Directive No. 04/CT-BTC on the implementation of the tax reform and modernization plan until 2010.

DIRECTIVE OF THE MINISTER OF FINANCE

ON IMPLEMENTING THE PLAN FOR TAX REFORM AND MODERNIZATION UNTIL 2010

ngành thuế đến năm 2010.

Over the past decade, implementing the renewal policy in accordance with the spirit of Resolution No. VI of the Communist Party of Vietnam, under the leadership of the Politburo, the National Assembly, the close management of the Government, the tight coordination of Party committees at all levels, relevant sectors, and the efforts of the business community, the tax reform process in our country has achieved significant accomplishments. These include the establishment and submission to the State for promulgation of a comprehensive tax policy system covering almost all sources of revenue, which has been gradually revised and supplemented to be consistent with the country's economic and social development situation, becoming a tool for the Party and State to macro-regulate the economy towards encouraging investment, promoting exports, shifting the economic structure, developing production and business activities, and actively integrating into the international economy. The tax administration system has been established and continuously improved, tax administrative procedures have been revised towards clarity and transparency, ensuring effective and uniform implementation of tax laws nationwide. The effectiveness and efficiency of the tax management machinery have been increasingly enhanced. Tax and fee revenues have become the main source of state budget income, increasing year after year, especially in recent years, contributing to ensuring social equity and creating a fair competitive environment among different economic sectors in the market mechanism.

However, in light of the requirements of the period of industrialization and modernization of the country and its integration into the international economy, the tax system still reveals several fundamental limitations. The tax policy system is not truly synchronized, remains complex, and incorporates many social policies. Tax administration work still has many shortcomings in terms of management mechanisms, management technology, organizational structures, and tax administrators. Therefore, it is necessary to continue reforming the tax system to overcome these existing weaknesses and deficiencies.

From now until 2010 and 2020, our Party and State will accelerate the industrialization and modernization of the country under conditions of deepening economic integration into the international economy. With policies encouraging the development of various economic sectors, tens of thousands of new businesses and traders emerge each year; the scale of business operations is growing larger, business activities are becoming more diverse, and business management is becoming more advanced and modern, requiring the tax system to continue to be reformed in line with the modernization of business operations.

For these reasons, the Ministry of Finance has developed a strategy for tax system reform until 2010, which was approved by the Politburo, and the Prime Minister issued Decision No. 201/2004/QĐ-TTg on December 6, 2004, approving the Program for Reforming the Tax System until 2010. The Minister of Finance has also issued a decision to approve the "Plan for Reforming and Modernizing the Tax Sector until 2010" to implement this strategy and the Prime Minister's decision.

To ensure the implementation of the above-approved plan, the Ministry requests the heads of units under the finance sector to immediately carry out the following tasks:

1. The Director General of the General Department of Taxation shall be responsible for:

- Instructing all civil servants in the tax sector about the objectives, requirements, contents, and plan for tax reform and modernization during the 2005-2010 period.

- Leading and coordinating with related units within the Ministry to develop and implement annual action plans according to the proposed timeline; coordinating activities to effectively implement plans; reporting periodically every six months to the Minister of Finance on the results of implementation.

- Proactively coordinating with relevant ministries and sectors, and subordinate units of the Ministry in drafting legal regulations related to tax management, innovating tax management methods according to the self-reporting and self-payment mechanism, simplifying tax administrative procedures to create the most favorable conditions for taxpayers and align with international practices.

- Directing the entire tax sector to implement according to the approved content and timeline; supervising the implementation of tax authorities at all levels.

- Establishing a steering committee for tax reform, development, and modernization at tax agencies at all levels to implement the plan.

- Actively participating with the Policy Tax Department in the program to draft new tax laws; revising, supplementing, and perfecting the tax policy system according to the approved timeline.

2. Heads of tax agencies at all levels shall be responsible for organizing the dissemination of objectives, requirements, contents, and the reform program to all tax officials under their jurisdiction; organizing implementation and supervision of implementation in their units according to the approved content and time schedule of the General Department of Taxation; regularly reporting on the progress and results achieved according to the regulations of the General Department of Taxation. Every six months, the General Department of Taxation will compile the implementation status and report to the Ministry leadership.

3. The Director General of the General Customs Department shall be responsible for reforming customs management in conjunction with administrative reform and modernizing tax management work. Implementing well the cooperation regulations that have been issued.

4. The General Director of the Treasury shall be responsible for reforming the Treasury's operations in line with the requirements of tax reform and modernization. Implementing well the cooperation regulations issued by the Ministry.

5. The Head of the Policy Tax Department shall proactively propose and organize the implementation of new tax laws for approval by competent authorities; revising and supplementing current tax laws according to the approved content and timeline.

6. The Head of the Accounting and Auditing Department shall study and submit to the Ministry for issuance of accounting regulations applicable to businesses and the tax system to accurately and clearly track taxes due, paid, underpaid, or overpaid, serving the monitoring and directing of tax collection work.

7. The Director of the Department of Information Technology-Financial Statistics is responsible for ensuring the construction and management of the financial industry's communication infrastructure to meet the modernization requirements of the Tax sector, supporting the Tax sector in effectively implementing the informatization project, ensuring the consistency and integration of information within the financial system in accordance with the prescribed functions and tasks.

8. The Director of the Administrative and Financial Affairs Department shall coordinate with the General Director of the Tax General Department to submit to the Ministry for approval the budget estimate and resources to ensure the implementation of this Plan.

9. The Directors of Provincial Finance Departments are responsible for assisting and creating favorable conditions for tax bureaus to implement reform programs and modernization, and monitoring the administrative reform process and modernization of tax administration work in their respective areas.

10. The Organization and Cadre Personnel Department, the State Budget Department, the Legal Department, the Ministry’s Office, the State Treasury, the Customs General Department, the Training Center for Cadres under the Ministry of Finance, and other relevant units under the Ministry of Finance are responsible for coordinating with the Tax General Department in developing annual plans, allocating budget funds, and organizing the implementation according to the approved contents and timelines.