Can business households get a refund for paid personal income tax?

In daily business activities, many business households find themselves in a situation where they have paid personal income tax (PIT) but later discover the amount paid is higher than the regulated amount. So, in this case, do business households have the right to get a refund for the overpaid tax? This is a common question for many shop owners and small-scale business households today.

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

Personal Income Tax Refund - A Concept to Know

A personal income tax refund is the process by which tax authorities return to taxpayers the amount of PIT that has been paid in excess of their actual tax liability, provided the taxpayer meets the conditions stipulated by law. According to the Law on Personal Income Tax, the refund amount will be determined based on the difference between the temporarily paid tax and the actual tax payable after settlement.

This is a legitimate right that business owners are entitled to, typically occurring when the tax paid is greater than the tax owed, or when 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, the lump-sum tax and license fee for business households and individuals will be abolished. From this point forward, business households will only have to pay two main types of taxes: personal income tax (PIT) and value-added tax (VAT), and will transition from the lump-sum tax method to self-declaration and payment.

Key New Points on Business Household Taxes in 2026

Adjustment of Tax Exemption Threshold: The revenue threshold for not paying tax for business households and individuals has been raised from VND 200 million/year to VND 500 million/year. This amount will be deducted before calculating tax based on revenue percentage.

VAT Exemption Threshold: Similarly, the revenue threshold for not paying VAT has also been raised to VND 500 million/year.

PIT Calculation Method: Individuals and business households will calculate tax based on profit (profit = revenue – expenses).

For revenues from over VND 500 million to VND 3 billion: - If expenses can be determined: PIT is 15% on the profit, equivalent to the tax rate for small businesses. - If expenses cannot be determined: Continue to pay tax at a rate on revenue from 0.5% - 2% depending on the industry.

Business households have the right to choose between calculating tax based on revenue percentage or income.

Other Tax Rates: - Revenue from VND 3 billion to VND 50 billion: 17% - Revenue over VND 50 billion: 20%

Regarding VAT in 2026: Business households and individuals with annual revenue over VND 500 million will pay VAT using the direct calculation method on revenue with the percentage rates stipulated by the 2024 Law on Value-Added Tax.

In Which Cases Are Business Households Entitled to a PIT Refund?

Not all business households are eligible for a PIT refund. This right is only applicable when the business household has paid an amount of tax exceeding the regulated amount.

According to regulations effective from July 1, 2025, business households are entitled to a tax refund in the following two specific cases:

First Case: Doing Business on E-commerce Platforms with Tax Withholding

If you sell goods on e-commerce platforms with payment functionality and have had tax withheld, declared, and paid by the platform, but:

• Your total annual revenue does not exceed VND 100 million.
• Or does not exceed VND 200 million (applicable from 2026).

In this case, you are entitled to claim a refund for the overpaid tax after the e-commerce platform has completed its tax withholding, declaration, and payment obligations.

Second Case: Doing Business on Platforms Without Payment Functionality

If you conduct business on e-commerce platforms without payment functionality, and you self-declare and pay VAT and PIT for your transactions during the year, but:

• Your total annual revenue does not exceed VND 100 million.
• Or does not exceed VND 200 million (applicable from 2026).

You are also entitled to claim a refund for the overpaid tax.

Conclusion: From July 1, 2025, business households are only eligible for a tax refund when their revenue has not reached the taxable threshold but they have already paid tax during the year.

Documents and Procedures for PIT Refund for E-commerce Business Households

The tax refund process for business households on e-commerce platforms is detailed in Article 10 of Decree 117/2025/ND-CP, effective from July 1, 2025:

Conditions for Tax Refund

Households and individuals who have had tax withheld (by the e-commerce platform) or have self-paid tax (for business households and individuals on e-commerce platforms without payment functionality), but whose total annual revenue from all business activities falls under the category of being exempt from VAT and PIT, are eligible to complete the refund procedure in accordance with tax administration laws for the overpaid tax.

Required Documents

A written request for a tax refund from the household or individual conducting business on e-commerce platforms (according to Form 03/CNKD-TMĐT) issued together with Decree 117/2025/ND-CP.

Place to Submit Documents

The tax authority managing the locality where the household or individual resides (current address/temporary residence/permanent residence).

Points to Note When Applying for a PIT Refund

To avoid rejection of your application or delays in processing, business households should pay attention to the following:

Carefully Check the Amount of Tax Paid: Meticulously compare the amount of PIT withheld or self-paid during the year with the data in the tax authority's system to ensure there are no discrepancies.

Retain All Tax Withholding Documents: Tax withholding certificates and tax payment receipts are crucial bases for the tax authority to consider refunds, so they must be preserved completely and properly.

Declare Revenue Accurately Based on Reality: Declared revenue must accurately reflect actual business operations. Inaccurate or incomplete revenue declarations may lead to a review or rejection of the tax refund application.

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

Frequently Asked Questions

In which cases are business households exempt from PIT?

Business households and individuals with revenue from production and business activities in a calendar year of VND 500 million or less are exempt from personal income tax according to current laws.

How long will it take to receive the tax refund?

• For applications eligible for advance PIT refund: Within a maximum of 06 working days from the date of submission of a complete dossier.
• For applications subject to pre-refund inspection: Within a maximum of 40 working days from the date of submission of a complete dossier.

What is the PIT exemption threshold for business households?

From 2026, the revenue threshold for PIT and VAT exemption will be adjusted from VND 100 million to VND 500 million per year. Although exempt from VAT and PIT, business households and individuals with revenue below VND 500 million are still responsible for tax declaration and timely submission of tax documents as regulated.

Conclusion

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

If you are facing difficulties with tax declarations or managing electronic invoices, try GTG CRM - a multi-channel sales management software with integrated invoice management functions and support for easier, more accurate tax declarations for business households.