Nâng cao hiệu quả quản lý thuế thu nhập cá nhân trên địa bàn thành phố Hồ Chí Minh TT Eng

Vietnam Academy of Social Sciences
GRADUATE ACADEMY OF SOCIAL SCIENCES

HOÀNG THỊ NGỌC NGHIÊM

IMPROVING THE EFFECTIVENESS OF PERSONAL
INCOME TAX MANAGEMENT IN HO CHI MINH CITY

Major :Development Economics
Code : 9.31.01.05

SUMMARY OF THESIS OF ECONOMY

HANOI – 2022


The project was completed at:

Vietnam Academy of Social Sciences
GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific guide group: 1. Assoc. Prof. Dr. Quach Duc Phap
2. Dr. Nguyen Quoc Huy

Reviewer 1: Prof. Dr. Do Duc Binh

Reviewer 2: Assoc. Prof. Dr. Bui Van Can

Reviewer 3: Assoc. Prof. Dr. Nguyen Xuan Trung

The thesis will be defended before the Academy level thesis

committee,
at: Academy of Social Sciences, 477 Nguyen Trai, Thanh Xuan, Hanoi
At …….hour, date ……month ……year ……

The thesis can be found at:
- Library of the Academy of Social Sciences
- Vietnam National Library


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INTRODUCTION
1. The necessity of the research
Tax is the basic and long-term source of national budget revenue and
the most important financial source for implementing investment policies
for socio-economic development of the country. Tax revenue is considered
as the lifeblood of the economy for a country.
At the same time, through the tax policy, the State will regulate the
income gap between the rich and the poor, by subsidizing or providing
public goods with sources of personal income tax, corporate income tax,
etc. In the developed countries, personal income tax is a relatively early
direct tax and accounts for a very high proportion of 30% to 40% of total
tax revenue. In Vietnam, the Personal Income Tax Law that took effect on
January 1, 2009 has helped the Government offset the decline in revenue
from import and export due to the implementation of commitments to
reduce import and export tax. imports in international free trade
agreements, on the other hand, makes our country's tax system more and
more close to the world's practices. After 10 years of implementation,
personal income tax revenue has increased from 14,318 billion VND (in
2009) to nearly 109,400 billion VND (in 2019), but now accounts for only

about 7% of the total state budget revenue (according to 2019 data).
However, under the strong impact of international economic
integration, the process of trade liberalization has led to a change in tax
structure and tax revenue of the state budget. Especially, the strong
development of information technology, the increasingly popular non-cash
payment market transactions have created favorable conditions for the
expansion of the scope of application of direct taxes, in which personal
income tax. Therefore, the management of personal income tax is also very
complicated and has many difficulties, so it is often not as effective as
other taxes, especially on the basis of the digital economy, many business


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activities. Businesses that have switched to follow new non-traditional
models such as e-commerce, cross-border, online sales, agents,
subscribers... are big challenges for tax administration to prevent personal
income tax fraud, personal income tax evasion in our country.
In addition, due to the decentralization of state budget management in
Vietnam, the law on all taxes is promulgated by the National Assembly, so
the local level basically only performs the collection work, not the
collection of taxes. allowed to make its own rules. This leads to
inadequacies and limitations that need to be studied and adjusted to suit
each locality. Therefore, it is necessary to have the most radical solutions
to improve the efficiency of personal income tax management for Ho Chi
Minh City and for the national personal income tax management system.
That is the reason why the PhD student chooses the topic "Improving the
effectiveness of personal income tax management in Ho Chi Minh City" as
his doctoral thesis majoring in Development Economics.
2. Purpose, tasks and research questions of the thesis

2.1. Research purposes: Proposing solutions to improve the efficiency
of personal income tax management in Ho Chi Minh City in the coming
time.
2.2. Research mission: (1) An overview of theoretical and practical
issues on personal income tax management policies at the local level; (2)
Analyze and evaluate the current status of personal income tax
management in Ho Chi Minh City from the perspective of economic
development; (3) Solutions to improve the efficiency of personal income
tax management for Ho Chi Minh City in the coming time.
2.3. Research question: (1) What is the impact of information
technology and trade liberalization in the process of international economic
integration on the personal income tax policies of Ho Chi Minh City? (2)
Based on what criteria to evaluate the management of personal income tax


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of Ho Chi Minh City? (3) The effectiveness of personal income tax
management of Ho Chi Minh City in recent years has contributed to Ho
Chi Minh City's budget in recent years? (4) What should be done to
improve the efficiency of personal income tax management to avoid tax
loss in Ho Chi Minh City in the near future?
3. Research object and research scope
3.1. Research subjects: Researching theoretical and practical issues on
improving the efficiency of personal income tax administration in the Ho
Chi Minh city.
3.2. Scope of research topic
About the time: from 2009 to 2019 and propose solutions and
recommendations until 2025, vision until 2030.
About space: focus on research on personal income tax management in

Ho Chi Minh City in the context of international economic integration. The
thesis uses data from other localities in the country as a basis for analysis.
Topics discussed and researched: Ho Chi Minh City Tax Department.
4.Scientific and practical significance of the research topic
Theoretically: The thesis completes the theoretical basis for the
management of personal income tax at the local level
In terms of practice: (1) The research results of the thesis will
contribute to improving the efficiency of PIT management, contributing to
increasing state budget revenue for the city. Ho Chi Minh City and the
whole country in the coming time; (2) The research results of the thesis can
be used as references for research, teaching and learning.
5. Research Methods
The thesis uses the following main research methods: synthesis method
and systematic analysis combined with comparison, qualitative research
method, investigation method, expert method and qualitative research
method. quantity (using international standard decimal notation).


