The time needed to follow tax procedures has been reduced by 420 hours

Since beginning of 2014, the Tax sector has dropped hundreds of hours cutting long procedures, thereby saving costs for businesses.

According to General Department of Taxation, until end of June, total hours spent for tax payments by a Vietnamese business had been reduced to 117 hours after the Department removed hundreds of procedures.

Earlier, according to World Bank’s report, total hours spent by a business for paying taxes in 2013 were up to 872 hours. Total hours spent for tax payments in Vietnam stand at the highest level in comparison with other countries in the region. Therefore, the Prime Minister has issued Resolution No. 19 on improving the business environment, which requires the tax sector to shorten the time enterprises for paying taxes to 121.5 hours.

According to Mrs. Hoang Thi Lan Anh – Deputy head of the General Department of Taxation’s Reform and Modernization Department, the reform of administrative procedures for taxation in 2014 will be recorded in the evaluation report of World Bank in 2016- 2017 due to the delay in their calculations. "However, Vietnam businesses have applied the policy of cutting time for tax payment since 2014”, she said.

Accordingly, only in year 2014, the tax authority has helped businesses reducing the time of 370 hours for paying taxes after removing procedures such as: Removing the list of invoices on selling and buying goods and services, cutting off unnecessary information in declaration of VAT, cutting off items of turnover and expenses having temporary differences between the accounting and tax.

Beside of removing series of procedues as mentioned above, the tax authority has issued Circular No. 92 and Circular No. 96 prevailing new tax policies for business householders. Therefore, to prevent purchasing invoice, since 2016 the business householders must not only pay their fixed turnover but declare and pay tax quarterly. Beside that, the tax sector will publish information of 200 householders operating in the same location or business sector as a solution for cross – controlling each other.

According to Mrs. Ta Thi Phuong Lan – Deputy Head of Personal income tax Department, the new tax policies applied for the business household do not aim to increase the state budget. Total tax amount collected from their accounts are not up to 2% of total state budget. Therefore, the issuance of these new policies aims to bring transparency to the tax collection for the business household and facilitate the tax payers.

Source: vnexpress