HLP joint stock companys tax compliance (luận văn tốt nghiệp tiếng anh)

THE MINISTRY OF FINANCE ACADEMY OF FINANCE - - TRUONG THANH HUYEN CQ56/02.01 GRADUATION DISSERTATION TOPIC: HLP JOINT STOCK COMPANY’S TAX COMPLIANCE Major : Taxation Code : 02 Supervisor : Assoc Prof Dr Le Xuan Truong HA NOI - 2022 i GUARANTEE I declare that this is my research work at this time The facts and outcomes presented in the graduation dissertation are accurate and based on the internship unit's actual condition The author of the dissertation Truong Thanh Huyen ii GRATITUDE During my study and preparation for my graduation dissertation at the Academy of Finance, I had a lot of aid from my school, family, agencies, and friends In addition to my substantial investment, I received much help and support from everyone to complete my graduation dissertation On this occasion, I'd like to express my gratitude to the Academy of Finance professors, notably Assoc Le Xuan Truong, for giving me invaluable information During my internship at HLP INVESTMENT JOINT STOCK COMPANY, the leadership team, brothers, and sisters aided me and provided me with the necessary documents to finish my dissertation My teachers, family, and friends provided me with mental support as I worked on this dissertation I appreciate your assistance The author of the dissertation Truong Thanh Huyen iii TABLE OF CONTENTS GUARANTEE i GRATITUDE ii LIST OF ACRONYMS vi LIST OF TABLES vii INTRODUCTION CHAPTER 1: BASIC THEORY OF TAX COMPLIANCE OF ENTERPRISES 1.1 Overview of the enterprise 1.1.1 Concept and characteristics of enterprises 1.1.2 Types of enterprises 1.1.3 The role of enterprises 1.2 Basic content of tax policies that businesses must comply with 1.2.1 Basic content of current VAT policy in Vietnam 1.2.2 The fundamental of CIT policy 12 1.2.3 The fundamentals of the current PIT policy 19 1.3 Enterprise Tax Obligations 30 1.3.1 Enterprise tax obligations: concepts and forms 30 1.3.2 Factors affecting the performance of tax compliance of enterprises 42 CHAPTER 2: THE HLP INVESTMENT JOINT-STOCK COMPANY’S COMPLIANCE 45 2.1 Overview of HLP Investment Joint Stock Company 45 2.1.1 The process of formation and development of the Company 45 2.1.2 The main areas of production and business 45 iv 2.1.3 Organization of the company’s accounting apparatus and tax obligation fulfillment apparatus 47 2.2 The HLP Investment Joint Stock Company’s tax compliance 48 2.2.1 Fulfillment tax registration obligation 48 2.2.2 Executing tax declaration and tax calculation obligations 49 2.2.3 Fulfillment tax payment obligations 57 2.2.4 The compliance of accounting system, invoices and vouchers’ regulations to provide the base for tax obligations of HLP Investment Joint Stock Company 58 2.3 General assessment of tax compliance at HLP Investment Joint Stock Company 59 2.3.1 Achievements 59 2.3.2 Limitations and causes 61 CHAPTER 3: RECOMMENDATIONS ON IMPROVING HLP INVESTMENT JOINT STOCK COMPANY’S TAX COMPLIANCE 65 3.1 HLP Investment Joint Stock Company’s Development Objectives Orientation 65 3.1.1 A focus on activity 65 3.1.2 Development goals 66 3.2 Recommendations on improving HLP Investment Joint Stock Company’s tax compliance 67 3.2.1 Improve the level of tax and accounting department of enterprises 67 3.2.2 Strengthen the application and update of documents and tax books issued by the State 69 v 3.3 Recommendations to improve tax obligations at enterprises 71 3.3.1 Proposal to Ba Dinh District Tax Department 71 3.3.2 Recommendations to the State to improve tax policies 73 CONCLUSION 75 LIST OF REFERENCES 76 APPENDIX 77 vi LIST OF ACRONYMS CIT : Corporate Income Tax PIT : Personal Income Tax VAT : Value Added Tax vii LIST OF TABLES Table 1.1: Table of partial progressive taxation 24 Table 1.2 PIT rate applicable to residents 25 Table 1.3: PIT rate applicable to non-residents 26 Table 2.1: Overview of business results of HLP Investment Joint Stock Company 46 Figure 2: Diagram of accounting apparatus of HLP Investment JointStock Company 47 Table 2.2: VAT statistics payable by HLP investment joint stock company in 2019-2021 51 Table 2.3: Statistics on CIT payable by HLP Investment Joint Stock Company in 2019-2020 53 Table 2.4: Statistics on PIT of HLP Investment Joint Stock Company submitted in 2019-2021 56 INTRODUCTION The necessity of the research Taxation is the state’s primary and long-term revenue source, with the goal of channeling a portion of society’s material riches into the government’s coffers As a result, taxes play a critical role in assuring overall revenue for the state, which helps to adapt macro policies With so many small, medium, and large enterprises in our country, corporate income tax is one of the most important sources