For Vietnamese merchants facing complex tax environments, including normal tax payments, tax arrears payments, and additional tax collections. To simplify these processes, Vietnam has introduced an online tax management system. This article will comprehensively introduce the functions and features of this system, mainly explaining the tax payment, detailed arrears payment, and additional collection processes.

The main function of Vietnam’s online tax management system] is to allow enterprises to directly handle various taxes through the banking system, including normal payments, arrears payments, and additional tax collections. This innovative solution aims to improve the efficiency and accuracy of tax management while reducing the administrative burden on enterprises and tax authorities. Before starting to use the banking system for tax deduction, please ensure you have completed the following preparations

• Have a valid Vietnamese enterprise bank account
• Have activated online banking services
• Obtained security devices provided by the bank (such as OTP generators, digital certificates, etc.)
• Prepared the enterprise’s tax code (MST – Mã số thuế)

Core Functions of Vietnam’s Online Tax Management System

• Online Operation: Enterprises can complete various tax operations directly through the online banking platform.
• Real-time Processing: The system can process various requests in real-time, quickly updating the enterprise’s tax records.
• Multi-tax Support: Supports management of various taxes including VAT, Corporate Income Tax, Personal Income Tax, Foreign Contractor Tax, etc.
• Automatic Calculation: The system can automatically calculate the tax due, late payment fees, and penalties (if applicable).
• Electronic Vouchers: After the operation is completed, the system automatically generates electronic vouchers for easy enterprise reporting and accounting.

1. Basic Operation Guide

• Log in to Online Banking: Open your bank’s official website → Click “Online Banking Login” or similar option → Enter your username and password → Complete identity verification as prompted (such as entering OTP).

• Enter the Tax Collection Module: On the online banking homepage, look for options like “Tax and Penalties”, “Government Fees” or similar; click to enter the relevant page.

• Select Tax Type: On the tax payment page, you will see different tax type options; select the tax type you need to pay (such as Individual Income Tax, Corporate Income Tax, etc.). For details on payment, arrears payment, and additional collection processes for different tax types, see < Main Tax Types Payment, Arrears Payment, and Additional Collection Processes>.

• Tax Payment Information: Enter the enterprise tax code (MST) → Select the tax collection period (month or quarter) → If the system supports it, it may automatically display the tax amount you should pay → If the system does not support automatic display, please manually enter the tax amount due.

• Select Payment Account: From the drop-down menu, select the account you want to pay taxes from, ensuring that the account has sufficient balance.

• Confirm Information: Carefully check all entered information, including tax code, tax type, amount, etc. → After confirming there are no errors → Click the “Next” or “Confirm” button.

• Authorize Payment: The system may require you to verify your identity again → Enter OTP or use a digital certificate to sign → Click “Confirm Payment” or a similar button.

• Complete Tax Payment: After successful payment, the system will display a transaction successful page → Download and save the electronic tax payment voucher → It is recommended to print a paper copy of the voucher as well.

Notes: Please ensure to complete tax payments within the Vietnamese declaration period, otherwise, late payment fees will be incurred. Carefully verify the amount before paying taxes, as once the payment is successful, it usually cannot be revoked. If you encounter technical problems, please contact the bank’s customer service immediately. Regularly check notifications from the bank and tax authorities to understand the latest tax policies and process changes. For large tax payments, it is recommended to confirm with the bank in advance whether special handling is required.

Main Tax Types Payment, Arrears Payment, and Additional Collection Processes

1.Value Added Tax (VAT):

• Normal Payment Process: Log into the banking system, select the “Tax Payment” option → Enter the enterprise tax number (MST – Mã số thuế) → Select the tax collection period (monthly or quarterly) → Enter output tax and input tax amounts, the system will automatically calculate the tax payable → Select payment account → Confirm information and submit.

• Arrears Payment Process: Select the “VAT Arrears Payment” option → Enter the original declaration period and arrears amount → Upload the corrected VAT declaration form → The system will automatically calculate possible late payment fees → Confirm information and submit.

• Additional Collection Process: Select the “VAT Additional Collection” option → Enter the additional collection notice number provided by the tax authority → Fill in the additional collection amount, including principal and late payment fees → Upload the additional collection notice provided by the tax authority → Confirm information and submit.

Note: VAT rates in Vietnam include 0%, 5%, 8%, and 10%, please choose the correct rate according to different goods and services.

