General Department of Taxation Implements Resolution 19/NQ-CP

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As of January 2015, after implementing many solutions, the General Department of Taxation has reduced the number of hours of tax compliance by 370 hours a year. This result means that the sector will need to continue to cut down another 45.5 hours to reach the average tax time of the ASEAN-6, which is 171 hours a year including time of social insurance payment, that is 49.5 hours.

On April 6, the General Department of Taxation held an online conference on the implementation of the government’s Resolution 19/NQ-CP in 2015 and to sum up the refund work of value-added tax (VAT) in 2014. Finance Minister Dinh Tien Dung chaired the conference. Participating in this online conference were also Deputy Minister of Finance Do Hoang Anh Tuan and 62 local tax departments across the nation.

Reporting the results of implementing Resolution 19 of the government, Mr Cao Anh Tuan, Deputy Director of the General Department of Taxation said that shortly after the issue of Resolution 19, Minister of Finance Dinh Tien Dung had directed the General Department of Taxation to develop an action plan to improve accountability and discipline of tax officials; simplify administrative procedures. After reviewing and referencing evaluations of some international organisations, the General Department of Taxation has proposed several measures on administrative reform to make tax payment procedure an easy job for both taxpayers and businesses. The General Department of Taxation also prepared and submitted to the Ministry of Finance Circular No. 119 amending 7 circulars, which has helped cut down 201.5 hours; Decree 91 amending and supplementing 4 decrees on taxes which has reduced 88.36 hours; Law No. 71/2014/QH13 amending and supplementing 5 tax laws has reduced 80 hours.

Speaking at the online conference, Minister Dung said that by strong determination, the tax sector had made an important contribution to the implementation of Resolution 19 of the government, highly appreciated by the business community. The Minister also praised achievements of the tax service and noted that mission of the tax sector in the future was quite challenging, because although it had successfully reduced 53 administrative procedures and simplified 262 others, the number of remained ones was still big and procedures were complicated which was time consuming for taxpayers.

Besides, the reform of tax procedures for taxpayers who are individuals, household business (VAT, personal income of household businesses, registration tax, tax of using non-agricultural land,…) yet to have fundamental innovation, the collection of taxes was difficult for the people; the application of information technology in tax administration was limited, this is an uncharted territory yet to be exploited by the tax sector. Even though revenue from household businesses is not so high, that does not mean we could skip fundamental reform measures” said Minister Dinh Tien Dung.

The minister requested that in 2015, the sector must finish the establishment and publicise a database of tax refund, ensuring that refund work is performed in order and at least 90 percent in prescribed time. Besides, complaints from taxpayers also must be solved in compliance with regulations and at least 90 percent of the time prescribed by law.

In 2016, the sector should strive to achieve the ASEAN-4 level on tax administration reform for three new indicator groups: pre-tax refund check; risk management during tax inspection and check; the time and results of handling tax complaints.

To remove those outstanding problems and reduce the time of tax payment to 171 hours (including payment time of social insurance), equal the tax payment time of ASEAN-6 following the spirit of Resolution 19/NQ-CP dated March 12, 2015, the General Department of Taxation needs specific solutions and goals, as well as determination to cut down tax payment time as proposed plan.

Mr Bui Van Nam, General Director of the General Department of Taxation said that the department already had some specific solutions to further reduce time of tax payment in 2015. The leadership of the General Department of Taxation was committed to strengthening supervision and inspection of the implementation of solutions to reduce the tax payment time to 171 hours as stated in Resolution 19/NQ-CP.

Thanh Nga


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