The form of requesting for tax refund for personal income tax according to the Circular 80 in Vietnam

The form of requesting for tax refund for personal income tax according to the Circular 80 in Vietnam

The form of requesting for tax return for personal income tax is prescribed in Appendix 1 issued together with the Circular 80/2021/TT-BTC

Please refer to more information of the form here.

When shall the personal income tax be refunded in Vietnam?

Pursuant to Article 8 of the Law on Personal Income Tax in 2007 stipulating cases of refund of personal income tax in Vietnam 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 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.

What are requirements for personal income tax refund in Vietnam?

Pursuant to Article 28 of the Circular 111/2013/TT-BTC stipulating tax refund as follows:

Tax refund

1. The refund of personal income tax applies to the persons that have registered and obtain tax codes when they submit the tax settlement form.

2. If the person has delegated the income payer to settle tax, tax refund shall be made via the income payer. The income payer shall offset the overpaid and underpaid tax. After offsetting, the overpaid tax shall be offset against the tax in the next period or returned on request.

3. The person that declares tax directly may choose to claim a tax refund or offset it against the tax in the next period at the same tax authority.

4. Person eligible for the refund of personal income tax that submits the tax settlement behind schedule is exempt from fines for overdue tax statement.

Therefore, the requirements for a personal income tax refund are as follows:

- Belong to one of the cases eligible for a refund.

- The individual has registered and has a tax identification number at the time of requesting a refund.

- For individuals who have authorized tax declaration to the organization, individual paying income to perform tax declaration instead, the following requirements must be satisfied:

+ The refund of the individual is carried out through the organization, individual paying income.

+ The income payer shall offset the overpaid and underpaid tax. After offsetting, the overpaid tax shall be offset against the tax in the next period or returned on request.

- The person that declares tax directly may choose to claim a tax refund or offset it against the tax in the next period at the same tax authority.

- Person eligible for the return of personal income tax that submits the tax settlement behind schedule is exempt from fines for overdue tax statement.

Who shall decide on tax refund in Vietnam?

Pursuant to Article 76 of the Law on Tax Administration in 2019 stipulating power to decide tax refund as follows:

Power to decide tax refund

1. The Director of the General Department of Taxation, Directors of Provincial Departments of Taxation shall decide tax refund in eligible cases as prescribed by tax laws.

2. The heads of tax authorities receiving claims for refund of overpaid tax shall decide refund of overpaid tax in accordance with this Law.

3. The Director of the General Department of Customs, Directors of Customs Departments and Sub-departments of Customs to which tax is overpaid shall decide tax refund in accordance with tax laws.

4. The Minister of Finance shall provide for tax refund procedures.

Pursuant to Clause 2 Article 70 of the Law on Tax Administration in 2019 stipulating cases of tax refund as follows:

Cases of tax refund

...

2. Tax authorities shall refund overpaid amounts in accordance with Clause 1 Article 60 of this Law.

Pursuant to Clause 1 Article 60 of the Law on Tax Administration in 2019 stipulating handling of overpaid tax, late payment interest and fines as follows:

Handling of overpaid tax, late payment interest and fines

1. If the tax, late payment interest or fine paid by a taxpayer is greater than the amount payable, the overpaid amount may be offset against the outstanding tax, late payment interest or fine, or against the tax, late payment interest or fine payable next time, or may be refunded if the taxpayer no longer has outstanding tax, late payment interest or fine.

...

Therefore, based on the above regulations, the authority to decide on a personal income tax refund is determined as follows:

- For the case of refunding the amount of tax paid in excess: The head of the tax authority where the excess tax refund application is received shall make the decision.

- For the case of refunding tax in accordance with the provisions of tax law:

+ By the Director General of the General Department of Taxation, the Director of the Provincial Tax Department, the City Tax Department directly under the central government.

+ By the Director General of the General Department of Customs, the Director of the Customs Department, the Head of the Customs Sub-Department where the amount of tax to be refunded is generated.

Best regards!