Innovating tax management model, reducing compliance costs

At the Conference "Reviewing and perfecting tax management procedures and restructuring the information technology system" taking place from December 2-5 in Quang Ninh, Deputy Director of the Tax Department Mai Son said that the Tax Department clearly identified the requirement to redesign the tax management process associated with the application of digital technology, big data and artificial intelligence.

Deputy Director of the Tax Department Mai Son. Photo: Tax Department

"At the same time, it is recognized that there is a need to innovate the management model, reduce compliance costs, ensure a fair and transparent business environment, and encourage sustainable development of enterprises and business households. These major orientations are the important political basis for the Tax sector to redesign processes and restructure the information technology (IT) system, creating a fundamental shift in the current tax management model," Deputy Director Mai Son emphasized.

According to the Tax Department on the evening of December 5, the above Conference focused on reviewing and perfecting the system of tax management procedures. In particular, it considered tables describing the process links between each group of taxpayers (enterprises, organizations, households and business individuals, other individuals, land and other revenues) with support processes, compliance management, risk management and tax inspection.

According to Deputy Director of the Tax Department Mai Son, referring to experiences from international organizations, developed countries such as: IMF (International Monetary Fund), World Bank ( World Bank), the US, UK or from the experience of strongly developing e-Government in small countries like Estonia, or Asian regions like China, Thailand... shows that these models bring clear benefits to businesses, taxpayers and management agencies through accessing, screening and applying appropriate standards.

Based on database-based management, risk criteria assessment and taxpayer compliance level, the Tax sector is aiming to perfect the entire business process according to a design method suitable for the new tax management model.

“With the principle of risk management as the 'brain' and business processes as the 'backbone', the new management system meets the need to correctly classify taxpayers. Instead of managing by subject or function as before, we have switched to focusing on taxpayers, grouping and stratifying each group of subjects to ensure consistency, automation as well as enhancing connection and sharing of national data,” said Deputy Director of the Tax Department Mai Son.

Overview of the Conference taking place in Quang Ninh .

This orientation is built on the foundation of assessing the core requirements of restructuring the IT system towards synchronization, forming an integrated database and real-time connection, serving effectively in tax management. From there, it helps to concretize the policies in Resolution No. 57-NQ/TW on science and technology development, innovation and national digital transformation; Resolution No. 68-NQ/TW on private economic development.

According to the Tax Department, in inspecting business households and individuals who pay taxes according to the declaration method, the Tax Department plans to focus on identifying risky behaviors such as: Declaring low revenue, concealing revenue, using third-party payment accounts, not issuing invoices, using illegal invoices or accounting for expenses not in accordance with regulations.

Ms. Nguyen Thi Thu, Head of Tax Operations Department, Tax Department emphasized the prerequisite principle, which is to put taxpayers at the center, improve experience, provide maximum support and limit direct contact; risk management and compliance including applying risks in each specific business, overall risk management and overall compliance management; automate the entire process, from automatic reception to automation of processing, accounting, notification and decision making steps.

“All of this content aims to standardize unified business processes according to the taxpayer life cycle, from registration, declaration, tax payment, tax refund, obligation management, inspection to cessation of operations, on the basis of risk management and compliance, strongly shifting to proactive support for taxpayers to conveniently fulfill their obligations,” said Ms. Nguyen Thi Thu.

Sharing international experience, Mr. Nguyen Viet Anh, senior expert of the WB Public Sector, noted that tax management should be output-oriented, avoiding being limited to important content, especially revenue. Along with that, it is necessary to classify taxpayers according to the level of compliance or non-compliance; segment taxpayers in the context of a very large number of taxpayers and a limited number of tax officers.

Reengineering tax business processes is not simply about digitizing or applying technology to old processes, but about creating and redesigning processes, in which the business department is the main focal point.

“The amount of data is becoming huge, especially after the application of electronic invoices. Data analysis capacity needs to be improved, with more powerful tools to process live data, data updated in real time, instead of mainly using Excel,” said Mr. Nguyen Viet Anh.

According to Mr. Nguyen Viet Anh, international practice shows that the Tax Department of large enterprises in many countries collects up to 50 - 80% of the revenue, while Vietnam only accounts for 19.2%. Currently, Vietnam manages by tax code, at each tax agency, while large enterprises operate according to the model of a corporation, an ecosystem but have not been fully recognized. This leads to asymmetric information, especially when large enterprises have complex scale, operating processes and structures.

Mr. Rick Fisher, Senior Tax Advisor of the World Bank, said that the Tax Authority needs to have specific criteria and measures. The restructuring of business processes must aim at increasing the level of taxpayer compliance, with new registration of the number of taxpayers, the amount of tax payable... in the context of the previous high rate of late tax payment and declaration.

WB experts emphasized that business process reengineering is not simply about digitizing or applying technology to old processes, but about creating and redesigning processes; in which the business department is the main focal point, not the IT department.

Source: https://baotintuc.vn/kinh-te/doi-moi-mo-hinh-quan-ly-thue-giam-chi-phi-tuan-thu-20251205190430808.htm