To:

- Departments of Taxation of provinces and central-affiliated cities;
- Large Taxpayers Department.

On May 31, 2023, the General Director of the General Department of Taxation issued Decision No. 679/QD-TCT and the Tax Refund Process. Accordingly, the processing of personal income tax (PIT) refund claims has been implemented at tax authorities. Tax authorities have also made efforts to process PIT refunds promptly and in accordance with regulations. However, tax authorities have different interpretations of where to submit personal income tax (PIT) returns, causing confusion and delays in receipt of PIT refund claims for taxpayers. Tax authorities have not focused on verifying and comparing the individual's income in reality and in the returns, which has delayed the processing of PIT refund claims and caused frustration for taxpayers.

To ensure consistent implementation with the tax administration law and promote the timely and proper processing of personal income tax (PIT) refund claims, the General Department of Taxation requests that Tax Departments strictly follow the tax refund process issued with Decision No. 679/QD-TCT of the General Director of the General Department of Taxation. Difficulties which may arise in connection with implementation of the PIT refund process should be reported to the General Department of Taxation (via Tax Declaration and Accounting Department, Department of Tax Administration of small and medium-sized enterprises, household businesses, and individuals) for guidance.

In addition, the General Department of Taxation requests that Departments of Taxation pay attention to the following:

1. Determination of places for submitting PIT refund claims

For individuals who file their personal income tax (PIT) returns directly with tax authorities, as stipulated in point b.2, clause 8, Article 1 of Decree No. 126/2020/ND-CP of the Government dated October 19, 2020, the following places are designated for submitting their PIT returns:

In case a resident individual has salaries and wages that are withheld at source by at least two employers, the following places are designated for submitting his/her PIT return:

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For example: In 2022, Mr. A worked in Ho Chi Minh City and earned an income from Company X, which is overseen by the Sub-department of Taxation of District 1. In January 2023, Mr. A moved to Hanoi and worked for Company Y, which is overseen by the Sub-department of Taxation of Hoan Kiem District. Mr. A has resided in Tay Ho District. Mr. A has to file a PIT return 2022 directly with the tax authority.

In 2023, the following places are designated for submitting his/her PIT return 2022:

At the Sub-department of Taxation of Hoan Kiem District if Mr. A has claimed a personal exemption from Company Y in the PIT return 2022.

At the Sub-department of Taxation of Tay Ho District if Mr. A has not claimed a personal exemption from any company in the PIT return 2022.

+ If a resident individual has not signed any employment contract, or just signs an employment contract under 3 months, or signs a service contract, and he/she has been paid income by at least one employer, and his/her 10 percent of income has been withheld, he/she shall file the PIT return with the tax authority where he/she resides.

+ If a resident individual has been paid income by at least one employer in a year, but he/she is unemployed on the tax return submission date, he/she shall file the PIT return with the tax authority where he/she resides.

2. Coordination and verification between the tax authorities in processing of PIT refund claims

While processing of PIT refund claims, the tax authorities had to verify the income of the applicants in certain cases. So the tax authorities requested other tax authorities to verify the income of those applicants. However, the receiving tax authorities failed to respond promptly or at all to verification requests.

To ensure that individuals receive their PIT refunds promptly and correctly in accordance with the law, the General Department of Taxation proposes that when tax authorities receive a request to verify income from another tax authority, they must urgently verify and clarify the request and provide a written response to the sending tax authority promptly, to avoid delaying the processing of the PIT refund claim.

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PP. GENERAL DIRECTOR
DEPUTY GENERAL DIRECTOR




Mai Son