of revenue Corporate income tax is a type of direct tax levied on the taxable income of businesses, which includes income from manufacturing and trading goods and services, as well as other revenue as defined by law However, because tax is a direct revenue source that is not refundable, it is a backlog and tax debt Furthermore, in recent years, the economic situation has faced many difficulties as a result of the influence of the world’s political economy’s instability, as well as problems from previous years that have not been fully resolved, such as the economy’s ability to absorb capital being low; insufficient debt pressure remaining high; slow consumption of domestic goods; low management capacity and competitiveness of enterprises; as a result, businesses and individuals have suffered At the same time, the tax code allows taxpayers to owe tax for a limited time As a result, the occurrence of tax debt is unavoidable And, because I practice and work at the small and medium-sizes enterprise in Vietnam and want to learn more about the issue of corporate income tax obligations, I decided to conduct research and select the topic Essay for graduation: “HLP investment joint stock company’s tax compliance” 2 Objectives of the research The overall goal of the study is to determine the intern’s tax payment obligations, learn the progress and operations, and offer solutions to the company’s difficulties in the progress of tax obligations These solutions will be proposed based on an analysis and assessment of the current situation of HLP investment joint stock company’s tax liability performance in the period 2019-2021 The goal of this detail is to clarify the nature of a tax: - Systematize a number of theoretical and practical issues concerning the enforcement of tax obligations - Analyze and evaluate the current status of HLP Investment Joint Stock Company’s tax liability performance from 2019-2021, highlighting successes, causes, limitations, and clarifying the factors affecting the tax liability HLP Investment Joint Stock Company recently implemented tax obligations - Propose some solutions to strengthen management and tax obligations as soon as possible Scope of the research The study’s focus is on HLP Investment Joint Stock Company’s tax obligations, which include VAT, CIT and PIT - Scope of content: The fulfillment of CIT obligations for HLP Investment Joint Stock Company - Scope of space: HLP Investment Joint Stock Company - Scope of time: Assessing the reality from 2019 to 2021, suggesting the recommendations to 2025 Research methods The research methods combine theoretical investigation with a practical summary survey To clarify the current situation and propose perfect 68 knowledge in particular In an era of economic integration, the government constantly updates and modifies policies to reflect the economic environment As a result, the tax accounting team must also keep changes and supplements to the tax policy up to date in order to meet tax obligations in accordance with State regulations - The process of implementing tax accounting must strictly adhere to Vietnamese accounting standards and relevant regulations, as well as apply the accounting and auditing process that the company has developed in a flexible manner It is not for personal gain that it is illegal - Accounting and auditing must be performed with independence, integrity, and confidentiality, and the accounting department must always bear a high level of responsibility To carry out the work, it should be based on legal documents rather than listening to other unfounded advice - Not only that, but the accounting department must have a sharp mind, logical thinking, agility, dynamism, and the ability to handle arising problems quickly and effectively while adhering to regulations provisions of tax law in particular and laws of the Republic of Vietnam in general To meet the above-mentioned tax accounting department requirements, HLP Investment Joint Stock Company should implement some of the following measures: - From the time of recruiting personnel for the tax accounting department in particular and other parts of the company in general, the company should focus on and set high standards in terms of working skills, knowledge of accounting, tax, and state policies and regulations - Furthermore, HLP Investment Joint Stock Company must regularly organize training sessions, guide the company's staff on working skills, as 69 well as update tax policies and the latest regulations in the revisions of State policy so that the staff can perform the work correctly And the most powerful - In addition to organizing employee training sessions, HLP Investment Joint Stock Company should regularly allow employees