The tax authorities must continuously reform administrative proceduresas there are many shortcomings, said Finance Minister Dinh Tien Dung at aconference in Hanoi on July 3.
Dung said that though theagency had made progress in reforming its tax procedures in recentyears, it still had a long way to go in order to match regionalstandards.
He quoted the World Bank's 2014 report onbusiness environment as saying that businesses in Vietnam have todeclare and submit taxes 32 times a year. An average of 872 hours arerequired to complete the procedures (it will take roughly 500 hours fortax paperwork if the time required for declaring and submitting socialinsurance, health-care and unemployment data is excluded).
Thetime taken is 4.98 times more than that of the OECD bloc, 4.1 timesmore than the Asia-Pacific countries and 5.1 times more than the otherASEAN countries.
Dung said that the tax authorities must try to cut down the time to roughly 200 to 300 hours.
GeneralDirector of Taxation Bui Van Nam affirmed that the tax agency wouldimprove the administrative procedures to create the most favourableconditions for firms.
It would help firms cut costs, savetime and boost production, which would contribute to increasing the taxcollection, Nam said.
At the conference, the GeneralDepartment of Taxation also reported that the country's tax collectionin the first half of the year was estimated to be 335.09 trillion VND or15.73 USD billion, up 14.5 percent year-on-year and equal to 53.7percent of the annual tax collection plan.
The department reported that 46 of 63 cities and provinces nationwide in H1 met more than half of their tax collection plans.
Thetax agencies in H1 also collected an additional 4.119 trillion VND or193.38 million USD, up 80.8 percent year-on-year after the audits of20,983 enterprises.
During the period, the agencies alsoinspected 557 firms which declared losses and showed signs of transferpricing, and collected an additional 580 billion VND or 27.23 millionUSD.
To increase the tax collection in the second half ofthe year, deputy director of the Ho Chi Minh City Taxation Department LeXuan Duong suggested that during periods of economic difficulties, theGovernment should grant tax payment extension to more firms to preventtheir closure if the firms have committed to pay their tax arrears.-VNA
Dung said that though theagency had made progress in reforming its tax procedures in recentyears, it still had a long way to go in order to match regionalstandards.
He quoted the World Bank's 2014 report onbusiness environment as saying that businesses in Vietnam have todeclare and submit taxes 32 times a year. An average of 872 hours arerequired to complete the procedures (it will take roughly 500 hours fortax paperwork if the time required for declaring and submitting socialinsurance, health-care and unemployment data is excluded).
Thetime taken is 4.98 times more than that of the OECD bloc, 4.1 timesmore than the Asia-Pacific countries and 5.1 times more than the otherASEAN countries.
Dung said that the tax authorities must try to cut down the time to roughly 200 to 300 hours.
GeneralDirector of Taxation Bui Van Nam affirmed that the tax agency wouldimprove the administrative procedures to create the most favourableconditions for firms.
It would help firms cut costs, savetime and boost production, which would contribute to increasing the taxcollection, Nam said.
At the conference, the GeneralDepartment of Taxation also reported that the country's tax collectionin the first half of the year was estimated to be 335.09 trillion VND or15.73 USD billion, up 14.5 percent year-on-year and equal to 53.7percent of the annual tax collection plan.
The department reported that 46 of 63 cities and provinces nationwide in H1 met more than half of their tax collection plans.
Thetax agencies in H1 also collected an additional 4.119 trillion VND or193.38 million USD, up 80.8 percent year-on-year after the audits of20,983 enterprises.
During the period, the agencies alsoinspected 557 firms which declared losses and showed signs of transferpricing, and collected an additional 580 billion VND or 27.23 millionUSD.
To increase the tax collection in the second half ofthe year, deputy director of the Ho Chi Minh City Taxation Department LeXuan Duong suggested that during periods of economic difficulties, theGovernment should grant tax payment extension to more firms to preventtheir closure if the firms have committed to pay their tax arrears.-VNA
