Are household businesses eligible for a refund of personal income tax already paid?

In daily business operations, many business households encounter situations where they have paid personal income tax (PIT) but later discover the tax paid is higher than the regulated amount. So, in this case, do business households have the right to reclaim the excess tax paid? This is a common question for many shop owners and small retail businesses today.

The following article will clarify the legal regulations on PIT refunds, helping you fully grasp your rights, follow the correct procedures, and avoid unnecessary risks.

Personal Income Tax Refund - A Concept You Need to Know

A personal income tax refund is a process by which the tax authority returns to the taxpayer the amount of PIT that was paid in excess of the actual tax liability, provided the taxpayer meets all legal requirements. According to the Personal Income Tax Law, the amount to be refunded will be determined by the difference between the temporarily paid tax and the actual tax payable after finalization.

This is a legitimate right enjoyed by businesses, often occurring when the tax paid is greater than the tax owed, or when the actual income does not reach the taxable threshold as regulated.

Regulations on PIT Rates Applicable to Business Households

According to Article 10 of Resolution 198/2025/QH15, from January 1, 2026, lump-sum tax and license fees for business households and individuals will be abolished. From this point forward, business households will pay personal income tax (PIT) and value-added tax (VAT) when their annual revenue exceeds the regulated threshold, and will declare and pay other taxes if applicable (Decree 68/2026/ND-CP, Article 8, Clause 2), and will transition from the lump-sum tax method to self-declared and self-paid tax.

Important New Points on Business Household Taxes in 2026

Revenue Threshold Not Subject to Tax: From January 1, 2026, business households and individuals with annual revenue of VND 1 billion or less will not be subject to VAT and will not have to pay PIT; for revenue exceeding VND 1 billion, they will be subject to VAT and PIT (Decree 68/2026/ND-CP, Articles 3 and 4, amended by Decree 141/2026/ND-CP).

How to Calculate PIT: Business households and individuals with annual revenue from over VND 1 billion to VND 3 billion can choose to pay based on taxable income (revenue minus expenses) multiplied by a 15% tax rate, or based on the revenue exceeding VND 1 billion multiplied by a tax rate for the industry or profession from 0.5% to 5%; annual revenue exceeding VND 3 billion will be calculated based on taxable income (Personal Income Tax Law 109/2025/QH15, Article 7, Clause 2 and Clause 3; Law 09/2026/QH16, Article 1, authorizing the Government to stipulate this revenue threshold, which is VND 1 billion according to Decree 68/2026/ND-CP, Article 4, Clause 1 and Clause 5, as amended by Decree 141/2026/ND-CP). This regulation applies from the 2026 tax period (Personal Income Tax Law 109/2025/QH15, Article 29, Clause 2). If they choose to calculate based on taxable income, they must maintain this method consistently for 2 consecutive years starting from the first year of application (Decree 68/2026/ND-CP, Article 4, Clause 5, Point d, as amended by Decree 141/2026/ND-CP). For real estate rental income, please consult your accountant.

Tax Rates When Calculating Based on Taxable Income: Annual revenue from over VND 1 billion to VND 3 billion: 15%; over VND 3 billion to VND 50 billion: 17%; over VND 50 billion: 20% (Personal Income Tax Law 109/2025/QH15, Article 7, Clause 2, Points b, c, and d; the threshold of VND 1 billion according to Decree 68/2026/ND-CP, Article 4, Clause 1 and Clause 5, as amended by Decree 141/2026/ND-CP; applicable from the 2026 tax period according to Personal Income Tax Law 109/2025/QH15, Article 29, Clause 2).

Regarding VAT: Business households and individual business owners with annual revenue exceeding VND 01 billion are subject to VAT under the direct calculation method, calculated as a percentage (%) multiplied by revenue. The percentage and taxable revenue are determined according to Law on Value Added Tax No. 48/2024/QH15 and its guiding documents (Decree 68/2026/ND-CP, Article 3, Clause 2, as amended by Decree 141/2026/ND-CP). Please consult an accountant for the applicable rates for your profession. Decree 68/2026/ND-CP takes effect from March 05, 2026 (Article 19); the VND 01 billion threshold applies from January 01, 2026 (Decree 141/2026/ND-CP, Article 3).

In what cases are business households eligible for PIT refund?

