in 2025?

What are the conditions for personal income tax (PIT) refund in Vietnam in 2025?

Based on Article 28 of Circular 111/2013/TT-BTC which provides for conditions for PIT refund as follows:

Tax Refund

1. Personal income tax refund applies to individuals who were registered and had a tax code at the time of submitting the tax finalization dossier.

2. For individuals who have authorized tax finalization to an organization or individual paying income on their behalf, the individual's tax refund is made through the organization or individual paying the income. The organization or individual paying the income offsets overpaid and underpaid tax amounts for individuals. After offsetting, if there is an overpaid amount, it can be offset to the next period or refunded upon request.

3. Individuals who declare directly with the tax authority can choose to receive a refund or offset to the next period at the same tax authority.

4. In cases where individuals are eligible for a personal income tax refund but submit tax finalization declarations late, no penalties for administrative violation of late tax finalization declaration will be applied.

And based on Clause 2, Article 8 of the Personal Income Tax Law 2007 which provides tax management and refund as follows:

Tax Management and Refund

1. Taxpayer registration, declaration, deduction, payment, finalization, refund, violation handling, and other tax management measures are conducted in accordance with the law on tax management.

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

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

b) Individuals have paid taxes but taxable income is below the level required to pay taxes;

c) Other cases as decided by competent state authorities.

Specific conditions for PIT refund in 2025 are as follows:

- The individual has paid more personal income tax than the amount that is due;

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

- Personal income tax refunds apply to individuals who are registered and have a tax code at the time of submitting the tax finalization dossier.

Note:

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

- The organization or individual paying the income offsets overpaid and underpaid tax amounts for individuals.

- After offsetting, if there is an overpaid amount, it can be offset to the next period or refunded upon request.

- Individuals who declare directly with the tax authority may choose to receive a refund or offset to the next period at the same tax authority.

- In cases where individuals are eligible for a personal income tax refund but submit tax finalization declarations late, no penalties for administrative violation of late tax finalization declaration will be applied.

What are the conditions for personal income tax refund iin Vietnam in 2025? (Image from the Internet)

Where is the inspection place for PIT refund claims in Vietnam?

According to Article 74 of the Law on Tax Administration 2019 which regulates the inspection place for refund claims as follows:

- Dossiers eligible for refund prior inspection are checked at the headquarters of the tax management authority.

- Dossiers necessitating inspection prior refund are checked at the taxpayer's premises or the headquarters of the relevant organizations or individuals.

What is the time limit for resolving PIT refund claims in Vietnam in 2025?

Based on Article 75 of the Law on Tax Administration 2019 (partly repealed by Clause 13, Article 6 of the Law amending the Law on Securities, Law on Accounting, Law on Independent Auditing, State Budget Law, Law on Management and Use of Public Property, Law on Tax Administration, Personal Income Tax Law, National Reserve Law, Law on Handling Administrative Violations 2024) which regulates the time limit for resolving refund claims as follows:

time limit for Resolving refund claims

1. For dossiers eligible for refund prior inspection, no later than 06 working days from the date the tax authority issues a notice of dossier acceptance and the time limit for dossier resolution, the tax authority must decide on the tax refund for the taxpayer or notify the transfer of the taxpayer's dossier for prior inspection if applicable under Clause 2, Article 73 of this Law or notify no refund if the dossier does not qualify.

In case the information declared in the refund claim differs from the management information of the tax authority, the tax authority shall issue a written notice for the taxpayer to explain and supplement information. The time for explanation and supplementation does not count towards the resolution time limit for refund claims.

2. For dossiers requiring inspection prior to refund, no later than 40 days from the date the tax authority issues a written notice of dossier acceptance and the time limit for dossier resolution, the tax authority must decide on the tax refund for the taxpayer or deny the refund if the dossier does not qualify.

The time limit for resolving PIT refund claims varies according to each type of refund claim, detailed as follows:

(1) Case of dossiers eligible for refund prior to inspection:

- The time limit for resolving personal income tax refunds is no later than 06 working days from the date the tax authority issues a notice of dossier acceptance and the time limit for dossier resolution.

- The tax authority decides on the tax refund for the taxpayer or notifies a transfer of the taxpayer’s dossier for prior inspection if the dossier does not qualify for a refund.

(2) Case of dossiers requiring inspection prior to refund:

- The time limit for resolving personal income tax refunds is no later than 40 working days from the date the tax authority issues a written notice of dossier acceptance and the time limit for dossier resolution.

- The tax authority processes the refund for the taxpayer or denies the refund if the dossier does not qualify for a refund.

Note:

- The time limit for resolving personal income tax refunds is counted in working days, excluding public holidays, Tet, and weekly days off.

- In cases where the personal income tax refund claim does not meet the conditions for resolution, the tax authority must notify the taxpayer and specify the reasons.

- If the tax authority does not process the personal income tax refund within the stipulated time limit, it is considered a delay in resolving the refund claim.