Changing Times for Vietnam Taxation Sector (31/01)
31/01/2012 - 12 Lượt xem
During the 2001-2010 period, the tax sector faced many difficulties and challenges including natural disasters, epidemic diseases, instability and volatility in domestic and international markets. Despite this, under the close guidance and directions of the Party, the National Assembly, the Government, and the Ministry of Finance and with efforts and determinations of all the working staff, the taxation sector has overcome difficult times to achieve many successes.
In overall terms, most of the tax policies have been modified and supplemented in the direction of cutting, reducing and exempting tax rates to stimulate production and create favorable conditions for business to expand operations. Specifically, the General Department of Taxation urged related sectors and agencies to (1) Abolish Value Added Tax (VAT) and Enterprises Income Tax on fresh food businesses, Tax on Capital Use for State Owned Enterprises (SOEs), Overseas Profit Transfer Tax on foreign investors and many other unnecessary fees which cause trouble and waste for individuals, organizations and businesses, (2) Reduce tax rates of Enterprises Income Tax from 32 to 25 percent, of VAT from 20 to 10 percent and 5 percent, (3) Extend the range of enterprises that were not subject to VAT or benefited from VAT of 0 percent, enterprises that benefited from Enterprises Income Tax reduction and exemption, especially those that employed large numbers of women workers or the disabled and (4) Exempt and reduce taxes relating to land use for beneficiaries from social policies. In addition, the General Department of Taxation issued policies to stretch and wipe out debt payments for businesses and households in difficulties, enhance preferential tax policies for investors in industrial zones, export processing zones, high tech parks and areas facing difficulties.
Together with changes in tax policies, the taxation sector has been promoting reforms in administrative procedures so that organizations and individuals were able to complete their duties with the State budget better. These reforms showed in many stages, from tax registration, tax declaration to tax payment, implementation the benefits of the "one-stop shop" mechanism and created favorable conditions for enterprises use their self-printed invoices. Therefore, taxpayers were able to benefit from better services and found it easier to complete their duties.
After two phases of the National Public Administrative Reform Project (Project 30) from August 2008 to May 2010, 76 percent of administrative procedures in the tax sector were simplified and 36.1 percent of the costs were cut and reduced. It is expected that 258 more administrative procedures will also be simplified in the third phase of the Project.
With great efforts and determination, the taxation sector has completed its political tasks for the past decade. During the 2006-2010 period alone, total State revenue in the sector reached VND1.551 trillion, equivalent to 116.5 percent of the estimate, an increase of 2.1 percent compared with plan and 2.5 times higher compared with the 2001-2005 period with average growth of 16.5 percent per year. This contribution created a strong basis for the country's comprehensive development, curbed inflation, reduced the State budget deficit, enhanced the poverty reduction strategy, and contributed towards creating a healthy national finance sector to help Vietnam implement its international commitments, overcome the world economic crisis and integrate better in global trade activities.
The Vietnamese taxation sector is setting for itself even bigger tasks, including becoming one of the top four ASEAN countries for tax collection by 2020. In the 2010-2020 period, it will strive to obtain a goal of at least 90 percent of enterprises using electronic tax services, 65 percent of enterprises using online tax declaration and ensure an average 80 percent taxpayers contentment rating among tax office service users. In addition, it will strive to increase the excise tax collection to more than 70 percent of the total State budget revenue by 2015 and to more than 80 percent of the total State budget revenue by 2020. The percentage of taxes, fees and charges collected in State budget revenue in the 2011-2015 period will account for 22 to 23 percent of GDP with average growth rate from 16 to 18 percent per year.
Tax policies will be modified in the direction of (1) Reducing the number of goods and services which are not subject to VAT, (2) Changing and supplementing export tariffs to encourage production and exports of high value products, reduce tax rates and gradually simplify goods codes and tariffs, (3) Reducing the tax rates of Enterprises Income Tax following a suitable roadmap to attract investment and increase competitiveness among businesses and (4) Extend the range of taxpayers in accordance with international rules to improve law obedience by organizations and individuals.
Regarding tax management, the taxation sector will further promote the simplification of administrative procedures to (1) Create favorable conditions for enterprises and individuals in their tax declarations, (2) Reduce the frequency of tax payments, (3) change the tax calculation methods in favor of the taxpayers and (4) Standardize tax management processes based on the application of Information and Technology.
With those set targets, the Vietnamese tax system reforms in the next decade will open a new development period for the sector in the country's integration process./.
Source: VEN
Source: VEN
