Tax sector supports households to transfer into business

Currently, the definition of Poll tax for household still depends on self-declaration by households. Photo: T.L

It is affirmed by the leaders of the General Department of Tax sector at the press conference of the first quarter of 2017 dated April 10, 2017, of the Ministry of Finance.

According to Mr.Nguyen Dai Tri, the Deputy Director- General of the General Department of Tax sector, as per the provisions of the tax law, the fixed turnover for calculating the Poll tax rate of households is carried out annually according to the survey of the Tax authority. This fixed turnover is always consulted by people and publicized so that the households can understand and supervise each other. In addition, the Tax authorities always ensure the fixed turnover and collection and transparency and publicity, avoiding the case where the households and Tax authority agree by themselves, affecting to revenues.

Sharing the difficulty in tax administration in this area, Mr.Tri said that the current tax collection is always implemented in compliance with the tax law. However, the Tax authorities also have certain difficulties. "Most of these small households do not have sales invoices or documents. The fact shows that many households have the same size but their revenues are quite large different. However, there is nothing to prove their actual revenues except self-declaration. Hence, it is difficult for local tax officials to know exactly to manage ".

In addition, the representatives of the General Department of Tax sector also shares, the tax administration for the households to avoid the loss of budget revenues is always focused and strengthened by the Tax sector. However, for some markets or markets with sensitive foreign factors, the Tax authority has to ensure equity and maintain stability in these markets, avoiding the households’ disagreement leading to strike.

In fact, there are many individual households with large revenues and used a lot of employees, which are eligible to establish a business. However, over the past time, many households have not implemented this work. For this situation, Mr. Nguyen Dai Tri said, according to the current provisions of the Enterprise Law, the household with 10 or more workers will have to set up business. However, many households have not registered to become a business due to difficulties in cost for management of accounting, invoices, and documents. On the other hand, business registration procedures are complicated due to the management of various agencies.

"In the coming time, the Tax authority will assess the difficulties and advantages of this situation on the basis of actual observations. The Tax sector will maximally support the production and business activities of enterprises and facilitate them to understand the long- term benefits when transferring from individual households into business” affirmed by Mr.Tri.