2.Corporate Income Tax:

• Normal Payment Process (Quarterly Prepayment): Select the “Corporate Prepayment” option → Estimate quarterly taxable income → The system automatically calculates the tax payable at 20% (standard rate) → Select payment account → Confirm information and submit.
• Annual Final Settlement: Select the “Corporate Annual Settlement” option → Enter annual taxable income → The system automatically calculates the total annual tax payable and the prepaid tax amount from last year → Upload annual declaration form → Confirm information and submit.
• Arrears Payment Process: Select the “Corporate Arrears Payment” option → Specify the audit plan for the audit → Receive arrears amount → Upload the corrected annual declaration form → Confirm information and submit.
• Additional Collection Process: Select the “Corporate Additional Collection” option → Enter the tax audit decision number → Fill in the additional collection amount, including principal and late payment fees → Submit tax audit report → Confirm information and submit.

3.Personal Income Tax (Withholding):

• Normal Payment Process: Select the “Personal Withholding Tax” option → Submit month → Upload employee salary details → The system automatically calculates the tax payable → Confirm information and submit.
• Arrears Payment Process: Select the “Personal Arrears Payment” option → Specify the arrears period → Upload corrected employee salary details → The system calculates the arrears amount → Confirm information and submit.
• Additional Collection Process: Select the “Personal Additional Collection” option → Enter the tax inspection decision number → Fill in the additional collection amount → Submit relevant supporting documents → Confirm information and submit.

4.Foreign Contractor Tax:

• Normal Payment Process: Select the “Foreign Contractor Tax” option → Enter contract number and foreign contractor information → Select applicable withholding rate (based on industry and ownership) → Enter the amount paid to the contractor → The system automatically calculates the tax payable (usually including corporate income tax and VAT portions) → Confirm information and submit.
• Arrears Payment Process: Select the “Foreign Contractor Tax Arrears” option → Enter original payment date and contract information → Fill in arrears amount → Upload corrected declaration form → Confirm information and submit.
• Additional Collection Process: Select the “Foreign Contractor Tax Additional Collection” option → Enter tax authority notice number → Fill in additional collection amount, distinguishing between corporate income tax and VAT portions → Upload tax authority notice and relevant supporting documents → Confirm information and submit.

5.Special Consumption Tax:

• Normal Payment Process: Select the “Special Consumption Tax” option → Submit month → Fill in details by product category → The system automatically calculates tax payable based on different applicable tax rates for various products → Confirm information and submit.
• Arrears Payment Process: Select the “Special Consumption Tax Arrears” option → Specify arrears period → Fill in corrected sales for various product categories → The system calculates arrears amount → Confirm information and submit.
• Additional Collection Process: Select “Special Consumption Tax Additional Collection” option → Enter tax inspection result notice number → Fill in additional collection amount by product category → Submit tax inspector’s report → Confirm information and submit.

Advantages of Online Tax Payment System: High convenience as enterprises can perform tax operations anytime, anywhere, without the need for physical presence.

Transparency, as all operations have clear electronic records for subsequent auditing and importing. System automation reduces human errors, improving the accuracy of tax processing. High timeliness, as real-time processing means enterprises can quickly resolve tax issues, avoiding unnecessary late payment fees. Reasonable compliance, as the system design complies with Vietnam’s latest tax regulations, helping enterprises maintain compliance.

Notes: For tax situations involving cross-border transactions or special industries, additional documents or complex processes may be required. Before making large tax payments, arrears payments, or additional collections, it is advisable to consult professional tax advisors. Regularly check notifications issued by tax authorities to ensure timely understanding of tax requirements. Securely save all electronic vouchers for future reference if needed. In case of system technical issues, promptly contact bank customer service or technical support.

Frequently Asked Questions:

Q1: How long after paying taxes will the tax system update the records?

A1: Generally, the tax system will update records within 1-2 working days. However, during special periods (such as peak tax reporting periods), there may be delays.

Q2: What if I pay the wrong amount?

A2: If you discover that the payment amount is incorrect, please contact the tax department immediately. For overpaid taxes, you can apply for a refund or offset against future tax payables. Underpaid amounts need to be supplemented quickly.

Q3: Can I pay taxes directly from a foreign currency account?

A3: Generally, Vietnamese taxes need to be settled in Vietnamese Dong (VND). If you only have a foreign currency account, you need to exchange currency first.

Q4: Is there a limit on the amount for online tax payments?

A4: Different banks may have different limits. For large tax payments, you may need to communicate with the bank in advance or consider paying in multiple installments.

Q5: What are the consequences if I cannot pay taxes on time due to a bank system failure on the due date?

A5: If it is indeed due to a bank system failure that you cannot pay taxes on time, you should immediately contact the bank to obtain proof of the failure and quickly explain the situation to the tax authorities. In most cases, tax authorities will consider special circumstances and may grant a reasonable grace period.

