When Does an Individual Filing Personal Income Tax Return Directly Qualify for PIT Refund? How Does an Individual Filing Personal Income Tax Return Submit a Tax Refund Application?
When Must Individuals Directly Settle Personal Income Tax to Get a Tax Refund?
According to Article 28 of Circular 111/2013/TT-BTC, the regulations are as follows:
Tax Refund
1. Personal income tax refunds apply to individuals who have registered and have a tax code at the time of submitting their tax finalization file.
2. For individuals who have authorized the tax finalization to the income-paying organization, the individual's tax refund will be processed through the income-paying organization. The organization or individual paying the income offsets the overpaid and underpaid taxes of individuals. After offsetting, if there is still an overpaid amount, it will be offset in the next period or refunded upon request.
3. For individuals directly filing with the tax authority, they can choose to either receive a tax refund or offset it in the next period at the same tax office.
4. In case an individual has a personal income tax refund but submits the tax finalization declaration late, they will not be subject to administrative penalties for late submission of the tax finalization declaration.
Accordingly, individuals directly finalizing their personal income tax will receive a tax refund if they have registered and obtained a tax code at the time of submitting their tax finalization file.
- Additionally, individuals can choose to receive a tax refund or offset it into the next period at the same tax office.
- In case an individual has a personal income tax refund but submits the tax finalization declaration late, they will not be subject to administrative penalties for late submission of the tax finalization declaration.
When Must Individuals Directly Settle Personal Income Tax to Get a Tax Refund? How do individuals settle their taxes and submit a tax refund file?
How Do Individuals Settle Their Taxes and Submit a Tax Refund File?
Based on Clause 1, Article 42 of Circular 80/2021/TT-BTC, the regulations are as follows:
Excess Payment Refund File
1. Personal income tax refund file for income from salaries and wages
a) In case the organization or individual paying income from salaries and wages performs the tax finalization for individuals who authorized them.
The file includes:
a.1) A written request for handling overpaid tax, late payment money, and fines according to Form No. 01/DNXLNT enclosed in Appendix I of this Circular;
a.2) A written authorization in accordance with the law in case the taxpayer does not directly carry out the tax refund procedures, except for cases where the tax agent submits the tax refund file according to the contract signed between the tax agent and the taxpayer;
a.3) A list of tax payment receipts according to Form No. 02-1/HT enclosed in Appendix I of this Circular (applicable to the organization or individual paying income).
b) In case an individual with income from salaries and wages directly finalizes tax with the tax authority, has an overpaid tax amount and requests a refund on the personal income tax finalization declaration, there is no need to submit a tax refund file.
The tax authority will process the refund based on the personal income tax finalization file to solve the excess payment for the taxpayer as prescribed.
...
Accordingly, in case an individual with income from salaries and wages directly finalizes tax with the tax authority, has an overpaid tax amount and requests a refund on the personal income tax finalization declaration, there is no need to submit a tax refund file.
When is the Deadline for Individuals to Settle Personal Income Tax?
Based on Clause 2, Article 44 of Law on Tax Administration 2019, the regulations are as follows:
Time Limit for Submission of Tax Declaration Files
...
2. The time limit for submission of tax declaration files for taxes with an annual tax calculation period is as follows:
a) No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization file; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration file;
b) No later than the last day of the fourth month from the end of the calendar year for the personal income tax finalization file of individuals directly settling tax;
c) No later than December 15 of the preceding year for the tax declaration file for household businesses and individual businesses paying tax by the presumptive method; in case of new household businesses and individual businesses, the time limit for submission of the tax declaration file is no later than 10 days from the start of business.
Therefore, individuals must settle their personal income tax no later than April 30, 2023.
However, in 2023, there is a special holiday for Hung Kings' Anniversary, April 30 and May 1 in 3 consecutive days from April 29 to May 1, 2023, among which April 29 and 30 fall on Saturday and Sunday.
Thus, the deadline for personal income tax finalization will be moved to the first working day after the holiday period.
LawNet