07:50 | 23/07/2024

Procedures for Personal Income Tax Refunds for Enterprises Paying Wages Authorized to Finalize Tax

Procedure for Personal Income Tax (PIT) refund for enterprises authorized to finalize tax on salaries and wages.How is it carried out?Question from T.Q in Hanoi

How are the dossiers for personal income tax finalization guided?

Pursuant to sub-section 1, Section IV of Official Dispatch 13762/CTHN-HKDCN, 2023 issued by the Tax Department of Hanoi City guiding the personal income tax finalization for the tax period of 2022 as follows:

Regarding the personal income tax finalization dossier:

- For individuals declaring personal income tax finalization directly with the tax authority, the personal income tax finalization dossier includes:

+ The personal income tax finalization declaration form 02/QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

+ The dependent deduction statement Appendix form 02-1/BK-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

+ Copies (photocopies from the original) of documents proving the deducted tax, the tax prepayments for the year, and the taxes paid abroad (if any). In cases where the income-paying organization does not issue tax withholding certificates for individuals due to the cessation of activities, the tax authority shall rely on the tax sector database to consider and process the individual’s tax finalization dossier without requiring tax withholding certificates.

In case the income-paying organization or individual uses electronic personal income tax withholding certificates, the taxpayer shall use a print version of the electronic personal income tax withholding certificate (paper version printed out by the taxpayer from the original electronic withholding certificate sent by the income-paying organization or individual).

+ Copies of tax withholding certificates (stating clearly the income tax payments) issued by the income-paying entity or copies of bank receipts for taxes paid abroad certified by the taxpayer in cases where foreign tax authorities do not issue tax payment certificates as per foreign law.

+ Copies of invoices or receipts proving contributions to charitable funds, humanitarian funds, educational promotion funds (if any).

+ Documents proving payments made by overseas income-paying organizations to individuals receiving income from international organizations, Embassies, Consulates, and income from abroad.

+ Dependent registration documents as guided in point a, clause 3, Section III of this official dispatch (if claiming dependent deductions for dependents who have not registered as dependents at the time of tax finalization).

- For income-paying organizations or individuals, the personal income tax finalization dossier includes:

+ The personal income tax finalization declaration form 05/QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

+ Appendix of detailed list of individuals subject to progressive tariff schedules form 05-1/BK-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

+ Appendix of detailed list of individuals subject to full tax rates form 05-2/BK-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

+ Appendix of detailed list of dependents for family circumstance deductions form 05-3/BK-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

- In case an individual authorizes the income-paying organization to finalize taxes on their behalf, they shall prepare a Tax Finalization Authorization Letter according to form 08/UQ-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.

Procedure for personal income tax refund for enterprises paying salaries and wages authorized for tax finalization

Procedure for personal income tax refund for enterprises paying salaries and wages authorized for tax finalization

Procedure for personal income tax refund for enterprises paying salaries and wages authorized for tax finalization

- Step 1: The income-paying organization or individual shall finalize on behalf of individuals who authorize after offsetting the overpaid tax amounts. If there are overpaid taxes and the organization or individual requests a refund, they shall prepare a tax refund dossier.

- Step 2:

+ In case the dossier is submitted directly at the tax office or sent via postal service: the tax office shall receive and process the dossier as prescribed.

+ In case the dossier is submitted through electronic transactions, the receipt, examination, approval, and processing of the dossier (and return of results if any) shall be conducted through the tax authority's electronic data processing system.

Method of processing personal income tax refund procedures for enterprises paying salaries and wages authorized for tax finalization

Regarding the method of processing personal income tax refund procedures for enterprises paying salaries and wages authorized for tax finalization, one of the following methods can be chosen:

- Direct submission at the tax office headquarters;

- Or sending through the postal system;

- Or sending electronic dossiers to the tax office via electronic transactions (the General Department of Taxation's Web Portal/competent state agency's Web Portal or T-VAN service provider).

Note: In case the taxpayer chooses and sends the dossier to the tax office via electronic transactions, they must comply with the provisions of law on electronic transactions in Circular 19/2021/TT-BTC.

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