Ho Chi Minh City: Administrative procedure reforms have changed positively from the Tax and Customs authorities

	Ho Chi Minh City proposes to raise Special Consumption Tax for alcohol and beer
	Imports of small cars to Ho Chi Minh City soar in 2019
	HCMC: Opening 25 supporting points for PIT finalization

The Ho Chi Minh City Tax Department has implemented many solutions, including focusing on expanding electronic invoices. In the photo: Activities at the Tax Department of District 1, Ho Chi Minh City. Photo: Internet

70% reduction in clearance time

Managing and making regularly the import and export proceduresfor more than 30,000 enterprises, in 2019, the Ho Chi Minh City Customs Departmentdetermines that the administrative procedure reform and customs modernizationare the central objectives, aiming to reduce 70% of the time of goods clearance.To accomplish this goal, from the beginning of the year, a series of core plans have been deployed by the Ho Chi Minh City Customs Department,such as: Detailed plan to implement the key reform and modernization activities in the year;Plan to develop Customs-Enterprises partnerships and the related parties;Administrative reform plan; Plan to implement Resolution 02/NQ-CP of the Government.

According to the Director of Ho Chi Minh City Customs Department, Mr. Dinh Ngoc Thang, in order to manage effectively and shorten the time for customs clearance of imported and exported goods through the Cat Lai port - where import and export cargo volume is the largest in the country, the Ho Chi Minh City Customs Department took the initiative to work with the Board of Directors of Saigon New Port Corporation.The two sides agreed to solve a series of problems andorient some specific projects and solutions for the largest seaport in the country.

In particular, the Customs and the port enterprises are implementing the Logistics-Express Customs Project - reducing congestion - facilitating trade. Accordingly, planning a separate area to gather, inspect the goods and separate channels for the priority enterprises, and the enterprises with large revenues. At the same time, the subdivision for the goods of Green channel is aimed at quick customs clearance right after the channel information is available; separate channels within the port area for the goods of enterprises according to the list of customs offices provided and the enterprises registered for quick exploitation within 24 hours; arranging the containers in the port in the direction of combining information of related parties to reduce delivery time; implementing EDO (Electronic Delivery Order), combining the electronic payment system to reduce time and travel costs for the enterprises. The unit organizes the customs clearance counters for the enterprises with large revenues, and the priority enterprises. After the implementation time, the project received positive reviews fromHCMC leaders, leaders of the General Department of Customs and enterprises.

Along with that, the Ho Chi Minh City Customs Department has built an online monitoring system on mobile app for customers andport enterprises.The Customs could monitor progress of procedureof a shipment onlinein the procedural steps from the opening of the declaration until the receipt of goods from the port. Thereby, it is possible tomeasure accurately the time for goods clearance,transparency of information, reduction of operations and costs.From this model, proceeding to coordinate the construction of ecosystems, sharing data connecting software systems between 2 units and expanding the connection of related parties such as the specialized management agencies, the shipping lines, and the customs agentsin order to modernize, and facilitate the enterprises.

According to Director Dinh Ngoc Thang, the Customs Department of Ho Chi Minh City is conducting research to build a centralized management information system for the management and administration of leaders at all levels. At the same time, organizing actively work and dialogue with the Associations and the port enterprises to improve the efficiency of coordination between the Customs agencies and the partners and associations, creating a breakthrough in facilitating trade.

Goods of enterprises are facilitated and cleared quickly by the Customs authorities. Photo: T.H.

Expand the implementation of electronic invoices

In order to realize the goal of the breakthrough year of Ho Chi Minh City, the Ho Chi Minh City Tax Department has implemented many solutions.

According to HCM City Department of Taxation leaders, at the meeting to implement the task of 2019, Vice Chairman of Ho Chi Minh City Mr. Le Thanh Liem asked the Ho Chi Minh City Department of Taxation to push up the progress of implementing the reform and modernization plan, with specific solutions on administrative procedure reform. In implementing this directive, the Ho Chi Minh City Tax Department continues to provide 7 online public service groups to improve the quality of tax administration and reduce the time and cost of taxpayers in implementing tax obligations. Currently, the number of enterprises implementing tax declaration via the Internet in HCM City reaches 99.99% of the total number of enterprises operating; the number of registered enterprises to register electronic tax payment is 94.85%; number of enterprises registered successfully at commercial banks 91.32% of the total number of enterprises operating; the number of documents for electronic tax payment reaches 85.63% of the total number of documents transmitted to the Treasury; the amount of tax paid by electronic method reaches 56.22% of the amount remitted into the State budget.

Notably, in 2019, the Ho Chi Minh City Tax Department has focused on expanding the implementation of electronic invoices. Accordingly, the tax sub-departments of districts have promoted propaganda, training to support taxpayers,coordinating regularly with departments and agencies, the media agencies in the propagation of electronic invoices, at the same time, using effectively propaganda forms via video-clips andsocial networks.By the end of March 2019,21,074 enterprisesused electronic invoices in Ho Chi Minh City, accounting for 10.74% ofoperation enterprises using invoices.Comments of the Tax Department showed thatthis figurewas too low,the unit has made efforts to propagate and supportto increase the number of enterprisesimplementing electronic invoices.

One of the solutions to tax procedure reform was appreciated highly by Ho Chi Minh City's leaders, which is e-tax declaration for individual's leasing activities and inter- work between the Tax Department and the Department of Natural Resources and Environment of Ho Chi Minh Citywhen receiving and processing housing records. As of March 31, 2019, for the leasing of individuals, there were 31,998 registered applications and 123,247 turns of declarations were imported into iCaNhan application. In addition, the Ho Chi Minh City Tax Department pioneered the application of registration management - real estate on electronic systemsto facilitate taxpayers.

Breakthroughs in administrative procedure reforms of both the Tax authorities and the Customs are working together with the units of Ho Chi Minh City to achieve the objective "The breakthrough year of administrative reform and enhancing implementation of Resolution No. 54/2017/QH14 of the National Assembly on the specific mechanism of HCMC.”