Tax Talk: Engaging in Policy Dialogues with Businesses Across Five Provinces and Cities

Dialogue is a vital "channel" for the tax industry to listen and absorb practical reflections on the current tax policies that are not yet reasonable. This process enables the industry to make appropriate recommendations and amendments.

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Individuals coming to tax offices to file their taxes. (Source: VNA)

On September 27th, the General Department of Taxation is expected to host a direct dialogue with taxpayers in Ho Chi Minh City and four neighboring provinces, including Binh Duong, Dong Nai, Ba Ria-Vung Tau, and Long An.

Amid the negative impacts of the pandemic, natural disasters, and global economic and political issues on Vietnam’s socio-economic development and business operations, the General Department of Taxation has proactively advised the Ministry of Finance on researching and proposing competent authorities to issue timely and unprecedented tax solutions.

These solutions focus on tax extensions and exemptions, including value-added tax, corporate income tax, personal income tax, special consumption tax, and land rent. The total value of tax exemptions, reductions, and extensions for the first nine months of 2024 is estimated at VND 102,676 billion.

This is a critical time for businesses, and they need more support not only in terms of policies but also in the tax sector’s efforts to streamline administrative procedures, modernize tax management, and provide direct assistance to reduce costs and challenges.

To enhance the effectiveness of these solutions, the General Department of Taxation organized this conference to listen to and address the difficulties, obstacles, and suggestions of individuals and enterprises regarding tax regulations and policies.

Additionally, this conference serves as an important channel for the tax industry to receive feedback on existing tax policies and make necessary amendments and supplements.

The dialogue will focus on several key areas, including invoices and receipts, value-added tax policies (including tax refunds), corporate income tax (including withholding tax), personal income tax, tax incentives and reductions, and land-related taxes.

In preparation for the dialogue, the General Department of Taxation sent an open letter to enterprises and taxpayers, inviting them to send any questions or concerns regarding tax policies, tax administration, and tax-related administrative procedures to the local tax departments of the five provinces or directly to the General Department of Taxation.

To promote openness and proactive problem-solving, the conference will be connected online to the 63 provincial and municipal Tax Departments across the country. This will enable all tax authorities to grasp the spirit of handling and guiding the resolution of obstacles, ensuring uniform application in managing and resolving similar obstacles for businesses nationwide.

The tax sector has also directed its units to promptly compile feedback on tax policies, tax administration, and tax-related administrative procedures from taxpayers. Additionally, they are preparing the necessary equipment and facilities to welcome enterprises and taxpayers to the conference.

A representative from a company in Dong Nai province, one of the participants in the upcoming dialogue, shared that tax policies have been evolving to facilitate businesses, including small enterprises and business households.

Online tax declaration and payment have saved businesses significant time and expenses, and they no longer need to interact directly with tax officials, thus reducing red tape and negative influences.

The tax sector has also been more proactive in organizing business conferences on specific topics, attracting the right business entities and focusing on timely issues. This has helped break down the invisible barrier between taxpayers and tax authorities, fostering mutual understanding.

Additionally, the Tax Department’s website regularly updates answers to taxpayers’ concerns. However, the dynamic nature of the business environment and the increasing complexity of natural disasters and floods have led to challenges in keeping up with policy changes, especially tax policy changes.

To enhance their effectiveness, businesses suggest that besides administrative reforms, the tax sector should establish more mechanisms to listen to and receive feedback from the public and enterprises. They also recommend increasing direct dialogue and emphasizing the role of leaders in tax and customs units to narrow the gap between management agencies and the business community and associations.

According to Ms. Nguyen Bich Ngoc, Director of Tax Advisory Services at Deloitte Vietnam, these dialogues offer a great opportunity for the General Department of Taxation to clarify current tax policies for easier implementation by businesses and share plans and draft amendments to tax laws. They also provide a platform for taxpayers to raise concerns about existing issues.

“Based on our observations from previous years’ dialogues, businesses have provided very positive feedback. Therefore, the General Department of Taxation should maintain and regularly organize such activities in the future,” said Ms. Ngoc.

Southern enterprises hope that this dialogue will create an open and frank environment to share the challenges they face in complying with tax laws and the realities of their production and business operations. They also expect the tax sector to promptly address these concerns.

Demonstrating a receptive and transparent attitude, the General Department of Taxation affirmed that they would directly, fully, and clearly answer questions and issues related to Vietnam’s tax policies and administrative procedures. These answers aim to help taxpayers comply with tax policies more efficiently, quickly, and conveniently, encouraging investment and aligning with international commitments and practices.

Regarding matters beyond their authority, the General Department of Taxation will summarize and promptly report to the competent authorities for timely resolution.

Through this conference and future endeavors, the tax sector aspires to gain the satisfaction and consensus of enterprises, in line with their goal of placing taxpayers at the center of their services and becoming a ‘trusted partner’ of taxpayers, as instructed by President Ho Chi Minh: “Tax collection must win the people’s hearts.”

Thuy Duong

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