Tax compliance costs lowest among administrative procedures

VCN- Tax compliance costs are the lowest among nine surveyed groups, according to the Assessment report on Administrative Procedure Compliance Cost Index 2020 (APCI 2020) of the Prime Minister’s Advisory Council for Administrative Procedure Reform.
New guidance of General Department of Taxation on personal income tax finalisation New guidance of General Department of Taxation on personal income tax finalisation
Make tax finalization in a quick, simple and legal manner Make tax finalization in a quick, simple and legal manner
Search personal tax code on electronic devices for tax finalization Search personal tax code on electronic devices for tax finalization
3950-5707-10-836514720197477849-o
All businesses do not have to pay unofficial fees when carrying out tax procedures. Photo: T.L

The APCI 2020 was based on a survey of nearly 3,000 enterprises that carried out administrative procedures nationwide in the second half of 2019.

The APCI composes two indexesthat reflect costs for carrying out administrative procedures. The time costs foreach enterprise to learn procedures from beginning until finishing and the direct costs they have to pay for carrying out administrative procedures.

Tax compliance costs lowest among administrative procedures
Comparing component indexes of the tax administrative procedures group.

According to survey results, enterprises need 3.8 hours and VND 11.600 to carry out one tax procedure on average. The proportion of enterprises using intermediary services is about 5% with an average cost of VND 500,000 per procedure.

Direct costs for enterprises to carry out one tax procedureare VND 12,000 on average. Direct costs are only incurred in special cases.

The rate of amendments and supplementations of records by enterprises in the group of tax administrative procedures is 11%. These firmsneed 2.1 hours on average and five working days for amendments and supplementations of records before dissolution.

Notably, 100% of surveyed enterprises said that they have not to pay unofficial fees for the State agency when implementing procedures for finalisation of corporate income tax and the declaration of value added tax under the deduction method and fulfillment of obligations before dissolution.

According to the report, the tax sectorhas completed the e-tax payment model and resolved problems arising in practice andapplied information technology in the performance of each agency, between State administrative agencies and in transactions with organisations and individuals.

Minister and Chairman of the Government Office Mai Tien Dung said the tax sector has made major reforms from central to local levels,streamlined tax agenciesand connected e-declaration, facilitating enterprises.

The APCI 2020 recognises that the proportion of enterprises, which have to work directly with the tax authority at the enterprises’ premise and time costs and direct costs are significantly reduced.

Tax compliance costs lowest among administrative procedures
Direct costs for tax administrative procedures in key economic regions.

However, the report also pointed out several limitations in implementing tax administrative procedures. The preparation of documents takes the longest time, accounting for 54% of total time of implementation.

The APCI 2020 survey showed the time for the preparation of documents for the corporate income tax finalisation is quite long because some enterprises said that they only gather tax records for the year at the end of the final settlement period, so it takes too long time, even 15 working days in some cases.

Although the e-tax payment system allows taxpayers to apply their record online via the Portal of the General Department of Taxation, the portal still has some errors, so enterprises cannot apply records, especially at the end of the month and of the tax payment period, leading to a delay in submission.

Therefore, enterprises propose the tax sector overcome these shortcomings and simplify procedures.

To do this, the firmshope that the tax authority will accompany and support them from their establishment to operation to save time for implementing dissolution procedures.

In addition, the tax sector also needs to take measures to support enterprises, review and reform some procedures that take a lot of time and effort of both enterprises and tax officials.

Standardise internal procedures provide specific instruction for the implementation of procedures andarrange officials to receive and handle procedures.

By Huong Diu/Ngoc Loan

Related News

Positive result in digital transformation of Customs sector

Positive result in digital transformation of Customs sector

VCN - Implementing the digital transformation plan, the Customs sector has proactively deployed many solutions and achieved positive results, demonstrated through all aspects of customs operations; providing online public services; implementing the National Single Window, ASEAN Single Window...
HCM City Customs refunds over VND 49 billion of VAT for foreign passengers

HCM City Customs refunds over VND 49 billion of VAT for foreign passengers

VCN – In the first half of 2024, HCM City Customs Department refunded over VND 49 billion for over 10,000 foreign passengers.
How does Asanzo Group Joint Stock Company evade taxes?

How does Asanzo Group Joint Stock Company evade taxes?

VCN – Asanzo Company failed to declare and pay special consumption tax; excluded in accounting books; and used illegal invoices to account for goods and input materials for tax evasion, HCM City Tax Authority said.
Extend the deadline for paying taxes and land rent in 2024

Extend the deadline for paying taxes and land rent in 2024

VCN - The Government has just issued Decree No. 64/2024/ND-CP dated June 17, 2024 extending the deadline for paying value added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent in 2024. This Decree takes effect from June 17, 2024 to December 31, 2024. After the extension period according to this Decree, the deadline for paying taxes and land rent will comply with current regulations.

