VCCI, GDT Collecting Opinions about Tax Law Compliance Criteria for Businesses

 

Mr Dang Ngoc Minh, Deputy General Director of the General Department of Taxation, said, after two years implementing Resolution 19/ND-CP of the Government, the tax sector cut 420 out of 537 hours of tax payments for enterprises by the end of 2015, passing the target of reducing the tax payment time to less than 121.5 hours a year. By actively applying information technology, the tax sector has basically eliminated unnecessary administrative procedures and built policy systems in line with international practices. To date, over 98 per cent of taxpaying companies declare tax online and 95 per cent registered companies pay tax via electronic means. To carry out Resolution 19-2016/NQ-CP of the Government and the tax system reform strategy, the General Department of Taxation has developed risk assessment criteria to enhance the effectiveness and efficiency of law compliance criteria for enterprises.

 

Risk assessment criteria aim to ensure fair treatment to all taxpayers, optimise resources used by tax authorities and manage tax non-compliance, promote and improve voluntary compliance of taxpayers. To ensure assessment accuracy of enterprises, tax authorities will use data sources in the tax system such as tax registration, tax declaration, tax payment, tax settlement report, financial statement and law compliance history. In addition, the tax service will use data provided by relevant agencies such as finance, customs, state treasury, bank, state audit and government inspection.

 

The criterion set will categorise the degree of compliance of the business. The group of the most law-abiding companies must ensure nine criteria and 15 indicators. The group of low law-abiding companies must satisfy 10 criteria and 10 indicators. Companies not included in one of two groups are classified average law-abiding. The most law-abiding companies will be offered more favourable conditions when they carry out tax obligations like automatic tax refund, priority reply to queries and reduced inspection frequency.

 

At this conference, representatives from the General Department of Taxation said this set of law compliance criteria is consulted on a wide scale across companies and business associations.