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

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

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

Personal Income Tax Refund - Concepts to Know

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 that the taxpayer meets the conditions stipulated by law. According to the Personal Income Tax Law, the amount to be refunded will be determined based on the difference between the temporarily paid tax and the actual tax payable after settlement.

This is a legal right that business owners are entitled to, usually occurring when the amount of tax paid is greater than the tax payable or when the actual income does not reach the taxable level according to regulations.

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 business license fees for business households and individual business owners will be abolished. From this point on, business households will only have to pay two main types of taxes: personal income tax (PIT) and value-added tax (VAT), and will switch from the lump-sum tax method to self-declaration and self-payment.

Key New Points on Business Household Taxes in 2026

Adjustment of Tax Exemption Threshold: The revenue threshold for not having to pay tax for business households and individual business owners is increased from VND 200 million/year to VND 500 million/year. This amount will be deducted before calculating tax based on the revenue ratio.

VAT Exemption Threshold: Similarly, the revenue threshold for not being subject to VAT is also increased to VND 500 million/year.

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

For revenue from over VND 500 million to VND 3 billion: - If expenses are determined: PIT is 15% on the profit, equivalent to the tax rate for small enterprises. - 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 the method of calculating tax based on revenue ratio or based on 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 individual business owners with annual revenue over VND 500 million will pay VAT using the direct calculation method on revenue with the percentage rate as prescribed by the Law on Value Added Tax 2024.

In Which Cases Can Business Households Get a PIT Refund?

Not all business households are eligible for a PIT refund. This right is only applicable when the business household has paid more tax than the prescribed amount.

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

First Case: 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 on your behalf by the platform, but:

• 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 complete the procedure to refund the overpaid tax after the e-commerce platform has fulfilled its tax withholding, declaration, and payment obligations.

Second Case: Business on Platforms Without Payment Functionality

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

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

You are also entitled to complete the tax refund procedure for the overpaid tax.

Conclusion: From July 1, 2025, business households can only get a tax refund if their revenue has not reached the taxable threshold but they have paid tax during the year.

Documents and Procedures for E-commerce Business Household PIT Refund

The tax refund procedure 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 e-commerce platforms) or have paid tax themselves (business households/individuals on e-commerce platforms without payment functionality) but whose annual revenue from all business activities falls under the category of being exempt from VAT and PIT are eligible to complete the tax refund procedure according to tax administration laws for overpaid tax.

Documents to Prepare

A written request for 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.

Where to Submit Documents

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

Points to Note When Performing PIT Refund Procedures

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

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.

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

Declare Revenue Accurately: Declared revenue must accurately reflect actual business activities. Incorrect or incomplete revenue declaration may lead to tax refund applications being re-examined or rejected.

Personal Information Must Match Tax Authority Records: Information such as tax identification numbers, ID card numbers, and bank account numbers for receiving tax refunds 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 individual business owners with revenue from production and business activities in a calendar year of VND 500 million or less are exempt from paying personal income tax according to current laws.

How long will it take to receive the tax refund?

• For applications subject to prior PIT refund: Within a maximum of 06 working days from the date the application is valid.
• For applications subject to pre-refund inspection of PIT: Within a maximum of 40 working days from the date the application is valid.

What is the PIT exemption threshold for business households?

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

Conclusion

PIT refund is a legal right of business households when they have paid excess tax compared to their actual obligations. However, not all cases are eligible for a tax refund; specific conditions must be met, especially regarding revenue thresholds. Understanding the regulations, preparing complete documentation, and declaring accurately will help you exercise this right quickly and effectively.

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