Latest News

Margin loan continues hit new record

Margin loan continues hit new record

VCN - The need to use leverage in the stock market is still very high, shown by the level of outstanding loans at securities companies continuing to increase sharply in the second quarter of 2024.
Vietnam needs comprehensive regulatory framework to attract green financing

Vietnam needs comprehensive regulatory framework to attract green financing

Vietnam needs a clear regulatory framework and solutions to promote the green finance market and encourage private capital flows into green fields, experts have said.
2025 budget estimation must be practical, accurate and efficient

2025 budget estimation must be practical, accurate and efficient

VCN - Directing the 2025 state budget estimation, Minister of Finance Ho Duc Phoc emphasized that units must ensure that the 2025 budget estimation must be practical, accurate, efficient, and meet the requirements for performing professional and political tasks assigned to central and local agencies.
The corporate bond market will be more vibrant in the second half of the year

The corporate bond market will be more vibrant in the second half of the year

VCN - In the first half of 2024, with bond maturity pressure continuing to increase, corporate bond issuance has shown many positive signs compared to the previous year. According to forecasts, businesses' need to borrow and issue corporate bonds will accelerate in the second half of 2024.

More News

Prioritize resources and promptly supplement capital for policy credit

Prioritize resources and promptly supplement capital for policy credit

VCN- In the near future, to further promote the effectiveness of policy credit, the Ministry of Finance will continue to preside over and coordinate with relevant ministries, branches and the Vietnam Bank for Social Policies (VBSP) to implement many key solutions.
Measures suggested to boost startups’ access to capital

Measures suggested to boost startups’ access to capital

The recent vigorous growth of startups in Vietnam has attracted domestic and foreign investors, but insiders recommended more efforts be made to facilitate startups’ access to funding from investors so that they can live up to potential.
Inflationary pressure seen from monetary policy

Inflationary pressure seen from monetary policy

VCN - The economy went through the first half of the year, inflation is still under control and forecast to reach the target set by the National Assembly and the Government. However, variables from the currency market such as exchange rates, interest rates, credit..., even gold prices, are issues that need to be paid attention.
Banks with the problem of promoting credit growth

Banks with the problem of promoting credit growth

VCN - It is estimated that by the end of June 2024, the economy's credit growth will reach nearly 4.5%. This number is still far from the yearly credit growth target of 14-15%.
Proposal to increase Special Consumption Tax on tobacco products

Proposal to increase Special Consumption Tax on tobacco products

VCN - At the workshop Special Consumption Tax on cigarettes held by Vietnam Tax Consulting Association and the Institute of Financial Strategy and Policy on July 16, experts and businesses clarified the goals and content of amended the special consumption tax policy on tobacco products. According to experts, there cannot be a solution that fully ensures the benefits of both consumers, the state and businesses, but it is necessary to choose the most optimal option to achieve the initially set goals.
Savings of individual customers at banks hit record high

Savings of individual customers at banks hit record high

In spite of low interest rates, figures from the State Bank of Vietnam (SBV) released this week show deposits of individual customers increased by more than VNĐ39.7 trillion in April, to reach more than VNĐ6.7 quadrillion.
Managing fiscal policy has achieved many positive and comprehensive results

Managing fiscal policy has achieved many positive and comprehensive results

VCN - On July 15, the Ministry of Finance held an online conference to summarize state budget financial work in the first 6 months of the year, implementing tasks in the last 6 months of 2024. Minister of Finance Ho Duc Phoc attended and directed the conference. Also attending the Conference were Deputy Ministers of Finance, leaders of units under the Ministry of Finance.
Determine tools, policy for inflation control

Determine tools, policy for inflation control

VCN - According to economic expert Associate Professor, PhD. Ngo Tri Long (photo), former Director of the Price Market Research Institute (Ministry of Finance), inflation is an issue that needs special attention, especially related to the management of monetary policy, interest rates, increasing prices of goods and services...
The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Read More

Your care

Latest Most read
Margin loan continues hit new record

Margin loan continues hit new record

The need to use leverage in the stock market is still very high, shown by the level of outstanding loans at securities companies continuing to increase sharply in the second quarter of 2024.
Vietnam needs comprehensive regulatory framework to attract green financing

Vietnam needs comprehensive regulatory framework to attract green financing

Vietnam needs a clear regulatory framework and solutions to promote the green finance market and encourage private capital flows into green fields, experts have said.
2025 budget estimation must be practical, accurate and efficient

2025 budget estimation must be practical, accurate and efficient

VCN - Directing the 2025 state budget estimation, Minister of Finance Ho Duc Phoc emphasized that units must ensure that the 2025 budget estimation must be practical, accurate, efficient, and meet the requirements for performing professional and political
The corporate bond market will be more vibrant in the second half of the year

The corporate bond market will be more vibrant in the second half of the year

VCN - In the first half of 2024, with bond maturity pressure continuing to increase, corporate bond issuance has shown many positive signs compared to the previous year. According to forecasts, businesses' need to borrow and issue corporate bonds will acc
Prioritize resources and promptly supplement capital for policy credit

Prioritize resources and promptly supplement capital for policy credit

VCN - According to the VBSP, by the end of June, total policy credit capital rose 7.6% year-on-year to VND 372,723 billion, including entrusted capital from the local budget at VND46,929 billion, an increase of VND7,755 billion, accounting for 12.6%.
Mobile Version