Home / Tax Authority

Coordination of domestic tax collection between tax authorities - Treasury - Commercial banks in Vietnam - 13



Describe the steps in the process

Step 1: Receive reconciliation statement from Bank

Maybe you are interested!

o At the reconciliation time, the Bank will create a reconciliation list (including: documents arising during the day and documents after the previous day's cutoff time) to send to the Tax authority via the Tax authority's State Budget Collection Portal.

o The Tax authority's State Budget Collection Portal receives the reconciliation statement and performs the digital signature authentication process. If correct, the authenticated reconciliation statement will be sent to the Tax authority's system.

Step 2: Perform comparison

o The Tax authority's accounting control performs reconciliation between the reconciliation statement and the documents:

If there is a discrepancy in the comparison, then perform the Discrepancy Handling Procedure.

If correct, proceed to step 4.


Step 3: Confirm correct comparison

o In case the reconciliation is correct, the Tax Authority's Accounting Control will confirm the reconciliation is correct and generate a reconciliation result to send to the Commercial Bank.

o This reconciliation result must be digitally signed by the Tax Authority's Accounting Controller before being responded to the Commercial Bank.

o The reconciliation results are transmitted via the State Treasury Portal of the Tax Authority to the Commercial Bank.

o The Tax authority's State budget collection portal receives comparison results from the Tax authority's System.

o At the State Treasury Collection Portal of the Tax Authority, the digital signature authentication process will be performed from the Treasury.

Step 4: Transmit the reconciliation results to the Bank.

o The Tax authority's State Budget Collection Portal transmits the reconciliation results to the Bank.

o At the Bank, you will have to do:

Verify digital signature: if authentication is not possible, the Tax authority must be notified that the comparison result has been received but the signature is incorrect.

Update the reconciliation confirmation status for the reconciliation statement.

3.3.2. Develop some criteria to evaluate the coordination of domestic tax collection between the Tax Department - State Treasury - Commercial Banks.

To better coordinate domestic tax collection between the Tax Authority - State Treasury - Commercial Banks and overcome current limitations, it is necessary to develop a number of evaluation criteria divided into 2 groups as follows:

- The group of prerequisite criteria that must be met includes:

+ Ensure the accuracy of initial taxpayer information such as taxpayer name, tax code, payment amount, tax period, chapter, tax color as the basis for tax collection coordination.


In addition to the stable taxpayers, every year thousands of businesses go bankrupt, thousands of new businesses are established, affecting revenue sources, so updating initial information about this fluctuation is an important criterion. If this information is not complete and accurate, the State Treasury, commercial banks, and tax authorities will mistakenly collect, causing fines and unjust tax debts for taxpayers, and wasting the time of the three agencies in comparing and checking taxpayer information when collecting taxes, determining the amount of tax collected into the State budget, leading to slow and inaccurate concentration of collected tax into the State budget.

+ Criteria for data transmission time between agencies. The transmission time between agencies is in accordance with regulations (except in cases of force majeure) is considered to be a good transmission time. If the transmission time between agencies is not in accordance with regulations, such as commercial banks must transmit the collected tax amount to the State budget to the Tax agency on the same day but the next day or many days later, it will cause many serious consequences: the Tax agency determines the collected tax amount late, deducts debt for taxpayers late, causing incorrect debt deduction for taxpayers, does not quickly determine its remaining tax collection tasks, does not quickly summarize the collected tax amount to report to the government, so the government is not favorable in managing the macro economy. Similarly, if the Tax authority does not send the collected tax amount to the State Treasury on the same day, the State Treasury will not be able to immediately determine the amount of the State budget that will be spent, affecting the work of synthesizing government reports on the amount of tax paid, the amount spent, the amount lacking, and affecting the State Treasury's budget management work, so the government will also have difficulty in managing the macro economy.

+ The criteria for taxpayers' satisfaction when paying taxes at the State Treasury, commercial banks, and tax agencies through voting on satisfaction for the State Treasury, commercial banks, and tax agencies are shown through shortening the tax payment time. Domestic tax collection from taxpayers is the main source of revenue for Vietnam, so people fully perform their tax payment obligations, meaning that the State budget has sufficient revenue. But the time for taxpayers to perform their tax payment obligations takes too long: several hours, half a month, etc.


