Tax compliance management in the digital economy

VCN - The management of tax compliance in the digital economy has faced many challenges compared to the traditional economy. The transactions made via the internet environment and digital platforms have caused monitoring, controlling and management difficulties. Therefore, it is required to have appropriate solutions for management and ensuring revenue sources.
scene of the conference
scene of the conference

Already create a suitable legal corridor

Information on the application of compliance risk management in Vietnam at the workshop on Tax Compliance Management in the Digital Economy held by the General Department of Taxation on May 13, Mrs. Ngo Thi Thuy Linh, Director of Risk Management Board (General Department of Taxation) said that, in recent times, the General Department of Taxation created a legal corridor inappropriate with the requirements of modern tax management and following the direction of the Industry's reform and modernization strategy to year 2030.

In addition, the Tax sector has collected and processed information and data related to taxpayers; developed tax management criteria; evaluated taxpayers' compliance with the law; classified the level of risk in tax management and organized the implementation of appropriate tax management measures. At the same time, apply risk analysis in tax registration, tax declaration, tax payment, tax debt, enforcement of administrative decisions on tax management, tax refund, tax audit, tax inspection, management and use of invoices, documents and other professional operations in tax management.

Along with data management following the centralized management mechanism of data from information sources within the industry, the Tax sector has actively coordinated with external organizations such as the General Department of Vietnam Customs, the State Treasury, Securities Commission, commercial banks and other agencies to collect and exchange information about taxpayers to serve risk analysis and evaluate compliance history of taxpayers.

Adding more information, Mrs. Ngo Thi Thuy Linh said that some sets of criteria and indexes for applying risk management in tax management have been developed and issued in recent times to meet the requirements of tax management in each period and complying with the provisions of tax law and current state management policies. For example, a set of criteria indicators for applying risk management in selecting employees with signs of risk to develop inspection and examination plans at the taxpayer's headquarters; the set of criteria indicators for applying risk management in invoice and document management; a set of criteria indicators for applying risk management in classifying VAT refund dossiers and selecting taxpayers to develop post-refund audit and inspection plans.

According to Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, the quality of tax management work of Tax agencies is directly proportional to the compliance awareness of taxpayers. Better tax management and higher compliance will create a transparent and fair business environment. With current digital transformation requirements, the number of taxpayers is increasing, operations are becoming more and more complex, the role of risk analysis and compliance management of employees is even more important, accordingly, thus, enhancing the compliance needs to be strengthened and implemented decisively.

Many challenges for tax compliance management

According to the General Department of Taxation, the process of applying risk management in tax management currently still faces many shortcomings and limitations. According to Mr. Dang Ngoc Minh, Deputy Director General of Taxation, tax compliance management in the digital economy is more difficult than traditional economy due to its complexity, diversity and global nature of economic activities.

The General Department of Taxation said that currently, Vietnam has nearly 1 million businesses, more than 3 million business households (including 1.9 million business households are subject to tax payment) and 27 million individuals have income subject to personal income tax from wages and salaries. In the context of more and more businesses, organizations and individuals doing business in Vietnam with increasingly complex production and business activities, the task of researching, developing and implementing professional risk management measures is also becoming heavier and more complex.

In addition, risk management has just been researched and applied in some individual tax management operations to meet the urgent requirements of tax management without developing and implementing an overall compliance risk management on tax program and comprehensive management system for risk analysis and tax compliance management. Along with that, the organizational structure as well as the empowerment and responsibility for deploying risk management are not appropriate and not commensurate with risk management work in the current period.

Accordingly, the solutions proposed by the Tax industry include continuing to improve the legal corridor on compliance management; building a comprehensive compliance management information database; developing a set of criteria indicators to apply risk analysis for overall compliance management with full tax management functions; deploying the construction of "Database application system and overall risk analysis" based on research and application of big digital data analysis methods; build and consolidate the tax risk management department under the General Department of Taxation.

Regarding the issue of strengthening the tax risk management department, according to Mr. Le Thanh Thao, Deputy Director of Personnel Organization Department, General Department of Taxation, no unit has full functions, tasks, legal status, and authority to build a unified system of risk management and compliance management. Thus, it has partly affected the construction and implementation of an overall risk management and compliance tax program. Therefore, it is difficult to ensure the leading and coordinating role in implementing risk management and compliance management tasks throughout the Tax industry. Facing the task requirements of risk management but having to increase voluntary compliance with the law by taxpayers, Mr. Le Thanh Thao said that it was necessary to have a state management model with full legal status and authority, has the role of chairing and coordinating the deployment of risk management tasks, managing law compliance on tax throughout the Tax industry, thereby supporting and guiding taxpayers to implement, which is an urgent requirement at present voluntarily.

By Thu Hiền/Thanh Thuy

Related News

Strong digital transformation in tax management

Strong digital transformation in tax management

VCN - In the context of the Government's drastic direction in implementing the National Digital Transformation Program, building e-Government, digital Government, and digital economy, the Tax industry has made strong strides in digital transformation, creating major changes in management methods and working processes.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Da Nang: 8 businesses participate in the pilot program of import-export support

Da Nang: 8 businesses participate in the pilot program of import-export support

VCN - Da Nang Customs Department held a signing ceremony to participate in the Pilot Program on supporting and encouraging businesses to participate in export and import activities in Da Nang city.
Heading toward the official implementation of the Voluntary Compliance Program

Heading toward the official implementation of the Voluntary Compliance Program

VCN - Through implementing the Pilot Program on supporting and encouraging businesses to voluntarily comply with customs laws, the compliance level of many member businesses has improved significantly.

