Vietnam's General Department of Taxation is speeding up a project tomodernise the country's tax administration so that it can be completedby 2015.
The Tax Administration Modernisation Project (TAMP)is expected to improve tax management capacity at all levels, reducecorruption and support taxpayers through improved e-tax services.
It was launched in 2008 with approved investment of 97.5 million USDincluding preferential loans of 80 million USD from the World Bank, a12.5 million USD loan from Japan and Vietnam's counterpart capitalof 5 million USD.
At a meeting on April 25 withrepresentatives from tax offices in the northern region focused onchanges that the tax sector is facing and preparations to deal with thechanges. Vice director of the project management board Nguyen Minh Ngocsaid that the move was expected to help the country realise its TaxReform Strategy towards 2020.
Vietnam seeks to build atax policy system that is comprehensive, consistent, fair, efficient andsuitable to the socialist-oriented market economy. Simplifiedtransparent tax management is based on three major pillars: simplifiedadministrative procedures, qualified human resources and highlyintegrated automatic information technological applications.
Ngoc said that the strategy included ambitious goals, such as placingVietnam fourth in the region in tax advantage by 2020, applyinginformation technology in all tax offices and ensuring that 90 percentof enterprises used e-tax services.
The project would focus onimproving risk management and enforcement analysis in the tax sector,anti-corruption activities, applying information technology in taxmanagement and project management capacity building, Ngoc added.
"80 percent of the project investment will be spent to deal with ITdevelopment, which will primarily support the procurement andimplementation of a proven Integrated Tax Administration InformationSystem (ITAIS)," he said.
The ITAIS will support all taxmanagement processes (including tax registration, data processing, taxpayment, refunds and detecting violations) for all kind of taxes exceptpersonal income tax.
Yet Ngoc cautioned that introducing theinnovation could be risky, bringing up issues such as incompatibilitybetween systems and a shortage of staff qualified to use it.
Senior World Bank economist Pham Minh Duc said that the legal frameworkfor taxation had been improved through reforms in 1990 and 1998,approvals for amended tax management law in 2012 and the amendedCorporate Income Tax Law and Value-added Tax Law in 2013 as well as theTax Reform Strategy from 2011 to 2020.
A 2011 World Bank surveyon tax reform showed that the Vietnamese tax system ensured relativeequality, as people with higher incomes or expenditure paid highertaxes, Duc said.
However, the cost for enforcement of taxregulations in Vietnam was also high, as measured by the number of timespeople paid taxes and number of hours spent on taxpaying procedures.-VNA
The Tax Administration Modernisation Project (TAMP)is expected to improve tax management capacity at all levels, reducecorruption and support taxpayers through improved e-tax services.
It was launched in 2008 with approved investment of 97.5 million USDincluding preferential loans of 80 million USD from the World Bank, a12.5 million USD loan from Japan and Vietnam's counterpart capitalof 5 million USD.
At a meeting on April 25 withrepresentatives from tax offices in the northern region focused onchanges that the tax sector is facing and preparations to deal with thechanges. Vice director of the project management board Nguyen Minh Ngocsaid that the move was expected to help the country realise its TaxReform Strategy towards 2020.
Vietnam seeks to build atax policy system that is comprehensive, consistent, fair, efficient andsuitable to the socialist-oriented market economy. Simplifiedtransparent tax management is based on three major pillars: simplifiedadministrative procedures, qualified human resources and highlyintegrated automatic information technological applications.
Ngoc said that the strategy included ambitious goals, such as placingVietnam fourth in the region in tax advantage by 2020, applyinginformation technology in all tax offices and ensuring that 90 percentof enterprises used e-tax services.
The project would focus onimproving risk management and enforcement analysis in the tax sector,anti-corruption activities, applying information technology in taxmanagement and project management capacity building, Ngoc added.
"80 percent of the project investment will be spent to deal with ITdevelopment, which will primarily support the procurement andimplementation of a proven Integrated Tax Administration InformationSystem (ITAIS)," he said.
The ITAIS will support all taxmanagement processes (including tax registration, data processing, taxpayment, refunds and detecting violations) for all kind of taxes exceptpersonal income tax.
Yet Ngoc cautioned that introducing theinnovation could be risky, bringing up issues such as incompatibilitybetween systems and a shortage of staff qualified to use it.
Senior World Bank economist Pham Minh Duc said that the legal frameworkfor taxation had been improved through reforms in 1990 and 1998,approvals for amended tax management law in 2012 and the amendedCorporate Income Tax Law and Value-added Tax Law in 2013 as well as theTax Reform Strategy from 2011 to 2020.
A 2011 World Bank surveyon tax reform showed that the Vietnamese tax system ensured relativeequality, as people with higher incomes or expenditure paid highertaxes, Duc said.
However, the cost for enforcement of taxregulations in Vietnam was also high, as measured by the number of timespeople paid taxes and number of hours spent on taxpaying procedures.-VNA