If the State Treasury, commercial banks, and tax authorities cause difficulties for taxpayers every day or even every day, it will cause frustration for taxpayers. They will be dissatisfied, afraid, and may delay paying taxes. Therefore, it is necessary to shorten the tax payment time and create maximum conditions for taxpayers to fulfill their tax obligations.

+ Criteria for the quality of transmitted data: must be synchronized, fully guaranteed according to the requirements of each agency, meeting the regulations to be considered good transmitted data. The current situation, the transmitted data on tax receipts sent from the State Treasury does not meet the requirements of the Tax authority such as the lack of penalty decisions, tax arrears, economic content (sub-items), so the Tax authority has no basis to deduct debt for the taxpayer's payment, leading to incorrect debt deduction, causing frustration for taxpayers. In addition, the tax receipts sent from commercial banks lack information on the collection area and the State budget adjustment rate, causing difficulties for the State Treasury in adjusting the State budget and synthesizing reports. Commercial banks receive taxpayer information through the State Treasury, so the information is slow and not synchronized with the Tax Department and the State Treasury, as the Tax Department and the State Treasury both have information about the new business of the taxpayer, but commercial banks do not have it yet, so when the taxpayer comes to pay taxes, the commercial banks do not have the information, so they ask the taxpayer to declare a lot, enter incorrect information. Therefore, the quality of data transmitted between the three agencies is very important.

+ The criteria for satisfaction between this agency and the other two agencies are through a vote of confidence for the staff directly coordinating. If the vote of confidence reaches 80% or more, this criterion is met. Currently, the staff directly working at the Tax agency are always dissatisfied with the staff directly working at the State Treasury regarding the transmission of collected tax amounts because the staff of the State Treasury transmits data on collected tax documents slowly, not in accordance with regulations, causing difficulties, even corruption for the Tax agency but the Tax agency does not dare to raise it. Therefore, the Tax agency does not have the collected tax amount in accordance with regulations, leading to late determination of collected tax amounts, and incorrect debt deductions for taxpayers. This also affects the effectiveness of domestic tax collection coordination between the Tax agency, the State Treasury, and commercial banks.

- Additional criteria group includes:


+ Quantitatively: Revenue growth rate (quarterly, yearly); Reduce average tax payment time (by hour); Reduce errors (number of cases).

+ Criteria for coordination reports: reports on coordination between the Tax agency - State Treasury - Commercial banks are prepared by the three agencies periodically on a monthly, quarterly and annual basis and sent to the Ministry of Finance. The report accurately assesses the weaknesses and strengths of each agency in coordination and on time, the next period's report draws on the experience of the previous period's report. Such a report is considered a good coordination report. Currently, reports on coordination are not made regularly on a monthly, quarterly and annual basis and if there are reports, they only report the results achieved without frankly stating the weaknesses, causes and lessons learned, so the assessment of coordination in each province/city and district/county faces many difficulties: it is difficult to determine which State Treasury and Commercial banks organize domestic tax collection well, it is difficult to determine which Tax agency coordinates well to have solutions to adjust tax collection coordination in that locality.

+ Criteria for comparing reports after synthesizing collected voucher data. Agencies must build a reporting system that is both suitable for the specific characteristics of the industry and has corresponding reporting indicators. That is to achieve this criterion. In the current situation, at the end of the month, quarter, and year, the State Treasury and the Tax Department have a very difficult time: it usually takes 1 to 2 weeks, 3-5 people to compare the amount of tax collected into the State budget because each agency has different reporting criteria, which are not consistent with each other. In addition, the reports of the 3 agencies to the government have different total tax amounts collected into the State budget, causing difficulties for the government's macroeconomic management. Therefore, it is necessary to build unified reporting criteria among the 3 agencies.

Thus, assessing good coordination between the Tax Authority - State Treasury - Commercial Bank is based on meeting all criteria of the prerequisite criteria group and one of the criteria of the supplementary criteria group.

