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Dinh Vu

Economic Sector

Last updated: Tuesday, May 22, 2018


75 Pct of Businesses Pleased with Tax Reform in 2016

Posted: 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
The tax system reform strategy in 2011-2020, approved by the Prime Minister set the target of building a modern, effective and efficient tax system for Vietnam and exercising uniform, transparent and easy-to-enforce tax management. Accordingly, tax authorities must consistently carry out programmes, contents and activities in all tax aspects to achieve specific objectives. By 2020, Vietnam will strive to realise the following goals: Reducing the time required for handling administrative procedures to become a top 4 ASEAN countries by tax facilitation; have 90 per cent of businesses using electronic tax services and 80 per cent of taxpayers being satisfied with tax services.

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
The VCCI report showed that enterprises had better feeling about tax officers’ manner, qualification and attitude in 2016. 53 per cent of respondents gave good/very good options to tax officers because of their clear, understandable instructions and law obedience (an increase of 9 per cent compared to 2014). The index of tax officer service in 2016 scored 6.36 points, higher than that in 2014 (5.36 points). Dialogue conferences, policy workshops and business honour events were organised more regularly. The business community saw that tax authorities changed their service and attitude to enterprises from “entities to be administered” to “companions” and “customers” to be served. This was evidenced by interactions between tax authorities and enterprises by means of sending emails and practising tax procedures monthly or quarterly.

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.”

Hien Hung

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