Where to submit the PIT refund claim for Vietnamese residents without an employment contract?

Where to submit the PIT refund claim for Vietnamese residents without an employment contract?

Based on Official Dispatch 4172/TCT-DNNCN in 2023 from the General Department of Taxation providing guidance on determining the place to submit the PIT refund claim for individuals as follows:

1. On Determining the Place to Submit the PIT refund claim for Individuals

The place for submitting the PIT finalization documents for individuals who directly finalize with the tax authority is stipulated in point b.2, Clause 8, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam, specifically:

In circumstances where a Vietnamese resident earns salary income subject to withholding tax at source from two or more places, the tax finalization documents are submitted as follows:

+ The individual who has chosen family circumstance deductions against their income at any organization or individual paying income shall submit the tax finalization documents to the tax authority directly managing that organization or individual. If the individual has changed their workplace and at the last organization, where family circumstance deductions are counted, they should submit the tax finalization documents to the tax authority managing that last income-paying organization. If the individual has changed their workplace and the last income-paying organization does not account family circumstance deductions, the documents should be submitted to the tax authority where the individual resides. If the individual has not accounted family circumstance deductions at any income-paying organization, the documents should be submitted to the tax authority where the individual resides.

For instance: In 2022, Mr. A worked in Ho Chi Minh City, earning income at Company X managed by Tax Department of District 1. In January 2023, Mr. A moved to Hanoi to work at Company Y managed by the Tax Department of Hoan Kiem District and resides in Tay Ho District. Mr. A is subject to direct 2022 PIT finalization.

In the event that in 2023, Mr. A submits a 2022 PIT finalization document, the 2022 tax finalization submission location is as follows:

At the Tax Department of Hoan Kiem District if, at the time of submitting the 2022 finalization documents, Mr. A is accounting for self-deductions at Company Y.

At the Tax Department of Tay Ho District if, at the time of 2022 document submission, Mr. A has not accounted for self-deductions at any income-paying organization.

+ In the case of a Vietnamese resident without an employment contract, or with an employment contract under three months, or with a service contract earning income from one or multiple places with a 10% withholding rate, the tax finalization documents should be submitted to the tax authority where the individual resides.

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Thus, if a Vietnamese resident without an employment contract has income from one or multiple places with a 10% tax withholding rate, the PIT finalization documents should be submitted to the tax authority where the individual resides.

Where to submit the PIT refund claim for Vietnamese residents without an employment contract? (Image from Internet)

Vietnam: What does the PIT refund claim for salary, wages include?

Based on Clause 1, Article 42 of Circular 80/2021/TT-BTC stipulating the PIT refund claim for income from salaries and wages as follows:

(1) In the case where organizations, individuals paying income from salaries, wages finalize for authorized individuals, the application includes:

- A request for the handling of the overpaid tax amount, late payment interest, and fines according to form No. 01/DNXLNT issued together with Annex I of Circular 80/2021/TT-BTC;

- An authorization document as prescribed by law in cases where the taxpayer does not directly carry out the tax refund procedures, except for cases where the tax agency submits a tax refund application according to a contract signed between the tax agency and the taxpayer;

- A tax payment statement according to form No. 02-1/HT issued together with Annex I of Circular 80/2021/TT-BTC (applicable to organizations or individuals paying income).

(2) In the case of individuals with income from salaries and wages directly finalizing taxes with the tax authority, having an overpaid tax amount and requesting a refund on the PIT finalization declaration, it is not required to submit a tax refund application.

The tax authority will resolve the refund based on the PIT finalization documents to handle overpayments for taxpayers as prescribed.

When is the deadline for processing the PIT refund claim in Vietnam?

Based on Article 75 of the 2019 Law on Tax Administration stipulating the deadline for processing the PIT refund claim as follows:

- For applications within the pre-refund inspection category, at the latest 6 working days from the date the tax authority issues a notification of acceptance of documents and the deadline for processing the tax refund application, the tax authority must decide to refund tax to the taxpayer or notify the transfer of taxpayer's documents for prior inspection before refunding if falling under the cases stipulated in Clause 2, Article 73 of the 2019 Law on Tax Administration or notify non-refund to the taxpayer if the application does not meet the refund conditions.

+ In case the information declared in the tax refund application differs from the information managed by the tax authority, the tax authority shall notify in writing for the taxpayer to explain and provide additional information. The time for explaining and supplementing information does not count towards the deadline for processing the tax refund application.

- For applications subject to pre-refund inspection, at the latest 40 days from the date the tax authority issues a written notice of acceptance of documents and the deadline for processing the tax refund application, the tax authority must decide to refund tax to the taxpayer or not to refund if the application does not meet refund conditions.