I. Legal basis

• Circular No. 18/2026/TT-BTC
• Circular No. 50/2026/TT-BTC
• Law on Tax Administration No. 108/2025/QH15;
• Decree No. 118/2025/NĐ-CP
• Decree No. 68/2026/NĐ-CP

II. Case of tax refund for overpaid taxes by household businesses

Pursuant to Clauses 1, 2, and 3, Article 12 of Decree No. 68/2026/NĐ-CP (as amended and supplemented by Clause 1, Article 1 and Clause 1, Article 4 of Decree No. 141/2026/NĐ-CP), if a household business has overpaid tax during the year, the overpaid amount may be offset against the tax payable or refunded if the household business has no outstanding tax liabilities.

A household business whose tax is withheld, declared, and paid on its behalf by the operator of an e-commerce platform or other digital platform (domestic or foreign) that provides online ordering and payment functions, or a household business that has paid tax but whose actual annual revenue is VND 1 billion or less, may offset the overpaid tax against the tax payable or claim a tax refund.

If the amount of tax, late-payment interest, and penalties paid by a household business, or withheld and paid on its behalf by organizations or individuals, exceeds the amount of tax, late-payment interest, and penalties actually payable, the excess amount may be offset against the tax payable or refunded.

III. What documents are required for a tax refund of overpaid tax for household businesses?

The application dossier for a refund of overpaid tax is prescribed in Article 5 of Circular No. 18/2026/TT-BTC as follows:

• For household businesses and individual businesses paying personal income tax under the method of applying a tax rate multiplied (×) by taxable revenue, the application dossier for a refund of overpaid tax shall consist of a tax return made using Form No. 01/TKN-CNKD.
• For household businesses and individual businesses paying personal income tax under the method of applying a tax rate multiplied (×) by taxable income, the application dossier for a refund of overpaid tax shall consist of a tax return made using Form No. 02/QTT-TNCN-CNKD.

IV. Time limit for processing an application for a refund of overpaid tax for household businesses

• For applications subject to the tax refund-before-inspection procedure: No later than 06 working days from the date on which the tax administration authority issues a written notice accepting the application and specifying the processing period for the tax refund application.
• For applications subject to the inspection-before-tax-refund procedure: No later than 40 days from the date on which the tax administration authority issues a written notice accepting the application and specifying the processing period for the tax refund application.

V. How is an application for a refund of overpaid tax processed?

Pursuant to Article 6 of Circular No. 18/2026/TT-BTC, the processing of an application for a refund of overpaid tax shall be carried out as follows:

• Upon receipt of the application, the tax authority shall receive, classify, and process the application for a refund of overpaid tax in accordance with the law on tax administration.
• Upon completion of the processing, the tax authority shall issue a Tax Refund Decision or a Tax Refund Decision cum Offset against State Budget Revenues, as prescribed.

Accordingly, once a household business submits a complete and valid application dossier, the tax authority will conduct the necessary review and processing and issue a decision to refund the overpaid tax or refund the tax while simultaneously offsetting the amount against the household business’s state budget obligations, in accordance with applicable regulations.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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