to participate in training programs, in-depth seminars on the implementation of tax obligations, and so on, so that employees can directly acquire tax knowledge - HLP investment joint stock company should take measures to improve the company's employees' working attitude and professional ethics, such as offering forms of emulation, reward, and discipline in the company's internal regulations so that every employee has a positive and effective working attitude and spirit - The company should improve coordination among departments: between the tax accounting department, which is in charge of the company's tax obligations, and the staff of the audit department and the accounting service department, for example, or between the tax accountant and the sales department From there, the divisions and departments can share their work experience, knowledge, and the state's current tax policie 3.2.2 Strengthen the application and update of documents and tax books issued by the State To keep up with the ever-changing market economy, our state is constantly improving the system of tax law documents, from which additional amendments to the Tax Law are always made to suit the national economic context As a result, accountants must actively improve their knowledge and stay up to date on changes to tax documents and policies issued by the state in order to ensure that the unit's tax obligations are met more effectively 70 HLP Investment Joint Stock Company must implement some of the following solutions in order to strengthen the application and updating of tax documents and policies issued by the State in the most effective manner: - Accountants should be sent to professional refresher courses and training courses on a regular basis to improve their understanding of professional knowledge as well as their capacity and skills to handle actual work on the application of accounting standards, new accounting regimes, and current tax regulations - More facilities for tax calculation, declaration, and payment should be provided by the company The company is currently implementing electronic tax declaration and payment, but it still has a problem with poor network connectivity, which leads to inadequate and more difficult tax return filing - In order to improve work efficiency, it is necessary to strengthen coordination and exchange between departments and departments within the company When the departments collaborate, all members have the opportunity to exchange experiences and assist one another with work, allowing the work to become more effective and accurate Coordination of the collection of internal collection invoices as well as input invoices between the administrative and tax accounting departments Coordination of the sales and tax accounting departments in the issuance of output invoices at the correct tax rate for each customer In the use of invoice records, documents, tax declaration, tax deduction, and tax payment, an enterprise, regardless of its activities in any field, must comply with the provisions of the Ministry of Finance If the enterprise fails to comply with current tax regulations, the tax authorities will intervene immediately and manage the enterprise directly As a result, the organization 71 of tax accounting must be improved in accordance with the current tax policy regime as well as tax accounting standards, on the one hand to facilitate management and on the other to avoid violating the State's economic management policy Our government always creates favorable conditions and treats all businesses fairly; any businesses that operate in violation of the law face severe penalties Of course, if the enterprise follows the State's regulations and guidelines, it will receive preferential treatment in all areas As a result, strengthening the application and updating of tax documents and policies issued by the State is critical, as it assists enterprises in fulfilling tax obligations in accordance with the law, thereby improving the enterprise's reputation in the accounting services market, audit 3.3 Recommendations to improve tax obligations at enterprises The performance of tax obligations at HLP Private Joint Stock Company is affected not only by internal factors but also by external factors such as tax authorities directly managing HLP investment joint stock company or tax policies issued by the State As a result, following a period of direct internship at the accounting department, I would like to make the following recommendations to the Ba Dinh District Tax Department, as well as recommendations on State tax policy: 3.3.1 Proposal to Ba Dinh District Tax Department Ba Dinh District Tax Department is the tax agency directly managing the implementation of