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Steps of Tax Collection Management at Bu Gia Map District Tax Department


Police

TT-HT Team


(3)


Tax Accounting & Declaration Team


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Steps of Tax Collection Management at Bu Gia Map District Tax Department

Tax information processing

Treasury

(4)


(5)


Tax audit team




(6c)


Inspection Team - QLN&CCNT

(9)


(6a)


(8)


Check the file at the desk

Tax audit at enterprise

(6b)


Business

Figure 2.2. Steps of tax collection management at Bu Gia Map District Tax Department

(Source: Author's synthesis)

(1a) Enterprises submit applications for business registration codes to the provincial Business Registration Office.

(1b) The Business Registration Authority shall receive and examine the application for enterprise code registration according to the Procedure for coordinating the exchange of enterprise registration information between the tax authority and the business registration authority. After receiving the information of the taxpayer from the business registration authority, the tax authority shall examine and issue the enterprise code; and return the enterprise code to the business registration authority. The business registration authority shall return the Enterprise Registration Certificate to the enterprise.

(1c) After receiving the Certificate of Business Registration, the enterprise goes to the police agency to apply for a license to carve a seal and register the seal sample.

(2) After being granted a business registration number, the enterprise submits the tax declaration and documents attached to the tax declaration at the "one-stop" department of the Propaganda and Support Team for Taxpayers.

(3) The Tax Propaganda and Support Team transfers the tax declarations and documents attached to the tax declarations of the taxpayers that have been fully checked and in accordance with procedures to the Tax Declaration and Accounting Team.

(4) The Tax Declaration and Accounting Team performs tax registration, processing of tax declarations, and tax accounting of taxpayers. Information about taxpayers updated on the tax management system such as identification information, tax liability information of taxpayers, etc. will be transmitted to the Treasury through the information exchange system between the two units.

(5) The Tax Inspection Team exploits information related to the taxpayer's tax obligations on the tax management system, compares indicators, analyzes, comments, and evaluates to determine records with signs of suspected errors during the declaration process.

(6a) The Tax Inspection Team conducts a desk-based file check and requests taxpayers to explain and supplement information and documents in cases where there are signs of suspected errors during the declaration process.

(6b) (7a) Tax Inspection Team inspects at the enterprise's headquarters.

(7b) The results after tax audit are transferred to the Tax Declaration and Accounting Team to promptly process information on the enterprise's tax obligations, and at the same time transfer 1 copy to the Treasury for coordination in collecting into the State budget.

(9) Tax inspection team: based on the tax debt situation of the enterprise, issue a notice urging the enterprise to pay taxes and carry out the next debt collection steps.

(10) Notices, Decisions... issued by the Tax Inspection Team are sent to the Tax Declaration and Accounting Team for updating into the system, and a copy is also sent to the Treasury to coordinate the collection of overdue taxes into the State budget.

2.2.3. Current status of tax registration, tax declaration, tax payment, tax assessment

Business management, tax registration, tax declaration and accounting are carried out according to the tax declaration, tax payment and tax accounting management procedures issued under Decision No. 422/QD-TCT dated April 22, 2008 of the General Department of Taxation.

Table 2.1. Corporate income tax declaration situation in the period of 2017-2020 at Bu Gia Map District Tax Department


TT


Type of business

2017

2018

2019

2020

NNT number

manage


Tax Return


Proportion

NNT number

manage


Tax Return


Proportion

NNT number

manage


Tax Return


Proportion

NNT number

manage


Tax Return


Proportion

1

Labour

Joint Stock Company

1

1

100%

1

1

100%

2

2

100%

4

3

75%

2

Company

Ltd.

60

50

83%

74

62

84%

92

81

90%

119

115

96%

3

Private Enterprise

15

10

66%

9

8

89%

9

7

77%

9

7

78%


Add

76

61

80%

84

71

84%

100

90

90%

132

125

94%

(Source: Rendered from TMS tax management software)

Through the above table, we can see the management situation of corporate income tax declaration for enterprises at the Tax Department of Bu Gia Map district as follows:

- About submitting corporate income tax return.

