Focusing on managing large taxpayers, Large Taxpayers Department

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The conference on tax management for large taxpayers at the General Department of Taxation

Focus on managing large taxpayers

The General Department of Taxation said the General Department of Taxation advised and reported to the Ministry of Finance on the review, development and consultation of ministries and government agencies on the project on restructuring the Large Taxpayers Department.

On March 30, 2021, the Prime Minister issued Decision 15/2021/QD-TTg amending and supplementing a number of articles of Decision 41/2018/QD-TTg dated September 25, 2018 to define functions, tasks, powers and organizational structure of departments and units under the General Department of Taxation. Accordingly, the Large Taxpayers Department will be upgraded and reorganized.

The Large Taxpayers Department covers full tax management functions, which is the premise for the tax sector to strongly reform the management of tax collection, especially central budget collection in accordance with the Resolution of the 13th Party Congress, in which the central budget plays the leading role, ensuring national expenditure tasks, serving key political, social, economic tasks and supporting localities that have not yet balanced their budgets.

At the same time, the establishment of the Large Taxpayers Department also creates favorable conditions for the tax sector to mobilize resources, improve quality and efficiency in tax administration to accompany and facilitate taxpayers in production and business activities as well as the observation of tax policies and laws.

According to Mr. Cao Anh Tuan, Director of the General Department of Taxation, the establishment of the Large Taxpayers Department under the General Department of Taxation is an important highlight in 2021 of the tax sector, helping improve the effectiveness and efficiency in the management of state budget revenue in general and tax revenue in particular.

"In the immediate future, the Large Taxpayers Department will directly manage taxes for 125 large enterprises, accounting for nearly 0.015% of enterprises operating across the country, but the revenue from these enterprises makes up 17% of the total budget revenue contributed by the tax sector. It can be said that these are big and important customers of the tax sector, so the grouping of these enterprises to manage at the central tax agency will help the tax sector better serve such an important customer group," said Mr. Cao Anh Tuan.

The General Department of Taxation also said that the transfer of enterprises to central management would neither affect the implementation of tax obligations, nor increase time and costs for businesses. The management agency will not be limited to a province or a city, but will have overall information on the activities of businesses across the country to synthesize and advise competent authorities in developing mechanisms and policies in accordance with regulations and operations of enterprises, aiming for administrative reform, simple and transparent tax policies, reducing costs and time of observation of tax obligations for taxpayers.

Not raising administrative procedures

Speaking at the conference, Director of Hanoi Tax Department Mai Son said from January 1, 2022, the Large Taxpayers Department will receive and directly manage 63 enterprises currently managed by Hanoi Tax Department. These are all groups, corporations and leading businesses in key fields of the country such as: petroleum, oil and gas, electricity, telecommunications, aviation, banking, and real estate, minerals, insurance and securities.

These 63 enterprises contribute 23.6% of the total state budget revenue managed by the Hanoi Tax Department every year on average. In which, revenue from production and business of the 63 enterprises in 2021 accounted for about 37.3% of total revenue from production and business activities of Hanoi Tax Department and it is expected that the revenue will account for 41% of Hanoi total revenue from production and business activities in 2022. This is one of the key revenue sources helping Hanoi Tax Department succeed in the budget collection task in 2021 and earlier.

Mr. Tao Duc Thang, the new CEO and Director General of Viettel Military Industry and Telecommunication Group, also said the establishment of the Large Taxpayers Department in the new development situation of the country's economy is very practical and appreciated.

The establishment of the Large Taxpayers Department at the central level with full tax management functions, will overcome the limitations and inadequacies in tax administration for large enterprises, especially large enterprises engaging in multi-industries and multi-fields under the model of parent company - subsidiary companies such as Viettel; and ensure consistency in the implementation and dissemination of tax policies and laws into the actual operation of enterprises.

"We hope this will be a premise for the tax agency to research and propose solutions and incentive policies to support large enterprises, creating favorable conditions for them to accompany and develop with the country," said Mr. Tao Duc Thang.

Deputy Minister of Finance Tran Xuan Ha said first of all, as a tax administration agency, the Large Taxpayers Department must comply with regulations, including those on tax policies and tax administration. With the current operation process, the department is not allowed to raise administrative procedures, create more complicated and difficult reforms for businesses and must also perform tax administration functions such as declaration, collection, payment, inspection, examination, and statistics.

The Deputy Minister also noted that the Large Taxpayers Department must handle all relations such as: relations with businesses; relations with local tax offices; relationships with central financial agencies such as the State Treasury as well as local State Treasuries; and relations with units in the General Department of Taxation.

Hanoi recommends taxpayers go through procedures via electronic method or postal service

"In just a few days, the Large Taxpayers Department will officially open, the leader of the Ministry of Finance believes that with great efforts and determination, the department will overcome the initial difficulties and effectively implement assigned tasks. Thereby, contributing to improving the quality and efficiency of tax administration in particular as well as financial and budgetary work in general," said Deputy Minister of Finance Tran Xuan Ha.