Guidelines on the Latest Personal Income Tax Refund Procedures

Based on Article 28 of Circular 111/2013/TT-BTC, individuals are eligible for a tax refund if they meet the following conditions:

- There is an excess amount of tax paid;

- They have registered and obtained a Personal Income Tax (PIT) code at the time of requesting the tax refund;

- They have a tax refund request.

According to the provisions of Article 53 of Circular 156/2013/TT-BTC (amended by Article 23 of Circular 92/2015/TT-BTC), the procedures for PIT refund are as follows:

a. Tax refund for organizations and individuals paying income on behalf of individuals who have authorized tax finalization.

- In the case where organizations and individuals paying income have excess tax after offsetting the overpaid and underpaid taxes of individuals, if they request the tax authority for a refund, the organizations and individuals paying income shall submit the tax refund dossier to the directly managing tax authority. The tax refund dossier includes:

+ The request for the refund of the state budget revenues according to form No. 01/DNHT promulgated with this Circular.

+ A photocopy of the personal income tax payment receipt, and the legal representative of the organization or individual paying income shall sign a commitment to take responsibility on that photocopy.

b. For individuals with income from salaries and wages directly reconciling tax with the tax authority

if there is an excess amount of tax paid, the individual does not need to submit a tax refund dossier but only needs to state the tax refund amount in item [47] - "Tax refund amount to taxpayer's account" or item [49] - "Total tax offset for subsequent periods" in the annual tax finalization declaration according to form No. 02/QTT-TNCN when finalizing tax.

Note, based on Clause 2, Article 33 of Circular 156/2013/TT-BTC, after finalizing PIT, if there is an excess amount of tax paid, the taxpayer is allowed to offset with the tax payable in the next tax payment period for each type of tax under the same economic content specified in the state budget index. If six months have passed since the excess tax amount arose and no further payable arises, the Company shall send the tax refund dossier to the directly managing tax authority for a refund as prescribed.

Duy Thinh

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