The situation of collecting and submitting corporate income tax declarations at tax authorities has improved over the years. If in 2017, on average about 83% of corporate income tax declarations were submitted to tax authorities, then in 2018 it reached 84%, in 2019 it was 90%, in 2020 it was 96%. It can be explained that the reason is that enterprises have complied with and understood the tax law.

understand tax policy better or in other words tax policy has basically entered life.

However, there are still some businesses that do not fully understand and declare taxes according to regulations. In addition, there are still some entities that intentionally submit declarations late or declare inaccurate indicators on the declaration.

Reason: Some taxpayers are newly established enterprises that have not yet grasped the provisions of the Law on Corporate Income Tax. There are also cases where the declaration has been submitted but contains errors, the tax officer requests to correct it, but the process is not urgent, so the submission is not on time.

The pilot implementation of online tax declaration and payment started in October 2014 for enterprises managed by the Department and has brought good results, 100% of enterprises have registered for online tax declaration, creating conditions to reduce a lot of time and costs, and receiving the support of enterprises.

Table 2.2: Status of submitting corporate income tax finalization declarations of enterprises over the years 2017-2020


STT


Target

2017

2018

2019

2020

Number of sheets

declare

Rate (%)

Number of sheets

declare

Rate (%)

Number of sheets

declare


Rate (%)

Number of sheets

declare


Rate (%)


1

Number of declarations

tax paid on time


68


48%


69


46%


90


56%


122


72%


2

Number of tax returns submitted

slow


59


42%


61


41%


62


38%


43


25%


3

Tax return number no.

submit


15


11%


20


13%


10


6%


5


3%


Add

142


150


162


170


(Source: Rendered from TMS tax management software)

Based on the above table, we can see that: The rate of corporate income tax finalization declarations submitted on time has increased significantly over the years. In 2017, there were 68 declarations, accounting for 48% of the total number of declarations to be submitted; in 2018, there were 69 declarations, accounting for 46%; in 2019, there were 90 declarations, accounting for 56%. The rate of late declarations has decreased over the years. Specifically, in 2017, there were 59 declarations, accounting for 42% of the total number of declarations to be submitted; in 2018, there were 61 declarations, accounting for 41%; in 2019, there were 62 declarations, accounting for 38%; in 2020, there were 43 declarations, accounting for 25%. The rate of late declarations and non-submission declarations is still quite high. This is due to the following reasons:

Firstly: Due to the relatively frequent establishment, operation, dissolution and new establishment of enterprises, the accounting team is unstable, so the understanding and implementation of tax policies are still limited, which has affected the initial tax declaration work.

Second: Tax officials' ability to grasp taxpayer information and provide guidance and support to taxpayers in tax declaration and payment is still limited. The situation of taxpayers not declaring or declaring late has not been completely resolved.

About the quality of the declaration

Enterprises that have declared taxes must pay according to invoices in accordance with regulations, but not in line with actual business practices. Mostly enterprises operating in the service and food sectors have been urged and reminded by tax officials, but the rate of declaring revenue without issuing invoices is still high, with not much change.

The declared indicators are not complete, especially for some indicators that need to be declared in detail such as: Reasonable expenses deducted when calculating corporate income tax and other income. Regarding reasonable expenses deducted when calculating taxable income, some enterprises have spent more than the control level set by the Law on Corporate Income Tax, such as advertising, marketing, and celebration expenses; other expenses; these are expenses that need to be fully explained. Most enterprises often do not have specific explanations for these expenses and often exceed the control level.

Causes of the above situation:

The quality of declarations is not high, the biggest and most important reason is the lack of understanding and awareness of corporate income tax law compliance of enterprises; intentionally not declaring or leaving out income items, declaring increased expenses with the purpose of reducing taxable income, increasing deductible expenses when calculating corporate income tax.

