Official Letter 1375/CTTBI-TTHT from Thai Binh Provincial Tax Department on the Implementation of the Automatic Personal Income Tax Refund Process

TAX DEPARTMENT THAI BINH PROVINCIAL TAX DEPARTMENT No: 1375 /CTTBI-TTHT Regarding the Implementation of the Automatic Personal Income Tax Refund Process		SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Thai Binh, February 26, 2025
To:	Taxpayers in Thai Binh Province; People's Committee of Thai Binh Province; Department of Information and Communications of Thai Binh Province; Thai Binh Newspaper; Thai Binh Radio and Television Station; Thai Binh Business Association.

The Thai Binh Tax Department would like to thank the business community, organizations, individuals - taxpayers, and relevant agencies in the province for their cooperation with the Tax Authorities in implementing tax policies and laws.

With the goal of accelerating the digitization process and improving the efficiency of tax administration, the General Department of Taxation has issued Decision No. 108/QD-TCT on January 24, 2025, regarding the process for automatic personal income tax (PIT) refunds, which will be applied nationwide (Decision No. 108/QD-TCT dated January 24, 2025, is available on the Tax Department's website at: https://thaibinh.gdt.gov.vn).

The automatic PIT refund process is implemented in an electronic environment. The Thai Binh Tax Department introduces some key points that taxpayers need to pay attention to during the implementation of this process. Specifically:

1. Benefits of Implementing Automatic PIT Refunds:

For taxpayers, the implementation of automatic PIT refunds helps: Save time and effort for individuals when applying for refunds; reduce errors due to the system automatically compiling and verifying data; and ensure transparency and fairness thanks to a fast and accurate review process.

The automatic tax refund policy aligns with the national digital transformation policy, aiming for a transparent and efficient public administration. Applying technology in tax management helps increase the efficiency of tax authorities while providing the most convenient conditions for citizens to fulfill their financial obligations. By implementing automatic PIT refunds, the tax industry is gradually modernizing management processes, contributing to the sustainable development of the economy and establishing a solid foundation for the tax system in the digital era.

2. Scope and Applicable Subjects:

The automatic PIT refund process applies nationwide to individuals directly filing tax returns who request a tax refund.

3. Key Points for Taxpayers to Note During the Process of Automatic PIT Refund Implementation:

To receive an automatic PIT refund, taxpayers need to follow these steps:

• Step 1. Taxpayers create a PIT finalization declaration: Taxpayers log into the iCaNhan application or the eTax Mobile application.

The tax system aggregates data from income-paying organizations, tax registration data, dependent information, and tax obligations of the taxpayer. The system will then automatically generate a suggested PIT finalization declaration.

Taxpayers can review this declaration on the eTax Mobile application or the Electronic Tax Portal. Taxpayers have two options: First, agree with the suggested declaration, confirm, and submit the file online; second, edit information and provide supporting documents if there are discrepancies with the suggested data.

After submission, the system will automatically send a confirmation notice and create a refund request record.

• Step 2. The system will automatically check and process the tax refund if the file meets 3 conditions:

Firstly, at the time of processing the taxpayer’s PIT refund file, the income-paying organization must have completed its tax withholding obligations or the total PIT paid by the individual taxpayer must be fully paid to the State budget for the tax period in which the refund request is made.

Secondly, the "Total taxable income" field in the PIT refund file must match the aggregated data for the tax period in the tax database at the time of processing the file, and the "Total tax refund requested" must be less than or equal to the data in the tax database.

Thirdly, the taxpayer's refund account information must be verified and linked to the tax authority’s database.

If the PIT refund file meets the conditions, the tax system will automatically generate a decision and refund order, which will be sent to the State Treasury’s electronic portal for processing the refund to the taxpayer as per regulations. A tax refund decision will also be sent to the taxpayer. These tasks are automatically carried out by the tax application system from the time the notification of receiving the refund request is sent.

If the refund request does not meet the criteria for a refund, the tax authority will issue a notice that the file is not eligible for a refund.

• Step 3. Post-refund Review:

The tax authority will review the file after the refund process to ensure accuracy and prevent fraud.

The implementation of automatic personal income tax refunds is one of the new applications and methods that the tax industry is accelerating, applying information technology to provide the best convenience for taxpayers to fulfill their tax obligations, as personal income tax refunds are not only a right but also a responsibility of the taxpayer.

The Thai Binh Tax Department provides this information to taxpayers for their awareness and action. We request the Thai Binh Business Association; Thai Binh Newspaper; Thai Binh Radio and Television Station; and the Department of Information and Communications to coordinate in disseminating this information. The Office of the People's Committee of Thai Binh Province will publish it on the provincial electronic portal.

Recipients: As above; Relevant departments, agencies (for coordination); People's Committees of districts and cities (for coordination); People's Committees of communes, wards, and towns; Leadership of the Tax Department; Tax Department’s divisions; Local tax sub-departments in the province; Electronic portal of the Tax Department; Archive: VT, TTHT.

ON BEHALF OF THE DIRECTOR GENERAL DEPUTY DIRECTOR GENERAL       Bui Cong Minh

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