Automated PIT Refund: A New Step in Tax Management

The implementation of automated PIT refunds is one of the new applications and methods that the Tax Department is accelerating on the information technology platform. This provides maximum convenience for taxpayers to proactively fulfill their tax obligations, as PIT refunds are not only a right but also a responsibility of taxpayers and tax authorities.

Automated Personal Income Tax Refund Process

The automated PIT refund process stipulates the order and procedures for tax authorities to process PIT refund for individuals who directly finalize tax and request a refund on the PIT tax return. The content of the automated PIT refund process guides the following steps:

1. Creating and receiving the PIT tax return with a refund request from the taxpayer;
2. Processing the automated PIT refund;
3. Post-refund PIT control.

Points to Note When Implementing Automated PIT Refund

Automated PIT refunds are implemented in an electronic environment. In the early stages, taxpayers may have some unfamiliar points. Here are some basic points that taxpayers should pay special attention to during the implementation of the Process steps:

1. Creating and Receiving the PIT Tax Return

• Creating the PIT Tax Return:*
  
  • From the declaration database of income-paying organizations and individuals, tax registration and dependent registration data, overview data on tax obligations, taxpayer debts nationwide, the information technology (IT) application system of the Tax Department automatically synthesizes data.
  • The system automatically synthesizes data for the criteria on the PIT tax return to determine the declaration obligation of the taxpayer and create the PIT tax return for the taxpayer who is directly PIT.
  • The data synthesis and declaration creation are automatically performed by the Tax Department’s IT application system immediately after the deadline for submitting the PIT tax return of the income-paying organization.
  • The taxpayer, as an individual, uses the eTax Mobile application, the Electronic Tax application for individuals of the General Department of Taxation to check information on the PIT tax return automatically created by the Tax Department’s IT application system.
  • If the taxpayer agrees with the information suggested on the PIT tax return, the taxpayer confirms and submits the according to the regulations on the application.
  • If the taxpayer does not agree with the information suggested on the PIT tax return, the taxpayer revises the information at the corresponding criteria, adds the reason for the difference with the suggested tax authority number, and submits with supporting documents as prescribed.
• Receiving the PIT Tax Return with a Refund Request:*
  
  • The automated administrative procedure information system automatically creates and sends a Notice of Receipt of Electronic Tax Declaration, a Notice of Receipt of Refund Request Document (according to form No. 01-1/TB-TĐT issued with Circular 19/2021/TT-BTC of the Ministry of Finance), to the taxpayer immediately after receiving the PIT tax return with the criterion “Tax amount refunded to the taxpayer”.
  • Immediately after sending the Notice of Receipt of Refund Request to the taxpayer, the automated refund subsystem creates a refund request.
• For PIT Tax Returns with Refund Requests:*
  
  • Submitted by methods other than those specified in Clause 1, Article 4 of the Automated PIT Refund Process issued with Decision 108/QD-TCT 2025, the administrative procedure information system and the receiving and returning results department shall receive, accept the declaration, and process the tax declaration in accordance with the Tax Declaration, Payment, and Tax Obligation Management Process of the taxpayer.
  • Then, the administrative procedure information system automatically receives the tax refund and the automated refund subsystem creates a refund request as prescribed in Clause 2, Article 4 of the Automated PIT Refund Process issued with Decision 108/QD-TCT 2025.

2. Processing Automated PIT Refunds

The PIT refund subsystem will automatically check and determine that are eligible for automated processing when the following conditions are met:

• At the time of processing the taxpayer’s PIT refund, the income-paying organization has completed its obligation to pay on behalf of the deducted PIT amount or the total PIT amount that the taxpayer as an individual has fully paid to the State Treasury in the period when the taxpayer requests a refund.
• The PIT refund has the criterion “Total taxable income” that matches the aggregated data in the tax period according to the tax management database of the Tax Department at the time of processing and has the criterion “Total refund amount requested” that is less than or equal to the aggregated data in the tax period according to the tax management database of the Tax Department at the time of processing.
• The taxpayer’s refund receiving account information is verified and linked to the tax management database of the Tax Department.

If the taxpayer’s PIT refund meets all the conditions, the PIT refund subsystem automatically creates a refund proposal, prepares a Refund Decision (or a Refund Decision cum State Budget Offset) and a State Budget Collection Refund Order (or a Collection Refund cum State Budget Offset Order) to transfer to the head of the tax authority for electronic signing. The above-mentioned tasks are automatically performed by the Tax Department’s IT application system from the time of sending the Notice of Receipt of Refund Request to the taxpayer.

In case it is determined that the tax refund does not belong to the subject and case of tax refund, the tax refund processing department shall draft a Notice that the is not eligible for tax refund (Form No. 04/TB-HT issued with Circular No. 80/2021/TT-BTC) on TMS, submit it to the head of the tax authority for signing and promulgation, and send it to the taxpayer.

Effectiveness

The automated PIT refund process issued with Decision No. 108/QD-TCT 2025 takes effect from the date of signing and replaces the regulations on processing PIT refund of individuals who directly tax in the Refund Process issued with Decision No. 679/QD-TCT dated May 31, 2023, of the General Director of Taxation.

SUMMARY OF KEY CONTENTS OF DECISION 108/QD-TCT

1. Scope and Applicable Subjects:

The automated PIT refund process applies nationwide to individuals who directly finalize their tax obligations and request a tax refund.

2. Implementation Steps:

• Creating and Receiving the Suggested PIT Finalization Tax Return: The system automatically synthesizes data, generates a tax return, and sends it to the taxpayer via eTax Mobile or iCanhan.
• Determining Eligible for Automated Processing: The system checks and cross-references data. If valid, it automatically generates a Tax Refund Decision and a Refund Order.
• Processing Not Eligible for Automated Processing: The tax authority verifies the document, requests additional information, or rejects the refund if there are insufficient grounds.

3. Post-Refund Control:

The IT system updates, alerts, and monitors changes in tax obligations after the refund to conduct inspections and recover funds if any violations are found.

4. Responsibilities of Tax Authorities:

The General Department of Taxation, the Department of Information Technology, and local tax authorities are responsible for implementing, guiding, and upgrading the system to ensure completion before March 31, 2025.

5. Reporting Regime:

The IT system automatically compiles monthly and annual reports, supporting the monitoring of tax refund processing progress.

The new process helps accelerate processing speed, reduce administrative procedures, strongly apply digital technology in tax management, and bring great benefits to taxpayers.