1. Effective Tax Management System

Concept: An effective tax management system is a system designed and operated to ensure that tax revenue is collected in full, on time, and effectively, while also protecting the legitimate rights of taxpayers.

The importance of building an effective tax management system

• Mobilizing state budget revenue: Tax is the most important source of state budget revenue, contributing to the performance of the state’s functions and tasks, including: defense, security, education, health, social security, etc. An effective tax management system helps collect tax revenue in full and on time, contributing to ensuring national financial security and creating conditions for the state to fulfill its functions and tasks well.
• Promoting socio-economic development: An effective tax management system creates a fair and competitive business environment, encourages businesses to invest, produce, and trade, contributing to economic development. The tax system is used effectively to invest in areas such as: education, health, transportation, infrastructure, etc., contributing to improving people’s quality of life.
• Ensuring social equity: An effective tax management system ensures that taxpayers fulfill their tax obligations in an equal and fair manner. A reasonable tax policy contributes to income regulation, poverty reduction, and social equity.
• Enhancing the effectiveness of state management: An effective tax management system provides tax authorities with full information about the financial situation of businesses, households, and individuals, enabling them to take appropriate and effective management measures. A transparent and publicly managed tax system contributes to the fight against corruption and waste.
• Enhancing national reputation: An effective tax management system contributes to enhancing the country’s reputation in the eyes of foreign investors, creating conditions for attracting foreign investment. The tax system is highly appreciated by international organizations, contributing to raising the country’s position in the international arena.

Examples of countries with effective tax management systems

• Singapore: Singapore has a tax management system that is considered one of the most effective in the world. Singapore’s tax system is simple, transparent, has a high tax compliance rate, and low tax administration costs.
• New Zealand: New Zealand also has a highly appreciated tax management system. New Zealand’s tax system is based on the principle of self-assessment and self-declaration, and the tax authority only audits taxes in certain cases.
• Norway: Norway has a benefit tax system, where people with high incomes pay higher taxes to contribute to social benefit programs. Norway’s tax system helps ensure social equity and improve people’s living standards.

2. Solutions for building an effective tax management system

Complete the tax legal system

• Regularly update and supplement tax regulations in a timely manner, in line with socio-economic realities, to ensure transparency, fairness, and ease of application.
• Complete tax management regulations, focusing on the application of information technology, enhance tax information transparency and enhance the effectiveness of tax audits and inspections.

Enhance the quality of human resources

• Recruit and train a team of tax officials with high professional qualifications, good ethics, and strong professional skills.
• Enhance knowledge and skills training for tax officials in the fields of tax, information technology, risk management, and tax audit and inspection.
• Apply a reasonable remuneration mechanism and create a professional working environment for tax officials.

Apply information technology

• Build a modern tax management information system that integrates all functions of tax collection, tax file management, tax inspection, tax audit, e-tax filing, e-tax declaration, etc.
• Apply advanced technology solutions such as artificial intelligence, big data, and blockchain to tax management to improve efficiency and effectiveness.
• Implement e-tax services to facilitate taxpayers in fulfilling their tax obligations conveniently and quickly.

Enhance tax law propaganda and education

• Strengthen the propaganda and dissemination of tax laws to organizations, businesses, and individuals to raise awareness of tax obligations.
• Organize conferences and training courses on tax laws for management and accounting staff of organizations and businesses.
• Cooperate with media agencies to disseminate information about new tax policies, taxpayer support solutions, etc.

Enhance the effectiveness of tax audits and inspections

• Apply risk-based tax audit measures, focusing on organizations and businesses with potential risks of tax evasion.
• Strengthen tax inspections for serious tax violations that cause great damage to the state budget.
• Apply administrative tax violation treatment measures in a strict and lawful manner.

Close coordination among state management agencies in tax administration

• Close coordination among state management agencies in tax administration, with a focus on coordination with the police, customs, banks, etc.
• Exchange information on the tax payment situation of organizations, businesses to timely detect and handle violations of tax laws.
• Coordinate with social organizations, business associations to disseminate, educate tax law and support taxpayers to fulfill tax obligations.

Establish a transparent and fair business environment

• Create a transparent and fair business environment, attract investment, and promote socio-economic development.
• Businesses are provided with full information on tax policies, supported in fulfilling tax obligations conveniently.
• Prevent tax evasion, unhealthy competition in business.

Enhancing the efficiency of tax dispute resolution

• Complete the institutional framework and procedures for tax dispute resolution towards ensuring transparency, accountability, fairness, and effectiveness.
• Enhancing the capacity of tax officials in resolving tax disputes.
• Creating favorable conditions for taxpayers to participate in tax dispute resolution conveniently and easily.