Vietnam: What are the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax?
- What are the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam?
- What does the PIT refund application of organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam include?
- What is the time limit for settling the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam?
- What are the conditions for authorizing enterprises to finalize PIT by employees in Vietnam?
What are the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam?
Pursuant to subsection 89 Section II of the Administrative Procedures promulgated together with Decision 1462/QD-BTC in 2022, the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam are specified as follows:
Step 1: Organizations and individuals paying income from salaries and remunerations shall finalize tax under the authorization of individuals after offsetting the overpaid or underpaid tax of individuals whose tax amount is overpaid, if requesting the tax authority to refund, the income-paying organization or individual shall prepare a tax refund application.
Step 2:
- In case the application is submitted directly to the tax authority or the application is sent by post: the tax authority shall receive and settle the dossier according to regulations.
- In case the application is submitted through electronic transactions, the receipt, inspection, acceptance, and settlement of the application (and return of results if there are results) shall be conducted through the electronic data processing system of the tax authority.
What does the PIT refund application of organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam include?
Based on the guidance in subsection 89 Section II of the administrative procedures promulgated together with Decision 1462/QD-BTC in 2022, the PIT refund application of organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam includes:
For application subject to tax inspection before refund: No later than 40 days from the date the tax authority issues a written notice of acceptance of the application and the time limit for processing the tax refund application.
- A written authorization as prescribed by law in case the taxpayer does not directly carry out tax refund procedures unless the tax agent submits a tax refund application according to the contract signed between the tax agent and the taxpayer;
- Statement of tax payment documents - form No. 02-1/HT according to Appendix II - Tax declaration dossier form issued together with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.
What is the time limit for settling the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam?
Pursuant to the guidance in subsection 89 Section II of the Administrative Procedures promulgated together with Decision 1462/QD-BTC in 2022, the time limit for settling the PIT refund procedures applicable to organizations and individuals paying income from salaries and remunerations authorized by individuals to finalize tax in Vietnam is specified as follows:
+ For the application subject to tax refund before inspection: No later than 06 working days from the date the tax authority issues a written notice of acceptance of the application and the time limit for processing tax refund application
+ For application subject to tax inspection before refund: No later than 40 days from the date the tax authority issues a written notice of acceptance of the application and the time limit for processing the tax refund application.
What are the conditions for authorizing enterprises to finalize PIT by employees in Vietnam?
Pursuant to the provisions of Point d, Clause 6, Article 8 of Decree 126/2020/ND-CP on the authorization of PIT finalization for enterprises as follows:
A resident salary earner may authorize the salary payer to finalize tax if:
The salary earner has an employment contract with a duration of at least 03 months and is working for the salary payer in reality when the tax is finalized by the salary payer, even if the salary earner has not worked for full 12 months in the year.
In case an employee is re-assigned to a new organization after the old organization is acquired, consolidated, divided or converted, or to a new organization that is in the same system as the old organization, he/she may authorize the new organization to finalize tax.
The salary earner has an employment contract with a duration of at least 03 months and is working for the salary payer in reality when tax is finalized by the salary payer, even if the salary earner has not worked for full 12 months in the year, and earns an average monthly irregular income not exceeding 10 million VND which on which 10% personal income tax has been deducted and does not wish to have this income included in the tax finalization dossier.
An individual who is a foreigner whose employment contract in Vietnam has ended shall submit a tax finalization dossier to the tax authority before exit or authorize the income payer or another organization or individual to prepare and submit the tax finalization dossier as per regulations.
The income payer or the authorized organization/individual must pay tax arrears if tax is underpaid or will receive a refund in case tax is overpaid.
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