Local Economy

Last updated: Wednesday, May 15, 2019


HCM City Tax Department: For the City Development

Posted: Monday, June 11, 2018

In 2017, the Government of Vietnam and the Ho Chi Minh City People’s Council allocated a relatively high tax revenue target to the Ho Chi Minh City Tax Department. Thus, the department faced numerous difficulties and pressures. However, with the guidance and leadership of the Ministry of Finance, the City Party Committee, the City People’s Committee and the General Department of Taxation, together with the coordination of all levels of government and branches and the on-going effort of its employees, the department successfully realised the full-year target of collecting VND238,888 billion, up 16.84 per cent over 2016.

A successful year
In 2017, the Ho Chi Minh City Tax Department performed its budget collection tasks with a lot of advantages. Economically, business development support was prioritised by the municipal government with many effective programmes such as ensuring favourable and fair business environment, encouraging innovation and start-up, facilitating private enterprises to grow, and strengthening regional connectivity. These efforts built up business confidence and stimulated investment and business expansion to spur economic growth and stabilise State budget revenue.

In that context, with the direction of the City Party Committee, the City People's Council, the City People's Committee, the Ministry of Finance, and the General Department of Taxation, the Ho Chi Minh City Tax Department managed State budget revenue in 2017 effectively and proposed action plans to achieve assigned tasks and targets. At the same time, the department seriously carried out Resolution 01/NQ-CP of the Government on major solutions for socio-economic management in 2017, Directive 14/CT-TTg on execution of fiscal tasks in 2017; and Resolution 19 and Resolution 35 of the Government.

To overcome difficulties and fulfil assigned political tasks, the Ho Chi Minh City Tax Department focused on deploying tasks and measures such as increasing support for taxpayers, accelerating administrative procedure reform, intensifying inspection and examination tax debt collection, while closely scrutinising the implementation, conducting preliminary review, draw experiences and expand highly effective programmes. In 2017, the department finished the year with VND238,888.7 billion of tax allocated to the State Budget, just equal to the full-year plan and up 16.84 per cent against 2016.

In 2018, Ho Chi Minh City has been assigned to collect VND376,780 billion, an increase of VND137,878 billion over 2017. 2018 is the banner year for executing the Resolution of the 10th Party Congress of Ho Chi Minh City and the first year of enforcing Resolution 54/2017/QH14 of the National Assembly on pilot mechanism and policies on Ho Chi Minh City economic development. “With such importance, all the staff of the Ho Chi Minh City Tax Department is determined to complete the task of collecting taxes and help the city to excellently achieve socio-economic development targets to lay the groundwork for successfully carrying out the Resolution on pilot mechanism and policies on Ho Chi Minh City economic development and the Resolution of the 10th Party Congress of Ho Chi Minh City,” said Mr Tran Ngoc Tam, Director of the Ho Chi Minh City Tax Department.

Reform-inspired motivations
In the past years, the on-going tax revenue growth of Ho Chi Minh City is significantly contributed by tax administrative reform and modernisation. Carrying out Resolution 35/NQ-CP of the Government dated May 16, 2016 on business support and development to 2020, based on the Action Plans of the Ministry of Finance, the General Department of Taxation and the Ho Chi Minh City People's Committee, the Ho Chi Minh City Tax Department issued an action plan with three core groups of solutions. As for public administration reform solution, the department facilitated enterprises, reduce compliance time and costs for them, carried out policies on public administration reform of the Government and the Ministry of Finance, reduced the time for settling tax administrative procedures, increased electronic transactions to significantly shorten the of tax declaration and payment for taxpayers. To date, the Ho Chi Minh City Tax Department has carried out many outstanding programmes such as the inter-agency project with the Department of Natural Resources and Environment, piloted mandated tax collection for business individuals paying lumpsum tax, declared and paid taxes online (at present, 99.99 per cent of companies in the city declare taxes and 90.05 per cent pay taxes electronically).

In order to protect the legitimate rights and interests of businesses, the Ho Chi Minh City Tax Department administers tax by risk, and ensures effective risk-analysed inspection and control. It also has regulations on tax supervision and inspection performed by specialist groups to ensure the rights and interests of enterprises, prevent and handle acts of law breaches committed by inspectors.

With the highest determination of local leaders for business development support, Ho Chi Minh City strives to have 500,000 enterprises by 2020. And, the Ho Chi Minh City Tax Department is working hard with relevant bodies to actively launch solutions and provide good conditions for business start-ups. “In the starting stage, enterprises need to focus time and resources for business development. Therefore, to reduce the burden on time and cost for them, business security is vital,” Mr Tam said.

To ensure that companies will face no trouble with tax procedures during the starting phase, the Ho Chi Minh City Tax Department has carried out various business support forms for them to access support information channels run by tax authorities. They can look up information easily from websites, video clips featuring initial tax procedures for start-ups, leaflets, policy manuals and procedures for start-ups (hard copy and soft copy). In addition, the Ho Chi Minh City Tax Department opened 25 support points, including at the Department Tax Office and 24 district sub-departments. Start-ups can choose the place most convenient to them to access advice and support on tax policy.

To raise consulting quality for taxpayers, the Ho Chi Minh City Tax Department has cooperated with business associations to hold regular meetings with newly established enterprises and theme-based meetings with industry-specific companies. It has sought to deal with administrative procedures and provide information in a timely manner for taxpayers.

With the efforts of the whole sector, the administrative procedure reform has produced good outcomes, like higher administration and operating quality and better service for taxpayers.

Kien Thuy

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