Cases of personal income tax refund in Vietnam

Cases of personal income tax refund in Vietnam (Internet image) 

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

1. Cases of personal income tax refund in Vietnam

According to Clause 2, Article 8 of the Law on Personal Income Tax 2007, 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.

2. Overpaid personal income tax refund documents

Pursuant to Clause 1, Article 42 of Circular 80/2021/TT-BTC, application for refund of overpaid personal income tax (PIT) on income from salaries and remunerations

(1) In case the income payer finalize tax as authorized by the individual, the application shall include:

- The application form No. 01/DNXLNT in Appendix I of Circular 80/2021/TT-BTC;

Form No. 01/DNXLNT

- 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;

- The list of tax payment documents according to Form No. 02-1/HT in Appendix I of Circular 80/2021/TT-BTC (prepared by the income payer).

Form No. 02-1/HT​

(2) 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.

3. Time limits for processing tax refund claims in Vietnam

Specifically, Article 75 of the Law on Tax Administration 2019 stipulates the time limits for processing tax refund claims as follows:

- In case a claim is eligible for refund before inspection, within 06 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund, demand inspection before refund in the cases mentioned in Clause 2 Article 73 of the Law on Tax Administration 2019, or reject the claim if it is unqualified.

In case information on the tax refund claim is different from that of the tax authority, the tax authority shall request the taxpayer in writing to provide explanation and additional information. The time needed for providing explanation and additional information shall not be included in the time limit for processing tax refund claims.

- In case a claim is subject to inspection before refund, within 40 working days from the day on which the tax authority issues the notice of receipt of the claim, the tax authority shall decide whether to provide the refund or reject the claim.

- If the tax authority fails to issue the tax refund decision by the deadline specified in Clause 1 and Clause 2 of Article 75 of the Law on Tax Administration 2019, the tax authority shall pay an interest at 0,03% per day on the refundable and the number of days late. The interest shall be paid by central government budget in accordance with regulations of law on state budget.

Ho Quoc Tuan

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