60 peak days of tax declaration model conversion

60-day peak plan to change tax declaration model

From January 1 next year, households that are calculating taxes by the lump-sum method will switch to the declaration model (or choose to step up to small and medium enterprises with many tax incentives according to current regulations). This is a big change for the household business system in Vietnam.

Current reality shows that the lump-sum tax method has revealed many limitations in terms of fairness and transparency. While businesses have management tools and specialized personnel, many business households are still accustomed to operating based on experience, are not familiar with reporting and declaration, and lack understanding in the fields of accounting and technology. This makes the implementation of support measures from tax authorities such as electronic invoices and electronic tax services not achieve the desired results.

In order to implement the major policy of the Party and State on promoting the sustainable development of the private economic sector (SES) in the spirit of Resolution No. 68 of the Politburo . More importantly, to support the conversion of business households more easily and conveniently, the Tax Department has issued a Decision on directing units in the entire Tax sector to focus on implementing the Plan "60 peak days of converting the model from lump-sum tax to declaration for business households".

With the implementation period from November 1 to December 30 this year, the plan will focus on implementation in areas with many contract households such as traditional markets, commercial streets, areas with many accommodation businesses...

The Tax Department said it will deploy direct and online support programs and coordinate with local authorities, organize programs, mobile support points... to support business households in their transformation, implement the motto "hand-holding" and answer questions directly. In particular, the Tax sector strives to ensure 100% of business households' problems are resolved. Provincial and municipal taxes and local taxes are the units that receive and handle business households' problems; complicated problems related to policies and application errors are sent to the Tax Department for resolution. Electronic tax registration, declaration and payment are free of charge, without additional fees or requiring households to purchase software; procedures, forms and instructions are made public; implemented uniformly throughout the area, ensuring that households can easily monitor and implement.

It has been more than a week since the Tax Department implemented the "60-day peak plan to convert the model from lump-sum tax to declaration for business households" of the Tax Department. Reality shows that, in addition to the support of the Tax Department, many business households have also proactively switched from lump-sum tax to declaration.

Many business households support the conversion from lump-sum tax to declaration.

Benefits for business households when switching from lump-sum tax to declaration

If you follow the old method of lump-sum tax, you will not need to calculate costs, revenue is very simple. However, after a period of applying tax declaration, you will see that "doing it right" is more beneficial than "doing it quickly". And many businesses are supporting this conversion.

Ms. Do Thi Bich switched to tax declaration more than a year ago. Instead of manually recording like before, now the electronic invoice software has helped her clearly track cash flow, know exactly the profit and loss, instead of "estimating" like before. And the good news is that her customers are increasing day by day.

Ms. Do Thi Bich - Hoang Mai Ward, Hanoi City commented: "Cost and revenue management is very clear and transparent. Customers also trust the store more, trust the goods because when buying with invoices and documents, customers always trust more".

Up to now, in Hanoi, there have been more than 12,000 business households that have converted from lump-sum tax to the declaration method, a number 5 times higher than the same period last year. Notably, the revenue of these households has increased sharply after applying the declaration method, showing the clear effectiveness of making business activities transparent.

Mr. Nguyen Tien Minh - Deputy Head of Taxation of Hanoi City said: "Their declaration after using electronic invoices increased by 55%. There are more than 1,200 business households that have converted to enterprises. And if using electronic invoices generated from cash registers, they will be supported by banks in terms of loans. In the State's policies, there will be preferential interest rates."

From actual records, it can be seen that switching to declaring and using electronic invoices not only helps businesses become more transparent and professional, but also opens up opportunities to expand their scale, reach large customers and partners, which they could hardly do before when they had to pay lump-sum taxes.

The tax sector accelerates support, consultation and introduction of technological solutions to help businesses adapt easily.

Ho Chi Minh City: Support business households in tax declaration

Not only in Hanoi, by January 1 next year, more than 340,000 business households in Ho Chi Minh City will also have to switch from paying lump-sum taxes to declaring. Many households are worried because they are used to doing things manually, lack a digital platform and are afraid of conversion costs. Faced with this reality, the Ho Chi Minh City tax sector is accelerating support, consulting and introducing technology solutions to help business households adapt more easily.

Ho Chi Minh City Tax Department has signed cooperation agreements with 7 major partners, including banks and technology enterprises, to support business households in digital transformation in tax declaration... To support new business households, many units have implemented incentives of 0 VND, free accounting software, digital signatures and electronic invoices, along with combos for the first 1,000 registered households of some banks. At the same time, the tax industry launched a 60-day peak campaign "Going to every alley, knocking on every door, going to every market stall" to help business households get acquainted, declare and pay taxes in accordance with regulations.

Ms. Pham Thi Ngoc Yen - Saigon broken rice restaurant shared: "Full support on tax regulations, initial invoices at wholesale markets and retail invoices with valid contracts so that businesses can make more complete reports."

Ms. Mai Thi Nghia Le - Head of the Department of Personal Tax, Business Households and Other Revenues, Tax Department of Ho Chi Minh City commented: "Propaganda work to business households and training work as well as applying plans to classify households, check and guide households in the conversion work".

A key tax management solution is to separate personal cash flow and purchase payments via VietQRPay, VietQR Global or separate business household accounts. This helps to make transactions transparent, prevent tax losses and promote digital transformation, towards a public, modern and sustainable financial system for the city.

In nearly 4 decades of national renovation, the individual business household sector has become one of the important pillars of the Vietnamese economy, contributing to job creation, maintaining livelihoods and promoting commercial vitality in all localities. The conversion from lump-sum tax to declaration method has opened up opportunities for business households to break through, develop further and affirm their position in the new era. Although initially there will be concerns and fears when preparing to convert from lump-sum tax to declaration, however, this is an inevitable step in the development process and brings practical benefits to the business households themselves in terms of development potential and revenue expansion.

Source: https://vtv.vn/60-ngay-cao-diem-chuyen-mo-hinh-ke-khai-thue-100251108141603518.htm