What are the specific objectives of tax administration reform by 2025 in Vietnam?

What are the specific objectives of tax administration reform by 2025 in Vietnam?

According to Clause 2 Section 2 Article 1 of Decision 508/QD-TTg in 2022, specific objectives of tax administration reform by 2025 are as follows:

- The minimum level of taxpayers’ satisfaction with tax authorities’ services is expected to be 90%.

- 100% of the Law on Tax Administration, written documents providing instructions for implementation thereof and other relevant legal normative documents are expected to be revised or promulgated as planned.

- The minimum rate of electronic support for taxpayers is expected to reach 70%.

- The minimum ratio of applications for tax registration answered online at the level 3 and 4 to total of received applications is expected to reach 80%.

- The minimum rate of online tax declaration, payment, refund, exemption and reduction of taxpayers who are enterprises and other entities; who are individuals is expected to reach 98% and 85%, respectively.

- The minimum rate of tax refund, exemption and reduction applications handled and answered by the deadline is expected to equal 98%.

- The ratio of total tax arrears until December 31 each year to tax amounts and other revenues that the state budget succeeds in collecting each year is expected not to exceed 8% (especially, taxes and fees in arrears is expected to account for less than 5% of total state budget revenue). The minimum ratio of successfully recovered debts to recoverable debts due on December 31 that are brought forward from the previous year is expected to reach 80%.

- Build an compatible and centralized information technology system that meets 100% of the demands for data collected, processed, stored and utilized in tax administration and governance of tax authorities, and 100% of taxpayers’ electronic services; 100% of tax declaration and electronic tax payment which are processed within 24 hours; 100% of total amounts of electronic tax payment which are accounted for in real time; 100% of taxpayers who are granted electronic accounts to check their tax obligations and tax payments on a smart mobile devices. The information technology system must meet the remote processing needs of 98% of tax personnel in charge of processing applications who are required to deal with their work out of tax authorities’ offices.

What are the specific objectives of tax administration reform by 2025 in Vietnam? (Image from the Internet)

What are the regulations on risk management in tax administration in Vietnam?

According to Article 9 of the Tax Administration Law 2019, the risk management in tax administration is as follows:

- Tax authorities shall implement risk management in taxpayer registration, tax declaration, tax payment, tax debts, tax enforcement, tax refund, tax audit, tax inspection, management and use of invoices, records and other tax administration tasks.

- Customs authorities shall implement risk management in tax declaration, tax refund, tax cancellation, tax audit, tax inspection and other tax administration tasks.

- Implementation of risk management mechanism in tax administration includes collecting, processing information, data related to taxpayers; formulating criteria of tax administration; evaluating regulatory compliance of taxpayers; categorizing levels of risk in tax administration and organizing the implementation of suitable tax administration measures.

- Evaluation of regulatory compliance of taxpayers and categorization of levels of risk in tax administration:

+ Assessment of regulatory compliance of taxpayers shall be conducted based on systems of criteria, information on work history of taxpayers, compliance processes and cooperating relationships with tax authorities in implementing tax provisions, and rate of tax violations;

+ Categorization of levels of risk in tax administration shall be conducted based on the regulatory compliance of taxpayers. During the categorization of risk levels, tax authorities shall consider relevant contents, including information on risk signs; signs, actions of tax administration violations; information from results of operations of tax authorities, other relevant authorities as prescribed in this Law; 

+ Tax authorities shall use the results of evaluation of taxpayers’ regulatory compliance and categorization of levels of risk in tax administration to implement suitable measures of tax administration.

- Tax authorities shall utilize information technology systems so as to automatically integrate and process data for the application of risk management in tax administration.

- The Minister of Finance shall stipulate criteria for evaluation of taxpayers' regulatory compliance, categorization of risk levels and application of risk management in tax administration.

What are the regulations on building the tax administration force in Vietnam?

According to Article 10 of the Law on Tax Administration 2019, the tax administration force must be built as follows:

- The tax administration force shall be built with transparency and strength; equipped with and proficient in modern techniques, operating with validity and efficiency.

- Tax officials are persons meeting requirements on recruitment, appointment into ranks, posts, titles in tax authorities; receiving training and professionally upgrading, managed and employed in accordance with provisions on officials.

- Regulations on service, titles, standards, salary, other preferential rewards, insignias and uniforms of tax officials shall be implemented as prescribed by law.

- Tax authorities shall be responsible for training and building the force of tax administration officials so as to perform the functions of tax administration as prescribed by law.