In which cases is Personal Income Tax refunded from salaries and wages? What does the dossier for Personal Income Tax refund from salaries and wages include?
In which cases are individuals entitled to PIT refunds from salary and wages?
Pursuant to Clause 2, Article 8 of the 2007 Personal Income Tax Law, individuals who have paid personal income tax from salary and wages under one of the following cases are entitled to a personal income tax refund:
- The paid tax amount is greater than the payable tax amount;- The individual has paid tax but their taxable income does not reach the level required to pay tax;- Other cases as decided by the competent state agency.
*In which cases are individuals entitled to PIT refunds from salary and wages? What does the PIT refund dossier from salary and wages include?*
What does the PIT refund dossier from salary and wages include?
Pursuant to Clause 1, Article 42 of Circular 80/2021/TT-BTC, the personal income tax refund dossier for income from salary and wages corresponds to the following two cases:
(1) In case the organization or individual paying income from salary and wages finalizes tax for the individual with authorization, the dossier includes:
- Written request for handling overpaid tax, late payment interest, and fines according to Form No. 01/DNXLNT issued with Appendix I of Circular 80/2021/TT-BTC;- Written authorization as prescribed by law if the taxpayer does not directly perform the tax refund procedures, except where the tax agent submits the tax refund dossier under the contract signed between the tax agent and the taxpayer;- Tax payment receipt list according to Form No. 02-1/HT issued with Appendix I of Circular 80/2021/TT-BTC (applies to organizations and individuals paying income).
(2) In case the individual has income from salary and wages and directly finalizes tax with the tax agency, has overpaid tax, and requests a refund on the personal income tax finalization declaration, they do not need to submit a refund dossier.
The tax agency will resolve the refund based on the personal income tax finalization dossier to handle the tax overpayment for the taxpayer according to the regulations.
How is the decision on PIT refunds from salary and wages regulated?
Pursuant to Article 46 of Circular 80/2021/TT-BTC, the provisions are as follows:
- The tax agency receives and resolves the tax refund dossier, determining the refunded tax amount, non-refundable tax amount, tax debt to be offset, tax amount proposed to be paid into the state budget for another taxpayer, the tax amount remaining to be refunded to the taxpayer, and drafts the Tax refund proposal and the Tax refund decision, or the Tax refund decision cum state budget offsetting, the Appendix of refunded tax, late payment interest, and fines according to Form No. 01/PL-HTNT (if any), the Appendix of tax, late payment interest, fines to be offset according to Form No. 01/PL-BT (if any) or Notification of non-entitlement to tax refund (if any).- The tax agency must fully update the tax refund handling information into the tax management application system, including: tax declaration dossier, refund request dossier, Tax refund inspection record (if any), Decision on handling tax through audits and inspections of compliance with tax laws (if any), draft Tax refund decision or Tax refund decision cum state budget offsetting, Appendix of refunded tax, late payment interest, fines (if any), Appendix of tax, late payment interest, fines to be offset (if any) or Notification of non-entitlement to tax refund (if any).- Based on the tax amount eligible for refund, the outstanding tax debt, the head of the tax agency will implement one of the following two cases:+ Issue Tax refund decision according to Form No. 01/QDHT, Appendix of refunded tax, late payment interest, fines according to Form No. 01/PL-HTNT (if any) issued with Appendix I of Circular 80/2021/TT-BTC where the taxpayer has no outstanding tax debt.+ Issue Tax refund decision cum state budget offsetting according to Form No. 02/QDHT, Appendix of refunded tax, late payment interest, fines (if any), Appendix of tax, late payment interest, fines to be offset (if any) issued with Appendix I of Circular 80/2021/TT-BTC where the taxpayer has outstanding tax debt or requests offsetting the refunded tax against debt or arising obligations of another taxpayer.
- The tax agency shall issue, update, and fully account for the Tax refund decision or the Tax refund decision cum state budget offsetting into the tax management application system on the same day the Decision is issued. If the taxpayer has a refund in foreign currency, the tax agency will convert the refundable tax amount to Vietnamese Dong according to the selling exchange rate at the beginning of the day of the Joint Stock Commercial Bank for Foreign Trade of Vietnam at the time of the issuance of the Tax refund decision or the Tax refund decision cum state budget offsetting.
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