On the other hand, our country's economy is not developed enough for all people to be aware of getting invoices and documents when buying goods. Therefore, the issue of checking and comparing invoices and documents for purchases and sales by tax authorities still has many limitations.

The number of enterprises is increasing, but the number of staff is not increasing or increasing insignificantly, the professional qualifications of some tax staff are still poor,

Information about the unit is still lacking. That is why management and inspection work encounters many difficulties.

Self-calculation, self-declaration and self-payment of taxes have given enterprises the initiative, as well as their own responsibility in declaring taxes and determining the amount of tax payable. However, enterprises must clearly understand the regulations on tax rates, how to determine the amount of tax payable, the necessary documents and records as a basis for determining tax obligations such as conditions for tax exemption, reduction, refund... This shows that: The workload and service of tax authorities have been reduced, enterprises are more self-aware and proactive in fulfilling their obligations. However, this is a big challenge for tax declarants and tax authorities when checking and controlling declarations.

About paying taxes

The total revenue of the entire provincial tax sector over the years has reached and exceeded the estimate assigned by the Provincial People's Council. In 2017, it exceeded the estimate of the entire People's Council by 117.8% and the budget revenue of the same period last year by 109.5%. Similar to 2018 and 2019, the domestic revenue calculated to exceed the estimate of the People's Council by 113.7% and 100.7% respectively, with the revenue of the following year always higher than the previous year. This proves that the tax management of the Binh Phuoc Tax sector has achieved good results.

The task of collecting the State budget is the top political task of the Bu Gia Map District Tax Department. With the complicated and unpredictable domestic economic situation; the financial crisis and global economic recession have negatively impacted our country's economy, production and business activities, exports and foreign investment capital have decreased, natural disasters and epidemics have occurred widely throughout the country, many manufacturing industries have been narrowed, the real estate market is sluggish, directly affecting business activities and people's lives.

Some economic development indicators of the province are also affected by the general recession, failing to ensure the set growth target. The Government's timely stimulus resolutions have contributed to preventing economic recession, stimulating investment and consumption, but also affecting the task of collecting state budget revenue when implementing policies of tax exemption, reduction, and extension.

tax. However, under the leadership of the Provincial Party Committee, the drastic direction of the Provincial People's Committee, the Ministry of Finance and the General Department of Taxation; the close coordination of sectors and levels; the efforts to overcome difficulties and challenges of enterprises and entrepreneurs and the efforts of tax authorities at all levels. Continuously from 2017-2020, the Bu Gia Map District Tax Department has always completed and exceeded its political task of collecting state budget revenue.

2.2.4. Current status of tax debt settlement

punish.

At the Tax Department of Bu Gia Map district, in recent years, the number of

There are not many cases of tax debt and fines related to corporate income tax for enterprises, so the tax debt and fine debt relief work has been quite effective at the Tax Department. However, the work of clearing tax debt and fines related to corporate income tax for enterprises has encountered major obstacles in terms of the team implementing the work. Most of the staff still lack some skills and expertise, so many enterprises when carrying out procedures related to tax debt relief and fines related to corporate income tax still feel unsatisfied because favorable conditions have not been created for enterprises in the procedures of tax debt relief and fines.

2.2.5. Current status of controlling information about taxpayers

Bu Gia Map District Tax Department manages enterprises divided into the following types: State-owned enterprises, Foreign-invested enterprises, Limited liability companies, Joint stock companies, Private enterprises, Joint ventures with foreign countries and Cooperatives. Accordingly, the main type of management is Limited liability companies.

2.2.6. Current status of tax inspection and administrative violation handling

In order to enhance the effectiveness of corporate income tax management, improve the capacity of tax authorities in detecting, preventing and promptly handling enterprises with fraudulent and tax evasion behaviors; at the same time, promote the voluntary compliance and self-responsibility of taxpayers. During the time

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