Tax filing time is reduced by an additional 114 hours.
Of that reduction, 94 hours were saved due to reforms and simplification of VAT declaration procedures, and 20 hours were saved related to the filing and settlement of corporate income tax.
According to the Global Doing Business Report (DB 2020) recently published by the World Bank, Vietnam's tax payment index increased by 22 positions, moving Vietnam from 131st to 109th place out of 190 countries assessed.
With Vietnam's tax payment index increasing by 22 ranks, the tax sector has exceeded the government's target set in Resolution No. 02 on continuing to implement key tasks and solutions to improve the business environment and enhance national competitiveness in 2019 and the orientation to 2021. Accordingly, the target for this year's tax payment index is to increase by 7-10 ranks, approaching the target of 30-40 ranks by 2021.
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| The number of tax payments decreased from 10 times in 2019 to 6 times in 2020. |
In assessing the tax payment index, the World Bank based its assessment on criteria such as the number of hours spent on tax filing; the number of tax payments per year; the total tax rate on profits; and post-filing indicators (VAT refunds, corporate income tax audits/inspections). Most of these indicators showed improvement compared to the previous year, a result attributed to Vietnam's efforts.
Specifically, the time spent on tax filing decreased by 114 hours (from 498 to 384 hours); of which, 94 hours were reduced due to reforms and simplification of value-added tax declaration procedures, and 20 hours were reduced due to reforms and simplification of procedures for corporate income tax payment and settlement. The number of tax filings decreased from 10 times in 2019 to 6 times in 2020.
