The project of IT application in personal income tax management has been initiated since November 2008. The project involves 7000 users, deploying nearly 800 points in 63 provinces, nearly 700 departments, and managing 15 million taxpayers. This is the biggest project on tax using of SAP solutions of the SAP projects implemented in the world.
The general contractor of the project is FPT Information System Joint Stock Company (FPT IS) - a member of FPT Corporation and three subcontractors: SAP, Accenture and Ernst Young.
Management application to personal income tax was officially launched on 15 December 2010. It was a result and an important milestone in the two-year process of project implementation. The management application to personal income tax is developed on the basis of SAP solutions – a model efficiently deployed for many tax systems in the world. The product has met the rigorous requirements of time and accuracy of the system. In particular, the process of User Acceptance Testing (UAT) of the project is conducted several times and constantly updated at the users’ request. The process is conducted with more than 300 testing scenarios, and mobilises the participation of more than 30 testing staff (testers) to ensure the system operates best with the requirements and solutions designed in the earlier period, and to serve effectively the need for revenue management and supporting tax officials in business operations. The application's operation marked the completion of the system to meet the basic requirements of the Personal Income Tax Law set by the State.
According to Ms Le Hong Hai – Deputy General Director of General Department of Taxation, after two years of project implementation, the General Department of Taxation has completed the task of managing personal income tax in accordance with requirements prescribed by the Government and the Ministry of Finance. In detail, it has built the basic functions of tax management, such as tax registration, processing information on tax declarations and creditors; especially classified tax accounting modules (although they have not standardised the task of tax revenue management).
According to the plan, the personal tax management system needs three years to be completed, from 2009 to 2011. In the year 2009: Upgrading the current system application of the Revenue Department to meet the requirements of the Personal Income Tax Law taking effect in 2009, building and deploying new IT systems including fundamental functions to serve personal income tax management and tax settlements. In the year 2010: Adding new functions to the personal income tax management system focusing on two areas: electronic services to taxpayers and data analysis system to serve leaders. In the year 2011: Performing maintenance, management and supporting the system.
By the end of March 2011, Management Applications to Personal Income Tax had provided more than 9,087,068 individual tax codes and increased the total number of individuals with personal income tax code to over more than 14,074,946 million, and collected nearly 69,559 data declarations for tax settlement of the year 2010.
Phase 2 (system upgrading and implementation of infrastructure services) are deploying tasks: Adding the tax registration function to provide tax codes for all taxpayers on a focusing system, when the taxpayers are ranging from economic organisations to business households, and to individual taxpayers to pay personal income tax. Besides that, the service functions in the management process like changing taxpayers’ information, relocation registration and management of temporary business suspension or termination of taxpayers operations. Building reporting functions includes three major groups to serve the daily operations of tax agencies on the basis of the detailed reports or summing up and assisting in the assessment and determination of strategies based on analysis reports. Building functions for electronic services for taxpayers to look up information for tax registration and tax liabilities of taxpayers.
The IT application project to Personal Income Tax management is the beginning marker for the development of an advanced, modern and efficient system of tax management. Not only simply "solving" the technological problem to modernize the process, the project will help Vietnam meet the requirements of State budget increases despite having to lower import and export taxes under the requirements of international economic integration, especially since Vietnam became a WTO member.
Do Ngoc
Vietnamese
