In which cases are individuals entitled to a tax refund in Vietnam?
In which cases are individuals entitled to a tax refund in Vietnam? - Mr. Phuong (Hai Phong)
According to the law in Vietnam: What is tax identification number? Who shall apply for taxpayer registration and TIN issuance?
Pursuant to Clause 5 Article 3 of the Law on Tax Administration in 2019 stipulating tax identification number as follows:
Definitions
In this Law, the undermentioned terms shall be defined as follows:
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5. “tax identification number” or “TIN” means a series of 10 or 13 digits and other characters assigned by tax authorities to taxpayers to serve tax administration.
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Pursuant to Clause 1 and 2, Article 30 of the Law on Tax Administration in 2019 stipulating applying for taxpayer registration and TIN issuance as follows:
Applying for taxpayer registration and TIN issuance
1. Taxpayers must apply for taxpayer registration and shall be issued with TINs by tax authorities before beginning their business operations or incurring amounts payable to the state budget. The following entities shall apply for taxpayer registration:
a) Enterprises, organizations and/or individuals shall apply for taxpayer registration through the interlinked single-window system together with enterprise, cooperative or business registration (hereinafter referred to as “business registration”) as prescribed in the Law on Enterprises and other relevant regulations;
b) Organizations and individuals beside those stipulated in Point a of this clause shall register directly with tax authorities as regulated by the Minister of Finance.
2. Types of TINs:
a) 10-digit TINs shall be issued to enterprises and organizations that are legal persons; representatives of households, household businesses and other individuals;
b) 13-character TINs shall be issued to dependent units and other entities;
c) The Minister of Finance shall elaborate this clause.
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Therefore, taxpayers must register for tax when they start their production, business activities or have tax obligations to the state budget. At that time, the tax authority will issue a taxpayer identification number to the taxpayer.
- 10-digit TINs shall be issued to enterprises and organizations that are legal persons; representatives of households, household businesses and other individuals;
- 13-character TINs shall be issued to dependent units and other entities;
In which cases are individuals entitled to a tax refund in Vietnam? - Source: Internet
In which cases are individuals entitled to a tax refund in Vietnam?
Pursuant to Article 8 of the Law on Personal Income Tax in 2007 stipulating 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.
As regulations above, individuals are entitled to tax refund in Vietnam in the following cases:
- Their paid tax amounts are larger than payable tax amounts;
- They have paid tax but their taxed incomes do not reach a tax-liable level;
- Other cases decided by competent state agencies.
At what income level can individuals be eligible for a personal income tax refund in Vietnam?
Pursuant to Clause 2.b Article 8 of the Law on Personal Income Tax in 2007 stipulating tax administration and tax refund as follows:
Tax administration and tax refund
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2. Individuals are entitled to tax refund in the following cases:
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b/ They have paid tax but their taxed incomes do not reach a tax-liable level;
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According to Clause 1 Article 7 of Circular 111/2013/TT-BTC (amended by Clause 6, Article 25 of Circular 92/2015/TT-BTC), the basis for calculating tax on taxable income from business and from wages and salaries is as follows:
Basis for calculating tax on taxable income from business and from wages and salaries
The basis for calculating tax on income from business and income from wages and salaries is the taxable income and the tax rate, as follows:
1. Taxable income is determined by subtracting the following deductions from taxable income as instructed in Article 8 of this Circular:
a) Deductions for dependents as instructed in Clause 1, Article 9 of this Circular.
b) Contributions to insurance, voluntary retirement funds as instructed in Clause 2, Article 9 of this Circular.
c) Contributions to charities, humanitarianism, and education as instructed in Clause 3, Article 9 of this Circular.
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In addition, Article 1 of Resolution 954/2020/UBTVQH14 stipulates the level of dependent deductions:
Level of dependent deductions
Adjust the level of dependent deductions stipulated in Clause 1, Article 19 of the Personal Income Tax Law No. 04/2007/QH12, which has been amended and supplemented in some points according to Law No. 26/2012/QH13 as follows:
1. The level of deduction for the taxpayer is 11 million VND/month (132 million VND/year);
2. The level of deduction for each dependent is 4.4 million VND/month.
According to the above regulations, individuals are entitled to a refund of personal income tax if the individual has paid tax but the taxable income is not up to the taxable level.
Currently, the taxable income is stipulated as follows:
Taxable income = Taxable income - Deductions (Dependent deductions, insurance contributions, voluntary retirement funds, insurance contributions, voluntary retirement funds...)
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