Contents
1. What does the application for personal income tax refund include?
Pursuant to Article 42 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 10 of the Government detailing a number of articles of the Law on Tax Administration, There are regulations on tax refund records. Accordingly, the personal income tax refund dossier includes:
– A written request for handling the amount of tax, late payment and overpayment penalty according to Form No. 01/DNXLNT issued together with Appendix I of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 10 of the Government detailing a number of articles of the Law on Tax Administration;
– A written authorization as prescribed by law in case the taxpayer does not directly carry out tax refund procedures, except for cases where the tax agent submits a tax refund dossier according to the contract signed between the tax agent and the collector;
– List of tax payment documents according to form No. 02-1/HT issued together with Appendix I of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 10 of the Government detailing a number of articles of the Law on Tax Administration (applicable for organizations and individuals paying income);
– Personal income tax withholding documents (are tax withholding documents that enterprises issue to entities);
– Identity card or identity document of the person applying for personal income tax refund;
– A copy of the labor contract (if tax finalization at the tax office managing the enterprise deducts the family situation);
– Or household registration book or temporary residence book (if tax finalization at the tax office where the individual resides).
2. How to calculate the amount of personal income tax overpaid to be refunded:
In fact, if we have paid personal income tax and want to know whether we pay personal income tax at a competent state agency with excess or shortage, we are required to do settlement activities in accordance with the law. Individuals can settle according to many different formulas, can settle directly with tax authorities or conduct activities to authorize income payment agencies if qualified as prescribed by law. Apply the formula:
Overpaid personal income tax amount = Personal income tax paid – Personal income tax payable according to tax finalization
If this formula result is positive, it is an overpayment amount, whereas negative is an underpayment of taxes.
Where:
– Personal income tax paid: The amount of tax paid is determined on the state budget payment paper (for enterprises or individuals paid to the state budget according to the taxpayer’s tax code) or personal income tax withholding documents (for individuals);
– The amount of personal income tax payable according to tax finalization: If you want to determine, you must make tax finalization. And the formula for calculating the annual personal income tax finalization is as follows: Personal income tax payable for the whole year = (Average monthly taxable income x partial progressive tax rate schedule) x 12 months. Where:
+ Average monthly taxable income is determined by the formula: Average monthly taxable income = (Total taxable income – sum of deductions) / 12 months;
+ Taxable income is the total income from wages and wages that the individual actually receives from January 1 to December 31 of the settlement year. There is the following formula: Taxable income for the whole year = Total income received during the year – amounts determined to be tax-free during the year;
+ Deductions include: Family deduction (self + dependents) + Compulsory insurance + Charitable, educational and humanitarian contributions.
To save time on researching procedures, filling out forms, notarizing, and waiting to submit documents, you can contact HT for consultation and assistance for Personal income tax refund
Contact us at:
Email: hue.truong@htlaw.vn
Phone: +84 935 439 454.