10 outstanding events of the tax sector in 2022

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The General Department of Taxation has announced 10 outstanding events in 2022. Photo: General Department of Taxation
The General Department of Taxation has announced 10 outstanding events in tax of 2022. Photo: General Department of Taxation

1. Completing the task of State revenue collection

Despite facing many challenges, especially the impact of the Covid-19 pandemic and the Russian-Ukrainian conflict… which put great pressure on state revenue, it forces the State to introduce many tax policies (exemption, reduction, extension) to support businesses and the economy to recover. Under the leadership of the Party, the drastic direction and administration of the National Assembly, the Government and the Ministry of Finance, along with the efforts to maintain production and business activities of the business community and the high determination of all officials and employees, especially in proactively strengthening the management against revenue loss of real estate and e-commerce…, it has helped tax sector to collect VND 1,460,100 billion in term of total revenue collection in 2022, equal to 124.3 percent of the estimate, an increase of 8.5% compared to the implementation in 2021, with 63 out of 64 Tax Department completed and exceeded the assigned revenue target.

2. Promulgating the Tax System Reform Strategy to 2030

On April 23, the Prime Minister signed Decision No. 508/QD-TTg promulgating the Tax System Reform Strategy to 2030. This is an important document and a guideline for the tax sector to deploy synchronous solutions to reform the tax system. Accordingly, the tax policy system has been reformed in association with the restructuring of state revenues to cover all revenue sources, expanding the revenue sources, especially new sources of revenue, in line with international practices. Furthermore, tax administration is comprehensively modernized based on electronic taxation and three basic pillars: tax administration institutions, human resources and information technology, towards building a modern and efficient tax sector.

To implement the strategy, the General Department of Taxation has developed a specific action plan for the period up to 2030 and a plan for tax system reform to 2025 with solutions, a roadmap and assignment of leading units to carry out the strategic tasks as planned.

3. Deploying the largest tax support package ever, actively contributing to helping businesses and people quickly recover and develop

In 2022, the whole tax sector has continued to implement policies on tax extension, exemption and reduction, and land rent to support people and businesses to implement the economic recovery and development program with a total amount of over VND186,000 billion.

The effective implementation of support solutions on taxes, fees, charges and land rents is considered to have a positive impact. It is highly appreciated by the business community and people, contributing to removing difficulties and helping enterprises have more resources to stabilize production and business activities. As a result, it has contributed to the socio-economic development and recovery of the country.

4. Accomplishing the implementation of electronic invoices (e-invoices) ahead of schedule

Following the success of launching the first phase of e-invoice in six provinces in 2021, on April 21, the General Department of Taxation launched the second phase in the remaining 57 provinces and cities. With a spirit of high determination and carrying out many synchronous and unified measures and solutions, the tax sector has accomplished the task of launching e-invoices more than two months ahead of schedule as prescribed in Decree No. 123/2020/ND -CP, contributing to accelerating the process of digital transformation and modernization of the tax sector in particular and the financial industry in general.

Up to now, 100% of businesses operating and using invoices have switched to using e-invoices and 100% of business households and individuals doing business following the declaration method have registered and switched to using e-invoices, with a total of over 2.1 billion e-invoices issued.

5. Deploying an e-portal for foreign providers and a portal for receiving information from e-commerce platforms – a step forward in tax management following international trends

By becoming one of the four leading countries in the ASEAN region to apply tax collection to foreign providers through the e-portal, Vietnam has affirmed its sovereignty over tax collection activities for e-commerce business activities on digital platforms.

Also, in 2022, the Tax sector officially operated an e-commerce portal to receive general information about organizations and individuals doing business through e-commerce platforms in case the e-commerce exchange has not yet implemented tax declaration on behalf of individuals.

6. Comprehensively digitize the management, minimize tax administrative procedures

The Tax sector has launched an electronic tax service system (eTax) for 99% of businesses that are using e-tax declaration, e-tax payment and e-tax refund; deploying the e-invoice system nationwide; connecting and exchanging information with ministries/sectors, external units and organizations to socialize tax services by the electronic method… As a result, the tax administration’s comprehensive digitization has significantly reduced tax administrative procedures.

7. Launching a set of indicators to assess the service quality throughout the tax sector

In 2022, the General Department of Taxation has issued a plan to launch a set of indicators for directing, operating and assessing the service quality provided to people and businesses in performing public services in real-time via electronic environment following Decision No. Decision 766/QD-TTg of the Prime Minister. The indicators are determined based on five component indexes, including publicity and transparency; progress and results of work settlement; digitization of dossiers; providing online public services; satisfaction level.

With the implementation of this indicator, the tax sector has shown its determination to continuously improve service quality, transforming from an administrative authority into a companion of taxpayers.

8. Consolidate the entire organizational apparatus towards professionalism, modernity and efficiency, meeting the requirements of tasks in the new situation

In 2022, the General Department of Taxation continues to consolidate the entire organizational structure of four units, namely the Large Taxpayers Department, Tax Audit-Inspection Department; Internal Examination Department, settlement of complaints and denunciations and anti-corruption; and strengthen several functional departments under the Office of the General Department of Taxation following the Decision No. 15/2021/QD-TTg of Prime Minister.

Accordingly, along with establishing functional departments and divisions, the General Department of Taxation has consolidated the leadership positions of the four units to ensure independent operation in directing and performing assigned tasks.

9. Signing of the Convention on Mutual Administrative Assistance in Tax Matters (MAAC)

To implement international commitments related to the Tax Agreement under the Prime Minister’s Decision No. 2072/QD-TTg dated December 10, 2021, approving the scheme “Reviewing and evaluating the efficiency of double Taxation Agreements and their impact on Vietnam’s tax policy and adjustment orientation”, in 2022, after completing the review procedure on taxpayer data security and receiving an invitation letter of the Secretary-General of the OECD, the Government of Vietnam has agreed to join the signing of the Convention on Mutual Administrative Assistance in Tax Matters (MAAC) to strengthen international cooperation in tax administration.

It is also a global tool that provides the best support for multilateral cooperation in information exchange and other forms of tax administrative support.

10. Successfully held a Writing Contest on Taxes with E-commerce

After 1 year of launching, on September 12, under the direction of the General Department of Taxation, Tax Magazine held an awarding ceremony for the contest “Writing about taxes with e-commerce”. Although this was a new and challenging field, and it was the first time it had been held in Vietnam, due to the urgency of the contest’s topic, in a short time, amid the pandemic, the contest attracted the participation of a large number of reporters, journalists, scholars, experts, economic researchers, associations, organizations, businesses and people… across the country, with a total of 1,313 articles submitted to the competition.

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