What does the application for PIT refund for employees include in case the income payer finalize tax as authorized by the individual in Vietnam?

What does the application for PIT refund for employees include in case the income payer finalize tax as authorized by the individual in Vietnam?

Based on the guidance at point a, clause 1, Article 42 of Circular 80/2021/TT-BTC, the application for requesting a Personal Income Tax (PIT) refund from salaries and wages of the income-paying organization includes:

Application for refund of overpayments

1. application for PIT refund for income from salaries and wages

a) In cases where the organization, individual paying income from salaries and wages finalizes tax for individuals who have authorized them

The application includes:

a.1) A written request for handling overpaid tax, late payment interests, and fines according to form No. 01/DNXLNT issued with Appendix I of this Circular;

a.2) A power of attorney as prescribed by law if the taxpayer does not directly carry out the tax refund procedures, except in cases where the tax agent submits the refund application according to the contract signed between the tax agent and the taxpayer;

a.3) A list of tax payment documents according to form No. 02-1/HT issued with Appendix I of this Circular (applies to organizations and individuals paying income).

b) In cases where individuals with income from salaries and wages directly finalize tax with the tax authority, have overpaid taxes, and request a refund on their personal income tax finalization declaration, it is not necessary to submit a refund application.

The tax authority handles the refund based on the personal income tax finalization application to resolve the overpayment refund for taxpayers according to regulations.

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Therefore, the application for PIT refund for employees in case the income payer finalize tax as authorized by the individual includes:

- A written request for handling overpaid tax, late payment interests, and fines according to form No. 01/DNXLNT Download issued with Appendix I of Circular 80/2021/TT-BTC;

- A power of attorney as prescribed by law if the taxpayer does not directly carry out the tax refund procedures, except in cases where the tax agent submits the refund application according to the contract signed between the tax agent and the taxpayer;

- A list of tax payment documents according to form No. 02-1/HT Download issued with Appendix I of Circular 80/2021/TT-BTC (applies to organizations and individuals paying income).

What does the application for PIT refund for employees include in case the income payer finalize tax as authorized by the individual in Vietnam? (Image from the Internet)

How is the application for PIT refund issued with an order for return in Vietnam?

Based on Article 47 of Circular 80/2021/TT-BTC, the provisions are as follows:

Issuance of order for return for State Budget Collection or order for return Together with Offset of State Budget Collection

1. Based on the Tax Refund Decision or the Tax Refund Decision together with State Budget Offset, the tax authority prepares an order for return for State Budget Collection or an order for return Together with Offset of State Budget Collection according to regulations on implementing the State Budget Accounting Regime and the operations of the State Treasury.

Immediately after the order for return for State Budget Collection or order for return Together with Offset of State Budget Collection is issued, the tax authority electronically sends the order for return for State Budget Collection or order for return Together with Offset of State Budget Collection to the State Treasury; for cases where information transmission cannot be carried out electronically, the tax authority sends the order for return for State Budget Collection or order for return Together with Offset of State Budget Collection in paper form to the State Treasury to process tax refunds for the taxpayer.

The State Treasury shall process tax refunds for the taxpayer within the time stipulated for administrative procedures in the field of the State Treasury.

2. In cases of tax refund concerning the allocable collections (except as stipulated in clause 5 of this Article), the tax authority directly managing the headquarters determines the refund amount for each province that collected state budget, the amount to be offset for each province benefiting from the revenue source, and prepares an order for return for State Budget Collection or order for return Together with Offset of State Budget Collection to send to the State Treasury.

The State Treasury executes payment for the taxpayer according to the order for return for State Budget Collection or order for return Together with Offset of State Budget Collection from the tax authority and accounts for the refund portion of the state budget collection for which their local jurisdiction is responsible, simultaneously transferring documents to the State Treasuries where state budget collection occurred for refund accounting, and where the source revenue is offset for state budget revenue accounting.

3. In cases of overpaid submission due to ownership transformation, enterprise conversion, merger, amalgamation, division, separation, dissolution, bankruptcy, cessation of activities with the amount to be refunded at the tax authority managing state budget collection or the tax authority managing the locality receiving allocation, the directly managing tax authority determines the amount to be refunded for each province that collected state budget and the amount to be offset for each province benefiting from the revenue source. The State Treasury executes the refund portion within its local jurisdiction and transfers documents to the State Treasuries where state budget collection occurred for refund accounting and where the source revenue is offset for state budget revenue accounting.

4. In cases where the application for PIT refund of an individual who directly finalizes tax with the tax authority, the tax authority processes the application to prepare an order for return for State Budget Collection or order for return Together with Offset of State Budget Collection to send to the State Treasury for refund accounting and transferring documents to the State Treasuries where state budget collection occurred for offset accounting for state budget revenue.

5. In cases of value-added tax, corporate income tax overpaid of the taxpayer as stipulated in point g, clause 1, Article 45 of this Circular, the directly managing tax authority prepares an order for return for State Budget Collection or order for return Together with Offset of State Budget Collection to send to the State Treasury for refund accounting and transmission of documents to the State Treasuries where state budget collection occurred for offset accounting for state budget revenue.

Therefore, the application for PIT refund issued with an order for return is resolved by the tax authority by preparing an order for return for State Budget Collection or Offset together with State Budget Collection and sending it to the State Treasury.

What are cases where individuals are eligible for PIT refunds in Vietnam?

Based on clause 2, Article 8 of the Personal Income Tax Law 2007, the provisions for when individuals are eligible for PIT refunds include:

- The amount of tax paid is greater than the payable tax amount;

- The individual has paid taxes but has taxable income below the taxable threshold;

- Other cases as decided by competent state authorities.