Last updated: Thursday, March 23, 2017
75 Pct of Businesses Pleased with Tax Reform in 2016Posted: Tuesday, March 14, 2017
“As many as 75 per cent of businesses are pleased with tax reform in 2016” was revealed at the Workshop on Tax Administration Reform: Corporate Satisfaction in 2016 held by the General Department of Taxation and the Vietnam Chamber of Commerce and Industry (VCCI). Optimistically, all tax assessment indicators looked up.
More simple and convenient tax administrative procedures
In order to measure the degree of taxpayers' satisfaction with tax services, according to international practices and instructions of the Ministry of Home Affairs, it must be carried out by an independent unit. The General Department of Taxation cooperated with the Vietnam Chamber of Commerce and Industry (VCCI) to organise the survey on business satisfaction about tax administration reform for the second time (the first time in 2014). To ensure independence and objectivity, the whole process of sampling, surveying, result analysis and reporting was done by VCCI.
The survey on corporate satisfaction with tax administration reform in 2016 was conducted by mailing. Respondents were enterprises operating in 63 provinces and cities and were randomly selected, layered by the type of business, the time of establishment and the field of activity to ensure the nature of representation of the local business community. As many as 10,028 businesses were surveyed with questionnaires and 3,453 businesses responded, reaching a response rate of 34 per cent (27 per cent in 2014). Specific assessment contents include the index of access to information on policies, laws and tax administrative procedures; the index of implementation of tax administrative procedures; the index of inspection, examination and tax complaint settlement.
Firstly, with respect to the access to information on tax regulations and administrative procedures, according to the VCCI report, the overall score of the Information Accessibility Index in 2016 was 7.73 points, higher than that in 2014. 2016 survey results showed that access to information on tax and tax procedures was recognised as relatively favourable by the business community. Most businesses were satisfied with information about tax regulations and procedures they had access to. In general, respondent feedbacks on implementation of administrative procedures were quite good. 8.54 per cent and 8.6 per cent of respondents think tax administrative procedures are respectively simple and easy, particularly in deployment of tax declaration service and electronic tax payment.
“Despite slow transmission networks of tax authorities, 84.47 per cent of respondents think that tax authorities have frequently coordinated to address problems in time. The overall score of the index of implementation of tax administrative procedures in 2016 was 7.9 points, higher than that in 2014 (7.73 points),” said Dau Anh Tuan, Director of the VCCI Legal Department.
In addition, among tax administrative procedures that businesses have to undertake, two procedures seen to be simple and easy to carry out are tax reduction procedures (69 per cent), especially corporate income tax exemption and refund procedures (60 per cent).
Enhanced spirit of business service
Mr Dau Anh Tuan said that a lot of recommendations and suggestions raised by businesses to tax authorities for simpler and easier fulfilment of tax obligations were collected. “Enterprises want to develop tax regulations in a timely manner and with higher quality. Regulations on implementation of administrative procedures must be clear and easy-to-understand; explanations need to be specific to avoid misinterpretation. In addition, many companies want tax authorities to strengthen supports for small and micro businesses by simplifying forms, declaration procedures, reports to facilitate compliance of enterprises.”