When there is an overpaid personal income tax amount or the paid tax amount is larger than the payable tax amount, individuals can carry out procedures for personal income tax refund. To better understand this issue, MVA invites members to see the article below.
Related services:
» Specializing in business investment, sale and transfer, project transfer, investment consulting, business agency.
» Accounting and Auditing Services
» Corporate Law Services
» Real Estate MVA Land
- Persons entitled to personal income tax refund
Pursuant to the provisions of Article 8 of the Law on Personal Income Tax of 2007, individuals are entitled to a refund of personal income tax (hereinafter referred to as “PIT”) in the following cases:
– The paid tax amount is larger than the payable tax amount;
– Individuals who have paid tax but have taxable incomes that are not up to the level to pay tax;
– Other cases as decided by competent state agencies.
For example:
In 2018 A is a resident individual, signs a labor contract with company X and has a probationary period of 02 months. The salary received is 5 million VND/month. During the 02 months of probationary period at company X, company X has temporarily withheld A’s personal income tax of 10%, equivalent to VND 1 million. On the other hand, in 2018 A’s total income is not more than VND 108 million and A has been granted a license. tax code.
Thus, although A has paid personal income tax, A’s taxable income has not yet reached the level to pay tax. A can make a PIT refund file to get a refund of the paid tax amount.
- Dossier for personal income tax refund
Individuals eligible for PIT refund are entitled to PIT refund only if they already have a tax identification number at the time of requesting a tax refund.
Pursuant to Article 23 of Circular 92/2015/TT-BTC, tax refund procedures are as follows:
In case an individual authorizes PIT finalization to an organization or individual paying income:
For individuals who have authorized tax finalization for income-paying organizations or individuals to make the final settlement, the individual’s tax refund shall be effected through the income-paying organizations or individuals.
However, not every individual is authorized to settle for the income paying organization. Individuals earning income from salaries and wages authorize income payers to finalize tax on behalf of the cases specified at work: Authorization for personal income tax finalization.
In case an organization or individual pays income after offsetting the overpaid or underpaid tax amount of individuals and has an overpaid tax amount, if it is requested to be refunded by the tax agency, the income payer shall Tax refund dossiers to tax agencies directly manage.
Tax refund dossiers include:
– Written request for refund of state budget revenues (under form No. 01/ĐNHT issued together with Circular 156/2013/TT-BTC).
– Photocopies of documents, receipts for payment of personal income tax and the legal representative of the organization or individual paying income sign the commitment to take responsibility in that photo.
– Authorization letter for tax finalization (under form 02/UQ-QTT-TNCN issued together with Circular 92/2015/TT-BTC) on authorization of tax finalization by individuals.
Place of application: Tax Sub-department under direct management.
In case individuals self-settle personal income tax:
First, it is necessary to confirm that the PIT finalization procedure is not a mandatory procedure in the case of an individual who does the tax finalization by himself.
Individuals only make tax finalization with tax authorities when they have overpaid tax amounts and need to refund PIT.
In this case, the individual is NOT required to submit the PIT refund dossier, but when carrying out the tax finalization procedures, in the tax finalization declaration (under form No. 02/QTT-TNCN attached to Circular 92/2015/ TT-BTC) individual writes the tax amount requested for refund in the entry [47] – “The tax refunded to the taxpayer’s account” or the item [49] – “Total tax offset for the arising of the following period” .
Thus, the overpaid tax amount will be refunded or offset against the payable tax amount of the next period.
Note: Enterprises will be sanctioned for administrative violations if they are late in submitting tax declaration dossiers compared to the prescribed time limit. However, for individuals who have incurred PIT refunds but are late in submitting tax finalization declarations as prescribed, no administrative penalty will be applied when tax finalization returns are overdue.
Legal grounds:
– Law on Personal Income Tax 2007;
– Circular 156/2013/TT-BTC;
– Circular 92/2015/TT-BTC.
MVA Vietnam – Success Comes From Difference
LK3 – 04, Loc Ninh urban area, TT. Chuc Son, H. Chuong My, City. Hanoi
Email: dungtq.mva@gmail.com
: 024.7109.7766
: 0981.350.666
