Electronic tax

Vietnam issues guidelines on electronic tax transactions: Circular 19

  • The Vietnamese Ministry of Finance recently issued Circular 19/2021 / TT-BTC on Electronic Tax Payment for Vietnamese Citizens.
  • The decree aims to improve support for taxpayers, facilitating the tax payment process so that users benefit from a convenient tax payment process.

Recently Vietnam Ministry of Finance (MoF) issued Circular 19/2021 / TT-BTC (Circular 19) guiding the regulation on electronic tax transactions. The circular entered into force on May 3.

Taxpayers who conduct electronic transactions must have Internet access, an e-mail address, a digital signature or a mobile phone number. Electronic tax transactions can be carried out 24 hours a day, 7 days a week, including holidays.

Highlights of Circular 19

Circular 19 complements the regulation that allows taxpayers to choose the following methods for carrying out electronic tax transactions, which are done by:

  • National Public Service Portal, the MoF web portal which is connected to the General management of taxesportal of (GDT);
  • Web portals of other qualified public bodies connected to the GDT portal; and
  • The electronic payment service of an intermediary payment service provider linked to the GDT portal.

To be more specific, the Ministry of Finance states that taxpayers conducting electronic tax transactions by any of the above-mentioned methods are required to register to carry out electronic tax transactions. This application will follow the rules according to the regulations and instructions of each agency or organization through which the taxpayer chooses to conduct electronic tax transactions.

Other taxpayers will be given an additional account by the GDT to transact when using the method through the National Civil Service Portal and the Ministry of Finance website.

This additional account will be created based on the information the taxpayer provided when registering through these portals, so taxpayers will not have to manually register for any changes or additions.

When asked about the main reason for Circular 19, the Ministry of Finance mentioned that it issued the circular to improve convenience for taxpayers and optimize the efficiency of the tax payment process.

In addition, this additional circular will comply with the provisions of:

  • Decree 61/2018 / ND-CP on the implementation of the one-stop-shop mechanism in the processing of administrative procedures;
  • Decree 11/2020 / ND-CP on administrative procedures in matters of commercial treasury; and
  • Resolution 02 / NQ-CP of January 1, 2019, on the continued execution of the main tasks and solutions to improve the business environment and strengthen national competitiveness.

Electronic transactions in payment of taxes, tax refunds, tax exemption

Tax payment

Concretely, concerning electronic tax telepayment transactions, the new regulation removes the conditions for setting up tax telepayment for banks which participate in this electronic mode. Instead, banks and other organizations providing intermediary payment services that meet the technical standards set by the GDT will send a connection request to the GDT, in accordance with the provisions of Article 38 of Circular 19.

Tax refund

Regarding electronic transactions in the context of a tax refund, Circular 19 makes changes to the time limit within which the tax administration sends the “notice of receipt” to taxpayers. To clarify, this time period is after the sending by the tax authorities of the “notice of acceptance” of the electronic tax refund, in cases where the taxpayer requests a tax refund.

Tax exemption / reduction

Regarding electronic transactions with tax exemption and reduction, Circular 19 provides new regulations on this issue. As a result, taxpayers can send a request for tax exemption or reduction to the tax authorities either by direct submission or electronically. This circular specifically describes the process for receiving, processing and returning results electronically for a tax exemption or reduction request.

Government continues to digitize

By issuing Circular 19, the government demonstrates that it has made efforts to improve the tax aspect in Vietnam, by supporting Vietnamese citizens in paying taxes. Moreover, it proves that the tax system in Vietnam still offers strong opportunities for improvement, as the government seeks ways to improve eGovernment operations and digitization.

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