Tough on Cutting Administrative Tax Procedures

A company will spend nearly 300 fewer hours to pay taxes a year when the Ministry of Finance gets tough on tax procedure reform, said Finance Minister Dinh Tien Dung.

 

According to the World Bank (WB), in 2012, a company in Vietnam had to spend 872 hours a year on tax declaration (inclusive of 335 hours for social insurance declaration and payment). Thus, the time for declaring and paying was 537 hours, according to the WB.

 

Also according to the WB, the duration required for tax declaration was 1,050 hours in 2008; 941 hours in 2010; and 872 hours in 2012. Obviously, the time for tax declaration was shortened year after year but it remained quite high in comparison with other countries in the region.

 

In implementing the Resolution of the Government and the instruction of the Prime Minister, the Ministry of Finance has worked with the Vietnam Chamber of Commerce and Industry (VCCI) and World Bank-hired or appointed organisations to assess the tax payment time in Vietnam and cooperate with business associations and tax consultant associations to review and carry out specific programmes to reduce tax declaration times and tax payment and customs clearance time.

 

Notably, the Ministry of Finance has reviewed and repealed unnecessary procedures and troublemaking procedures for businesses and taxpayers to reduce the tax payment time by 201 hours from now till mid-September. To realise the objective, the General Department of Taxation recently announced its Action Plan to enhance discipline in tax administration, reform administrative procedures and to facilitate taxpayers to perform their duties. Accordingly, tax authorities will focus on seven specific solutions as follows.

 

Firstly, the tax sector will amend tax policies: Amending Circular 156/2013/TT-BTC, Circular 219/2013/TT-BTC and Circular 08/2013/TT BTC to simplify administrative procedures and reduce the number of hours on tax compliance, Circular 85/2011/TT-BTC and Circular 39/2014/TT-BTC. The tax sector will compile new circulars in a bid to simplify procedures concerning tax registration and tax code granting, tax declaration, invoice purchase and tax payment and settlement for taxpayers.

 

The tax sector will modernise tax collection and payment. Accordingly, all companies will declare taxes via the Internet environment (electronic tax declaration). Electronic tax payment will be deployed at 18 out of 63 provincial/municipal tax departments. The sector will also consider and deploy a connection mechanism for tax offices and natural resources and environment agencies on shared information and data concerning land management. Piloted localities will be Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong, Ba Ria - Vung Tau, Danang, Haiphong.

 

The tax sector will build, modify and supplement professional processes: Publishing information disclosure processes subjected to business on websites of local tax agencies, tax management processes for business households in accordance with presumptive methods, tax administration processes for individuals (not doing business), and tax procedure control processes. The tax sector also controls and publicises administrative procedures in a bid to improve the business environment.

 

The GDT will also work out taxpayer satisfaction evaluation methods, build tax administration schemes for tax bureaus at all levels, and establish head accountability regimes.

 

The General Department of Taxation will continue to attach much importance to propaganda work, develop communication plans for the entire system, ensure throughout roadmaps and plans, cooperate with press agencies, and upgrade GDT websites.