The Prime Minister has recently approved the tax system reform strategy through 2030, with a focus on building the modern and effective taxation sector.
Under Decision 508/QD-TTg dated April 23, the strategy is aimed at completing the synchronism of the tax policies regarding value-added tax (VAT), excise tax, import duty, export duty, corporate income tax, personal income tax, royalty, agricultural land use tax, non-agricultural land use tax and environmental protection tax, along with other charges, fees and state budget revenues, which must be in conformity with international practice while meeting the requirement on resources for implementation of the 2021-30 socio-economic development strategy.
Regarding the tax administration reform, by 2025 it is targeted to have at least 90 percent of taxpayers satisfying with tax agencies while at least 70 percent of taxpayers will be assisted in making tax payment via the network.
At the same time, at least 98 percent of businesses and organizations and 85 percent of individuals will conduct tax declaration, payment, refund and/or exemption electronically.
Meanwhile, tax agencies are expected to process and notify in a timely manner results of tax refund, exemption or reduction for at least 98 percent of dossiers.
In order to achieve the aforementioned targets, one of the solutions set forth under the strategy is to reform VAT policies, broadening tax bases by reducing groups of goods and services not liable to VAT and those liable to 5-percent VAT, and gradually applying the same VAT rate for all groups of goods and services, and increasing VAT rate according to the set roadmap.
In addition, it is necessary to improve regulations on VAT applicable to exported goods and services in line with international practices.- (VLLF)