Maintaining Strong Reform of Administrative Processes

Through relentless endeavors to diminish and streamline administrative procedures, coupled with the rapid implementation of information technology in tax administration, the tax sector has not only facilitated convenience and minimized transaction expenses for individuals and businesses, but it has also played a pivotal role in achieving its economic development objectives for 2024.

The taxation sector persistently advances administrative reform, maintaining rigorous oversight over administrative procedures to ensure efficiency and compliance

Optimizing transactions for individuals and businesses

Adhering to the operational principle of prioritizing individuals and businesses, the tax sector continues to enforce administrative reform with stringent control over administrative procedures. As of March 14, 2024, the Ministry of Finance oversaw a total of 765 valid administrative procedures, which include 235 in the tax sector, 225 in the customs sector, one in the State treasury sector, seven in the reserve sector, 104 in the securities sector, and 183 in the general financial sector.

In accordance with Government Resolution 68/NQ-CP dated May 12, 2020, the General Department of Taxation undertook a comprehensive review and publication of business-related data to the Database System and the Business Regulation Enquiry Portal. Concurrently, the General Department of Taxation maintained strict control over administrative procedures within its jurisdiction, driving comprehensive reform in tandem with e-Government development and digital transformation. This approach aims to provide optimal conditions for individuals and businesses, thereby enhancing the business environment and bolstering national competitiveness. Furthermore, the General Department of Taxation regularly reviews and assesses administrative procedures to propose the abolition or amendment of appropriate ones, thereby simplifying the process and increasing the feasibility of implementation for individuals and organizations.

All petroleum businesses and retailers are mandated to issue e-invoices for each sales transaction, a solution to curb and prevent tax fraud

Increasing digitization in every transaction

In 2021-2025, the tax sector targeted to reform and improve IT application in all stages of tax administration, especially systems to provide public services to taxpayers. As of March 14, 2024, the electronic tax declaration system had 919,900 businesses or 99.94% of the total signed up, and it received 3,608,704 tax dossiers. Personal electronic tax accounts totaled 2,771,282. Up to 99.09% of companies registered to use electronic tax payment services with tax authorities and 98.48% completed service registration with banks as of March 14, 2024. Companies carried out 1,410,866 electronic tax payment transactions with a total amount of over VND220,570 billion (US$10 billion). In particular, 2,999 companies electronically received tax refunds, reaching a rate of 99%. A total of 3,495 electronic refund applications were settled with a total value of more than VND24,972 billion.

Regarding the electronic invoicing system, tax authorities have to date issued about 7.11 billion invoices. As for electronic invoices created from cash registers, 47,122 businesses, households and individual businesses successfully registered to use this form of invoice by March 18, 2024 and a total of more than 228.3 million electronic invoices were issued (for a combined tax amount of VND11,177.7 billion). To complete the overarching goal of administrative reform in the 2021-2030 period, in 2024, the General Department of Taxation has continued to improve the business environment and reduce administrative costs for people and businesses. In particular, the basic goal is to reduce and simplify at least 20% of regulations and 20% of compliance costs relating to business for enterprises.

Notably, on April 5, 2024, Prime Minister Pham Minh Chinh extended commendations to the Ministry of Finance, the General Department of Taxation, and tax authorities of centrally-administered provinces and cities for their successful execution of electronic invoicing at petrol filling stations. Following nearly five months of implementation, electronic invoices have been issued for virtually every transaction, achieving an impressive completion rate of 99.96%. The number of gasoline retail stations registering for the service has more than doubled, increasing from 7,000 to over 15,000. Despite these significant strides, the tax sector acknowledges the need for further reviews to devise comprehensive solutions that ensure compliance and prevent potential losses to the State budget.

By Hien Kien, Vietnam Business Forum