At a discussion of the National Assembly (NA)'s the 10th session on proposed amendments to the Tax Management Law on November 5, Deputy Ha Sy Dong from the NA delegation of central Quang Tri province highlighted the issue of overlappingNA delegation between central and local tax authorities, which causes inconvenience for businesses.
Regarding the classification of taxpayers in Article 3 of the draft law (amendment), Deputy Tran Thi Hien from the NA delegation of northern Ninh Binh province stressed the importance of accurate and transparent categorization to prevent negative impacts on businesses, especially small and micro enterprises.
She proposed that the Ministry of Finance should issue specific guidelines for these enterprises and make the criteria public to help businesses comply proactively.
Additionally, Deputy Tran Quang Minh from the Quang Tri delegation argued that delegating detailed regulations to the Ministry of Finance might not be appropriate due to lower legal authority compared to government regulations. He suggested transferring this authority to the government to ensure transparency and objectivity.
The discussion also touched on the transition from a lump-sum tax system (applicable to business households and indivituals) to a declaration-based system, which requires a clear roadmap to avoid overwhelming tax authorities and increasing compliance costs for small businesses. Mr. Minh proposed technical support and free accounting software for small businesses, along with a phased transition plan.
The application of tax based on actual revenue, as outlined in Clause 1, Article 13 of the draft law, was deemed suitable given the current lack of comprehensive accounting systems among small businesses. Deputy Hien agreed, noting that the shift could lead to higher declared revenues compared to the current fixed rates, posing challenges for small businesses lacking accounting skills.
To address these challenges, Ms. Hien suggested a clear transitional regulation for the first 1-2 years, allowing small businesses to use simplified declarations or receive assistance from tax authorities. She also recommended policies to support compliance costs, such as free electronic invoices and accounting training.
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