When is deadline for declaring and submitting PIT finalization dossiers in Vietnam? What does application for refund of overpaid PIT on income from salaries and remunerations include in Vietnam?
Please ask: When is deadline for declaring and submitting PIT finalization dossiers in Vietnam? What does application for refund of overpaid PIT on income from salaries and remunerations include in Vietnam?
When will individuals receive a personal income tax refund in Vietnam?
In Article 8 of the Personal Income Tax Law 2007, there are regulations on tax administration and tax refund as follows:
Tax administration and tax refund
1. Tax registration, declaration, withholding, payment, finalization and refund, handling of violations of the tax law, and tax administration measures comply with legal provisions on tax administration.
2. Individuals are entitled to tax refund in the following cases:
a/ Their paid tax amounts are larger than payable tax amounts;
b/ They have paid tax but their taxed incomes do not reach a tax-liable level;
c/ Other cases decided by competent state agencies.
Thus, individuals will receive a personal income tax refund in Vietnam when:
- The amount of tax paid is greater than the amount of tax payable.
- Individuals who have paid taxes but have taxable income that is not enough to pay tax.
- Other cases as decided by competent state agencies.
When is deadline for declaring and submitting PIT finalization dossiers in Vietnam? What does application for refund of overpaid PIT on income from salaries and remunerations include in Vietnam? (Image from the Internet)
When is deadline for declaring and submitting PIT finalization dossiers in Vietnam?
Section 5 of Official Dispatch 636/TCT-DNNCN 2021 guides deadlines for submission of pit finalization dossiers as follows:
DEADLINES FOR SUBMISSION OF PIT FINALIZATION DOSSIERS
Pursuant to Point a, Point b Clause 2 Article 44 of the Law on Tax Administration No. 38/2019/QH14 of the National Assembly, PIT finalization dossiers must be submitted by the following deadlines:
- Income payers shall submit PIT finalization dossiers by the last day of the 03rd month from the end of the calendar year or fiscal year.
- Individuals who themselves finalize PIT shall submit PIT finalization dossiers by the last day of the 04th month from the end of the calendar year. If the deadline for submission of PIT finalization dossier falls on days off or holidays as prescribed, the deadline shall be the following business day. If an individual has PIT refund but fails to submit the PIT finalization dossier by the prescribed deadline, no administrative penalty for such late submission will be imposed.
Thus, the deadline for declaring and submitting PIT finalization dossiers in Vietnam is determined as follows:
[1] For individuals with income from salary who are subject to direct tax refund at the tax authority (individuals subject to direct tax declaration at the tax authority):
- The deadline for submitting tax declaration and finalization documents is the last day of the 4th month from the end of the calendar year.
- In case the deadline for submitting tax finalization documents coincides with a prescribed holiday, the deadline for submitting tax finalization documents is the next working day.
In case an individual has a personal income tax refund but is late in submitting the tax finalization declaration according to regulations, penalties will not be imposed for administrative violations of tax finalization declaration past the deadline.
[2] For individuals with income from salary and wages who have authorized the income-paying organization to finalize tax:
The deadline for submitting tax declaration and finalization documents is the last day of the 3rd month from the end of the calendar year or fiscal year.
*Note: Conditions for tax refund include:
- At the time of carrying out tax refund procedures, the individual is registered and has a tax code.
- Subject to personal income tax refund.
What does application for refund of overpaid PIT on income from salaries and remunerations include in Vietnam?
In Article 42, Circular 80/2021/TT-BTC stipulates that application for refund of overpaid personal income tax (PIT) on income from salaries and remunerations:
a) In case the income payer finalize tax as authorized by the individual, the application shall include:
a.1) The application form No. 01/DNXLNT in Appendix I hereof;
a.2) The authorization letter in case the taxpayer does not apply for tax refund himself/herself, unless the tax agent submits the tax refund application under a contract between the tax agent and the taxpayer;
a.3) The list of tax payment documents according to Form No. 02-1/HT in Appendix I hereof (prepared by the income payer).
b) In case the income earner directly finalizes tax with the tax authority and has overpaid tax on the terminal PIT form, the tax refund application is not required.
The tax authority shall decide whether to refund overpaid tax according to PIT finalization dossier as per regulations.
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