The General Department of Taxation will enable up to 1,000 enterprises in five provinces – Hanoi, Ho Chi Minh City, Bac Ninh, Dong Nai and Nghe An - to pay their tax online by the end of this year.

The move follows the success of a recent pilot programme where 100 Hanoi-based enterprises used an online tax or "e-tax" service to pay tax.

Three commercial banks, including the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and the Military Bank will work with the General Department of Taxation (GDT) to offer the e-tax payment service.

According to the GDT's Information Technology Department, the project aims to simplify tax procedures.

Up to 250,000 firms have already submitted their declarations online.

The Department looks to have all the commercial banks participating in the provision of e-tax by 2015.

The Head of the Hanoi Taxation Department said over 100 enterprises in the city had used the e-tax service, processing up to 541 transactions worth 683.7 million VND (32,500 USD) in 2012.

The new service will enable up to 150 bank branches to collect tax payments, in addition to the 37 State Treasury offices.

Plans are being developed to allow tax payments to be made at automatic teller machines (ATMs).-VNA