New Tax Instructions for Electronic Transactions

The Ministry of Finance introduced new tax guidelines with Circular 46/2024/TT-BTC, amending Circular 19/2021/TT-BTC dated March 18, 2021, concerning electronic transactions in taxation. Circular 46 specifically supplements Point b.3 of Clause 1, Article 10, amends Point b of Clause 1, Article 13, and makes adjustments and additions to Point a of Clause 1 and Point b of Clause 3, Article 32. These amendments will come into effect on August 28, 2024.

Facilitating an environment that maximizes favorable conditions for taxpayers

Specifically, Circular 46 supplements Point b.3, Clause 1, Article 10 as follows:

The registration for an electronic tax transaction account with tax authorities is conducted via the electronic information portal of the General Department of Taxation (GDT). Procedures for registering and granting electronic tax transaction accounts with tax authorities are electronically processed via GDT's electronic information portal.

For individual taxpayers who registered and activated Level 2 electronic identification accounts as per Clause 2, Article 14, Clause 2, Article 15 and Article 18 of Decree 59/2022/ND-CP dated September 5, 2022 of the Government on electronic identification and authentication and where the electronic identification and authentication system and GDT's electronic information portal are connected and operated, they are allowed to use electronic identification accounts instead of presenting their identity cards or passports/citizen identity cards/identification cards for continuation of procedures for registering and granting electronic tax transaction accounts with tax authorities by electronic means according to steps specified in Point b.1, Clause 1, Article 10 of this circular. Requests for activation of electronic transaction accounts for individual taxpayers are sent to their registered phone numbers or registered emails.

Besides, Circular 46 amends Point b, Clause 1, Article 13 as follows: For first-time tax registration documents, GDT's electronic information portal receives, compares information and sends a notice of receipt to this effect (according to Form 01-1/TB-TDT promulgated with this circular) to taxpayers' registered email address or phone number no later than 15 minutes from the time of receiving tax registration documents. The notice clearly states the time and the place for checking the results. In addition, Circular 46 amends and supplements Point a, Clause 1 and Point b, Clause 3, Article 32 as follows: Tax authorities shall prepare and send minutes of administrative violations regarding electronic tax violations:

Regarding tax registration, when a taxpayer violates the deadline for tax registration, the deadline for notification of registration of tax information changes, the deadline for notification of temporary suspension of business activities, and the notification on resumption of business before the deadline, tax authorities shall base on the date of document submission as per Point b, Clause 1, Article 8 of this circular, which is stated on the notice of receipt of tax registration documents, tax information change registration documents, temporary business suspension registration documents, and documents on pre-deadline business resumption (according to Form 01-1/TB-TDT issued with this circular) and the deadline provided in the Law on Tax Administration and instructive documents on implementation of the Law on Tax Administration to determine the number of days of late document submission and prepare a record of tax administrative violation handling and send it to the relevant taxpayer as per Clause 2, Article 5 of this Circular.

Tax authorities issue decisions on administrative penalties for tax violations by electronic means: After the deadline for explanation specified in Clause 2, Article 32 of this Circular, tax authorities shall, based on tax administrative violations committed by the taxpayer stated in the tax administrative violation record and related documents, including those for relief cases if applicable, issue decisions on administrative penalties for tax violations and send them to the taxpayer as described in Clause 2, Article 5 of this Circular.

By Hien Kien, Vietnam Business Forum