The HCM City Tax Department has reported a 38 per cent increase in personal income tax refund applications during the first half of the year, with a total of 174,478 applications submitted.

Taxpayers at the HCM City Tax Department. — VNA/VNS Photo

Of this number, 106,544 applications have been processed, while 26,094 remain pending; among these pending applications, 15,510 are considered eligible for refunds, whereas 10,584 are deemed ineligible.

The delays are largely attributable to the complexity of the processing steps, which are compounded by various issues such as erroneous submissions, underreported income, and the lack of requisite documentation.

In response to these challenges, the city General Department of Taxation intends to enhance the utilisation of technology to aid taxpayers in identifying the appropriate tax authority and accessing vital information for tax declarations.

They also plan to strengthen support programmes designed to assist taxpayers in complying with tax regulations, as well as to develop tools such as eTax Mobile and Icanhan, which will facilitate the navigation of refund applications and tax-related inquiries.

According to the provisions of the 2007 Law on Personal Income Tax, individuals are entitled to receive a tax refund under specific conditions.

These conditions include instances where the amount of tax paid exceeds the amount owed, where taxes have been remitted despite the taxable income falling below the tax threshold, among others as determined by tax authorities.

Tax identification numbers are required for refund requests, and any discrepancies between payments are reconciled by the income payer.

Meanwhile, tax authorities are intensifying supervision of income earners, particularly those engaged in livestream sales on e-commerce platforms, to ensure compliance with tax regulations.

Prime Minister Phạm Minh Chính has mandated that individuals with an annual income exceeding VNĐ100 million (US$4,000) must declare and remit taxes accordingly.

As of the end of last year, the total tax debt reported by authorities amounted to VNĐ164 trillion ($6.4 billion).

The Personal Income Tax Law is scheduled for revision in 2025, as outlined in a timeline submitted to the Government and reported to the National Assembly.

Currently, individuals are subject to personal income tax on earnings after deductions for social, health, and unemployment insurance.

However, the existing deductions have not kept pace with the rising cost of living and will need to be reviewed to better align with the evolving needs of consumers.

The Ministry of Finance said in a statement that it will monitor the consumer price index for future adjustments.