HLP Investment Joint Stock Company's tax obligations However, in the process of fulfilling its tax obligations, HLP Investment Joint Stock Company discovered that Ba Dinh District Tax Department still has some limitations that the Tax Department needs to pay more attention to: 72 To begin with, it takes a long time to approve tax returns While HLP Investment Joint Stock Company submits tax declaration dossiers, it takes about 1-2 days for the Ba Dinh District Tax Department to send a notice of approval, causing tax payment to be delayed compared to the company's plan As a result, the Ba Dinh District Tax Department must review the process of receiving and processing tax declaration dossiers paid for by taxpayers in order to ensure taxpayer rights and efficiency Second, when subjects come to the Tax Department to submit the dossier directly, the administrative procedures are still complicated, and the speed of processing work is still slow Ba Dinh District Tax Department should consider and improve administrative procedures further, including the elimination of some unnecessary administrative procedures to ensure the timely processing of taxpayers' records while also reducing costs, assisting in more effective work, and increasing taxpayer satisfaction and trust in tax authorities Third, there is the issue of tax officials' professional qualifications Currently, there are a small number of officials in the Ba Dinh District Tax Department who lack professional knowledge and not thoroughly update tax policies, causing tax officials to be unable to assist taxpayers in a timely and efficient manner As a result, the Ba Dinh District Tax Department must have programs to foster and cultivate knowledge, as well as frequently update tax policies for tax officials Fourth, a small number of tax officials continue to be irresponsible in their work When taxpayers come to the Tax Department to submit dossiers, tax officials in the open room not focus on the work, show indifference and enthusiasm in the work, causing taxpayers in particular and the general public to have a negative impression and lose faith in the State's cadres The 73 Ba Dinh District Tax Department must consider and implement reasonable measures to improve employee morale and working attitude Fifth, the Ba Dinh District Tax Department lacks many programs and measures to assist taxpayers Every year, when it comes to the tax finalization period, the number of dossiers to be settled for businesses and other tax payers is quite large, so to help taxpayers comply with tax obligations effectively, Ba Dinh District Tax Department needs to have departments or support programs, tax advice to solve taxpayers' questions about procedures as well as state tax policies, thereby helping taxpayers to complete the dossier in the most complete and accurate way, help taxpayers to complete the dossier in the most complete and accurate way, help taxpayers to complete the dossier With the restrictions listed above, the Ba Dinh District Tax Department must take steps to overcome them As a result, it is easier for taxpayers to fulfill their tax obligations, and it is also easier for the Ba Dinh District Tax Department to manage and gain the trust of more and more people 3.3.2 Recommendations to the State to improve tax policies Because the economy is expanding and the times of integration are changing on a daily basis, the state has constantly revised and issued new policies to fit the context of the economy However, the state's taxes are still insufficient and should be revised, specifically: Regarding the tax payment deadline: It is recommended to change a few tax payment deadlines because, after submitting tax declaration dossiers, taxpayers must wait for notification of tax declaration dossier acceptance from tax authorities before making payment of tax amounts, so the time limit for payment of tax amounts should not coincide with the time limit for 74 submitting tax declaration dossiers so taxpayers have more time to prepare and avoid unwanted late submissions The content of the Tax Law provisions is still complicated; many contents between the documents are contradictory, overlapping, and some contents are not clearly regulated The situation of continuously amending and supplementing tax policies occurs frequently, causing taxpayers and tax officials to be unable to update in time, resulting in compliance with tax obligations and the handling of tax officials' work with many flaws As a result, the State must consider the most carefully and comprehensively before making amended documents and decisions in order to avoid having to amend multiple times, incurring costly state costs, or issue a consolidated document on the revised