PROCEDURES OF PERSONAL INCOME TAX REFUND

Personal income tax is an amount of money that income earners must pay in part of their salary, or from other sources of income, into the state budget after being deducted. In the process of paying personal income tax, the amount of tax paid is not always the correct amount. In cases where individuals overpay personal income tax, they can request a tax refund. So what are the procedures for requesting a personal income tax refund?

1. What are the cases of personal income tax refund?

Individuals can receive a personal income tax refund in the following cases:

– The amount of tax paid is greater than the amount of tax payable;

– Individuals who have paid taxes but have taxable income that is not enough to pay tax;

– Other cases as decided by competent state agencies.

2. What are the conditions for personal income tax refund?

According to current law, the conditions for receiving a personal income tax refund are as follows:

– Individuals who have registered and have a tax code at the time of submitting tax finalization documents (time of tax refund request);

– Individuals who overpay personal income tax (individuals who have temporarily paid a tax amount greater than the personal income tax amount payable after finalization);

– There is a request for personal income tax refund.

3. What does a personal income tax refund file include?

Personal income tax refund from salaries and wages is divided into 02 cases, including:

a. In case the organization or individual paying income (enterprise) is authorized to finalize personal income tax on behalf of the employee:

Individual tax refunds are made through organizations and individuals paying income.

Organizations and individuals paying income offset the overpaid and underpaid tax amounts of individuals. After clearing, if there is any excess tax, it will be offset in the next period or refunded if a refund is requested.

Dossier to request personal income tax refund includes:

– Written request for handling tax amounts, late payment interest, and overpaid fines according to form No. 01/DNXLNT issued with Appendix I of Circular 80/2021/TT-BTC;

– Authorization document as prescribed by law in case the taxpayer does not directly carry out tax refund procedures, except in cases where the tax agent submits tax refund documents according to the contract signed between the tax agent and the taxpayer;

– List of tax payment documents according to form No. 02-1/HT issued with Appendix I Circular 80/2021/TT-BTC.

b. In case an individual has income from salary or wages directly settles personal income tax with the tax authority:

Individuals who declare directly to the tax authority can choose to have their tax refunded or offset in the following period at the same tax authority.

In this case, individuals who have overpaid tax and request a refund on their personal income tax finalization declaration do not have to submit a tax refund application.

>> WHERE TO REGISTER FOR PERSONAL INCOME TAX REFUND? https://linconlaw.vn/where-to-register-for-personal-income-tax-refund/

>> ASES OF PERSONAL INCOME TAX EXEMPTION https://linconlaw.vn/cases-of-personal-income-tax-exemption/

4. How long does it take for a tax refund to be processed?

a. For documents subject to advance tax refund, examination after:

Maximum 06 working days from the date of receiving the personal income tax refund application.

b. For documents subject to inspection first, tax refund later:

Maximum 40 working days from the date of receiving the personal income tax refund application.