Addressing Taxpayer Obstacles in Five Southern Provinces

Recently, the General Department of Taxation (GDT) hosted a dialogue conference in Ho Chi Minh City with taxpayers from five southern localities, namely HCM City, Binh Duong, Dong Nai, Ba Ria - Vung Tau and Long An. The event aimed to address obstacles in implementing tax policies. 

GDT General Director Mai Xuan Thanh addresses the conference

Chaired by Mr. Mai Xuan Thanh, General Director of GDT, the conference featured leaders and experts from GDT and local tax departments, with over 500 taxpayers representing enterprises from the five localities in attendance.

Tax and fee relief amounted to about VND102,676 billion in Jan-Sep

In response to the negative impacts of the pandemic, natural disasters and international economic difficulties on Vietnam's socio-economic development, GDT has advised the Ministry of Finance to research and propose solutions to support individuals and businesses. This includes recommending tax, fee and charge measures that offer significant assistance and implement many unprecedented solutions.

The solutions focus on extending value-added tax, corporate income tax, personal income tax, special consumption tax and land rent, as well as exempting and reducing various taxes and fees to support businesses and the economy. In the first nine months of 2024, the total tax and fee relief amounts to approximately VND102,676 billion. This highlights the urgent need for support for businesses, not just through policies but also via reforms in administrative procedures and modernized tax management to ease costs and directly address difficulties.

Participants at the conference

Direct dialogue rather than disseminating policies

Unlike previous dialogues, which often included lengthy policy presentations, this session transitioned directly from the opening remarks to the question-and-answer segment, skipping the usual policy dissemination that can be tedious for businesses.

In his opening remarks, Mr. Mai Son, Deputy General Director of GDT, emphasized that the dialogue program was organized with a spirit of openness and a commitment to actively listen to taxpayers' concerns.

 "The tax authority aims to listen to and address the obstacles and recommendations regarding tax laws and policies. For issues that cannot be resolved immediately, we will take taxpayers' suggestions to report to the appropriate authorities," he affirmed.

Son urged leaders of tax departments in the five southern localities to engage in open discussions to clarify taxpayers' difficulties, ensuring clear and practical answers that foster satisfaction and consensus among businesses.

A representative from Nam Duong Tech Co., Ltd, which specializes in installing electric fuel pumps, reported that the company’s electronic invoice system does not reflect the value of goods in customs declarations, causing discrepancies between actual inventory and GDT data. This results in warnings of risky invoices whenever sales invoices are issued, leading to customer confusion and payment delays. The representative noted that some customers require a written confirmation from the tax authority stating there is no risk before proceeding with payment, urging the tax authority to clarify and resolve these issues.

In response, Ms. Ngo Thi Thuy Linh, Deputy Director of the Risk Management Department at GDT, explained that the warning system for invoice issuance is designed to support both sellers and buyers and to prevent penalties under tax laws. GDT considers not only tax declarations but also external information from customs and the treasury. She said that GDT will enhance information exchange with customs to update declaration data in real time and will work to narrow the scope of risk warnings to accurately identify at-risk businesses. This initiative aims to foster a healthy business environment, eliminate ghost businesses and protect taxpayers.

During the dialogue session, representatives from GDT and the five southern tax departments addressed many questions from businesses and taxpayers, including over 30 inquiries related to electronic invoices and 29 regarding VAT and tax refunds. In addition to the direct responses provided at the conference, several groups of recommendations concerning the authority of ministries and policies outlined in laws and decrees were compiled for submission to relevant authorities for consideration and coordination.

GDT Deputy General Director Mai Son affirmed that in recent years, with the motto of "Taxpayers as the center of service," the tax sector has focused on reforming tax policy, modernizing management, simplifying administrative procedures and enhancing electronic tax services. These efforts aim to support individuals and businesses in fulfilling their tax obligations conveniently, reduce costs, and create a favorable, transparent and equitable business environment for all economic sectors, while advancing comprehensive digital transformation practices.

By Le Hien, Vietnam Business Forum