Practical implementation of personal income tax law in Quang Ngai province

Taxpayers see that the tax money they pay will be partially supported by the state when they lose their ability to work, encounter an accident, or reach retirement age...

Currently, the main payment mechanism in our country is cash. Therefore, controlling people's income is very difficult, and tax collection by the state is not really effective. To limit this, the most effective method is to have a mechanism to increase the rate of payment through banks, gradually have a policy to limit cash transactions, focus on payment through banks, and eventually require each individual to open a bank account and make payments through the banking system. This is an important premise for the state to control people's income, creating favorable conditions for the effective implementation of the Law on Personal Income Tax in our country.

In the immediate future, when payment through the banking system has not yet been implemented, the competent authority can actively grasp the income generated at the source and build a reasonable mechanism for deduction at source. The State needs to have a mandatory mechanism for organizations and individuals paying income to fulfill the obligation to deduct tax on the income of taxpayers when income arises. At the same time, the tax authority must develop a work program closely linked with organizations performing the task of making payments to income earners to carry out the task of tax deduction.

It is necessary to implement tax code registration for all employees and dependents. Although tax code registration in the province has achieved certain results, the number of taxpayers granted tax codes is still too small, the declaration of dependents in many cases is still duplicated, some people even declare up to dozens of dependents, this causes difficulties in managing personal income and loss of state budget resources. Therefore, an effective measure is that the Quang Ngai Tax Department in particular and the General Department of Taxation in general need to implement a policy of granting tax codes to all employees and dependents in the national tax code system that are declared.

declare on common application software. Only then will the declaration of dependents not be duplicated, at the same time the state can control a part of personal income and the inspection and examination of tax collection and payment be easier and more convenient.

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3.3.2.2. Strengthening the capacity of tax authorities, improving the professional qualifications and qualities of officers in charge of personal income tax in the province.

The tax authority in Quang Ngai includes 15 branches and the Tax Department, but the number of officers in charge of the income tax sector of all units is 20 people, of which the Tax Department has 5 officers and each tax branch has only one officer in charge of the personal income tax sector. The number of full-time officers is too small compared to the amount of work they have to undertake in the process of implementing the Tax Law, while only about 50% of full-time officers have university degrees, the rest only have intermediate and college degrees. The small number of officers in charge makes it even more difficult to arrange for officers to attend training courses to improve their qualifications. After more than 3 years of implementing the Personal Income Tax Law, there has not been a case of any officer in charge of personal income tax being directly sent by the tax authority to study to improve their qualifications. In order to effectively implement personal income tax policies in the area, Quang Ngai province needs [1, p. 2].

- Create a team of officers in charge of personal income tax with sufficient numbers, capable of researching and formulating policies, practicing good tax management in the direction of deep specialization, meeting the needs of tax management and guiding tax declaration and payment. The team of tax officers must be honest, enthusiastic, dedicated to work and profession, enthusiastically answering and guiding taxpayers to exercise their rights and obligations in the process of implementing the Law on Personal Income Tax. Create trust for taxpayers so that they voluntarily exercise their rights and obligations.

- To achieve the above goals, the Tax Department and relevant authorities need to perform the following tasks:

+ Report and analyze the specific situation of the number of officers in charge to the General Department of Taxation, on that basis the General Department of Taxation allocates tax officer quotas or transfers officers in charge of other fields to take on the specialized field of personal income tax.

+ Training staff in the direction of specialization in each job function and field of responsibility. Ensuring adequate provision of key knowledge such as economic, financial policies and laws related to personal income tax, tax forecast analysis, knowledge of tax management using computers, inspection and examination methods... Sending civil servants specializing in personal income tax in particular and officers in the Tax Department in particular to training, especially the group of officers with intermediate and college degrees, at the same time increasing the recruitment rate of civil servants with university degrees to improve the qualifications of civil servants in general according to the requirements of integration trends. However, currently the number of officers in charge of personal income tax in the tax sector in the province is still limited, sending officers to training at centralized facilities is still difficult; In the immediate future, Quang Ngai Tax Department needs to promote training and improve qualifications "at the source", that is, to increase the number of part-time teachers at the Tax Department, with sufficient qualifications, experience and capacity to undertake teaching work for local officials. Coordinate with universities in the province to supplement professional skills for tax officials.

+ Develop regulations to inspect and evaluate the quality of operations of officers in charge of professional activities at the tax department and tax branches, on that basis, take measures to overcome shortcomings and problems.

Compared to other fields, the rights of officers in charge of the Personal Income Tax Law are more limited, and the implementation of the Tax Law mainly comes from self-government.

Declaration and self-payment of taxpayers, currently the state in general and Quang Ngai province in particular do not have an effective mechanism to control personal income, compared to other sources of tax revenue in the province, personal income tax only accounts for a very small number, so investment and attention to this type of tax is limited (in 2012, Dung Quat oil refinery alone paid 14,000 billion to the budget, but personal income tax for the whole province only reached about 123 billion) [47]. Therefore, in order for the personal income tax law to be effectively implemented, in addition to improving the professional qualifications of the officers in charge, the Tax Department needs to have measures to encourage and manage to improve the quality and sense of responsibility of the officers in charge in this field.

3.3.2.3. Strengthen propaganda and dissemination to raise legal awareness for taxpayers.

After more than 3 years of implementation, the Law on Personal Income Tax has gradually entered people's lives, but the number of taxpayers who know the provisions of the law on this issue is still limited. There are many cases where taxpayers do not register for personal tax codes and declare their income, or have registered for tax codes but intentionally declare incorrect actual income to avoid tax obligations, causing loss to the state budget and not ensuring fairness among taxpayers in implementing the Tax Law, especially salaried employees and independent business individuals with full invoices and documents. The cause of this phenomenon comes from the awareness and understanding of tax laws of the people in general and personal income tax in particular. Therefore, in order to encourage people to voluntarily and honestly declare and pay taxes, the authorities need to have measures to propagate and disseminate so that people understand the meaning and objectives of promulgating the Law on Personal Income Tax set by the Party and the State. Specifically:

There needs to be close coordination between the legal dissemination and propaganda department of the Department of Justice and the tax authorities in the province with the youth organizations.

