Ho Chi Minh City Tax Department: The mandate of tax collection gets positive results

Enterprises do procedures at the Ho Chi Minh City Tax Department. Picture: N.Hue.

In 2016, the Department of Taxation has implemented the pilot mandate of tax collection through Vietnam Post Company – HCMC Post for business individuals paying tax by presumptive taxation in 6 district tax departments including District 12, District 6, District 11, Cu Chi, Hoc Mon, Binh Chanh.

According to the Ho Chi Minh City Tax Department, even though it has implemented the pilot program for a year, the results in its units have been positive. The statistics of its departments show that the amount collected/arising reached over 100%. This shows that the ability of units mandated to collect tax has ensured to meet the monthly needs arising.

Besides, the more than 100% the ratio is, the more the debt is reduced, there is a unit reaching 174.95%. About the allocation of the amount collected/must be collect, most of the units reached over 80%. Cu Chi District Tax Department reached up to 95.95%, it means the debt rate in Cu Chi District is only 4.05%. It shows that the tax office is approaching the target of “no tax debt”.

Especially, the District 12 Tax Department has implemented since November 2016, but it mainly trained its staffs in November, and the work of tax collection has started in December 2016. Though it only collected in a month, the amount of tax collected was 174.95%, the excess of the arising of 74.95%. It shows that, if the units mandated to collect tax organize and invest suitably, the ability to collect is very large, the debt arrears will be reduced fastly.

According to the HCMC Tax Department, the implementation of the mandate of tax collection has brought practical benefits. In particular, for taxpayers, it increases the utility through the diversification of tax payment forms. The taxpayers can pay tax at the business registration address or the counters of units mandated to collect the tax, helping to save time and efforts of taxpayers.

For the tax offices, tax arrears have fallen significantly, the budget revenue has increased highly. The implementation of the mandate of tax collection has a positive contribution to reform the administrative procedures, reduce time, costs, facilitate taxpayers, avoid risks which may happen.

The implementation of the mandate of tax collection also helps the tax staffs focusing on managing tax and business households, reviewing, inspecting the tax debt, and urging the forces mandated to collect the tax. Through the mandate of tax collection, it helps the tax offices update timely new business households, reduce the human resources used for tax collection, save costs for printing tax payment papers for taxpayers, and reduced the number of tax transaction in the collection points of the Vietnam State Treasury, of banks mandated to collect tax.

According to the HCMC Tax Department, in 2016, the unit has collected 64.7 billion vnd through the mandate of the collection, reached 27.34% of the total collection from business individuals paying tax by presumptive taxation. Under the direction of the Ministry of Finance, in 2017, the HCMC Tax Department continues to expand business household tax collection through the units mandated to collect tax for the remaining tax departments.

Accordingly, in the 2nd quarter, the Department will implement in its tax departments of the District 1, District 5, Tan Binh, Phu Nhuan; in the 3rd quarter, it will implement in its tax departments the District 3, District 8, Thu Duc, Go Vap; in the 4th quarter, it will implement in its tax departments of the District 2, District 4, District 7, District 9, Binh Tan, Tan Phu, Nha Be, and Can Gio.