Hanoi Tax Department Accelerating Administrative Reform to Support Enterprises

2:14:33 PM | 30/8/2016

The solution to promote reform of administrative procedures in all stages that Hanoi Tax Department has aggressively implemented in recent years has demonstrated a correct approach. These efforts not only create favourable conditions for local business community to promote business and comply with tax obligations, but also contribute to the increasing amount of the State budget over the years. As of June 30, 2016, the city had 117,492 business units and organisations (97.4 per cent) paying tax return online and 111,232 businesses and organisations (96.3 per cent) registering for e-tax payment.
 
To implement the tasks and key measures during the tax reform process pursuant to Resolution 19 and 35 of the Government, Hanoi Tax Department has actively conducted researches to set the regulations and review the regulations on tax administration and internal management to reduce administrative procedures and create more favourable platform for the business community in both business activities to comply with the tax payment obligations. In this direction, the Tax Department has established mechanisms to collect information; increase dialogues, and apply information technology in all phases of the management process to create favourable conditions for businesses and citizens to pay taxes at banks and tax collection units.
 
With more measures to boost administrative reform of the tax authorities, there have been 137 procedures proposed to be simplified and 11 information technology applications proposed to be implemented, thereby cutting 420 hours of tax payment for the businesses. The Hanoi Tax Department has also collaborated with the the Department of Investment and Planning to shorten the time for the tax code for the businesses within half of a working day, saving half of the working day compared to the regulated time, to actively support the businesses from the beginning. The business households paying presumptive tax from the third quarter of 2016 are able to pay right at their location after the Tax Department officially provides the applicable tax forms through the mail the across geographical areas. In addition, the initiatives to support the taxpayers to reduce 20 minutes of paying the registration fees of cars, motorcycles, and boats have been implemented at the Ha Dong District Tax Office. If the model is replicated, this will help organisations and individuals to reduce time when performing their tax payment obligations. Thanks to many drastic solutions and administrative reform efforts, there are more and more taxes collected for the state budget. Since established, the Hanoi Tax Department has exceeded the estimates of the assigned revenue. Since 2001, the revenue has been growing. The annual revenues of Hanoi has reached over VND100 trillion. Most recently in 2015, the total budget revenues of the Hanoi Tax Department reached VND141,653 billion, or 109.8 per cent of the plan, up 19.7 per cent compared to 2014 and 1.5 times that of 2010 and 5 times the amount collected in 2005. In 2016, in the context of declining revenues collected from oil and gas sector, the Tax Department managed to collect the estimated revenues of VND91,910 billion in the first 7 months, accounting for 59.5 per cent of the plan, up 11.9 per cent compared to the same period last year.
 
Hien Hung