Modernising Tax System to Facilitate Taxpayers

In recent years, the Lao Cai tax sector has strongly modernised the tax service by deploying online tax declaration, electronic tax payment, tax payment via commercial banks, and information connection with customs, treasury and finance agencies. After the effective date of Circular 26/2015/TT-BTC, Circular 96/2015/TT-BTC and other documents, the General Department of Taxation of Vietnam launched several information technology applications to tax administration like tax management service (TMS) and electronic tax payment. As of June 30, 2015, the tax payment time is shortened to only 117 hours, exceeding the objective of 121.5 hours set in the Resolution 19 of the Government. Matching with international practices, these results have helped improve the investment and business environment and enhance national competitiveness and received appreciations from the Prime Minister, the business community and investors. In addition, online tax declaration and electronic tax payment are positively responded by businesses. As of July 30, 2015, 95 percent of local enterprises declared tax via the internet environment and 1,673 out of 1,679 companies, or 99.6 percent, registered to pay tax via the internet, higher than the target of 90 percent of enterprises assigned by the General Department of Taxation. The amount of electronically collected tax was VND252.174 billion.

 

IT application to tax management has been accelerated by the Lao Cai tax sector, including operations of management organisation and operations of equipment system, deployment of software applications, review and standardisation of data, and prepared deployment of centralised management application system. Simultaneously, the communications infrastructure system at tax departments and branches was deployed synchronously, replacing obsolete information technology equipment and buying more servers. On August 15, 2015, the Tax Department has applied new document management application enabling department leaders to grasp the progress and process of incoming and outgoing documents, those required replies and answers.

 

In addition to administrative procedure reform and information technology application, the Tax Department of Lao Cai province has paid attention to informing and supporting businesses and impacted their self-consciousness of fulfilling obligations to the State Budget, as they are considered the key to ensure local tax revenue. Defining that "taxpayers are important customers of the tax sector," the Lao Cai Tax Department has collaborated with other agencies and departments in the province such as the Propaganda Department, the Justice Department, the Radio and TV Broadcasting Station to conduct extensive propaganda programmes on mass media, on billboards and posters, on electronic portals to spread and inform new policies on tax, tax declaration and payment via electronic means. Besides, all information about new tax policies, amendments and supplements to tax guidelines are regularly updated on the department's website (http://laocai.gdt.gov.vn). Specifically, the Lao Cai Tax Department has applied SMS messaging and emailing methods to inform and support taxpayers since 2010.

 

Furthermore, the department has also actively supported enterprises and citizens to promptly solve their problems, enhanced the sense of responsibility of taxpayers for their obligations to the State. As of June 31, 2015, the Lao Cai Tax Department answered 1,400 telephone calls, directly responded to 806 visitors, replied in 44 written documents and held 12 dialogues.

 

In the coming time, the tax service of Lao Cai will continue to make every effort to timely and effectively deploy government resolutions on major measures to strengthen macroeconomic stability, accelerate administrative procedure reform, and remove difficulties and obstacles to business development to ensure stable State budget revenue.