What is Core Banking? How to determine the deposit date through Core Banking for imports and exports in Vietnam?

What is Core Banking?

Pursuant to Clause 6, Article 2 of Circular 184/2015/TT-BTC, Core Banking is explained as follows:

Definitions

In this Circular, the following terms are understood as follows:

...

4. “Customs electronic portal”: is an integrated portal between information systems, applications, and services related to customs operations.

5. “National single-window customs mechanism” is an integrated system that allows:

a) Parties involved in export and import activities to submit or send standardized information and documents to a single receiving point;

b) State agencies to process data, information, and make decisions based on a system of unified and synchronized procedures and processes; to make decisions and send these decisions to the system for agreed provision and exchange of information between state agencies;

c) The customs authority to make the final decision on the clearance and release of export, import, transit goods, or transportation means based on the decisions of related state agencies promptly as per public service provision regulations.

6. “Core Banking”: is a system software of core banking, basic business modules of banks such as deposits, loans, customers..., an integrated software system for managing information, assets, transactions, risk management, etc. in the banking system, being the nucleus of the entire information system of a banking network.

7. “Centralized tax accounting system”: is a management application program for tax accounting and other revenue related to export and import goods of the customs authority (hereinafter referred to as the CTAS).

Core Banking is defined as a system software of core banking, comprising fundamental business modules of banks such as deposits, loans, customers..., an integrated software system that encapsulates IT applications in managing information, assets, transactions, and risk management, thereby forming the nucleus of the entire information system within a banking network.

What is Core Banking? How to determine the deposit date through Core Banking for imports and exports in Vietnam? (Image from the Internet)

How to determine the deposit date through Core Banking for imports and exports in Vietnam?

According to Article 4 of Circular 184/2015/TT-BTC which regulates the determination of the tax payment date for imports and exports as follows:

Determination of tax payment date

1. For tax payment through electronic transactions: it is the date when taxpayers carry out a transaction deducting from their account at the bank to make the payment, and the Core Banking system confirms successful payment transaction.

2. For tax payment transactions at the counter: the tax payment date is determined as the date when the State Treasury or bank confirms the payment on the taxpayer's payment slip.

Thus, when taxpayers make payments at the bank, the tax payment date is the date on which they perform the transaction to deduct from their account to make the payment, and it is confirmed by the Core Banking system that the transaction has been successful.

Is it mandatory for banks participating in tax collection coordination to have a Core Banking system in Vietnam?

According to provisions in Clause 9, Article 2 of Circular 134/2015/TT-BTC, the tax-collecting coordination bank, or fully termed “Bank cooperating with customs in tax collection,” is a bank that has signed a Cooperation Agreement with the General Department of Customs on coordinating the collection of tax payments and electronic tax guarantees.

Based on Article 6 of Circular 134/2015/TT-BTC which states:

Conditions for banks participating in tax collection coordination

The bank must fully meet the following conditions:

1. Have implemented the Core Banking system.

2. The bank's IT system meets the requirement to connect and exchange information 24/7 with the customs electronic payment gateway, ensuring the safety and security of IT systems.

3. The bank's IT system has the function of tax payment collection at the counter and through electronic transaction channels.

4. Committed to having full equipment, technical infrastructure, and human resources; strictly complying with principles, processes, and responsibilities to meet the requirements of organizing tax payment collection coordination and electronic tax guarantee. Where the bank has specific conditions and has not met the condition in Clause 4 of this Article, the General Department of Customs will submit a document to the Ministry of Finance for each specific case based on ensuring safety, security, fairness, and efficiency.

Thus, a bank that coordinates tax collection with the customs authority is a bank that has signed a Cooperation Agreement with the General Department of Customs on coordinating the collection of tax payments, and electronic tax guarantees.

The first condition for the bank to participate in tax collection coordination is that the bank has implemented the Core Banking system and satisfies the remaining conditions such as:

- The bank's IT system meets the requirement to connect and exchange information 24/7 with the customs electronic payment gateway, ensuring the safety and security of IT systems.

- The bank's IT system has the function of collecting tax payments at the counter and through electronic transaction channels.

- Committed to having complete equipment, technical infrastructure, and human resources; strictly following principles, processes, and responsibilities to meet the requirements of organizing tax payment collection coordination and electronic tax guarantee. If a bank has specific conditions and has not fully met this condition, the General Department of Customs will issue a document to the Ministry of Finance to handle each specific case, ensuring safety, security, fairness, and efficiency.