Fear of using modern payment methods because it affects tax payments

VCN - After four years of implementing the Prime Minister's Decision No. 2545 / QD-TTg approving a scheme on development of non-cash payments in Vietnam for the 2016-2020 period, up to now, electronic payments and the electronic payment ecosystem has seen positive developments.
fear of using modern payment methods because it affects tax payments Hanoi Tax Department: Promoting business households to conduct online tax payment via banks
fear of using modern payment methods because it affects tax payments The 1,000th online public service on National Online Public Service Portal is belonged to Tax sector
fear of using modern payment methods because it affects tax payments Deadline for paying excise tax for automobiles producing or assembling domestically to be extended
fear of using modern payment methods because it affects tax payments
A forum to promote non-cash payments in businesses. Photo: H. Diu


On the afternoon of August 26, in Hanoi, under the direction of the Vietnam Chamber of Commerce and Industry (VCCI), a Business Forum organized a forum to implement Decision No. 2545/QD-TTg - Promoting non-cash payments in businesses.

In his opening remarks, Dr. Vu Tien Loc, President of VCCI emphasized that Covid-19 has made us change faster in digital transformation, change business strategy, product strategy and distribution channel strategy. Currently, most new products and modern payment methods have been studied and deployed in Vietnam.

Statistics of the State Bank (SBV) show that there are currently 75 payment service providers deploying internet payment services and 45 units providing mobile phone payment services.

In the first six months of 2020, the number of transactions via the internet channel was more than 200 million, with a value of about VND12.9 million (up 36% in value compared to the same period in 2019). The number of transactions via mobile phone channel was more than 472 million, with a value of about VND4.9 million (up 178% and 177% respectively over the same period in 2019).

Card payment service continues to be developed by banks. By the end of June 2020, the number of domestic payment transactions via bank cards reached over 171 million with a value of about VND399 trillion (up 20.9% and 9.1% respectively over the same period last year).

In addition to cards, QR Code payment service has been promoted by credit institutions and payment intermediaries, with about 30 banks launching the QR Code payment service with more than 70,000 QR Code payment points in the whole market.

Non-cash payments have benefited people, businesses and the economy. According to Dr. Mac Quoc Anh, Vice President and General Secretary of Hanoi Association of Small and Medium Enterprises, amid the Covid-19 pandemic, online shopping and payments are increasingly developing, so this will be an advantage for Vietnamese businesses. Moreover, non-cash payment also helps prevent tax loss.

However, Loc said that Vietnam has not yet achieved the expected target, the rate of using cash is still high. According to the International Data Group (IDG), in 2019, nearly 40% of the Vietnamese population had a bank accounts but 80% of them still used cash for daily expenses.

The cause of this situation was that financial institutions have built their own payment equipment system at a payment point, which is both wasteful and cannot take advantage of the common infrastructure. New payment methods such as QR Codes and biometrics have begun to develop but have not yet been planned and evaluated for widespread deployment, according to the VCCI’s president.

According to Ms. Nguyen Thi Hai Binh, Institute of Financial Strategy and Policy, accompanying services such as electronic invoices and digital signatures are aproblem. In particular, the habit of using cash is also a barrier, especially small and micro businesses are afraid of using modern payment methods because they cannot hide their revenues and this affects tax payments.

fear of using modern payment methods because it affects tax payments Decrease in tax payments of financial and real estate enterprises

VCN – Many enterprises that pay tax have been paying a sharply dropping amount in the financial ...

Therefore, experts and businesses at the forum said that Vietnam should consider the synchronous construction of payment service infrastructure as the core and focus; continue to improve legal corridors, mechanisms and policies; and implement a comprehensive financial strategy to 2025 with a vision to 2030 according to Decision No. 149 / QD-TTg.

By Huong Diu/ Huyen Trang

Related News

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Tax Industry actively supports during the peak month of tax settlement

Tax Industry actively supports during the peak month of tax settlement

VCN – With the goal of facilitating taxpayers in complying with tax law polices, especially tax finalization procedures, the Tax industry actively supports enterprises and people in this work. Local tax departments have held online and offline meetings to promptly remove difficulties and obstacles in the tax finalization process.
C.D.M.A Mobile Phone Center enforced to suspend customs procedures for overdue tax debts

C.D.M.A Mobile Phone Center enforced to suspend customs procedures for overdue tax debts

VCN – C.D.M.A Mobile Phone Center has been enforced by the Customs to suspend its imports and exports for overdue tax debts worth about VND16 billion.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version