Tax system reform contributed to improve the business environment

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On implementation of Resolution No. 19-2016/NQ-CP of the Government on the tasks and key measures to continue to improve the business environment and enhance the national competitiveness in 2016 -2017 and orientation by 2020, in the previous year, Taxation has specific action plan with 19 tasks and 34 specific resolutions.

According to statistics of the General Department of Taxation, until December 31, 2016, it has completed 32 solutions. In which, there were 6 solutions which were completed and continuously deployed in 2017: On implementation of the target in 2016-2017, there were 95% of companies declaring and paying taxes at level 4; Implementation of electronic tax refund; settlement of appeals in a timely fashion for taxpayers; review and simplifying Tax administration procedures; implementation of risk management in Tax administration; and strengthening the organizational structure of Taxation units.

Mr Phi Van Tuan, the Deputy Director General of the General Department of Taxation said that in 2017 and orientation by 2020, the target of improving the business environment and contributing to enhance national competitiveness in finance needed to be performed synchrously, and comprehensively.

Accordingly, it continues to support and remove obstacles for production and business; promotes tax administrative procedures reform, shortens the process of handling, and modernizes the application of information technology in State administration; reduces the time of implementing administrative procedures to ensure publicity and transparency, and enhances the responsibilities of State administrative agencies in accordance with international practices to achieve targets and requirements.

The target is to reach the average level in the group of ASEAN 4 countries on tax administration reform including 3 target groups on Tax refund, risk management in Tax audit and inspection, and the time and results of handling appeals on Tax; shortening the time of Tax and social insurance payment to not more than 168 hours/year; continuing to improve the regulations to develop financial markets and financial services to create a favorable, equal and transparent business and investment environment.

Especially, striving to the end of 2017, most public services under management scope relating to people, and enterprises will be provided at level 3 and allowed to use online charge payment, and online dossiers received and returned or though internet (online public service at level 4)

To achieve the targets of Resolution 19/2017/NQ-CP of the Government, the draft action plan launched which was provided by the General Department of Taxation focused on six key solutions including: Implementating the target to support and remove difficulties for business and production; Reaching the average level in group of ASEAN 4 countries on Tax administration reform including 3 target groups on Tax refund, risk management in Tax audit and inspection, the time and results of handling appeals on Tax; Online public service at level 4; Reducing the time of Tax payment and develop Tax agents and providing value-added services on electronic transactions in Tax payment; strengthening the organizational structure of Taxation to meet the demand of the administrative procedure reform, and transformation of management methods in the units of the Ministry.

Deputy Minister Do Hoang Anh Tuan said that the reform of administrative procedures is one of three important tasks of Tax under Resolution 19 in recent years. The Deputy requested: "The General Department of Taxation must continue to implement Resolution 19 in 2017 to make a major breakthrough in the process of tax procedures for businesses. In 2017, the General Department of Taxation must establish the editorial team for comprehensive study on the issues raised on Tax administration, the contents related to the Tax policies that must be amended in 2017- 2018. Concurrently, it needs to study for amending contents related to the decree on Tax administration, participating in the tax administration perspective to the tax law”.

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The Deputy Prime Minster also mentioned 9 concerned issues in the draft action plan, including removing the obstacles, requirements and appeals of Taxpayers; establishing the database of Taxpayers; handling the obstacles related to the time of report making and Tax declarations; reviewing the entire operational process on Tax refund from declaration to management.

At the same time, determining not to accept enterprise adding dossiers; building a database on electronic invoices with the goal to facilitate enterprises and reduce loss of revenue , and Tax should consider this as a reform in management of large enterprises, risk management and anti transfer pricing.