Not all business households are eligible for PIT refunds. This right is only applicable when the business household has paid taxes exceeding the prescribed amount.

From March 05, 2026, business households and individual business owners are eligible for offsetting, refunding, or refunding and offsetting state budget revenue for overpaid taxes (collectively referred to as tax refunds in this article) in the following three cases (Decree 68/2026/ND-CP, Article 12, Clauses 1, 2, and 3, effective from March 05, 2026, according to Article 19; the revenue threshold has been amended by Decree 141/2026/ND-CP, Article 1, Clause 1):

First case: Taxes have been deducted and paid on behalf by e-commerce platforms or other organizations and individuals

If the VAT and PIT for your annual transactions have been deducted and paid on your behalf by the owner of an e-commerce platform, another digital platform with online ordering and payment functions, or other organizations and individuals, but your actual annual revenue is VND 01 billion or less, you will carry out the procedures for offsetting, refunding, or refunding and offsetting state budget revenue for the overpaid taxes as stipulated by tax administration law (Decree 68/2026/ND-CP, Article 12, Clause 1, as amended by Decree 141/2026/ND-CP, effective from March 05, 2026, according to Article 19).

Second case: You have self-paid VAT and PIT

If you have self-paid VAT and PIT for your business activities (including when doing business on e-commerce platforms, other digital platforms without online ordering and payment functions, where you are responsible for self-declaration and tax payment: Decree 68/2026/ND-CP, Article 11, Clause 2), but your actual annual revenue is VND 01 billion or less, you will carry out the procedures for offsetting, refunding, or refunding and offsetting state budget revenue for the overpaid taxes as stipulated by tax administration law (Decree 68/2026/ND-CP, Article 12, Clause 2, as amended by Decree 141/2026/ND-CP, effective from March 05, 2026, according to Article 19).

Third case: The amount paid or deducted and paid on your behalf is greater than the amount owed

If the amount of tax, late payment interest, and penalties you have paid, or have had deducted and paid on your behalf by organizations and individuals, is greater than the amount owed, you will carry out the procedures for offsetting, refunding, or refunding and offsetting state budget revenue for the overpaid taxes as stipulated by tax administration law (Decree 68/2026/ND-CP, Article 12, Clause 3). For example, a household paying PIT using the income tax calculation method multiplied by the tax rate, whose temporary PIT payment is higher than the final PIT owed after settlement, will carry out procedures for handling overpaid taxes according to Article 12 of Decree 68/2026/ND-CP (Decree 68/2026/ND-CP, Article 10, Clause 2, point b).

Conclusion: Business households and individual business owners are eligible for processing overpaid taxes in the three cases mentioned above (Decree 68/2026/ND-CP, Article 12, Clauses 1, 2, and 3, effective from March 05, 2026, according to Article 19).

Tax refund procedures and documentation for business households

From March 5, 2026, the processing of overpaid tax amounts for business households and individuals shall comply with Article 12 of Decree 68/2026/ND-CP; the application dossier, authority, responsibility for reception, resolution, sequence, and procedures shall be in accordance with the regulations of the Minister of Finance (Decree 68/2026/ND-CP, Article 12, Clause 4, effective from March 5, 2026, as per Article 19). Decree 117/2025/ND-CP is replaced by Decree 252/2026/ND-CP from July 1, 2026 (Decree 252/2026/ND-CP, Article 74, Clause 1 and Clause 3, point d). The section below presents the conditions, dossier, and submission location:

Conditions for Tax Refund

You fall into one of the three cases mentioned above: VAT, PIT already deducted and paid on your behalf by e-commerce platforms or other organizations/individuals; you have paid the tax yourself; or the amount paid is greater than the amount due. In the first and second cases, the actual revenue generated for the entire year must be VND 1 billion or less (Decree 68/2026/ND-CP, Article 12, Clauses 1, 2, and 3; the revenue threshold was amended by Decree 141/2026/ND-CP, Article 1, Clause 1).

