Modernization of Tax Administration to Save Cost for Enterprises
Over the recent times, the modernization and reform of tax management of the Hanoi Tax Department have helped enterprises save time as well as cost and improve the productivity and sales.
Activities with regard to online tax refund and digital tax inspection and examination have been welcomed by the enterprise community. Enterprises satisfaction
According to Mac Quoc Anh, the Secretary General of the Hanoi Association for Small and Medium Enterprises (Hanoisme), the enterprise community highly values the efforts of the Tax Department during the last periods. According to the survey conducted by Hanoisme, by applying online tax refund, enterprises have saved up to 50% of labor force.
Online tax refund is one of many ways to renovate and modernize the system which the Hanoi Tax Department has been operating. The Tax Department continues to maintain, expand and advance the quality of online tax declaration and electronic tax payments. So far, over 98% enterprises have carried out tax declaration online and 95% of tax amount have been paid online, surpassing the expectation according to the Resolution no. 19/NQ-CP. This process has saved cost and time for not only tax payers but also tax officers. The Hanoi Tax Department has successfully implemented a project allowing enterprises to register and receive tax identification numbers online at stage 4 . The automatic process of business registration, enterprise establishment, and enterprise ID number issuance have been conducted in less than 30 minutes, 12.5% compared to the standard time of four hours.
Besides, the Hanoi Tax Department is selected by the Ministry of Finance and the General Department of Taxation to launch many pilot such as piloting electronic bills with confirmation code, electronic tax refund program, the value added tax declaration, electronic personal income tax payment for house renting. The Tax Department also actively collaborated with the Police Department and the Vietnam State Treasury to put into use the online vehicle registration fees payment at stage 4.
Businesses have applauded the renovation and modernization of tax administration. Pham Thi Ngoc, accountant of MTV Duyen Hai Company, said he company and the enterprise community as a whole can pay tax everywhere at anytime. They can either pay tax through commercial banks or the national treasury. The application of high technologies into tax administration has brought many advantages to enterprises. Enterprises do not need to go to tax agencies and will still be able to declare and pay tax.
Encouraging electronic tax examination
The application of online tax examination is reducing the troubles for enterprises. According to the report conducted by the Hanoi Tax Department, in the first 5 months of the year, the Tax Department has conducted roughly five thousand inspections with the total amount of collected tax or penalties of 748,5 trillion VND (increasing in both quantity and quality compared to that of the same period last year).
IT application in tax administation have also focused on helping enterprises and citizens perform their tax duties. The Department also acknowledges tax reform and IT application in tax administration is the most efficient way in the context of global integration. This also helps easing pressures when the number of tax payers are increasing, exceeding the handling capacity of tax officers.
“This reform has transformed Hanoi Tax Department and created a breakthrough in the attitude of staffs, tax payers and citizens . It contributed significantly to building a friendly image of tax officers, providing the most feasible facilitating conditions for enterprises and citizens in Hanoi to fulfill their obligations to the State”, the Vice President of Hanoisme Mac Quoc Anh pointed out.
At present, the total budget revenue for the first 6 months is 93,931 trillion VND, accounting for 50,1% of the estimate, and increasing by 18% over the same period of last year. As of May 31, the Department has collected 5,300 trillion VND of tax debts, in which more than 1,000 trillion VND are tax arrears related to land.
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