This is the affirmation of the leaders of the Hanoi Tax Department at the seminar to discuss solutions to support and develop small and medium enterprises and business households converting to enterprises held on the morning of June 26 in Hanoi. Attending the seminar were Deputy Director General of the General Department of Taxation, concurrently Director of the Hanoi Tax Department Nguyen The Manh, representatives of the Association of Small and Medium Enterprises, tax agents and a number of enterprises and business households in the area.
The conference aims to outline the current situation of small and medium enterprises, micro enterprises, and business households in the area and issues related to the transformation of business households into enterprises. This is also an opportunity to review the results of coordination between the Hanoi Tax Department, Tax Agents, Associations, and accounting firms to support small and medium enterprises, micro enterprises, and business households, thereby proposing coordination solutions to support start-up and development enterprises.
According to the report of Hanoi Tax Department, in 2016, the number of newly established enterprises reached 24,262, this is the highest number of newly established enterprises in a year ever. In the first 6 months of 2017, the number of newly established enterprises in Hanoi was 12,684 enterprises. However, although the number of newly established enterprises is not small, according to the assessment of the National Assembly and the Government, in recent times, small and medium enterprises and micro enterprises have not developed strongly due to many difficulties in accessing resources such as land, capital, difficulties in grasping policy and legal information, bearing the burden of unofficial costs, and not enjoying high-quality business support services at reasonable costs.
Meanwhile, for individual business households, as of the end of April 2017, in Hanoi there were more than 152 thousand business households in operation. The number of business households converted to enterprises only accounts for a very small proportion. Notably, individual business households are a large group of taxpayers, however, the tax contribution to the total state budget revenue is still low (less than 2%), while the tax authority currently spends a lot of human resources on this professional work. To promote transparency in tax collection and payment for the group of subjects that are considered to have the highest possibility of tax loss as well as spending a lot of human resources even though the revenue accounts for a small proportion of the total revenue, it is necessary to mobilize and encourage business households to become enterprises.
Enterprises are the lifeblood of the economy, if enterprises are in difficulty, the economy will be in difficulty. The goal that Hanoi has set for 2020 is to have 200,000 more enterprises. To achieve this goal, in addition to the number of newly established enterprises each year, there must be a large number of enterprises converted from business households. What solution is there for business households to break the “barrier” in thinking to convert to enterprises is not an easy question to answer for the management agency.
Supporting businesses: Requires the participation of the entire political system
Discussing the solutions that the Hanoi Tax Department is implementing to implement the Government’s Resolutions on supporting enterprises, Deputy Director General of the General Department of Taxation, concurrently Director of the Hanoi Tax Department Nguyen The Manh said that the Hanoi Tax Department is developing a project “Supporting start-up enterprises, small and medium enterprises in the period of 2017-2020” with the goal of providing and supporting timely legal information, answering questions related to initial tax policies and procedures; related support services for newly established enterprises; propagating, mobilizing, and supporting business households to convert to enterprises. Through this project, the tax authority will collect information on problems related to tax policies and procedures of newly established enterprises, thereby having a plan to support enterprises in the most practical way.
Signing of memorandum of understanding on cooperation between Hanoi Tax Department, Association of Vietnamese SMEs, VNPT and Misha Company
Discussing further at the seminar on support solutions for business households to convert to enterprises, Deputy Director of Hanoi Tax Department Mai Son said: Hanoi Tax Department has stepped up propaganda to help business households realize the practical benefits of converting to enterprises such as improving their position in the market, expanding production and business development, and facilitating bank loans. In addition, the Department also focuses on propaganda about the process, documents and procedures for business households to convert to enterprises through many different forms; Organizing dialogue conferences with potential business households to convert to enterprises to share experiences of business households that have converted to enterprises or legal procedures when converting from business households to enterprises; Opening a support hotline, providing information, and answering tax questions for business households to become enterprises at the Department’s Office and 30 District, Town and City Tax Branches.
Discussing solutions to support newly established enterprises as well as business households converting to enterprises, delegates attending the seminar said that the tax sector needs to focus on promoting the benefits that business households enjoy when converting to enterprises. Tax authorities need to build a section to support newly established enterprises and business households converting to enterprise models on the Tax Department’s website (http://hanoi.gdt.gov.vn). Here, enterprises and business households can find all the contents and guidance documents on tax administrative procedures and processes, regulations on recording and storing accounting books, documents, invoice issuance notices, tax code registration for employees, and tax declaration methods. In addition, to enhance the position of tax agents, so that tax agents can truly become an extension of the tax authority, supporting businesses in completing tax procedures in the best way at the lowest cost, tax authorities need to have more forms of propaganda so that businesses and tax agents can know each other and support each other in the process of production and business activities.
Also at the seminar, representatives of many tax agents or software solution companies supporting businesses also announced many programs to support businesses in the most practical way, such as supporting free accounting software for start-up businesses in the period 2017-2020; reducing support service prices for start-up businesses…
At the seminar, the representative of Hanoi Tax Department emphasized that in order to achieve the goal of having 200,000 new enterprises established in the period of 2016-2020 according to the plan of Hanoi People’s Committee and the direction of the Government, the tax authority really needs the timely and synchronous coordination from organizations, associations, departments and branches, especially the support of tax agents. Hanoi Tax Department will also support and create all favorable conditions for tax agents to operate to meet the development requirements of enterprises.
Also at the seminar, the Hanoi Tax Department, the Association of Vietnamese SMEs, Misha Company, and the Vietnam Posts and Telecommunications Group signed a Memorandum of Understanding on business support.
– According to mof.gov.vn –