Business households switch to tax declaration for sustainable development and increased revenue

The Tax Department notes some points to note in the process of converting from lump-sum tax to tax declaration as follows:

Firstly, declare and pay taxes according to actual revenue - transparency in business activities: Switching from contract to declaration is not an additional procedure, but a change in approach and trust: Based on trust, taxpayers self-declare and self-pay taxes according to actual revenue generated, and tax authorities focus on the role of supporting, authenticating and ensuring fairness through electronic data.

Therefore, the Tax sector aims to support HKD to access and enjoy policies like enterprises, aiming for transparency and fairness. When recording revenue and expenses in full, HKD will clearly understand business efficiency, self-adjust plans, and improve competitiveness. All transactions via invoices and electronic payments will create prestige, have legal value and opportunities to access capital and new customers - helping HKD enter the formal economy and confidently develop.

Current reality shows that the contracting method has limitations in terms of fairness and transparency. While businesses have management tools and specialized personnel, many HKD are still accustomed to operating based on experience, do not have books, and are still afraid of technology and procedures. This makes the implementation of support measures from tax authorities such as electronic invoices and electronic tax services not achieve the desired results.

Second, declare and pay taxes according to actual revenue - the foundation for sustainable development: Tax declaration and payment on actual revenue is the foundation for sustainable development of HKD because it is a necessary tool to form a transparent, fair and merit-based business environment.

When households proactively declare their actual revenue, the State has accurate data to build appropriate credit, insurance, vocational training and support policies, helping households access development resources like businesses.

In addition, the declaration method also creates a habit of financial management, recording revenue and expenses clearly, helping households understand operational efficiency, reduce risks and make better business decisions. Thanks to that, HKD gradually moves from the informal to the formal sector, has its rights protected, is encouraged to invest and expand its scale. It is this transparency and initiative that is the foundation for HKD to develop sustainably based on real capacity, real information and real opportunities.

The transparency and initiative of HKD are the foundation for HKD to develop sustainably based on real capacity, real information and real opportunities.

Third, connect , share and accompany : Along with institutional improvement is the modernization of tax management methods. From here, all revenue activities of HKD, instead of being estimated tax rates , will be reflected by data, through the implementation of electronic invoices, electronic revenue books, and online tax declaration tools.

It is worth mentioning that these technologies do not make it difficult for people, but on the contrary, make paying taxes easier and more convenient than ever. From small traders in the market, coffee shop owners, grocery stores to online businesses, all can declare and pay taxes with just a few steps on mobile devices. In which, tax officials play the role of accompanying, supporting, explaining in the spirit of service, contributing to the realization of the goals of modern administration, which are: convenience for the People, efficiency for the State, fairness for society.

In addition, the Tax sector also implements support, guidance, training programs, and coordinates with solution providers to provide free or low-cost software, helping businesses access easily and conveniently. When each business is viewed objectively through transparent data, when all transactions are clear, it will create a fair and equitable business environment, strengthen people's trust, and make public finance stronger.

Tax reform cannot be successful if the Tax sector makes efforts alone, therefore, this process requires close coordination . between ministries, branches and local authorities. Accordingly, to improve the efficiency of data interconnection, especially data on electronic invoices, the Ministry of Finance is increasing exchanges and cooperation with the Ministry of Public Security , banks, business registration agencies, social insurance... to form a large database system (Big Data) and a unified, consistent information system. In particular, standardizing personal tax codes to match citizen identification numbers will help with best management, avoiding duplication, omissions, or tax fraud.

Along with that, the Tax sector also closely coordinates with People's Committees at all levels, the Vietnam Chamber of Commerce and Industry ( VCCI), professional associations and organizations in propaganda, training and mobilizing business households to comply with legal regulations on invoices and tax laws . In particular, local authorities are encouraged to develop credit support programs, premises, and startups, helping business households have the conditions to transform into enterprises when they have enough capacity.

In the coming years, the provincial and municipal Tax Departments will develop communication campaigns, dialogues, support and guidance on the use of electronic invoices and online declarations; organize support points in convenient locations, at administrative centers. And the results of these activities will become the clearest measure and assessment of people's satisfaction and trust in the tax authorities.

Fourth, declare and pay taxes on actual revenue - a lever for revenue growth: The transition from contract to declaration is an opportunity for HKD to simultaneously 'unlock' three direct mechanisms to generate new revenue, including:

(i) Enhance reputation and market confidence. When HKD uses electronic invoices and declares revenue, transactions become transparent, with legal documents for the buyer to account for deductible expenses when calculating corporate income tax. Invoices are "passports" for HKD to participate in the official supply chain. According to tax law, invoices declared and paid by HKD are valid documents for businesses and organizations to record expenses. This helps businesses feel secure in signing contracts, making payments through banks, and placing large orders. Thanks to that, HKD not only sells to retail customers but also expands to institutional customers - a group of customers with high, stable, and long-term purchasing power.

(ii) Increased access to capital and expanded cooperation. When households declare their revenue, expenses, and profits transparently, this data becomes reliable credit data for banks and financial institutions to evaluate their capacity. Specific figures on tax declarations are evidence of business capacity, helping households borrow working capital, purchase equipment, rent new premises, or open additional points of sale. Along with that, transactions via accounts, electronic invoices, and POS help form a clear financial history, increasing the level of trust with partners and suppliers. When capital and cooperation expand, revenue increases not only due to more sales, but also because HKD has the capacity to meet a higher customer scale.

(iii) Create real motivation for investment and productivity increase. The previous form of lump-sum tax did not create motivation for HKD to exceed the average revenue, leading to stagnant operations and lack of desire to expand. Meanwhile, when declaring revenue, HKD forms clear management and accounting habits, knowing exactly its revenue, costs, and profits.

All sales are recorded and protected by electronic evidence, creating a sense of security.
safety when expanding, purchasing equipment, hiring more workers or supplying
large organizations. Tax declaration is not only an obligation, but also a management tool.
Modern financial management helps businesses operate more professionally and access capital easily.
new partners and markets. It is the initiative, transparency and planning ability
This is a sustainable source of motivation to help HKD develop in the long term and improve productivity.
and assert its position in the digital economy.

Source: https://baophapluat.vn/ho-kinh-doanh-chuyen-sang-ke-khai-thue-de-phat-trien-ben-vung-va-tang-doanh-thu.html