10 outstanding events of the Tax industry in 2022

1Successfully complete the task of collecting state budget revenue

Although facing many difficulties and challenges, especially the impact of the Covid-19 pandemic, the Russia-Ukraine conflict... creating great pressure on the State budget revenue, forcing 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 management of the National Assembly, the Government, the Ministry of Finance; the efforts to maintain production and business activities of the business community and the high determination of all civil servants, especially in proactively strengthening management against loss of real estate, e-commerce..., has helped the total budget revenue managed by the Tax sector in 2022 to reach an estimated VND 1,460,100 billion, equal to 124.3% of the estimate, an increase of 8.5% compared to 2021, with 63/64 revenue units completing and exceeding the assigned budget revenue estimate.

Illustrative photo. Source: General Department of Taxation

This impressive result has contributed to maintaining macroeconomic stability, ensuring major budgetary balances. This is an outstanding effort, demonstrating the determination of the tax sector in overcoming difficulties, boldly innovating, and offering flexible and creative solutions to successfully complete the task.

2. Issue the Strategy for system reformsystemtax toyear2030

On April 23, 2022, the Prime Minister signed Decision No. 508/QD-TTg promulgating the Tax System Reform Strategy to 2030. This is an important document, a guideline for the tax sector to synchronously implement solutions to reform the tax system. Accordingly, the tax policy system is reformed in conjunction with restructuring the state budget revenue towards covering all revenue sources, expanding the revenue base, especially new revenue sources, in accordance with international practices. Tax administration is comprehensively modernized based on the electronic tax platform and three basic pillars: tax administration institutions, human resources and IT, towards building a modern, effective and efficient tax sector.

To implement the strategy, the General Department of Taxation has developed a specific Action Program for the period up to 2030 and a Tax System Reform Plan up to 2025 with solutions, roadmaps and assigned units to preside over and coordinate implementation according to the tasks set out in the Strategy.

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

In 2022, the entire Tax sector will continue to implement policies to extend, exempt and reduce taxes and land rents to support people and businesses to implement the Economic Recovery and Development Program with a total amount of over VND 186,000 billion.

In which, VAT reduction according to Decree No. 15/2022/ND-CP is about VND 20,040 billion; environmental protection tax reduction on aviation fuel according to Resolution No. 13/2021/UBTVQH15 and Resolution No. 20/2022/UBTVQH15 is about VND 1,906 billion; environmental protection tax reduction by 50% on gasoline, diesel oil, fuel oil, lubricants, and grease; environmental protection tax reduction by 70% on kerosene according to Resolution No. 18/2022/UBTVQH15; environmental protection tax reduction for gasoline, diesel oil, fuel oil, lubricants, grease, kerosene, and aviation fuel according to Resolution No. 20/2022/UBTVQH15 is about VND 26,307 billion; Extending the tax payment deadline according to Decree 34/2022/ND-CP by about VND 96,316 billion; extending the special consumption tax on domestically manufactured and assembled cars according to Decree 32/2022/ND-CP by about VND 9,603 billion; reducing the collection of some fees and charges according to Circular 120/2021/TT-BTC by about VND 900 billion.

4. Complete the implementation of electronic invoices ahead of schedule

Following the success of the implementation of the first phase of e-invoices in 6 provinces and cities in 2021, on April 21, 2022, the General Department of Taxation implemented the second phase in the remaining 57 provinces and cities. With a high spirit of determination and many synchronous and unified measures and solutions, the tax sector has successfully completed the task of implementing e-invoices according to the provisions of Decree No. 123/2020/ND-CP, contributing to promoting the digital transformation and modernization process of the tax sector in particular and the financial sector in general.

Completed implementation of electronic invoices. Photo: General Department of Taxation

By July 1, 2022, nationwide, 100% of operating enterprises using invoices have switched to using electronic invoices and 100% of business households and individuals doing business according to the declaration method have registered and switched to using electronic invoices; the total number of electronic invoices issued by the end of December 2022 is over 2.1 billion invoices.

The successful implementation of e-invoices has contributed to helping Vietnam transform the way it serves people, businesses and the management methods of tax authorities in an automated direction to reform administrative procedures, create a transparent and equal business environment; promote the development of e-commerce and digital-based business in line with the general development trend of the world, bringing many common benefits to society such as saving costs, resources, and protecting the environment. In particular, to encourage consumers to use e-invoices to create civilized consumption habits, thereby strengthening retail revenue management, the tax authority has reported to the competent authority to deploy the "Lucky Invoice" program from randomly selecting e-invoice codes with a total of 2,700 prizes worth 6 billion VND awarded to consumers..

With outstanding achievements in implementing e-invoices, the Prime Minister has acknowledged, commended and issued Decision No. 54/QD-TTg dated July 25, 2022 to award a Certificate of Merit to the General Department of Taxation. In particular, the profound effectiveness of the e-invoice solution has helped the General Department of Taxation to be honored in the category of "Outstanding digital transformation state agency" at the Vietnam Digital Transformation Awards 2022.

5. DeploymentDedicated electronic portalfor foreign suppliersandPortal to receive information from e-commerce platforms- progress in tax management according to international trends.

Deploying a dedicated e-portal for foreign suppliers. Photo: General Department of Taxation

By becoming one of the four leading countries in the ASEAN region to apply tax collection to foreign suppliers (NCCNN) through the online electronic information portal, Vietnam has affirmed its sovereignty in collecting taxes on e-commerce and digital platform business activities.

