Expand electronic tax returns for individuals with rental housing since 2018

Individuals can declare and pay tax 24/7 instead of going to the department for transactions as before. Picture: Thuy Linh.

In implementation of the Government's Resolution No. 36a/NQ-CP dated October 14, 2015, on e-Government, the tax branch has implemented many administrative reform measures, creating favorable conditions for taxpayers, since November 2016, the tax department has piloted the implementation of VAT, electronic personal income tax for individuals who have renting houses in two major cities of Hanoi and Ho Chi Minh City. This is a tax solution that provides online public services for taxpayers who are individuals, and individuals do not have to submit tax returns directly to the tax office during working hours. The piloting of electronic tax returns will save the costs of tax authorities, taxpayers and social expenses to modernize the management of tax collection and tax collection timely to the state budget.

As of April 2017, there were nearly 500 electronic forms of individuals with rental housing. So far, after nearly one year, there were about 25,305 individual accounts registering for electronic transactions with about 28,265 Electronic filing has been made, of which HCM City has 16,857 accounts and 17,036 declarations; Hanoi accounts for 8,448 accounts and 11,229 declarations.

According to Mr. Cao Anh Tuan, Deputy General Director of the General Department of Taxation, the implementation of the VAT and PIT tax on renting activities is very convenient. Previously, the lessor must file and pay personal income tax, quarterly tax, at the time of declaration to the tax office where the rental housing is located for filing, or by the post office. Then they must go to the bank, or treasury to pay a tax that takes a lot of time and cost. With online tax filing, individuals can make tax returns anywhere, at any time 24/7 without spending much time, effort or travel. Tax returns are made very easily on desktop computers, tablets, even on mobile phones.

Not stop there, to provide the best service for individual households, tax authorities have connected with commercial joint stock banks and enterprises to have solutions for electronic tax payment such as Joint Stock Commercial Bank for Foreign Trade Vietnam Bank for Industry and Trade (VietinBank), Vietnam Bank for Agriculture and Rural Development (Agribank), Vietnam Prosperity Joint Stock Commercial Bank (VPBank), National Payment Joint Stock Company Vietnam (Napas Company) provides electronic tax payment services to individuals. Since September 2017, some banks have officially provided electronic tax payment services with many utilities for individuals. Accordingly, individuals with accounts at banks connected with the General Department of Taxation may pay tax in the form of internet banking. When transactions are processed, all tax information will be updated in the system and taxpayers will be assisted in the implementation of electronic transactions. With personal electronic taxpayer services, taxpayers no longer have to worry about paying taxes on weekends and holidays because all information is recorded correctly over time.

The representative of General Department of Taxation said that the pilot of declaration and payment of personal income tax and VAT with the rental housing in Hanoi and Ho Chi Minh City mainly based on the spirit of encouragement, propaganda to help individuals aware of the benefit and active participation. The above results have marked the first milestone as well as the initial success of electronic tax declaration and payment for individuals in general and individuals with rental housing in particular; the citizens' response to the provision of electronic services by the tax authorities; the right direction of reform of administrative procedures of the Ministry of Finance and the tax branch; The determination of tax authorities in reforming administrative procedures.

According to Mr. Cao Anh Tuan, the General Department of Taxation is reviewing the effectiveness of pilot implementation in Hanoi and Ho Chi Minh City and will expand nationwide from the beginning of 2018. The reform of administrative procedures, creating favorable conditions for taxpayers to fulfill their tax obligations toward the state budget reflect the high determination of the tax branch, which is in line with the trend of tax administration development and modernization of other countries in the region.