Electronic record regulation in tax transactions in Vietnam

Along with the continuous development of technology, science, engineering, electronic records have appeared to replace traditional records. That has helped to make the management and storage easier and faster. Electronic records are now commonly used in accounting, internal audit, and corporate legal. 

What does “electronic record” mean?

         Clause 2 Article 3 of Circular No.19/2021/TT-BTC prescribes: “Electronic record is information created, sent, received and stored electronically when taxpayers, tax authorities, agencies, other relevant organizations and individuals conducting electronic tax transactions”.

         Clause 5 Article 3 of Decree No.123/2020/ND-CP prescribes that: “Electronic record means a record or receipt defined in Clause 4 of this Article, which is represented in the electronic form and issued by the organization or individual responsible for tax deduction to a taxpayer or issued by a tax, fee or charge collector to a payer by using electronic instruments following regulations of the Law on charges and the Law on taxation.” Accordingly, electronic records including personal income tax withholding and receipts of taxes, fees, and charges which are represented in the electronic form, or internally- or externally printed.

Types of an electronic record in electronic tax transactions

• Electronic tax record includes: tax registration record; tax record; fulfillment of tax obligation certification; tax payment information checking; procedure for clearing tax, late payment and overpaid fine; tax refund dossier; tax exemption or reduction dossier; late payment exemption; late payment fee is not charged; tax debt freezing record; deletion of tax arrear dossier, late payment and fine; tax payment extension; installment payment of tax debt and other tax documents in the electronic form specified in the Law on Tax administration and guiding documents of the Law on Tax administration.
• Electronic state budget documentation: state budget documentation as prescribed in Decree No.11/2020/ND-CP dated 01/20/2020 of the government on administrative procedures in the field of State Treasury (hereinafter referred to as Decree No.11/2020/ND-CP) in electronic form, in case of tax payment through electronic tax payment of banks or intermediary payment service providers, state budget documentations are transactions of banks or payment intermediary service providers. They must ensure all information in the form of state budget documentation.
• Notifications, decisions, and other records of tax authorities in electronic form.

Notices: The above electronic records must be digitally signed according to Article 7 of Circular 19/2021/TT-BTC. In case electronic tax records are enclosed in hand documents, they must be converted into electronic forms according to provisions of the Law on Electronic transactions and the Decree No.165/2018/ND-CP dated 12/24/2018 of the government on electronic transactions in financial activities (hereinafter referred to as Decree No.165/2018/ND-CP).

Legal validity of electronic records in electronic transaction tax

• Electronic records have value such as documents, records, notices, and hand documents.
• Electronic records are valid as originals if they are done by one of the following measures:
  • Electronic records are digitally signed by agencies, organizations, or individuals from creating electronic records and related agencies, organizations, or individuals following the provisions of specialized law.
  • The information system takes measures to ensure the integrity of electronic records in the process of transmitting, receiving, and storing on the system; recording the agency, organization, or individual that created the electronic records and the agency, organization or individual involved in processing the electronic records and applying one of the following measures to authentication of the agency, organization or individual that created the electronic records and the agency, organization or individual participating in the processing of the electronic records: digital certificate authentication, authentication biometric, two or more factors, of which one is the one-time authentication code or the random authentication code.
  • Other measures that parties to transactions have agreed to choose, ensure data integrity, authenticity, anti-rejection, following the provisions of the Law on Electronic transactions.

Converting and modifying electronic records in electronic tax transactions

• Electronic records are converted into hand documents and vice versa according to the provisions of the Law on Electronic transactions and the Decree No 165/2018/ND-CP and must ensure data formats and technical standards according to the regulations of current law. Recovered records of the state budget have complied with the Law on Electronic transactions and the Decree No 165/2018/ND-CP and Circular No 19/2021/TT-BTC.
• Electronic records are amended following Article 8 of Decree No 165/2018/ND-CP.

Storing electronic records in electronic tax transactions

         The storage of electronic records in the tax field is implemented within the time limit prescribed by law such as hand documents, following the environment, electronic storage conditions, and relevance of the law on archiving and ensuring the conditions specified in Clause 1 Article 15 of the Law on Electronic transactions. In case electronic records expire as prescribed but are related to the integrity of system information and circulating electronic records, they must continue to be archived until the cancellation of electronic records completely does not affect other electronic transactions, then they will be destroyed.

The above is information about electronic records in electronic tax transactions following the law. If customers wishing to use tax accounting services, please contact Viet An Tax Advisors in Vietnam for the quickest and most accurate support!