After more than 8 months of implementation (from March 21, 2022), 42 NCCNNs have registered, declared and paid taxes through the Portal, with a total tax payment of more than VND 3,444 billion. Notably, 6 large NCCNNs Meta (Facebook), Google, Microsoft, TikTok, Netflix, Apple, accounting for 90% of the market share of revenue from cross-border e-commerce services in Vietnam have registered, declared and paid taxes in Vietnam.

Also in 2022, the Tax sector will officially operate the E-commerce Information Data Portal to receive aggregated information from organizations and individuals doing business through e-commerce platforms in cases where the e-commerce platforms have not yet made tax declarations on behalf of individuals. With outstanding features in synthesizing data according to information from e-commerce platforms and information from suppliers (organizations and individuals doing business on e-commerce platforms) as well as administrative functions, authorization, data transmission and receipt to ensure information safety and security, the E-commerce Information Data Portal is a new beginning in e-commerce tax management, moving towards preventing revenue loss in this field.

6.Comprehensive digitalization of management work, minimizing tax administrative procedures

Upholding the motto of "Taking people and businesses as the center of service", over the past year, the Tax sector has promoted the application of IT in tax management, gradually transforming digitally in a comprehensive manner.

Accordingly, the Tax sector has deployed the electronic tax service system (eTax) to 99% of enterprises using electronic tax declaration, payment and refund; deployed the electronic invoice system nationwide; connected and exchanged information with ministries/sectors, units and external organizations with the aim of socializing tax services by electronic means... The comprehensive digitalization of tax management has contributed to significantly reducing tax administrative procedures.

In 2022, 70 administrative procedures in the tax sector were reduced from 304 to 234, of which most of the administrative procedures reached level 3-4 and were integrated into the National Public Service Portal, saving over VND 524 billion in compliance costs for people and businesses. This result exceeded the target according to Resolution 68/NQ-CP of the Government.

7. Tdeploy a set of indexes to assess service quality for people and businessesin the wholecliff

In 2022, the General Department of Taxation issued a plan to deploy a set of indicators to direct, operate and evaluate the quality of service for people and businesses in the implementation of public services in real time in the electronic environment, according to Decision 766/QD-TTg of the Prime Minister. The set of indicators is determined based on 5 groups of component indicators, including publicity and transparency; progress and results of work settlement; digitalization of records; provision of online public services; satisfaction level.

To implement the index set, units under and directly under the General Department of Taxation, Tax Departments of provinces and cities are responsible for updating the status of records, progress and returning results of administrative procedure settlement within the prescribed time, synchronizing data on the National Public Service Portal; digitizing records and results of administrative procedure settlement via electronic means... In particular, the General Department of Taxation also deploys the assessment of the satisfaction level of people and businesses through a real-time automatic monitoring and assessment system. The assessment results will be made public on the National Public Service Portal, the Ministry of Finance's Public Service Portal and the General Department of Taxation.

By implementing this Index, the Tax sector shows its determination to continuously improve service quality, transforming from an administrative management agency into a companion of taxpayers.

8. Perfecting the organizational structure in a professional, modern, and effective direction to meet task requirements in the new situation.

In 2022, the General Department of Taxation will continue to improve the organizational structure of 4 units: the Large Enterprise Tax Department; the Tax Inspection and Examination Department; the Department of Internal Inspection, Complaints and Denunciations Settlement & Anti-Corruption; and strengthen a number of functional departments under the General Department of Taxation Office according to Decision No. 15/2021/QD-TTg of the Prime Minister.

Accordingly, along with the establishment of functional departments and offices, the General Department of Taxation has completed the leadership positions of 4 units to ensure independent operation in directing and performing assigned tasks.

9.SignHMultilateral Agreement on Mutual Tax Administrative Assistance (MAAC)

In order to implement international commitments related to the Tax Agreement under Decision No. 2072/QD-TTg dated December 10, 2021 of the Prime Minister, approving the Project "Review and assessment of the effectiveness of the Double Taxation Avoidance Agreements, their impact on Vietnam's tax policy space and adjustment orientations", in 2022, after completing the review procedure on taxpayer data security and receiving an invitation from the OECD Secretary General, the Government of Vietnam agreed to sign the Multilateral Agreement on Tax Administrative Support to enhance international cooperation in tax administration.

This is the most comprehensive multilateral international legal framework, covering all forms of international cooperation on tax administration to address tax evasion and tax avoidance. According to statistics, to date, 144 countries have signed MAAC, of ​​which 63 countries have signed tax treaties with Vietnam. Participating in MAAC will create a premise for Vietnam to sign a multilateral agreement between Competent Authorities (MCAA) on automatic exchange of financial account information (CRS); Country-by-Country (CbC) reporting and tax rules to facilitate the effective implementation of BEPS Actions 13 and 5. At the same time, it will help to rapidly increase the network of tax information exchange with MAAC participants.

It is also the global tool that best supports multilateral cooperation in information exchange and other forms of tax administrative assistance.

10. Successful organizationc"Writing about taxes" conteste-commerce"

After 1 year of launching, on September 12, 2022, under the direction of the General Department of Taxation, Tax Magazine organized the award ceremony of the contest "Writing about taxes and e-commerce". Although this is a new and difficult field, and it is the first time it has been held in Vietnam, due to the urgency and topicality of the contest's theme, in a short time, in the context of the epidemic, the contest has 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 entries submitted.

Through 3 rounds of selection and preliminary and final judging, the Final Jury unanimously selected 38 entries to award prizes, including 3 A prizes, 5 B prizes, 10 C prizes, 20 consolation prizes; and also awarded Collective prizes to 05 units that actively participated and had many entries of good quality.

PV