Tax payment through banks: Change the method of guarantee for tax payment

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Enterprises implement Customs procedures at the Cau Treo Custom Branch. Photo: Thu Trang.

Point b, Clause 1, Article 43 of Circular No. 38/2015 / TT-BTC of March 25, 2015 of the Ministry of Finance stipulates: "In the case where taxpayers are guaranteed by a credit institution but they do not pay taxes and late payment amount (if any), the credit institution is responsible for fully paying taxes and late payment on behalf of taxpayers as stipulated in Clause 11, Article 1 of the Law amending and supplementing some articles of the Tax Administration Law No. 21/2012 / QH13; and Clause 2 of Article 114 of the Tax Administration Law. Under the above regulations, “in the case where the duration of guarantee is expired but taxpayers do not pay taxes and interest for late payment (if any), the credit institution shall be liable to pay on behalf of taxpayers”.

However, under new provisions of the Law on export tax and import tax, temporarily imported goods for re-export which attract import tax will be have tax payment refunded in the case where the goods are guaranteed by a credit institution with a deposit equivalent to the tax payment of temporarily imported goods for re-export. The deposit is also suitable with the economic nature of temporarily imported goods for re-export, ensuring fiscal accounting properly, implementing budget revenue and expenditure control, and conducting trade fraud prevention and anti-smuggling. However, a number of banks stated that Circular No. 38/2015 / TT-BTC has not covered these regulations. Therefore, the new regulations are causing difficulties for banks to operate.

A representative of the Import-Export Duty Department said that under new provisions of the Law on import tax and export tax, the duration of tax payment depends on the needs of taxpayers (maybe less than or up to the time limit prescribed by the Law). Accordingly, taxpayers have the right to extend or shorten the duration of the guarantee, in accordance with the Law. However, the revised amount of the guarantee (lower or higher than the initial amount of guarantee) should be considered on the basis of late payment charges in the guarantee period.

Thus, in the long term, the General Department of Vietnam Customs noted the recommendations of commercial banks to the Ministry of Finance to study, modify and supplement Circular 38/2015 / TT-BTC and upgrade the accounting system.

However, in the near future, the General Department of Vietnam Customs will instruct provinces and cities to apply the methods of guarantee for tax payment for no-clearance declarations: Taxpayers can amend the guarantee and shorten the time of guarantee, increase or decrease the amount of the guarantee and present a new guarantee letter to replace the old guarantee letter before Customs clearance or release of goods. For the general letter of guarantee, the replacement of guarantee is accepted only when there are no problems arising out of previous consignments for which taxpayers or commercial banks must take responsibility.

Regarding the separate guarantee for Customs clearance declarations, taxpayers may only modify the guarantee period (extend or shorten the duration of the guarantee) which is regulated by the Law on export tax and import tax and present the guarantee letter to Customs authorities amending the guarantee period.

Regarding the general guarantee for Customs clearance declarations, taxpayers can amend the guarantee period (extend or shorten the duration of the guarantee) and the amount of the guarantee (increase or decrease the amount of guarantee). The amendment of the guarantee letter is accepted only when there are no problems arising out of previous consignments for which taxpayers or commercial banks must take responsibility.

Accordingly, Customs officers shall check the new letter of guarantee, the amended letter of guarantee, if the guarantee period is in accordane with the Law, the centralized accounting system will update the amendment. Meanwhile, in order to comply with the Law on export tax and import tax, the General Department of Vietnam Customs shall amend and supplement the form of letters of guarantee.

According to a representative of the Import-Export Duty Department, this plan has been approved by the General Department of Vietnam Customs and Customs Departments in provinces and cities.

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Recently, coordination between Customs and commercial banks to collect taxes for the State budget under the provisions of Circular 184/2015 / TT-BTC has facilitated taxpayers, reducing the time of implementing export and import procedures, equivalent to the average of the ASEAN-4. Until now, the General Department of Vietnam Customs has signed an agreement and the coordination of State budget revenues by electronic methods with 30 commercial banks and branches of foreign banks in Vietnam. Currently, tax revenues of Customs through the banking system reach 92% of the total of Customs revenues. According to a representative of Import-Export Duty Department, in the near future, the General Department of Vietnam Customs will target 95%.