Business households worry about arising problems from small debts
The draft decree of the Ministry of Finance proposes postponing exit for tax debtors from 1 million VND and no longer operating at the registered business address.
Ms. Mai Anh - business owner in Cau Giay, Hanoi City - said that this regulation helps improve tax compliance awareness, but it is necessary to clearly notify people to promptly handle debts.
Ms. Thu Trang in Hoan Kiem ward, Hanoi City, who is a personal tax accountant, proposed to increase warnings via text messages, emails or electronic identification applications so that taxpayers can easily access information.
Risk stratification and many-step warnings are needed
Talking to Lao Dong Newspaper, Lawyer Nguyen Van Duoc - Member of the Executive Committee of the Vietnam Association of Accountants and Auditors - said that the Ministry of Finance's addition of a tax debt threshold of 1 million VND for cases of abandoning business locations is actually an adjustment step in a softer direction than current regulations.
According to Mr. Duoc, setting a specific threshold is considered necessary for management agencies to have a basis for screening and focusing resources on cases with higher risks. However, Mr. Duoc said that the 1 million VND level is still quite low and suggested raising it to about 50 million VND to synchronize with the threshold currently applied to groups of individuals and business households still operating at registered addresses.
According to the expert, the important point of the draft is not only the specific number but also the approach towards risk management. For groups of individuals and business households that are still operating at the registered address, the tax authority applies a longer processing time, up to 120 days. Meanwhile, groups that have left the registered address are considered to have a higher level of risk, so they are applied earlier measures, after 30 days and with a lower debt threshold.
Meanwhile, Mr. Mac Quoc Anh - Vice Chairman cum General Secretary of the Hanoi Association of Small and Medium Enterprises - said that tax policy needs to simultaneously ensure two requirements: Maintaining strict budget discipline but also being flexible and fair enough.
Mr. Mac Quoc Anh proposed that it is necessary to synchronize many solutions, first of all to clean up taxpayer data and unify the connection between tax identification numbers, citizen identification cards, electronic identification, residence address and electronic tax transaction accounts. At the same time, it is necessary to build an early warning mechanism before coercion so that people have the opportunity to know and remedy tax obligations in a timely manner.
Tax Department explains proposal to temporarily postpone exit for tax debtors from 1 million VND
The Tax Department said that, according to the Draft, the temporary exit suspension measure will be applied to individuals, business households, and business representatives who owe taxes from 1 million VND and no longer operate at the registered address after 30 days from the date of notification. The addition of the 1 million VND threshold is to eliminate small debts arising from technical errors. The tax authority affirmed that this measure is not applied immediately, but will be notified through electronic tax transactions 30 days before the decision is issued.
