Many shortcomings in declaring and settling personal income tax
On March 14, at the Workshop "Personal Income Tax Law - Ensuring fairness, promoting growth" organized by Lao Dong Newspaper in coordination with the National Economics University, Ms. Dinh Thi Thuy - Vice Chairwoman of the Board of Directors of MISA Joint Stock Company - shared: "Disclosing and settling personal income tax (PIT) is an indispensable part of the national tax system, playing a key role in ensuring social justice".
Ms. Dinh Thi Thuy commented that declaring and settling personal income tax through an income payment organization brings many benefits.
"For taxpayers, tax will be deducted directly from income. This helps workers not need to calculate and pay taxes themselves, leading to easy mistakes and taking a lot of time. Meanwhile, this helps increase transparency in salary, tax and employee welfare management of income payment organizations.
Declaring personal income tax settlement through an income payment organization also helps increase tax collection efficiency, reduce budget losses, and reduce personal tax settlement records that need to be processed by tax authorities" - Ms. Thuy assessed.
In addition to the benefits, Ms. Thuy said that the declaration and settlement of personal income tax has many shortcomings.
"For workers, they do not know the specific regulations and documents when doing tax procedures. Especially unstable workers, freelance workers, unskilled workers and workers without support from businesses.
In addition, it depends a lot on businesses when making tax settlements such as businesses issuing late deduction certificates and late tax settlements" - Vice Chairman of the Board of Directors of MISA JSC shared.
In addition, businesses also have difficulty synthesizing information or spend time checking and synthesizing valid tax codes for employees (such as tax codes that match or contain incorrect information).
With the calculation of personal income tax, salaries and allowances can lead to errors, especially during peak times such as the end of the year or during monthly tax reports. Ms. Thuy said that this puts great pressure on accountants, forcing them to work overtime to promptly declare taxes.
Digital transformation is a key factor
To make the tax declaration and settlement process transparent, accurate and effective, Vice Chairman of the Board of Directors of MISA JSC Dinh Thi Thuy assessed that the application of technology, especially digital transformation, will be a decisive factor.
With the constant change of tax regulations and high requirements for transparency and efficiency in declaring and settling personal income tax, Ms. Thuy shared that MISA has developed a comprehensive digital transformation solution through MISA AMIS. This solution helps businesses and income payment organizations not only fulfill their tax obligations but also ensure transparency in each step of the declaration process.
"Synchronizing and integrating data from personnel records, tax calculation, salary calculation for employees to tax registration and declaration will create a seamless and accurate process.
In addition, MISA has directly connected with tax authorities, directly connected to the electronic tax portal. This helps update and check tax data promptly, while paying taxes online quickly, minimizing errors and processing time" - Vice Chairman of the Board of Directors of MISA JSC said.
In addition, MISA also applies artificial intelligence (AI) to answer tax questions for employees in the enterprise, such as how to calculate taxes, regulations on family deductions, tax rates and tax procedures.
According to Ms. Thuy, applying MISA technology in declaring and settling personal income tax helps simplify paperwork and minimize the risk of errors when declaring taxes. Employees can transparently monitor taxable income, taxable income, tax deductions from monthly salaries and wages due to data connection between tax authorities and businesses.
For businesses, automating tax declaration, tax calculation and salary processes helps businesses perform work quickly and accurately.
Tax declaration and tax settlement are synchronized directly with employee salary information and paid directly to the tax authority, helping to limit errors and the risk of being fined for incorrect declaration or late payment.
At the same time, it provides tax deduction documents quickly and accurately to employees, helping them to settle taxes at the end of the year without any difficulties.
To ensure transparency, accuracy and efficiency in tax declaration and settlement, Ms. Thuy emphasized the need to speed up the implementation of personal identification numbers instead of tax codes according to the policy, helping to reduce administrative procedures.
Strengthening the connection to share information and data between tax authorities, businesses and employees also helps data to be updated continuously, transparently and accurately.
"Tax settlement should follow the policy of connecting with tax authorities, sending personal income tax deduction documents directly to tax authorities. This helps taxpayers track and check the amount of personal income tax paid in a timely and quick manner.
In addition, AI technology can be deployed to support tax procedures and answer tax questions" - Vice Chairman of the Board of Directors of MISA Joint Stock Company Dinh Thi Thuy proposed.