terms, allowing taxpayers and tax officials to easily monitor and comply The tax policy of the state has a significant impact on the tax obligations of businesses As a result, the State must carefully consider and update documents in a timely manner to suit and ensure benefits for businesses in particular and all taxpayers in general Avoiding constant revisions makes it difficult to implement policies as well as taxpayers' tax obligations 75 CONCLUSION After three months of internship at HLP Investment Joint Stock Company, although I was not fully exposed to the operations because the company only officially conducted transactions, I was contacted to learn the organizational structure and the company's operating mechanism Over the course of the research, my dissertation course codified the general reasoning of VAT, CIT, and PIT implementation, based on the knowledge and methodology obtained at school and the actual situation in the company Simultaneously, contributing to the clarification of some issues in tax law contributes to further improving tax implementation at the company The topic has generated a number of solutions to improve the responsibility to fulfill tax obligations and address the remaining limitations in the company as well as the current tax management system Due to time constraints, the topic does not go into specific research into the processes implemented from the company's design, initial assignment, or planning stage, but the acceptance stage affects the tax and does not analyze in detail the application of tax law in the company, but only exposes the situation based on the documents obtained from books and accounting documents I'd like to express my heartfelt gratitude to the teacher and my brothers and sisters for their assistance in completing this essay May 23, 2022, Hanoi Student worked Truong Thanh Huyen 76 LIST OF REFERENCES Vuong Thu Hien (2014), "Consumption Tax Text Book", Academy of Finance, Fianance Publisher Nguyen Thi Lien (2011), "Income tax Text Book", Academy of Finance, Finance Publisher Law No 13/2008/QH12 of the National Assembly: VAT Law, and Law No 31/2013/QH13 amending and supplementing a number of articles of the VAT Law, will go into effect on January 1, 2014 Le Xuan Truong (2016) Tax Administration University Text Book, Academyof Finance, Finance Publisher Tax Administration Law 2019 No 38/2019/QH14 The Director General of the General Department of Taxation issued Decision No 1209 TCT/QD/TCCB on July 29, 2004 The Law on Tax Administration No 78/2006/QH11 of November 29, 2006, and Law No 21/2012/QH 13 of November 20, 2012, amend and supplement a number of articles of the Law on Tax Administration No 78/2006/QH11 The Ministry of Finance issued Circular No 105/2020/TT-BTC on December 3, 2020, guiding tax registration The Ministry of Finance issued Circular No 80/2021/TT-BTC on September 29, 2021, guiding the implementation of a number of articles of the Law on Tax Administration, and the Government issued Decree No 126/2020/ND-CP on October 19, 2020, detailing a number of articles of the Law on Tax Administration 10.The VAT Law is guided by Circular No 06/2012/TT-BTC 11.Websites: www.tapchithue.com www.gdt.gov.vn www.mof.gov.vn 77 APPENDIX Appendix 01: Form of tax registration declaration 78 79 NHẬN XÉT CỦA NGƯỜI HƯỚNG DẪN KHOA HỌC Họ tên người hướng dẫn khoa học: PGS.TS.Lê Xuân Trường Nhận xét trình thực tập tốt nghiệp sinh viên: Trương Thanh Huyền Khóa: CQ56 Lớp: 02.01 Đề tài: “ HLP JOINT STOCK COMPANY’S TAX COMPLIANCE “ Nội dung nhận xét: Về tinh thần thái độ thực tập sinh viên Về chất lượng nội dung luận văn : - Sự phù hợp tên nội dung đề tài với chuyên ngành - Độ tin cậy tính đại phương pháp nghiên cứu Điểm: Bằng số Bằng chữ Người nhận xét (Ký ghi rõ họ tên) NHẬN XÉT CỦA NGƯỜI PHẢN BIỆN Họ tên người phản biện: Nhận xét trình thực tập sinh viên: Trương Thanh Huyền Khóa: CQ56 Lớp: 02.01 Đề tài: “ HLP JOINT STOCK COMPANY’S TAX COMPLIANCE ” Nội dung nhận xét: - Sự phù hợp tên nội dung đề tài với chuyên ngành - Đối tượng mục đích nghiên cứu - Độ tin cậy tính đại phương pháp nghiên cứu - Nội dung khoa học Điểm: Bằng số Bằng chữ Người nhận xét (Ký ghi rõ họ tên) ... ? ?Tax compliance of HLP Investment Joint Stock Company” includes three chapters: Chapter 1: Basic theory of tax compliance of enterprises Chapter 2: The HLP Investment Joint Stock Company’s tax. .. provide the base for tax obligations of HLP Investment Joint Stock Company 58 2.3 General assessment of tax compliance at HLP Investment Joint Stock Company 59 2.3.1 Achievements... causes 61 CHAPTER 3: RECOMMENDATIONS ON IMPROVING HLP INVESTMENT JOINT STOCK COMPANY’S TAX COMPLIANCE 65 3.1 HLP Investment Joint Stock Company’s Development Objectives Orientation