In addition to evaluating coordination, in the long term it is possible to study the conditions for sustainable engagement. In addition to the functions and tasks of coordination, there should be an incentive mechanism based on the effectiveness of coordination, increasing the cycle.


transfer money, use the budget pending payment for lending, and harmonize the beneficial relationships for each agency thanks to the effectiveness of coordination.

3.3.3. Develop a mechanism to monitor the implementation of responsibilities of the Tax Authority, State Treasury and Commercial Banks in coordinating domestic tax collection.

Currently, the Ministry of Finance - the competent authority of the State Treasury, the Tax Department and the State Bank have established a Steering Committee (Supervision Committee) from the central level to the provincial/municipal and district levels, with the members being the leaders of the three agencies and the responsibilities and rights are defined through the Decision on establishment. However, this Supervisory Committee only operates for 2-3 months when coordinating between the three agencies to implement, so it cannot resolve problems arising in the subsequent coordination process, and has not yet made public information on coordination between the three agencies, causing many limitations in coordination as analyzed in section 2.3.3 of chapter 2. Therefore, the author proposes that the Supervisory Committee conduct supervision according to the Decision on establishment, according to the coordination assessment criteria stated in section 3.3.2 with periodic quarterly and annual periods. At the same time, the Supervisory Committee develops clear and transparent regulations on rewards and disciplines for the three agencies to implement together. All information about coordination affecting taxpayers is publicly posted for the whole society to know and evaluate. This not only helps the Supervisory Board complete its tasks but also quickly overcomes any problems, helping to perfect coordination between the three agencies.

Therefore, the coordination between the Tax Department, the State Treasury and Commercial Banks will be well implemented, tax revenue will be concentrated correctly, sufficiently, accurately and quickly.

3.3.4. Recommendations to the National Assembly, Government, Ministry of Finance

With the advantages of the domestic tax collection coordination method, the criteria for evaluating coordination, and the construction of a monitoring mechanism analyzed in sections 3.3.1, 3.3.2, 3.3.3, the author makes the following recommendations to make this solution effective, specifically:


3.3.4.1. Recommendations to the National Assembly

- Perfecting the domestic tax policy system: personal income tax, corporate income tax, VAT, etc. to be progressive and consistent with international principles and standards.

- In addition, budget decentralization must be linked to the division of socio-economic benefits. The division of revenue sources and expenditure tasks must be clear, specific and stable for a relatively long period of time so that localities can proactively develop plans and promote their roles and responsibilities in building and developing the local socio-economic development in a stable manner, directly supporting the coordination of tax collection, especially the delegation of tax collection to wards and communes.

3.3.4.2. Recommendations to the Government

The level of payment technology of the economy, especially the payment technology of the banking system and the State Treasury, has a direct impact on the efficiency of collection concentration, management and coordination. Therefore, the Government needs specific support solutions to create a modern payment technology system, minimize the use of cash in payment relations, and move towards popularizing non-cash payment methods, contributing to saving social costs and improving the efficiency of State budget management. To achieve this goal, the State needs immediate financial support so that the Tax authority, the State Treasury system, and the State Bank can quickly invest in equipping modern machinery systems, training to improve the qualifications of payment officers, building and applying inter-treasury, inter-treasury - bank, inter-tax agency - bank electronic payment programs... in which special attention is paid to the issue of information security and safety.

In addition, the Government directs the Supervisory Board to effectively supervise the coordination of domestic tax collection by the three agencies as stated in section 3.3.3.

3.3.4.3. Recommendations to the Ministry of Finance

- Quickly develop and deploy a domestic tax accounting project to meet new methods in coordinating domestic tax collection among tax agencies.


The State Treasury and Commercial Banks are mentioned in section 3.3.1. The purpose is to quickly and extensively inform about the data on State budget revenue and expenditure to the Tax Authority to quickly deduct debts for taxpayers, to quickly and transparently collect revenue sources, and to facilitate the management of revenues of the three agencies.

- Build a reporting system with unified reporting indicators between the Tax Department and the State Treasury. Therefore, the periodic data reconciliation between the two agencies on the amount of tax collected reduces effort, time and human resources, ensuring correct and accurate revenue sources for the Ministry of Finance and the Government to accurately manage budget revenue and expenditure.

Comment


Agree Privacy Policy *