Promoting comprehensive digital transformation of tax management

On the afternoon of October 13, continuing the 50th Session, the National Assembly Standing Committee gave opinions on the Draft Law on Personal Income Tax (amended).

Supplement other income groups subject to personal income tax

Presenting the draft Law on Personal Income Tax (amended), Deputy Minister of Finance Cao Anh Tuan said that the draft Law focuses on amending 6 contents: Income subject to personal income tax and tax calculation for each type of income, tax-exempt income, personal income tax for business individuals; Family deductions, deductions for charitable and humanitarian contributions; Adjusting the progressive tax schedule applicable to resident individuals with income from salaries and wages; Adjusting the income threshold to determine taxable income for some incomes such as income from winning prizes, from royalties, from franchising, from receiving inheritances and gifts from 10 million VND to 20 million VND to be taxable.

In addition, the draft Law has additional contents on other income groups subject to personal income tax: Income from transferring the national internet domain name of Vietnam ".vn"; Income from transferring greenhouse gas emission reduction results, carbon credits; Income from transferring license plates of cars won at auctions according to the provisions of law; Income from transferring digital assets, transferring gold bars; Income from the right to use, ownership rights, and transfer of other assets as prescribed by the Government . At the same time, the Government is assigned to specify in detail other incomes to ensure consistency with arising realities, promote decentralization and delegation of authority to the Government to specify in detail the issues that are still fluctuating to ensure flexibility in direction and administration.

Presenting the Preliminary Review Report of the Draft Law, Chairman of the Economic and Financial Committee Phan Van Mai said that the Standing Committee of the Committee agreed with the scope of amendments and the name of the draft Law.

He emphasized that promoting decentralization and delegation of power and implementing innovation in legislative activities is necessary, but at the same time, it is still necessary to ensure that important contents related to the rights, obligations and tax burdens of taxpayers are clearly stipulated in the Law.

The Committee recommends that the Drafting Agency review these contents to ensure the authority of the National Assembly and the Government; technical contents that need to be specified in detail should be assigned to the Government for regulation; contents that are under the authority of the National Assembly but have many changes and need to be adjusted promptly over time can be delegated to the National Assembly Standing Committee.

Chairman of the Economic and Financial Committee Phan Van Mai suggested that it is necessary to calculate and evaluate the specific impact on the budget, especially on changes in tax obligations for business households/individuals.

If necessary, the Drafting Agency will consider adjusting tax rates to ensure that the tax burden on the majority of business individuals is not too greatly affected, in accordance with the spirit of Resolution No. 68-NQ/TW and the Party and State's goal of improving people's lives.

Regarding the content of family deduction, the Standing Committee of the Economic and Financial Committee believes that in practice, adjusting and amending the provisions of the current Law on family deduction and through studying the experiences of other countries, it is shown that the family deduction level does not necessarily need to be adjusted regularly and continuously, so there is no need or urgency to assign the Government to regulate to ensure flexibility and timeliness.

Therefore, the majority of opinions suggest that the Law should specifically stipulate the family deduction level for taxpayers and dependents as expressed in the current Personal Income Tax Law to ensure authority, clarity and transparency.

In addition, some opinions agree to assign the Government to regulate the family deduction level. However, it is proposed to stipulate in the Law the minimum and maximum family deduction levels for taxpayers and dependents, establishing the basic principle for the Government to regulate specific deduction levels.

Concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai suggested that the Government take into account the opinions of the National Assembly Standing Committee and the examining agency, and at the same time, pay attention to ensuring full institutionalization of the Party's policies, perfecting legal policies on personal income tax, ensuring that the Law's provisions must comply with the Constitution, be consistent and consistent with other Laws, and review the provisions on enforcement to ensure suitability and feasibility.

The Vice Chairman of the National Assembly emphasized that the drafting agency needs to review to ensure that the Law amendment resolves current difficulties and problems, ensuring that personal income tax is truly an important tool in regulating and redistributing income, aiming towards the goal of social equity.

Comprehensive digital transformation of tax management

Continuing the 50th session, on the afternoon of October 13, the National Assembly Standing Committee gave opinions on the draft Law on Tax Administration (amended).

Presenting the Draft Law on Tax Administration (amended), Deputy Minister of Finance Cao Anh Tuan said that the development of the draft Law aims to promote modernization and comprehensive digital transformation of tax administration with three pillars: facilitating taxpayers, improving management effectiveness and digitizing business processes.

Deputy Minister of Finance Cao Anh Tuan speaks. (Photo: Doan Tan/VNA)

At the same time, overcome the shortcomings of the current Law, synchronize with related laws; cut administrative procedures, reduce compliance costs, enhance data sharing, and inter-sectoral coordination.

Promote decentralization and delegation of power; deploy online tax procedures regardless of administrative boundaries, aiming for a single "one-stop shop" model...

One of the new points is that the draft Law adds a separate chapter on digital transformation, risk management and compliance management, clearly stipulating the principles of applying technology, big data and artificial intelligence (AI) in tax management.

Accordingly, taxpayers will not have to present paper documents if the data is already in the shared database system of state agencies, significantly reducing procedures and transaction time.

The Ministry of Finance will prescribe technical standards and information technology infrastructure, and build a tax database that is synchronously connected with national systems.

Tax authorities have the right to access, use and purchase commercially available databases on the market to serve management, risk analysis, revenue forecasting and taxpayer support.

At the same time, the draft is expected to cut 96 tax administrative procedures, accounting for 44% of the total 219 current procedures, while simplifying and shortening compliance time and costs for 63 other procedures, reaching a rate of nearly 29%...

The draft Law also clearly shows the direction to completely eliminate lump-sum tax for business households and individual businesses from 2026 and build a favorable legal corridor for households to convert to enterprises.

According to the new regulations, business households and business individuals will determine for themselves whether they are subject to tax and must pay tax. If they are subject to tax, they must declare and calculate tax for each type of tax according to the tax period. The Government will specify the tax calculation method and accounting regime suitable for business households.

Commenting at the meeting, National Assembly Chairman Tran Thanh Man emphasized the need to unify the goal of transforming from a management model to one that serves taxpayers, applying digital technology, big data, artificial intelligence and reducing administrative burdens. "This is a requirement to build a modern, effective and fair tax management system," the National Assembly Chairman stated.

The National Assembly Chairman emphasized that, regarding the construction of an electronic tax ecosystem, connecting data with international cooperation, especially in the context of anti-transfer pricing, when countries connect with each other and cooperate effectively internationally, foreign businesses and investors will have confidence in the electronic tax system.

Regarding the permission to use personal identification as tax codes and administrative procedure reform, National Assembly Chairman Tran Thanh Man suggested that it is necessary to discuss very carefully to stipulate security mechanisms to avoid data leaks.

Many important new points in the draft Law were noted by the National Assembly Chairman, including: Classifying taxpayers by risk and industry to use AI to automate assessment and reduce manual intervention; eliminating lump-sum tax for business households from 2026; building an electronic tax ecosystem connecting data and enhancing international cooperation, especially in anti-transfer pricing./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/day-manh-chuyen-doi-so-toan-dien-cong-tac-quan-ly-thue-post1070076.vnp