Vietnam's tax procedure reform on the right track

Vietnam’s reform on tax administrative procedure is on the right track, according to Joanna Nasr, an expert of the World Bank team and writer of the Doing Business report.

Illustration Photo (Photo: Thai Thien)

However, she warned that Vietnam’s position in the next Doing Business report may fall when indicators related to post-declaration procedures are included.

The World Bank expert made the remark at a workshop on tax reforms in Hanoi on January 15, explaining that procedures after tax declaration are also an administrative burden to enterprises.

Nasr said the new criteria for the 2016 report will include tax inspection, complaint and refund procedures.

Chairwoman of the Vietnam Tax Consultants Association said stricter procedures are needed to prevent tax refund fraud but they could lengthen the time for this process, thereby affecting Vietnam’s position on the global rankings.

Hoang Thi Lan Anh from the General Department of Taxation said reform of tax payment measures has been carried out continually in recent years and the electronic tax service is being rolled out to enterprises throughout the country.

The World Bank representative recommended that in order to reduce the number of hours spent on paying tax, Vietnam needs to simplify procedures related to the declaration of value added tax, compulsory insurance and corporate income tax, as well as implement systems to assist tax payers.

According to reports at the workshop, taxpayers in Vietnam need 872 hours each year to complete their payment, which is more than four times the average of countries in the Asia-Pacific region.

(Source: nhandan.org.vn)