A personal income tax (PIT) refund is the process by which the tax authority refunds you the amount of tax you have overpaid compared to your actual obligations, usually done after the annual tax settlement. This is especially important for individuals who have left their jobs, overpaid taxes, or accountants who need to assist staff with the procedures.

This article will provide detailed instructions on how to get a personal income tax refund, conditions for refund, and related procedures, including online methods, with the latest updates.

1. Conditions for Personal Income Tax Refund

According to Clause 2, Article 8, Personal Income Tax Law 2007, you are entitled to a tax refund in the following cases:

1. The amount of tax paid is greater than the amount of tax payable: Often occurs when income from multiple sources or deductions is not fully accounted for during the provisional filing process.
2. Individuals who have paid taxes but taxable income has not reached the taxable level: For example, if after calculation, your taxable income is lower than the tax exemption level (VND 132 million/year for yourself, plus VND 52,8 million/year for each dependent), but you have had tax deducted, you can claim a refund.
3. Other cases as decided by competent state agencies: These are special cases, such as support policies from tax authorities.

Additionally, to get a tax refund, you must:

• Have personal tax code, registered with tax authorities.
• File a tax refund request, as the tax authorities do not automatically issue refunds without a request.

2. How to Calculate Personal Income Tax Refund

To calculate your tax refund, you need to compare the total tax paid during the year with the tax due after settlement. Here are the detailed steps:

• Calculate total taxable income for the year: This is the total income from salary and bonuses, after deducting tax-exempt items (such as bank interest, gifts between relatives).
• Calculate total deductions: Include:
• • Personal deduction: 11 million VND/month x 12 = 132 million VND/year.
  • Deduction for dependents: 4,4 million VND/person/month x number of dependents x 12 = 52,8 million VND/year for each dependent.
  • Compulsory insurance contributions (social insurance 8%, health insurance 1,5%, unemployment insurance 1%).
  • Charitable contributions, voluntary pension funds, as prescribed.
• Calculate taxable income: Taxable income = Total taxable income – Total deductions.
• Calculate tax payable: Apply progressive tax rates to taxable income, as shown in the table below:

For example: If taxable income is 150 million VND, tax payable = 5% * 60 + 10% * (120 – 60) + 15% * (150 – 120) = 3 + 6 + 4,5 = 13,5 million VND.

• Calculate tax refund amount: Refund amount = Total tax paid – Tax payable. If the result is positive, you get a refund.

Illustration:

Suppose you have a salary of 15 million VND/month, work for 12 months, have 1 dependent, the company deducts monthly tax based on income minus 11 million VND:

• Monthly income: 15 million, deducted 11 million, taxable income 4 million, deducted tax 5% * 4 = 0,2 million/month, total tax payable 2,4 million VND.
• Final settlement: Total income 180 million, deduction 132 (self) + 52,8 (1 dependent) = 184,8 million, taxable income = 180 – 184,8 = -4,8 million < 0, tax payable = 0.
• Refund amount = 2,4 – 0 = 2,4 million VND.

3. Personal Income Tax Refund Procedures

There are two main methods to do this. personal income tax refund procedure, depending on whether you authorize your employer or do the tax settlement yourself:

3.1. Through the Employer

• Subject of application: Individuals authorize employers (enterprises, organizations) to perform tax settlement on their behalf.
• The Franchising Process:
  • The employer will summarize and finalize personal income tax for all employees.
  • The excess tax paid by an individual will be offset against the underpaid tax of another individual in the same unit.
  • If after offsetting there is still excess tax, the enterprise can transfer this tax to the next period or request the tax authority to refund if the individual has a need.
• Important note: This method is often applied to employees still working at the company.

3.2. Direct Self-Determination with Tax Authorities

• Applicable objects: Individuals who file their own taxes, such as retired employees or people with multiple sources of income.

To request a tax refund, you need to follow these steps, according to Circular 80/2021/TT-BTC:

1. Prepare documents:
   • Personal income tax settlement declaration (form 02/QTT-TNCN).
   • Personal income tax deduction certificate (documents issued by the company).
   • Application for refund of state budget revenue (form 01/DNHT).
   • Documents proving deductions (if any, such as birth certificates for dependents).
2. Submit application:
   • Submit directly: Go to the local tax authority and submit at the taxpayer support department.
   • Submit online: Through the gate canhan.gdt.gov.vn, you need to have an electronic tax account. If you do not have one, register through the National Public Service Portal or directly at the tax authority.
3. Track and get results:
   • After submitting, you can track the status of your application via the portal or contact the tax authority.
   • Tax refund processing time is usually from 6 to 40 working days, according to Article 75, Law on Tax Administration 2019.

Note: From 2025, according to Decision 108/QD-TCT dated January 24, 1, there will be an automatic tax refund process for some cases, such as individuals directly settling taxes with a request for a refund of overpaid tax. You need to check on the tax portal to see if you are eligible.

4. Personal Income Tax Refund Online

To make an online tax refund, you need to make sure you have registered for electronic tax transactions before doing so. To register an account, you can do it through the National Public Service Portal or directly at the tax office, ensuring consistent resident information. 

And do the following steps:

1. Log into canhan.gdt.gov.vn with tax code and password.
2. Select “Tax settlement” > “Online declaration”.
3. Fill in form 02/QTT-TNCN, the system will automatically fill in some information based on available data.
4. Submit the return and attach supporting documents (tax deduction certificates, deduction papers).
5. Enter the OTP code to confirm and track the status of your application through the system.

Note:

• Make sure you have registered for a tax identification number and have an account on the tax portal to avoid any trouble.
• Carefully review the information on your return, especially income, deductions, and taxes paid, to avoid errors that could lead to tax refund denial.
• Keep tax deduction vouchers and related documents, such as employment contracts and dependents' birth certificates, as evidence.
• Submit your application on time, usually after tax settlement (before April 30 every year for individuals who directly settle), to avoid penalties.
• If you have any questions, please contact the tax authority via hotline or come directly for guidance, especially in complicated cases.

5. Deadline for Submitting Personal Income Tax Refund Application

Although the law does not prescribe a hard deadline for claiming a tax refund, it is usually filed during the annual tax settlement period, i.e. before April 30 of the following year for individuals to self-settle (according to Article 28 Circular 111 / 2013 / TT-BTC). If you are late, you can still file but need to check the tax refund period (usually 2 years from the date of overpayment).

6. Personal Income Tax Refund Processing Time

According to the Article 58 of Tax Administration Law No. 38/2019/QH14:

• Refund first, check later: 6 working days.
• Check first, refund later: 40 business days.

7. Conclusion

A personal income tax refund is your right when you have overpaid tax, helping to protect your personal financial interests. By understanding the conditions, calculations, and procedures, you can carry out this process effectively, especially with the support of the online system and the new automated process from 2025. Check if you are eligible to claim a tax refund and follow the instructions above to ensure your rights.