On the morning of November 4, at the 10th Session, Minister of Finance Nguyen Van Thang, authorized by the Prime Minister, presented the draft Law on Tax Administration (amended).
Minister Nguyen Van Thang informed that the draft adds a regulation that taxpayers self-determin their tax obligations, self-declare taxes and pay taxes.
Amend the regulation that the tax code of individuals, households, business households, and individuals is the personal identification number of individuals, household owners, business owners, and business individuals issued in accordance with the provisions of the law on identification.
Regarding tax declaration, tax calculation, and tax deduction for business households and individuals, implement the policy of eliminating contract tax according to Resolution 68, the draft Law is amended in the direction of:
Business households and individuals who do business, based on actual annual revenue from production and trading of goods and services, self-determined as not subject to tax, not required to pay taxes or subject to tax, must pay taxes according to the provisions of the law on tax.
For business households and individuals subject to tax, tax declaration and calculation for each type of tax according to the tax calculation period.
The Government will specify this content in detail, including VAT calculation methods; records and procedures for declaring revenue, tax declaration and tax payment. The Ministry of Finance stipulates the accounting regime applicable to business households and individual businesses.
Notably, the draft Law adds new regulations on measures applied to tax inspection in cases with signs of tax evasion, including: collecting information related to tax evasion and temporarily detaining related documents.
At the same time, it adds the right of tax management agencies to be required to temporarily suspend business, requiring business registration agencies to temporarily suspend the implementation of changes in the content of business registration, cooperatives, cooperative unions, cooperative groups, and business households when handling tax violations.
Reviewing the draft law, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the draft Law stipulates that business households/individuals will pay VAT, personal income tax at a percentage rate and declare revenue by invoice, instead of the contract mechanism.
In fact, declaring revenue by invoice will be higher than the contractual rates that business households/individuals are currently applying. Accordingly, the tax burden (VAT and personal income) of business households will change significantly when the collection rates remain unchanged.
Therefore, the Committee proposes that the drafting agency supplement specific impact assessment data on changes in tax obligations for business households/individuals.
It is recommended to consider the option of adjusting tax rates in policies and laws, so that the tax burden on related subjects is not too great.
