Tax Payment Time Reduced Further

In the spirit of the Prime Minister's Resolution 19/NQ-CP on measures to improve the business environment, accelerate the reform of administrative procedures, streamline settlement processes, reduce the time of exercise, cut administrative costs, ensure transparency and enhance accountability of State administrative bodies, in 2014, the General Department of Taxation advised and reported to the Ministry of Finance, the Government and the National Assembly to implement some measures to institutional and policy reform and administrative procedure simplification to reduce the tax payment time required for an enterprise by 370 hours a year (from 537 hours to 167 hours).

 

Since the start of 2015, the General Department of Taxation (GDT) has focused on reviewing and perfecting legal documents on tax affairs in order to rationalise administrative procedures, reduce tax compliance time for citizens and businesses. Specifically, GDT proposed the Ministry of Finance to issue Circular 26/2015/TT-BTC dated February 27, 2015 on amendments and supplements to some articles of law on VAT, receipts, royalties and tax administration and Circular 96/2015/TT-BTC dated June 22, 2015 on instructions for implementation of Decree 12/2015/ND-CP on amendments and supplements to a number of articles of the Law on Corporate Income Tax. According to estimation, the two circulars have helped reduce tax payment time by 40 hours.

 

By revising mechanisms and policies, the tax sector has encouraged taxpayers to use electronic services certified by tax authorities. So far, up to 98 percent of companies are declaring tax information in the electronic medium and over 350,000 companies registered to use electronic tax payment services. Tax authorities reported to have collected VND33 trillion of taxes via this means, including VND24 trillion in the first six months. With these solutions, the time of tax payment will be slashed another 10 hours.

 

With policy solutions and system modernisation measures, the tax payment time has been reduced by approximately 420 hours a year for taxpayers, paving the way for completing and even exceeding the target of 121.5 hours of tax payment in 2015 set in the Resolution 19 of the Government.