The General Department of Taxation of Vietnam has issued a decision on automated PIT refunds, marking a significant step in tax reform. This policy simplifies procedures, reduces administrative burdens, and facilitates taxpayers. Below are answers to common questions about this process.
I. What is an Automated PIT Refund?
An automated PIT refund is a process that utilizes technology to compile data, generate tax declarations, and manage tax refunds through the taxation system.
Taxpayers can complete the procedure via eTax Mobile or the Electronic Tax application, leveraging automatically generated data and pre-filled declarations instead of manually handling each step.
This system simplifies tax procedures, speeds up processing times, and minimizes risks, but it is essential to meet the required conditions and eligibility criteria.
II. Who is Eligible for an Automated PIT Refund?
1. Applicable Individuals for the Automated PIT Refund Process
According to Decision No. 108/QĐ-TCT (2025) on Automated PIT Refunds, issued by the General Director of the General Department of Taxation, this process applies to individuals filing personal tax finalization directly.
Eligible individuals include:
- Resident individuals earning income from salaries or wages who either owe additional tax or have overpaid taxes and request a refund or offset against future tax filings, except for cases exempt from tax finalization.
- Individuals who have stayed in Vietnam for fewer than 183 days in the first calendar year but have accumulated at least 183 days within a continuous 12-month period from their date of arrival.
- Foreigners terminating their employment contracts in Vietnam and finalizing their taxes before departing the country.
- Resident individuals earning income from salaries or wages who qualify for tax reductions due to natural disasters, fires, accidents, or serious illnesses affecting their tax payment capacity.
2. Conditions for the Automated PIT Refund Process
To qualify for an automated PIT refund, the application must meet the following conditions:
- Tax obligations fulfilled: At the time of review, the income-paying organization must have fully paid the withheld PIT, or the taxpayer must have completed all tax obligations to the state budget in the tax finalization period for which the refund is requested.
- Data consistency with the tax management system: The “Total Taxable Income” and “Total Refund Requested” fields in the application must match or be lower than the figures recorded in the tax authority’s database at the time of processing.
- Verified and linked bank account: The refund recipient’s bank account must be verified and linked to the tax management system.
III. What Should Taxpayers Do?
Taxpayers must review the automatically generated information in eTax Mobile and take action:
- If they agree: Confirm and submit the tax finalization application via the platform.
- If they disagree: Modify the relevant fields, provide explanations for discrepancies compared to the tax authority’s suggested figures, and submit supporting documents.
Once the tax declaration is confirmed, the system automatically generates and submits the refund application, verifies its eligibility, and processes the refund according to regulations.
IV. When Does the Automated Tax Refund System Take Effect?
The automated PIT refund process applies from the 2024 tax period and is effective under Decision No. 108/QĐ-TCT, issued on January 24, 2025.
V. What is the Deadline for PIT Finalization for Self-Filing Individuals?
For individuals who directly finalize their PIT, tax declaration submissions must be completed no later than the last day of April following the end of the calendar year, as stipulated in Clause 2, Article 44 of the 2019 Law on Tax Administration.
The General Department of Taxation of Vietnam has issued a decision on automated PIT refunds, marking a significant step in tax reform. This policy simplifies procedures, reduces administrative burdens, and facilitates taxpayers. Below are answers to common questions about this process.
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