Bank-based State Revenue Collection

Circular 126/2014/TT-BTC allows customs authorities to account debts for taxpayers right after they pay taxes. Previously, customs agencies only account debts for companies after they receive confirmation notifications from the State Treasury of Vietnam and the delay interval is usually one day.

 

In addition, the circular allows taxpayers to pay directly to the State Treasury or at credit institutions. Furthermore, they are also permitted to pay tax in cash at customs offices although there are no revenue collection points there. Thus, the circular enables tax payment in three places and taxpayers can settle tax payments via bank transfer or in cash.

 

Especially, Circular 126 changes the information exchange method among relevant agencies, ensures that information on tax collection is exchanged online in order to end the status of tax debt suspension because of system characteristics. Information at the State Treasury will be updated every 15 minutes instead of 60 minutes as earlier.

 

One of the objectives of Circular 126 is to accelerate the time of tax payment confirmation, thus helping reduce customs clearance time and costs for businesses.

Over 1 month of enforcement, the circular met its objectives.

 

The circular simplifies administrative procedures, hence helping reduce time and costs for customs agencies and businesses. The time for export tax payment is now shortened to 5-7 minutes from 30 minutes earlier. Taxpayers can pay taxes at different places at anytime convenient to them, and via modern payment methods (internet, ATM, letters of guarantee, etc.).

 

Only November 1 to 30, 2014, State revenue via commercial banks reached VND10,499 billion with 68,100 transactions. Vietinbank collected over VND5,695 billion with 29,700 transactions, Agribank fetched VND2,227 billion with 16,200 transactions, and Vietcombank raked in VND1,049 billion with 8,300 transactions.

 

From November 24 to 30 2014, the State Treasury collected VND471.7 billion with 3,595 transactions.

 

The online information exchange is proven to reduce complaints about slow information exchange between the State Treasury and customs authorities. This helps companies to reduce the display of the proof of payment for freight clearance.

 

In addition to the spirit of the circular, the good result is attributed to the close guidance of the Ministry of Finance, the preparatory efforts of ministerial agencies like the General Department of Vietnam Customs and the State Treasury and the coordination of commercial banks.

 

The head of the General Department of Vietnam Customs was also committed to effectively deploying Circular 126. Shortly after the circular was enacted, customs information technology staff built the electronic payment gateway and upgraded tax accountant. As of October 1, the electronic payment gateway met requirements imposed by Circular 126. On October 3, the mechanism on information exchange between General Department of Vietnam Customs and commercial banks was adopted.

 

The General Department of Vietnam Customs organised two conferences in northern Vietnam and southern Vietnam to train stakeholders and worked with banks on this issue. As of October 31, 2014, technical requirements for Circular 126 were completed by the General Department.

 

The customs sector signed cooperation agreements with 17 banks. At present, this payment transaction form accounts for 55.4 percent.

 

The General Department of Vietnam Customs is exchanging information online with relevant authorities and is ready to assist businesses to pay taxes via commercial banks as stipulated in Circular 126.