The General Department of Taxation's request to speed up the processing of personal income tax refund applications in Vietnam

The General Department of Taxation's request to speed up the processing of personal income tax refund applications in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On September 20, 2023, the General Department of Taxation issued Official Dispatch 4172/TCT-DNNCN on speeding up the processing of personal income tax refund applications.

The General Department of Taxation's request to speed up the processing of personal income tax refund applications in Vietnam

To ensure consistent implementation according to the provisions of law on tax administration and promote the timely and proper processing of individuals' personal income tax refund dossiers, the General Department of Taxation recommends that the Tax Departments seriously implement the Tax Refund Process issued with Decision 679/QD-TCT of the Director General of the General Department of Taxation.

During the implementation process, if any problems arise related to the PIT refund process, the Tax Department will report them to the General Department of Taxation (through the Department of Tax Declaration and Accounting, Department of Tax Administration for Small and Medium Enterprises, Business Households, and Individuals) to promptly take measures and instructions for resolution.

In addition, the General Department of Taxation recommends that Tax Departments pay attention to the following contents:

(1) Regarding determining where to submit an individual's personal income tax refund application

Regarding the place to submit personal income tax finalization dossiers for individuals who directly finalize with the tax authority, it is specified in Point b.2, Clause 8, Article 11 of Decree 126/2020/ND-CP, specifically:

In case a resident individual has salary or wage income subject to payment deduction at source from two or more places, submit the tax finalization declaration dossier as follows:

+ An individual who has calculated family deductions for himself or herself at an organization or individual paying income must submit a tax finalization declaration dossier to the tax agency directly managing the organization or individual paying that income.

In case the individual changes the workplace and organization or pays the final income with family deductions for himself or herself, they submit the tax finalization declaration dossier to the tax agency managing the organization or individual that pays the final income.

In case the individual changes the workplace and organization or pays the final income without calculating family deductions for himself/herself, then submits the tax finalization declaration dossier to the tax agency where the individual resides.

In case an individual has not yet calculated family deductions for himself or herself at any income-paying organization or individual, submit a tax finalization declaration dossier to the tax office where the individual resides.

For example: In 2022, Mr. A works in Ho Chi Minh City and earns income at Company X managed by District 1 Tax Department. In January 2023, Mr. A moved to Hanoi to work at Company Y, managed by the Hoan Kiem District Tax Department and Mr. A resides in Tay Ho district. Mr. A is required to directly finalize his personal income tax in 2022.

In case in 2023, Mr. A submits the 2022 personal income tax finalization dossier, the place to submit the 2022 tax finalization dossier is as follows:

At the Hoan Kiem District Tax Department, at the time of submitting the 2022 finalization documents, Mr. A is calculating personal deductions at Company Y.

At Tay Ho District Tax Department, if, at the time of submitting the 2022 finalization documents, Mr. A does not calculate personal deductions at any income-paying organization.

+ In case a resident individual does not sign a labor contract, signs a labor contract for less than 03 months, or signs a contract to provide services with income at one place or many places, 10% will be deducted. Then, submit the tax finalization declaration dossier to the tax office where the individual resides.

+ Individuals residing during the year have income from salaries or wages in one or many places, but at the time of settlement, they do not work for any organizations or individuals that pay income. The place to submit tax finalization documents is the tax agency where the individual resides.

(2) Regarding coordination and verification between tax authorities in processing personal income tax refunds

During the process of processing personal income tax refunds, there may be cases where the tax authority processing the refund needs to verify the income of the individual requesting the refund.

The tax authority processing the tax refund shall, in writing, request to coordinate with other tax authorities to verify the individual's income.

However, the response to requests for verification is often slow or nonexistent.

In order to resolve personal income tax refunds of individuals promptly and in accordance with the law, the General Department of Taxation recommends that when tax authorities receive requests for income verification from other tax authorities, they must promptly verify and clarify the content as requested and promptly provide a written response to the tax authority sending the verification request, avoiding prolonging the processing time of the individual's personal income tax refund dossier.

More details can be found in Official Dispatch 4172/TCT-DNNCN, issued on September 20, 2023.

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