A taxpayer provided with consultancy. The tax watchdog was eyeing further reforms in 2021-30 to bring Viet Nam to the top 30 in the world in terms of the ease of doing business. — VNA/VNS Photo

The tax watchdog was eyeing further reforms in the 2021-30 period with focus on simplifying tax procedures and applying information technology in management to contribute to improving the business climate and bringing Viet Nam to the top 30 in the world in terms of the ease of doing business.

Director of the General Department of Taxation Cao Anh Tuan said that the tax reform strategy in the 2021-30 period aimed at two goals, improving and synchronising tax policies to implement socio-economic development goals and developing a modern and streamlined tax system that operates efficiently.

Tuan said that reforms must ensure the stability, sustainability and transparency of the tax collection revenue while seting up a competitive economic environment appropriate to the country’s integration and development process.

The highest goal of reforms was to promote production and increase the competitiveness and encourage Vietnamese enterprises to participate in global value chains to create high added value.

Accordingly, the corporate income tax would be kept stable at 20 per cent as currently to the end of 2025 and adjustments could be put under consideration from 2026 depending on the Vietnamese economy’s situation and the global context.

Regarding value added tax, it was necessary to narrow down the subjects for tax exemption to expand the tax base, from 20 categories of goods and services in 2025 to 12 in 2030.

He added that the efforts would be made to speed up the development of an e-government towards a digital government by 2030 and bring Viet Nam to the top 50 countries in the world and third in ASEAN in terms of e-government and digital economy.

The Ministry of Finance recently asked the General Department of Taxation to continue to strengthen the application of information technology in tax management. Specifically, priority would be placed on expanding the application of electronic invoices, electronic tax payment, registration fee payment and individual tax payment.

By 2022, the tax watchdog targeted that all administrative tax procedures would be conduct electronically with connection to the national public service portal at level 4.

Phi Van Tuan, Deputy Director of the General Department of Taxation, said that it was important to keep a close watch on the compilation of tax policies to ensure that the administrative reforms really create a more favourable environment for taxpayers and there would be no new procedures.

Currently, the tax watchdog was developing circulars and decrees to guide the implementation of the Law on Tax Management No 38, Tuan said, adding that close watch was being placed on the process to ensure that no new procedures arise in the new circulars.

The General Department of Taxation’s report showed that electronic tax declaration was implemented in all 63 provinces and cities nationwide. The tax watchdog also cooperated with 50 commercial banks to facilitate electronic tax payment and refund. — VNS