Complete tax compliance management for business households and individuals

	Risk management throughout the tax field
	Tax compliance management in the digital economy

The Tax sector promotes the application of risk management to improve taxpayers’ compliance. Photo: Internet

Improve compliance with main obligations of taxpayers

According to the General Department of Taxation, the individual economic sector has been developing diversely, contributing to creating jobs for workers, eliminating hunger and reducing poverty and increasing revenue for the state budget. However, the business situation of this area is quite complicated, the ability to comply with the law in general and tax law in particular is not high. The situation of tax evasion and tax fraud is still high, voluntary compliance and awareness of tax declaration and payment are not high, affecting tax management, causing loss of state budget revenue.

According to tax administration data for 2022, the whole country has 3.1 million business households and individual businesses. Of which, the number of business households with fixed business locations is 1.9 million (of which 1.8 million contracted households and 90 thousand declared households); The number of business individuals declaring tax each arising time is 74.8 thousand, the number of individuals leasing property is 77.7 thousand; The number of individuals declaring and paying taxes through lottery, insurance, and multi-level marketing organizations is 1 million. The number of individuals generating taxable income is about 29 million, of which, the amount of tax subject to deduction is about 7 million.

The General Department of Taxation said that there is still a situation where businesses hide in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs. Facing with that situation, it is necessary to strengthen management and limit fraud and tax evasion for individuals and business households, especially for businesses hiding in the shadow of business households, and improve tax compliance management for business households and individuals. The goal of compliance risk management is to manage and improve compliance with key taxpayer obligations such as: tax registration, timely declaration, accurate declaration and timely tax payment. Compliance risk management is a comprehensive approach, designing solutions according to the level of compliance.

With the trend of the number of taxpayers increasing and economic activities becoming increasingly complex, the Tax sector has promoted the application of risk management to improve compliance of taxpayers and prevent fraud that causes losses of State budget. Accordingly, important solutions have been implemented by the Tax sector including: reviewing the list of warnings for using invoices exceeding the safety threshold; Review and compare electronic invoice data (invoice) and declarations; Research to detect risks through the invoice purchase and sale chain; Build tools to support individuals' tax risk management through income payment organizations, etc.

Analyze employee behavior to have appropriate compliance risk management measures

In order to improve tax compliance management for business households and individuals in the coming time, a series of solutions have been and will continue to be implemented by the Tax sector. Accordingly, the General Department of Taxation strengthens invoice management based on the results of risk analysis by building a set of criteria for applying tax and invoice risk management to business households and individual businesses, applying new technology to analyze e-invoice data of business households related to enterprises according to the purchase and sale chains of goods and services. In addition, to control e-invoices and prevent the issue of false invoices, the Tax sector will upgrade the support application "List of taxpayers subject to supervision for issuing invoices exceeding the safety threshold", promoting the implementation of inspection, control and promptly prevent the issue of false invoices and take appropriate tax management measures.

At the same time, increase handling of discrepancies when comparing invoice data and tax declarations; Identify and access information sources, design information reporting processes, and compare information with third parties; develop pre-filled declarations for individuals who directly settle taxes with the Tax sector; Complete the database of personal information and identity of business owners.

Along with the above solutions, the General Department of Taxation also deploys behavioral analysis of taxpayers to be able to provide appropriate compliance risk management measures. "Tax administration agencies will not be able to check and inspect to handle all arising compliance risks. Building a compliance model can help build a series of effective compliance measures, from propaganda, education to prosecution. Compliance measures need to consider the risks and depending on the likelihood of occurrence and consequences, that will require investing appropriate resources in the tax administration stages to put in place preventive control solutions and measures to overcome risks," the General Department of Taxation said.

Specifically, propagating and educating taxpayers who want to comply, helping people and taxpayers raise awareness of tax compliance obligations, creating the habit of getting invoices when buying goods and services for people; Facilitate registration, declaration, and tax payment to help taxpayers not feel embarrassed right from the first steps. At the same time, remind taxpayers who are thinking about non-compliance to remember that there are always sanctions and criminal prosecution for non-compliance and illegal use of invoices. Besides, publicizing information about taxpayers violating tax laws, taxpayers removing their business addresses on the Electronic Information Portal of the General Department of Taxation, etc.