Required Documents

The application dossier for overpaid tax refund for business households and individuals paying PIT using the tax rate multiplied by revenue method is the tax declaration form in Sample No. 01/TKN-CNKD (Circular 18/2026/TT-BTC, Article 5, Clause 1); the dossier for households paying PIT using the taxable income multiplied by tax rate method is the declaration form issued together with Circular 18/2026/TT-BTC (Circular 18/2026/TT-BTC, Article 5, Clause 2). This regulation is effective from March 5, 2026 (Circular 18/2026/TT-BTC, Article 9, Clause 1). Some samples from Circular 18/2026/TT-BTC, including Sample No. 01/TKN-CNKD, have been replaced by new samples issued with Circular 89/2026/TT-BTC from July 1, 2026 (Circular 89/2026/TT-BTC, Article 99, Clauses 1 and 5). Regarding the form currently applicable to your dossier and other cases: please ask your accountant.

Where to Submit the Dossier

The place to submit the tax refund application is the tax authority where the tax declaration dossier is submitted (Decree 68/2026/ND-CP, Article 12, Clause 5; Circular 89/2026/TT-BTC, Article 55, Clause 4, effective from July 1, 2026, as per Article 99, Clause 1). If your tax was only deducted and paid on your behalf by an e-commerce platform, digital platform, or another organization, please ask your accountant to know which tax authority to submit the refund application to.

Points to Note When Performing PIT Refund Procedures

To avoid rejected applications or prolonged processing times, business households should pay attention to the following points:

Carefully Check the Amount of Tax Paid: Meticulously reconcile the PIT amount that has been deducted or self-paid during the year with the data on the tax authority's system to ensure there are no discrepancies.

Retain All Tax Deduction Vouchers: Tax deduction vouchers and tax payment receipts are important bases for the tax authority to consider for refunds, so they must be preserved completely and correctly.

Declare Actual Revenue Accurately: The declared revenue must accurately reflect actual business activities. Incorrect or incomplete revenue declarations may lead to the tax refund application being re-examined or rejected.

Personal Information Must Match Tax Authority Records: Information such as tax identification number, ID number (CCCD), and bank account number for receiving tax refunds must be accurate and consistent with the data registered with the tax authority.

Frequently Asked Questions

In what cases are business households exempted from PIT?

From January 1, 2026, business households and individuals with annual revenue of VND 1 billion or less are not subject to VAT and do not have to pay PIT; above VND 1 billion, they are subject to VAT and must pay PIT (Decree 68/2026/ND-CP, Articles 3 and 4, as amended by Decree 141/2026/ND-CP).

How long will it take to receive the tax refund?

Tax authorities classify tax refund applications or tax refund amounts for advance refunds to taxpayers or pre-refund inspection (Tax Administration Law 108/2025/QH15, Article 18, Clause 3); the time limits for receiving, resolving, and responding to information on tax refund applications shall be prescribed by the Government (Tax Administration Law 108/2025/QH15, Article 18, Clause 6). Tax Administration Law 108/2025/QH15 takes effect from July 1, 2026 (Tax Administration Law 108/2025/QH15, Article 52, Clause 1). Ask your accountant about the number of days applicable to your file.

What is the threshold for personal income tax exemption for business households?

From January 1, 2026, business households and individuals with an annual revenue of VND 1 billion or less shall be exempt from VAT and not liable for personal income tax; above VND 1 billion, they shall be liable for VAT and personal income tax (Decree 68/2026/ND-CP, Articles 3 and 4, as amended by Decree 141/2026/ND-CP). Business households and individuals with an annual revenue of VND 1 billion or less shall not declare tax periodically but shall still notify the tax authority of the actual revenue incurred during the year, no later than January 31 of the following year, and declare other taxes (Decree 68/2026/ND-CP, Article 8, Clause 1, Point a, as amended by Decree 141/2026/ND-CP; Decree 68/2026/ND-CP, Article 8, Clause 2). If the actual revenue incurred during the year exceeds VND 1 billion, the household shall declare and pay tax starting from the quarter in which the revenue exceeding VND 1 billion is generated (Decree 68/2026/ND-CP, Article 8, Clause 1, Point a, as amended by Decree 141/2026/ND-CP). These regulations apply from March 5, 2026 (Decree 68/2026/ND-CP, Article 19).

Conclusion

Personal income tax refund is a legitimate benefit for business households that have overpaid tax compared to their actual obligations. However, not all cases are eligible for a tax refund; they must meet the specific conditions stipulated, especially regarding revenue thresholds. Understanding the regulations, preparing complete documentation, and accurate declarations will help you exercise this right quickly and effectively.

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