Latest News

Sustainable economic development from international cooperation in finance, accounting and auditing

Sustainable economic development from international cooperation in finance, accounting and auditing

VCN – The cooperation promotion among countries in the fields of finance, accounting and auditing not only improves the efficiency of financial management and resource sharing but also facilitate economic development, said by Deputy Minister of Finance Vo Thanh Hung.
Finance Ministries of Vietnam and Laos promote comprehensive cooperation

Finance Ministries of Vietnam and Laos promote comprehensive cooperation

VCN – On May 28, Minister of Finance Ho Duc Phoc had a meeting with Mr. Santiphab Phomvihane, Minister of Finance of the Lao People's Democratic Republic.
Cashless payment develops rapidly in VN amid security concerns

Cashless payment develops rapidly in VN amid security concerns

At the end of last year, there were 182 million personal payment accounts in Việt Nam, with just over 87 per cent of adults owning payment accounts.
Disbursement of ODA funds has reached a very low rate, what solutions can

Disbursement of ODA funds has reached a very low rate, what solutions can 'accelerate' it?

VCN - VCN- Although the Government, ministries, and local authorities have been proactive from the beginning of the year, by the end of May 2024, the disbursement results of public investment funds sourced from abroad by ministries and localities still reached very low rates. This is a significant obstacle to achieving the goal of disbursing 95% of the foreign-sourced public investment funds that the Government set out at the beginning of the year.

More News

The State Treasury focuses on solutions to ensure revenue, expenditure and budget management

The State Treasury focuses on solutions to ensure revenue, expenditure and budget management

VCN - In the first months of 2024, the State Treasury (SBV) has actively implemented many solutions in state budget revenue and expenditure as well as flexible and safe management of the budget.
Minister of Finance: Efforts to increase revenue without affecting "health" of businesses

Minister of Finance: Efforts to increase revenue without affecting "health" of businesses

VCN - Minister of Finance Ho Duc Phoc stated that the Ministry of Finance has tried to find every solution to revenue without affecting the financial health and production and business of enterprises.
Banks to offer more shares to foreign investors

Banks to offer more shares to foreign investors

Many banks are planning to sell shares to foreign investors with the aim of attracting more diverse capital and enhancing competitiveness.
Publicize and clarify responsibilities in delaying final settlement of public investment capital for completed projects

Publicize and clarify responsibilities in delaying final settlement of public investment capital for completed projects

VCN - The Ministry of Finance publicly announced the final settlement of public investment capital for completed projects in 2023 of ministries, central agencies, corporations, state corporations, and People's Committees of provinces and centrally run cities. In particular, the Ministry of Finance requires applying sanctions to individuals and units that have not yet finalized public investment capital for completed projects.
Improve Tax law compliance by enhancing information collection and analysis

Improve Tax law compliance by enhancing information collection and analysis

VCN – Determining information collection as key role, over the past time, the Tax industry has implemented many information collection solutions.
VND83,000 billion of State budget 2023 saved in 2023

VND83,000 billion of State budget 2023 saved in 2023

VCN - In 2023, the management of state budget expenditure was implemented proactively and strictly according to estimates, ensuring correct policies and regimes, thoroughly saving regular expenditures, and cutting down on unnecessary and slow spending tasks.
Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.
Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
Read More

Your care

Latest Most read
Sustainable economic development from international cooperation in finance, accounting and auditing

Sustainable economic development from international cooperation in finance, accounting and auditing

VCN – The cooperation promotion among countries in the fields of finance, accounting and auditing not only improves the efficiency of financial management and resource sharing but also facilitate economic development, said by Deputy Minister of Finance Vo Thanh Hung.
Finance Ministries of Vietnam and Laos promote comprehensive cooperation

Finance Ministries of Vietnam and Laos promote comprehensive cooperation

VCN - At the meeting, Minister Ho Duc Phoc said that the traditional friendly relationship between the two countries’ increasingly develops.
Cashless payment develops rapidly in VN amid security concerns

Cashless payment develops rapidly in VN amid security concerns

At the end of last year, there were 182 million personal payment accounts in Việt Nam, with just over 87 per cent of adults owning payment accounts.
Disbursement of ODA funds has reached a very low rate, what solutions can

Disbursement of ODA funds has reached a very low rate, what solutions can 'accelerate' it?

VCN - A representative from the Ministry of Education and Training (MOET), which has a disbursement rate of 0% in the first five months of 2024, stated that in 2024, MOET was allocated 629 billion VND for the project to build technical infrastructure and
Strong digital transformation in tax management

Strong digital transformation in tax management

VCN - In the context of the Government's drastic direction in implementing the National Digital Transformation Program, building e-Government, digital Government, and digital economy, the Tax industry has made strong strides in digital transformation, cre
Mobile Version