Abolishing, Simplifying Tax Administrative Procedures

To carry out Resolution 19/2016/NQ-CP, Resolution No. 35/NQ-CP and the Resolution 36a/NQ-CP, the General Department of Taxation issued action plans with many specific tasks. The General Director of the General Department of Taxation also issued the Directive No. 01/CT-TCT dated June 21, 2016 to guide tax authorities to strengthen disciplines, correct working manners, attitudes and behaviours of tax officials, promote administrative reform, and organise political activities in the entire system.

 

Specifically, in the first six months of 2016, on a regular basis review of administrative procedures, the General Department of Taxation proposed the Ministry of Finance to abolish 32 administrative procedures and simplify 40 administrative procedures while reviewing, amending and supplementing 51 out of 70 processes and regulations. Together with that, the sector continued to develop tax system modernisation applications like reducing compliance time, applying tax management system applications (TMS) in all 63 provincial/municipal tax departments, applying information exchange between tax authorities with relevant sectors; and applying electronic tax declaration and payment.

 

With those efforts, innovations and reforms, tax authorities have expanded the electronic tax system to 99.47 per cent of companies subject to tax administration; and implemented electronic tax payment services at all 63 provinces and cities with 95.31 per cent of companies registering to use. To date, over 80 per cent of companies are using electronic tax payment services. Electronic means helped collect VND208 trillion to the State Budget, accounting for 52 per cent of the total tax value collected).

 

More importantly, from this platform, the tax service is working to launch electronic tax refund. Electronic tax declaration and payment is being deployed to land lease and land transfer (personal income tax and registration fee) and vehicle owners. At the same time, the tax sector has supported 210 enterprises in Hanoi and Ho Chi Minh City to pilot validated electronic invoice registration and issue, another step to work with relevant units on a plan to hire information technology services for deploying authenticated invoicing system.

 

According to the General Department of Taxation, efforts for administrative reform and management modernisation to reduce the time of paying taxes has produced positive results. According to calculations by the Vietnam Chamber of Commerce and Industry (VCCI), these activities reportedly save VND7 trillion for the society a year. However, the tax sector still has some contents to be done for the higher progress, particularly electronic VAT refund and publicity of settlement of complaints from taxpayers. Besides, the taxpayer database system has been more focused (previously dispersed with 16 applications) but breakdowns inhibit organisations and individuals from using electronic tax services.

 

To overcome these limitations, in the last months of 2016, the General Department of Taxation will continue to implement the tax database construction project, maintain and operate total tax management (TMS) system, and accelerate electronic tax declaration and payment (via electronic portals of tax authorities and via electronic channels provided by commercial banks).

 

By the end of 2016, the tax service expects to see at least 90 per cent of tax transactions executed electronically in all three criteria (companies subject to tax administration, tax payment documents, and tax revenue). Communications on electronic tax services will be spread.

 

The tax sector is also determined to complete the pilot of collection orders applicable to individuals subject to lump-sum tax so as to further facilitate taxpayers and tax authorities. Besides, tax authorities at all levels will coordinate with related functional units to carry out electronic collection of vehicle registration fees and personal income tax from property transfer.