Home > Blog >

Electronic Tax Transactions Ease Vietnam's Tax Declaration Process - Vietnam Briefing News

To simplify the tax payment process, the Ministry of Finance has issued Circular No. 110/2015/TT-BTC on electronic transactions in tax administration, to come into effect on September 10, 2015. As prescribed by the Law on Tax Administration, all types of enterprises are required to carry out electronic tax procedures with local tax agencies, including tax registration, filing, payment and refunds.

According to the General Department of Taxation, 462,391 enterprises had used electronic tax services by the end of 2014, approximately 94 percent of registered businesses.

In order to make electronic transactions, taxpayers must have valid digital certificates issued and recognized by public digital signature certification service providers or competent state authorities and have access to the internet, except in the following cases:

  • Individuals who do not have digital certificates but are allowed to use e-transaction verification codes;
  • Taxpayers who register for the Tax Identification Number (TIN); and
  • Taxpayers who pay taxes by electronic means via a bank service under regulations of that bank.

RELATED: Dezan Shira & Associates’ Information Technology-Based Solutions

Those without digital certificates must provide tax authorities with email addresses and mobile phone numbers. Furthermore, under this new Circular, taxpayers are allowed to register multiple digital certificates for one or several tax-related procedures and open multiple bank accounts for electronic tax payments.

Different from traditional tax declaration methods, electronic tax transactions may be conducted 24 hours a day and seven days a week, including weekends and public holidays, and can by submitted by the time written on the confirmation of tax authorities.

In the event of rejection of electronic tax document, tax authorities or T-VAN service providers must send the confirmation or reasons for rejection to the taxpayer via the General Department of Taxation’s web portal.

Such measures will go some way to improving the tax environment in Vietnam, a country ranked 149th out of 189 for convenience of completing tax procedures by the International Finance Corporation (IFC).

RELATED: Dezan Shira & Associates’ International Tax Planning Services

Information security of online tax declaration is one of the main concerns of enterprises which have not registered for electronic tax transactions. With regards to the transmission and exchange of information about electronic tax transactions, data must be secured in accordance with the Law on Information Technology and the Law on Electronic Transaction. Tax payment transactions can be viewed and monitored on the web portal of the General Department of Taxation. Taxpayers are advised to change the default password of the transaction account with tax authorities and keep changing it every six months to ensure the confidentiality and security of electronic transactions.

Further Support for Your Business

Dezan Shira & Associates provides accounting and tax compliance services to companies investing in and selling to Vietnam. The firm can help companies establish an online presence and direct office in the country and can guide them through the affiliated accounting, tax, legal and HR issues that come with doing so. To arrange a free consultation, please contact us at: [email protected]


About
Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email [email protected] or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

 ‍


Investing in Vietnam: Corporate Entities, Governance and VAT
In this issue of Vietnam Briefing Magazine, we provide readers with an understanding of the impact of Vietnam’s new Laws on Enterprises and Investment. We begin by discussing the various forms of corporate entities which foreign investors may establish in Vietnam. We then explain the corporate governance framework under the new Law on Enterprises, before showing you how Vietnam’s VAT invoice system works in practice.

E-Commerce in Vietnam: Trends, Tax Policies & Regulatory Framework

In this issue of Vietnam Briefing Magazine, we provide readers with a complete understanding of Vietnam’s e-commerce industry. We begin by highlighting existing trends in the market, paying special attention to scope for foreign investment. We look at means for online sellers to receive payment in Vietnam, examine the industry’s tax and regulatory framework, and discuss how a foreign retailer can actually establish an online company in Vietnam.

Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam.