Which authority is responsible for receiving PIT refund claims in Vietnam?

Which authority is responsible for receiving PIT refund claims in Vietnam?

Under Clause 1, 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.

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The supervisory tax authorities of taxpayers shall receive tax refund claims in accordance with tax laws.

In addition, the 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.

Which authority is responsible for receiving PIT refund claims in Vietnam? (Image from the Internet)

What are the methods for submitting PIT refund claims by employees in Vietnam?

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

Receipt and processing of tax refund claims

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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 submit PIT refund claims through the following methods:

- in person at tax authorities;

- by post;

- electronically through online portals or tax authorities.

What are the regulations on PIT refund if employees authorize the employer to finalize tax in Vietnam?

According to Article 28 of Circular 111/2013/TT-BTC regarding PIT refund:

Tax refund

1. The refund of personal income tax applies to the persons that have registered and obtain tax codes when they submit the tax finalization form.

2. If the person has delegated the income payer to finalize tax, tax refund shall be made via the income payer. The income payer shall offset the overpaid and underpaid tax. After offsetting, the overpaid tax shall be offset against the tax in the next period or refunded on request.

3. The person that declares tax directly may choose to claim a tax refund or offset it against the tax in the next period at the same tax authority.

4. Person eligible for the refund of personal income tax that submits the tax finalizationbehind schedule is exempt from fines for overdue tax statement.

Thus, employees can get a PIT refund even if they have authorized the income payer to finalize on their behalf; the PIT refund is specified as follows:

If the person has delegated the income payer to finalize tax, tax refund shall be made via the income payer.

The income payer shall offset the overpaid and underpaid tax. After offsetting, the overpaid tax shall be offset against the tax in the next period or refunded on request.