Electronic Tax Transactions Ease Vietnam’s Tax Declaration Process

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ato-tax-refundTo 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.

Professional Service_CB icons_2015RELATED: 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).

Professional Service_CB icons_2015RELATED: 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: vietnam@dezshira.com


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 vietnam@dezshira.com or visit www.dezshira.com.

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