Q6: Can I pay taxes through a mobile banking app?

A6: Yes, many Vietnamese banks offer tax payment services through mobile banking apps. The operation process is similar to online banking, but the interface may be different. Please ensure you use the official app and keep it updated to the latest version.

Q7: Can enterprises set up automatic tax payments for different types of taxes?

A7: Some banks offer this service, allowing enterprises to set up regular automatic tax payments. However, considering that tax amounts may vary each period, it is recommended to regularly check while using automatic payments to ensure the amounts are correct.

Q8: How can I view historical tax payment records?

A8: Most online banking systems have a transaction history query function. You can filter tax-related transactions in “Transaction Records” or “History”. It is recommended to regularly download and save these as backup records.

Q9: Do I need to fill in the tax authority’s bank account information when paying taxes?

A9: Generally not. The bank’s tax payment system has already preset the correct tax authority account information. You only need to select the correct tax type and fill in the enterprise information.

Q10: If an enterprise has multiple branches, how can it pay taxes for different branches through one bank account?

A10: Many banking systems allow selecting different taxpaying entities when paying taxes. You may need to pre-set the tax information for each branch in the system, then select the corresponding entity when paying taxes.

Q11: What should I do if the tax amount shown in the banking system differs from the amount calculated by the enterprise?

A11: If this situation occurs, it is advisable to use the amount calculated by the enterprise, as the enterprise is more familiar with its own financial situation. However, you should also contact the tax department to verify and understand the reason for the difference.

Q12: Can late payment fees and penalties be paid through the banking system?

A12: Yes, most banking systems support the payment of late fees and penalties. When selecting the tax type, there are usually specific options for paying these additional fees.

Q13: If an enterprise has multiple bank accounts, can it pay the same tax through different banks’ systems? A: Technically, it’s possible, but not recommended as it may lead to duplicate payments. It’s advisable to choose one main bank account for tax payments for better management and tracking of tax payment records.

Q14: Does the banking system for tax payments support the use of tax incentives or credits?

A14: Banking systems typically don’t directly handle tax incentives or credits. These should be considered when you calculate the taxable amount. If there are special tax incentive policies, you may need to communicate with the tax department first, then pay the final determined amount through the banking system.

Q15: Can I process a tax refund directly through the banking system?

A15: Tax refunds generally cannot be processed directly through the banking system. You need to apply for a refund with the tax department. After review, if approved, the refund will be transferred to your designated bank account.

Q16: What are the solutions if I don’t have a Vietnamese enterprise bank account?

A16: If your enterprise doesn’t yet have a Vietnamese bank account, here are several possible solutions:

Open a Vietnamese enterprise bank account, this is the ideal long-term solution.

Steps: Prepare required documents, including (enterprise business license, company charter, legal representative, tax registration certificate). → Choose a Vietnamese bank (such as Vietcombank, BIDV, Techcombank, etc.) → Submit account opening application and required documents → Wait for bank review and approval (usually takes 3-5 working days) → Activate account and set up online banking services.

Note: The account opening process may vary depending on the bank, it’s advisable to consult with the chosen bank in advance.

Use designated bank counters for tax payment, if temporarily unable to use a bank account, this method can be considered.

Steps: Prepare the tax amount (Vietnamese Dong cash) and tax payment related documents → Go to a bank branch designated by the tax authority → Fill out the tax payment form at the counter → Submit the form and cash to the bank staff → Receive and keep the tax payment voucher.

Note: This method may take more time and involves handling large amounts of cash, please be mindful of safety.

Appoint an agent or service company, you can consider hiring a foreign agent or service company to handle it on your behalf.

Steps: Choose a reliable agent or service company → Sign an entrustment agreement → Provide necessary tax information and funds → The agent uses their bank account or other means to pay taxes on your behalf → Verify the tax payment.

Note: Ensure to choose a reputable agent and clearly define responsibilities and processes.

Use cross-border payment services, some international banks or financial services may provide cross-border tax payment services.

Steps: Consult your international bank if they provide tax payment services for Vietnam → If available, prepare required documents and information as per the bank’s instructions → Complete the tax payment through the bank’s cross-border payment system → Obtain transaction voucher and tax payment proof.

Note: This method may involve related handling fees and exchange rate costs, please understand all related fees in advance.

In conclusion, paying taxes directly through the banking system is an efficient and convenient method. It not only saves time but also reduces the possibility of human error. As Vietnam’s digitalization process advances, this tax payment method will become increasingly prominent. Enterprises should familiarize themselves with this process to ensure timely and accurate fulfillment of tax obligations.