Referring to VCCI’s survey, most enterprises acknowledge the recent reform of tax authority; however, many suggest that procedures are still cumbersome. Enterprises still need support from the State to clarify tax policy and help them to overcome this current difficulty.
Enterprises also announced some inefficiencies of this recent policy supporting enterprises, as well as tax policy.
Particularly, the application of policy for small enterprises (according to Decree 92/2013/ND-CP dated August 13th 2013) is not efficient and effective because in fact many enterprises have less than 30 employees (Regarding the Law, these are not small enterprises), but annual incomes stay very low (much less than VND20 billion level, which regulating the small enterprise) but cannot benefit from preferential tax policy for small enterprises.
Currently, the economy in the world and in Vietnam is facing many difficulties, enterprises propose that the Government apply preferential taxes for enterprises with annual revenues of under VND20 billion instead of current preferential taxes for small enterprises. This change is very reasonable because enterprises that should receive supports are the ones in financial difficulty, not the ones with small number of employees.
Secondly, when classifying taxes and fees in the agricultural sector, tax authorities should clearly and transparently identify types of land like: office, farm, pond etc so that enterprises can easily understand and pay the right taxes. Tax authorities should avoid putting taxes and fees in the same basket and making difficulty for enterprises.
Thirdly, enterprises from breeding sector assessed that they are under a difficult situation and proposed that the Government support and eliminate VAT for input feed (5 percent) and taxes that they have to pay when selling products for processing factories (5 percent) (Regulated on Point C, Item 2, Article 8 of Law 13/2008/QH12 on VAT; Point C, Item 2, Article 6 of Decree 123/2008/ND-CP dated 8/12/2008 of the Government; Item 3, Article 10 Circular 06/2012/TT – BTC dated 11/01/2012 of Finance Ministry.) Tax extension should be limited and replaced by tax exemption and reduction because when their taxes are extended, enterprises should increase costs to monitor extended costs, raising financial costs on tax due date.
Enterprises face difficulties in tax refunding
As for tax refunding, many enterprises suggested that tax authorities should also classify enterprises. Enterprises that have traditionally complied well with tax regulations should be given favourable conditions in examining and refunding taxes.
Tax authorities should also enhance propagation and update information about enterprises that buy invoices illegally in the market, so that the enterprise community can avoid using these invoices, or else they will get bad images if tax authorities collect taxes that are refunded for them.
As for examination and supervision, enterprises require tax authorities to limit supervision in the context of current difficulties, especially in enterprises that continuously comply with tax policies and regulations, as well as to avoid overlapping supervision. Examination and supervision should be planned early at the year-begin and tax authorities should coordinate with other relevant authorities to reduce times and unnecessary procedures for enterprises.
Tax authorities enhance supporting enterprises
Sharing difficulties with enteprises, Mr Do Hoang Anh Tuan, Deputy Minister of Finance has recorded the issues of enterprises and said that tax authorities have been implementing several solutions.
Particularly, the Finance Ministry has directed them to continue reforming procedures of receiving documents, solving documents and refunding, to promote online tax declaration and payment, usage of services like consulting, tax declaration and payment to avoid negative activities. Promote training, guiding, propagating about taxes and law on taxes; implement suitable policies supporting enterprises, especially small and medium sized ones.
The amended Law on tax management that has been in effect since 1st July 2013 has reduced time and number of administrative procedures. Advantages that enterprises enjoy from the law adjustment could be quantified. For example, number of times of VAT declaration reduced from 12 times a year to 4 times a year for small size tax payers, which complies with the spirit of Resolution 57/2010/QH2012 of the National Assembly and Resolution 25/NQ-CP in 2010 of the Government.
Time for the procedure of tax declaration extension is also shortened from 5 to 3 working days.
B.T
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