In particular, consider the dissemination and propaganda of the Law on Personal Income Tax as an important topic in the meetings. Organize seminars, listen to opinions and answer questions from people about personal income tax and conduct surveys on opinions and legal information on taxes of taxpayers on that basis, take appropriate dissemination measures.

The tax department needs to coordinate with income paying units to disseminate personal income tax laws directly to taxpayers at the income paying units, and include the provisions of the tax law in the unit's newsletter. The tax department and tax branches need to establish a "hotline" with qualified permanent staff to promptly advise, introduce, and answer questions about taxes arising and changes in the implementation of personal income tax laws.

The Tax Department and tax branches in the province regularly coordinate with media agencies, newspapers and mass organizations at all levels in the province to exploit the strengths of these means to promptly and widely disseminate information on tax policies and regimes from urban to rural areas so that all classes of people have the opportunity to access and better understand the role and position of personal income tax for the state and citizens, the rights and obligations of citizens in declaring income and paying taxes, gradually turning the dissemination of laws in general and the law on personal income tax in particular into specific mass work of the Party and the entire people.

Personal income tax policies must reach the people to constantly raise the spirit of enlightenment "people know, people discuss, people do, people inspect", properly implementing the policy of building a "state of the people, by the people, for the people" set forth by the Party and State.

3.3.2.4. Other support conditions

Firstly, strengthen the inspection and examination of compliance with personal income tax laws at income-paying organizations and individuals operating independently.

Establish. Implement strict and thorough handling of violations of personal income tax.

In the past, the work of inspecting personal income tax in the province has received little attention. According to statistics of the Quang Ngai Tax Department, personal income tax inspections are mainly conducted at income-paying organizations and combined with inspections of general tax compliance of those income-paying organizations.

Particularly for individuals operating independently such as doctors opening private clinics, singers in tea rooms, bars, and individuals doing independent business, due to the lack of an effective income management mechanism, personal income tax in these cases is mainly through the form of lump-sum tax based on estimates by the tax authority. To accurately control the income of these subjects, the Tax Department needs to coordinate with other agencies such as the Department of Culture, Sports and Tourism, the Department of Information and Communications, the Department of Health, the Department of Planning and Investment and the Business Registration Office under the People's Committees of districts to control personal operating licenses and average personal income. If an individual operates without a license, it will be revoked, and organizations paying income without documents to determine income payment will be forced to stop operating. In cases where income cannot be accurately determined, determining average income also contributes to applying appropriate lump-sum tax policies to taxpayers.

Second, continue to reform administrative procedures, creating favorable conditions for all organizations and individuals to fulfill tax obligations in accordance with the law; ensuring fairness, equality, full, correct and timely collection to the state budget.

Third, continue to implement projects to apply information technology to personal income tax management .

Fourth, regularly coordinate with relevant agencies such as: police, Department of Foreign Affairs, labor management, Social Insurance to promptly grasp

Information on taxpayers, sources of income, and measures to classify taxpayers and sources of income to effectively manage personal income tax.

Fifth , organize rewards for units and tax officers who actively criticize units and individuals who do not perform well in personal income tax management.

In order to encourage units to effectively implement the Law on Personal Income Tax, the Quang Ngai Tax Department needs to focus on rewarding units with high achievements in their work and specialized officers in each field who have completed their tasks well. Having a suitable reward system will create good motivation for tax management units and individuals in charge. At the same time, the Tax Department must also take strong measures to criticize and discipline units and individuals in charge of violations in the process of performing assigned tasks.

CHAPTER 3 SUMMARY

Based on the current situation and causes affecting the implementation of the law on personal income tax in Quang Ngai province, solutions are developed to overcome the actual situation. The implementation of the Law on Personal Income Tax has not been really effective due to many different reasons, so we need to apply these solutions synchronously. The solutions are both micro and macro in nature, but still aim to contribute to improving the effectiveness of the implementation of the law on personal income tax in Quang Ngai province in particular and in Vietnam in general in the coming time.

CONCLUDE

In the context of developing a socialist-oriented market economy and international economic integration. Taxes in general and personal income tax in particular hold a particularly important position. Tax revenue is the main source of revenue for each country's budget. Personal income tax has a history of hundreds of years and has now become a popular tax in the world. It can be said that for most countries, personal income tax is considered the "king" of taxes. Not only because of its huge revenue in the total budget to serve the operation of the state administrative apparatus, ensure national security, and social policies, but the birth of personal income tax also contributes significantly to regulating income redistribution in society based on consideration of the specific circumstances of taxpayers. In Vietnam, personal income tax was born late and revenue from personal income tax accounts for about 3-7% of total budget revenue. The implementation of the Law on Personal Income Tax in the past has not been really effective, nor has it promoted the important role of personal income tax in Vietnam. The topic "Implementation of the law on personal income tax in Quang Ngai province " analyzed the provisions of Vietnamese law on personal income tax and the results of implementing these provisions in practice in Quang Ngai province, pointed out some shortcomings and made recommendations to improve the law on personal income tax, with the aim of improving the effectiveness of implementing legal policies on personal income tax in particular and tax law in general. The topic focuses on studying the following basic issues:

1- Legal provisions on personal income tax, characteristics and role of personal income tax for the state and taxpayers.

2- Achievements, limitations and shortcomings in the implementation of personal income tax laws in Quang Ngai province