Saturday, 11/10/2008 09:00

Electronic tax payments to save time

Nguyen Van Ninh, director general of the General Department of Taxation, spoke to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about tax payments via an electronic declaration system.

How do enterprises benefit from the EDS?

One of the advantages is that companies can save a lot of time since they no longer have to fill out paper forms. Instead they complete the electronic forms and transfer them to the Tax Department’s system for processing, verification and storage.

They won’t have to go to the bank or the state treasury to pay taxes.

The biggest challenge the department is facing at the moment is to create all types of forms (templates, paper and electronic forms) using the same technology and software.

Why were South Korean companies selected for the pilot project, not others?

South Korea is the world’s leading country in the use of electronic declaration systems.

Up to 80 per cent of Korean companies have used the E-tax system, while in the USA and Japan, the number is about 50 per cent.

After discussions with relevant agencies we chose Korean companies operating in Viet Nam to participate in the pilot project.

I myself have talked over the issue with the director general of the Korean Tax Authority and received his assurance of total technical support for our pilot project. We hope the pilot project will be a success and by 2010 the EDS will become popular among Vietnamese companies.

What are the difficulties and challenges involved in introducing the EDS into Viet Nam?

Presently, we need to complete the law on electronic signatures.

To facilitate the application of the EDS, it is important to have a good tax data system and a sound transmission line between companies and the tax authorities.

To speed up the process, Vietnamese tax authorities have developed a circular letter guiding electronic transactions relating to taxation. We hope the legal document will be released in 2009.

When will the EDS be applied widely in Viet Nam?

We’re in the process of developing a legal system to prepare for the one-year pilot project, starting in early 2009.

If every thing goes according to plan, by 2010 about 80 per cent of companies operating in the country will have applied the EDS. Of course, big companies and those having sufficient conditions will go first.

VNN

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