The strategy of tax system development for the 2021-2030 period: Towards high goals in digital government and digital economy

The tax reforms are aimed at creating the most favorable conditions for taxpayers. Photo: T.Linh

"Digitization" of tax services

The tax sector has made a strong impression with reforms of administrative procedures and legal corridors. The motto "Accompany taxpayers" has been thoroughly implemented by the taxation sector towards maximum convenience for the business community and people

Mrs. Nguyen Hai Yen, accountant of Vsteel Steel Structure Co., Ltd., Hanoi, has spent six years working as a corporate accountant. According to Yen, every year, the reforms of the tax industry are becoming more and more obvious, not only in administrative procedures but also in legal provisions. Most notably, the "digitization" of administrative procedures makes the implementation of tax obligations quicker.

"When I started the accounting job, it was also the time when the company implemented electronic tax registration. At the moment, the process is quite fast. However, the tax payment process is still quite difficult. Now, finalizing corporate income tax or finalizing personal income tax usually takes a lot of time and travel expenses. At the tax office, customers have to stand in line to get the number, bring a thick file including an invoice and then discuss with the tax officer. Many times, the documents are still incorrect or incomplete, I have to take them many times to resolve the issue," said Yen.

However, in the past three years, when the electronic tax payment has been "covered" to most businesses and factors such as transmission lines, steps have been upgraded, reformed, and improved by the tax industry. It is the "digitization" of tax transactions that has made the tax industry completely change and the fulfillment of obligations to the state budget becomes completely public and transparent.

According to General Director of the General Department of Taxation Cao Anh Tuan, after 10 years of implementing the tax system reform strategy for the 2011 - 2020 period, the tax sector has built a system of tax policies that are synchronous, unified, fair and effective, as well as suitable for the socialist-oriented market economy. A reasonable level of encouragement aims to facilitate the promotion of domestic production and is one of the effective macroeconomic management tools of the Party and State.

The 2011-2020 tax system reform strategy has built a modern, effective tax industry in Vietnam. The management of taxes, fees and charges is consistent, transparent, simple, easy to understand, and easy to implement based on three basic foundations: transparent tax policy institutions, simple tax administrative procedures in accordance with international practice; quality human resources; applying modern information technology with high linkage, integration and automation.

Towards digital government

In order to accelerate the reform of administrative procedures and create the most favorable conditions for taxpayers, the General Department of Taxation is urgently studying and coordinating with relevant agencies to complete the draft System Reform Strategy of tax in the 2021 - 2030 period.

According to the leaders of the General Department of Taxation, in this strategy, the tax industry will focus on the Ministry of Finance and the whole country to strengthen administrative reforms and improve the business environment.

Vietnam's business school is ranked in the group of top 30 countries (according to the World Bank report). At the same time, quickly build a modern administrative system, based on a contingent of highly professional cadres, civil servants and public employees with creative capacity, good ethical qualities, political bravery, serving people and businesses; implementing state management methods and tools mainly by indirect regulation, enhancing post-check; minimizing legal risks and compliance costs for people and businesses.

"The tax industry will also continue to promote the construction of e-Government towards digital government, striving to complete the construction of digital government by 2030 to rank among the top 50 countries in the world and ranking third in the ASEAN region on e-government and digital economy," Director General Cao Anh Tuan said.

According to Assoc., Dr. Le Xuan Truong, Head of Tax - Customs Department, Academy of Finance, in order to be able to accomplish the above objectives, in addition to continuing to review and cut unnecessary administrative procedures, the Taxation sector needs to increase the application of modern technology in management, ensuring the simplest and easiest electronic tax declaration and payment. By 2022, 100% of tax administrative procedures will be done electronically, connecting to the national online public service portal at level 4 and raising it to a higher level in the following years.

Along with that, the taxation sector also needs to perfect the connection of automatic tax administration information with state agencies, no later than 2025; complete a centralized taxpayer database; actively participate in international tax cooperation activities. In particular, it is necessary to study and apply modern and advanced revenue forecasting methods to improve the quality of budget collection analysis and forecasting in Vietnam.