Complete Financial policy, promote business

Over the years, with deeper integration, the global economy continues to recover, but still face with many potential risks, the domestic economy despite the positive changes, stable growth rate but still there are some difficulties and challenges. In this context, the fiscal policy is issued along with the new laws, law amendments and supplements have removed many difficulties and obstacles, thus, enabling enterprises to recover and develop.

Establishing transparent legal framework

Some important new features of the new tax policy were enacted as a law on amending and supplementing a number of tax laws; a decree on amending and supplementing 06 other decrees to ensure the transparency including law on corporate income tax, VAT, personal income tax. In which, high preferential CIT conditions applied for enterprises investing in the field of agriculture and urban areas; tax exemption for revenue from co-operative and enterprises in favored fields and favored areas. In addition, the new tax policy has additional incentives at a high level for the duration of investment and industrial production projects to support development priorities, investment projects capitalized at a minimum investment of 12,000 billion dongs which widely and deeply affect the socio-economic; deregulate costs charged to advertising, marketing, promotion expenses, ... thus creating an opportunity for businesses to promote products, rebrand and enhance competitiveness.

Besides, some products serving the agricultural production are now not subject to VAT (previously subjected to 5% VAT); offshore fishing vessels are also not subject to VAT; remove several provisions in the tax filing to simplify tax declaration procedures monthly, quarterly; not apply coercive measures and not charge for late tax payment of tax liabilities in some cases, supplement additional provisions of the exchange rate for tax calculation and payment to the State’s budget; remove fees, charges for input production and trading activities … in order to handle difficulties for enterprises during the course of operation. Moreover, these solutions have created a clear and transparency legal framework encouraging economic forces to invest and provide public services, promote enterprises to reduce costs, lower product costs and services.

Along with improving fiscal policies, the Ministry of Finance continues to reform administrative procedures in the field of taxation and customs in line with the Government’s Resolution No. 19 / NQ-CP; simultaneously, opening up capital flow for investment in capital market and diversifying capital mobilization channels for enterprises, instead of traditional mobilization channels. The preferential policies mentioned above is implemented widely and highly appreciated by domestic and international enterprises.

The task of fiscal policy in 2015 was identified as focus on mobilization, distribution, management and effective utilizing of national resources, gradually restructuring of the state budget, financial security and maintain macro-economic stability, control inflation and ensure economy grow sustainability, solve social issues, defense - security in the new era. Implementing this goal, the entire financial sector has specific solutions, in which the objectives, the first task is to continue focusing on solving problems for production - businesses, economic recovery, solid income generation and stable to the state budget. Additional restrictions enacted new policies to reduce state budget revenues, except for tax cuts for the implementation of international commitments. Strengthen the management of revenue and revenue loss prevention, anti-smuggling, trade fraud, transfer pricing; centralized recovery of tax debts; promote the reform of administrative procedures of tax and customs ...

Breakthrough in administrative procedures

The Ministry of Finance has implemented detailed programs for administrative reform in a comprehensive manner for all financial sectors. Particularly, for the two areas regarding tax and customs, the General Department of Taxation and General Department of Customs promptly implemented solutions and comprehensive synchronization across all operational functions. The institutional reforms associated with the administrative reform, the modernization work and the application of information technology, conducting innovation in training, raising political awareness and qualifications for staff, and officer.

Initial results have shown that, through the review, hundreds of administrative procedures have been simplified, in which 12 procedures concerning e-tax protocols; 34 procedures regarding invoices, receipts, wine stamps and 14 other tax administrative procedures ... For the customs sector, the General Department of Customs has reviewed and abolished 17 administrative procedures, simplifying 46 procedures; review and standardize procedures in the field of customs, including 23 new procedures, replacing the 128 procedures, abolished 84 procedures ... The time for tax administration procedures have been cut-off significantly, particularly in 2014, the time has been reduced by 290 hours, and now is 420 hours, the number of tax administration procedures now only performed by 117 hours, meeting and exceeding objectives as set out under Resolution No. 19 / NQ-CP of the Government. The effective implementation of administrative reform has been recognized through the assessment and Public Administration Reform Index by ministries, sectors recently. Accordingly, the Ministry of Finance ranked No. 2 out of 19 ministries.

Despite achieving significant results, but the reform of administrative procedures in the field of taxation and customs under Resolution No. 19 / NQ-CP still face with difficulties and problems. Business community still expect more in innovation, substantive reform, synchronization at all stages, sectors related to tax and customs procedures. In particular, the companies currently have to pay unofficial fees in the course of implementation of the administrative procedures related to tax and customs which needed to be dealt with.

In the context of Vietnam's economy deeply and widely integrating with the regional economy and the world, creating a transparent business environment, clearing the obstacles and improving national competitiveness in the global competitive strategy to attract foreign investors is a priority objective which should be done quickly.

The year 2016 is marked with strong administrative reform, which brings benefits to individual, and businesses and ensure effective management of the state, protect the community’s interests and ensure social security. The Ministry of Finance, the General Department of Taxation, and the General Department of Customs will continue to review and evaluate the provisions of the tax law and customs to detect and submit proposals to the Government, Parliament, on supplementing and amending regulations to suit Vietnam practices and in accordance with international practice. Along with the administrative reform, the self-reform to ensure efficient in management of the state should be concerned.

In the context of international integration, the Vietnam’s economy not only have more opportunities to reach with favorable business conditions, but also under pressure of competition, which help businesses to develop; the administrative procedure of the State in general, and the financial sector in particular needed to be improved, innovated, thus creating a transparent legal framework, paving the way for economic activities - social. Therefore, the whole financial sector shall amend and eliminate the long administrative procedure which causes trouble in business, contribute positively to the economic development of the country during the current period. /.