On October 13, the National Assembly Standing Committee gave its opinion on the Draft Law on Tax Administration (amended).
The draft Law on Tax Administration (amended) presented by Deputy Minister of Finance Cao Anh Tuan said that the development of the draft Law aims to promote modernization and comprehensive digital transformation of tax management with 3 pillars: facilitating taxpayers, improving management efficiency and digitalizing business processes.
At the same time, overcome the shortcomings of current laws, synchronize with related laws; cut administrative procedures, reduce compliance costs, increase data sharing, and inter-sectoral coordination.
Promote decentralization and delegation of authority; deploy online tax procedures throughout the process regardless of administrative boundaries, towards a single "one-stop digital" model...
Along with that is amending and supplementing the name of the tax management agency to suit the new organizational structure after the arrangement.
This amendment stipulates 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.
Chairman of the Economic and Financial Committee Phan Van Mai expressed his opinion that for households/individuals doing business, the contract mechanism will shift to declaration, basically, the declared revenue according to invoices will increase higher than the contract levels that households/individuals are applying.
Accordingly, the tax burden (value added tax and personal income tax) of business households will change significantly.
Therefore, the Standing Committee of the reviewing agency believes that the Drafting Agency needs to calculate and assess the specific impact on the change in tax obligations for business households/individuals.
In case necessary (if the change in declared revenue compared to the current contract rates is too large), it is recommended to consider the option of adjusting tax rates (in policies).
Commenting on the draft Law on Tax Administration (amended), Politburo member and National Assembly Chairman Tran Thanh Man said that it is necessary to convert the management model to service, taxpayers must apply big data technology on artificial intelligence (AI), while reducing administrative burden.
"Recently, streamlining the organizational apparatus, including the tax sector, has significantly reduced the number of cadres, civil servants and public employees. Requesting how to eliminate current tax administrative procedures and reduce them to the maximum to build a modern, effective and fair management system" - said the National Assembly Chairman.
The National Assembly Chairman gave an example of working in many localities, for the commune level, how the tax system must increase training for tax officials in communes to ensure the exploitation of revenue sources, compensation for revenue sources, correct and sufficient collection.
The National Assembly Chairman emphasized that in building an electronic tax ecosystem, connecting data with international cooperation, especially in the context of combating price transfer, when countries are linked together and cooperate effectively internationally, foreign businesses and investors will trust the ecosystem and electronic tax.
With the permission to use personal identification as a tax code and improve administrative procedures, National Assembly Chairman Tran Thanh Man suggested that it is necessary to discuss very carefully to regulate a security mechanism to avoid data leakage.
