New circular providing advice on conducting electronic tax transactions

On March 18, 2021, the Ministry of Finance promulgated Circular No. 19/2021 / TT-BTC providing guidance on conducting electronic tax transactions (“Circular 19“).

  1. General Regulations

According to this document, taxpayers can record electronic tax transactions by the following methods:

Method 1: Registration for e-tax accounts with the tax authorities via the web portal of the Directorate General of Taxes.

Method 2: Registration of electronic transactions with the tax authorities on the web portals of the competent regulatory authorities connected to the web portal of the Directorate General of Taxes, including:

  • National Civil Service Portal and Ministry of Finance Web Portal; and
  • Web portals of other competent state authorities.

Method 3: Registration of electronic tax transactions with the tax authorities via the T-VAN platform.

19 comes into force on May 3, 2021.

  1. Electronic tax documents

Additional regulations on electronic documents include confirmation of compliance with tax obligations; verification of information relating to the payment of taxes; procedures for compensation for overpaid taxes, interest on arrears and fines; tax deduction and tax reduction; exemption from late payment penalties; not to charge interest on arrears; freezing of funds for debt cancellation; cancel tax arrears, interest on arrears and fines; extension of the payment of taxes; and pay the tax debt in installments.

Regulations amending and supplementing electronic state budget payment documents include state budget payment documents in accordance with the provisions of Decree 11/2020 / ND-CP: In case of tax payment through the electronic form of tax payment of banks or taxpayer bodies, if a payment intermediary service company is used, the payment receipt from the state budget is a record of processing by a bank or an entity that provides services interim payment, and must verify that all details on the payment receipt form are required.

  1. Editing Electronic Transaction Information in Taxation

Circular 19 provides additional rules on the register of modifications and additions to electronic transaction records for taxpayers who have declared transactions with the tax authorities electronically through the electronic commerce platform of responsible public bodies or who file changes or additions to the transaction account at the time of payment. intermediary service provider.

  1. Electronic taxpayer registration

Circular 19 removes the provision that taxpayers must submit paper documents to the tax office after submitting electronic documents for reference after obtaining a tax registration certificate or tax identification number notification for the first time in a tax registration file, since the electronic file has been electronically authenticated by the tax administration via the taxpayer’s personal telephone number or the official who is the legal representative of the citizen.

On March 31, 2021, the State Bank of Vietnam (“SBV“) promulgated Circular No. 02/2021 / TT-NHNN on guidelines for foreign currency transactions on foreign exchange markets by credit institutions authorized to carry out foreign currency transactions (“Circular 02“).

  1. General Regulations

Circular 02 provides regulations on the types and scope of credit institutions authorized to transact in foreign currency, including:

  • Spot, forward, swap and option transactions with other approved credit institutions;
  • Spot, forward, swap and put option transactions with economic organizations;
  • Cash and forward transactions with residents who are other organizations or individuals;
  • Cash transactions with non-residents who are organizations or individuals; forward sales transactions with non-residents (only cash transactions are authorized under the regulations in force); and
  • Forward sales transactions with non-residents who are foreign investors holding government bonds issued in Vietnamese dong in the domestic market as provisions for foreign exchange risks on their bonds.

Circular 02 entered into force on May 17, 2021.

  1. A guide to Domestic transactions in foreign currencies

Consequently, this circular governs transfers of foreign currency between credit institutions and the State Bank, as well as between credit institutions. This circular would not restrict foreign exchange practices on the international market.

When an approved credit institution carries out a foreign currency transaction with another approved credit institution, documents proving the purpose of the use of foreign currency are not required.

Customers must present documents containing information on purpose of use, amount and type of foreign currency, payment or transfer deadline in accordance with applicable foreign currency management regulations and institution regulations credit institutions when they carry out transactions in foreign currencies with approved credit institutions.

In the event of a change in the customer’s foreign currency payment plan for an objective reason approved by the approved credit institution and negotiated in advance by the customer, on the basis of a written request from the customer sent accompanied by proof of the need to modify the duration of the transaction, the approved credit institution and the customer may enter into currency swaps to modify the duration of the signed forward exchange contract according to the duration indicated in the documents presented. The total term of the signed forward exchange contract and all currency swaps will be a maximum of 365 days from the date of the transaction.

For the purchase of foreign currency forward by foreign investors, when purchasing a foreign currency forward from an approved credit institution, the foreign investor must provide documentary proof of ownership of the bonds. ‘State, by ensuring that the value and duration of the foreign currency bond does not exceed the purchase price and the remaining duration of these bonds.

Within seven (07) working days from the date on which the forward exchange contract is made, the foreign investor must provide documents on the blocking of the aforementioned bonds to the Vietnam Securities Depository and Clearing Corporation for the contract currency forward signed goes into effect.

At least two (02) working days before the expiry date of a forward exchange contract, if the foreign investor wishes to continue to prevent the exchange risk of his obligations, the approved credit institution and the client can enter into a currency swap to extend the term of the signed currency forward contract.

In addition, under the new regulations, credit institutions are allowed to sell foreign currency on site to people of Vietnamese nationality who buy foreign currency in cash for research or medical purposes, business trips. , international trips and / or visits (Art. 17, circular 02).

On April 2, 2021, the State Bank of Vietnam (“SBV”) Promulgated Circular No. 03/2021 / TT-NHNN amending Circular No. 01/2020 / TT-NHNN regarding debt rescheduling, interest reduction or relief, or non-restructuring of debt for the purpose of supporting customers with Covid-19 during the global pandemic (“Circular 03“).

  1. General Regulations

According to this Circular 03, you will find below the rules for exemption or reduction of interest granted to customers affected by Covid-19.

Credit institutions and branches of foreign banks may, at their discretion, decide to grant exemption or reduction of interest or charges provided for in their internal regulations for outstanding debts contracted on credit facilities before June 10. 2020 (except for purchases and investments of corporate bonds) if:

  • Principal and / or interest repayment obligations are due during the period from January 23, 2020 to December 31, 2021; or
  • Customers are unable to repay principal and / or interest debts before payment deadlines under the terms and conditions of contracts or loan agreements due to the decrease in their income and income caused by the Covid epidemic- 19.

The exemptions or reductions of interest and charges granted to clients under Circular 03 will last until December 31, 2021.

  1. Extra charge and Develop the conditions For Debt restructuring

The SBV imposed requirements in Circular 03 to allow credit institutions and branches of foreign banks to restructure their outstanding loans. In particular, the SBV allows credit institutions to modify the repayment period for debts contracted between January 23, 2020 and the end of 2021. Previously, circular 01/2020 only authorized debt restructuring with commitments born from January 23, 2020 to three months from the day the Prime Minister declares the end of the COVID 19 pandemic.

In addition, the SBV retains the same control over the restructuring period of 12 months from the date of the credit institution. The restructuring of the debt maturity is in progress until December 31, 2021.

Circular 03 regulates the balance of deleveraging by ensuring that the debt maturity cycle is retained in the listed debt category and that the rating criterion is not applied to debt groups with a higher degree of risk, as required by regulation. To escape a profit shock at the end of the recovery phase, banks will have to start building up provisions based on the existence of these debts.

Specifically, the adjusted material requires that a specific amount of provision be deducted as the difference between (i) specific arrangements to be made for the entire remaining consumer balance if it is not restructured and (ii) the number of parameters that the Covid-19 pandemic had an effect on the general layout of the client. This percentage must reach a minimum of 30% of the specific amount of additional provisions related to financial risks by December 31, 2021, and reach a minimum of 60% and 100% respectively by the end of 2022 and 2023.


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