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6. New points of the thesis
(1) A systematic review of the research works related to the thesis topic
at home and abroad on the management of personal income tax in order to
point out the research gap and confirm the selected topic. selected has no
overlap with any previously published studies.
(2) Systematizing theoretical issues: building a scientific basis on
personal income tax and factors affecting the management of personal
income tax and evaluating the management of personal income tax. This is
an important contribution to the research topic and basic theoretical basis
for further research.

(3) Establishing a practical basis: from the introduction of experience
in the management of personal income tax of some countries and localities
in Vietnam, some comments are made in order to draw lessons for the city.
HCM can refer.
(4) Focusing on analyzing the current situation of the city's PIT
management. Ho Chi Minh City helps readers visualize the whole picture
of the city's tax industry in the period of 2009 - 2019.
(5) Focusing on research on the effectiveness of the city's PIT
management. HCM aims to contribute a part to the selection in accordance
with practical requirements and budget decentralization in Vietnam.
(6) On the basis of planning from the current situation of personal
income tax management in Ho Chi Minh City to the degree of
harmonization of the interests of taxpayers and personal income tax policy
to determine the main reasons for Factors leading to the current situation of
personal income tax management in Ho Chi Minh City and forecast
development trends of all economic sectors in the coming time to propose
solutions to improve management efficiency. Personal income tax in Ho
Chi Minh City until 2025.
7. Structure of the thesis


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In addition to the introduction, conclusion, references and appendices,
the content of the thesis structure has 4 chapters as follows:
Chapter 1: Overview of research on personal income tax management.
Chapter 2: Theoretical basis on personal income tax management and
effectively improve personal income tax management in the provinces and
city.
Chapter 3: Actual situation of effective personal income tax

management in Ho Chi Minh City.
Chapter 4: Solutions to improve the efficiency of personal income tax
management in Ho Chi Minh City in the period to 2025.
CHAPTER 1: OVERVIEW OF RESEARCH ON PERSONAL
INCOME TAX MANAGEMENT
1.1. Foreign research projects
The thesis focuses on studying foreign research projects: Dulleck,
U., Fooken, J., Newton, C., Ristl, A., Schaffner, M. and Torgler, B. (2016),
with the theme “Tax compliance and psychic costs: Behavioral
experimental evidence using a physiological marker”; Jimenez, P. and
Iyer, G.S. (2016), with the theme “Tax compliance in a social setting: The
influence of social norms, trust in government, and perceived fairness on
taxpayer compliance”. Castro, L. and Scartascini, C. (2015), with the
theme “Tax compliance and enforcement in the pampas evidence from a
field experiment”; Kamleitner, B., Korunka, C. and Kirchler, E. (2012),
with the theme “Tax compliance of small business owners”; Wahl, I.,
Kastlunger, B. and Kirchler, E. (2010), with the theme “Trust in
authorities and power to enforce tax compliance: An empirical analysis of
the “slippery slope framework”; John Brondolo, Kyoshi Nakayama, Frank
Bosch, Allan Foubister và Judy Tomaso (2008), with the theme “Viet Nam
implements personal income tax”; Kevin Holmes (2007), with topic
“Personal income tax management”; Tax Affairs Committee of the OECD
(2004), “Managing compliance risk: Managing and improving tax


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compliance”; Hugh J.Ault, Boston College Law School & Brian J.Arnold,
Goodmans, LPP, Toroto (2004), “Comparative Imcome Taxation: A
Structural Analysis; Bert Brys and Christopher Heady (2006), with the

theme “Fundamental reform of Personal Income Tax in OECD Countries:
trends and recent experiences”; Thanh Bình (2003), with the theme
“Japan - 55 years of applying the self-declaration and payment
mechanism”; Richard M.Bird và Milka Casanegra de Jantscher (1992),
with the theme “Improving Tax” Administration in Developing
Countries”.
1.2. Domestic research projects: Vu Thi Bich Quynh (2019), with the
topic "Personal income tax management for Vietnamese people in Ho Chi
Minh City". Ho Chi Minh City in the context of international economic
integration”; Huynh Van Dien (2016), with the topic "Personal income tax
law from practice in Can Tho City"; Nguyen Hoang (2013), with the topic
"Improving State management of personal income tax in Vietnam"; Vu
Van Cuong (2012), with the topic "Law on tax administration in the market
economy in Vietnam - Theoretical and practical issues". Ly Phuong Duyen
(2010), with the title "Personal income tax management in Vietnam in
terms of international economic integration"; Phan Thi Hang Nga (2017),
with the topic "Solutions to improve efficiency in personal income tax
management in Vietnam"; World Bank (2011), “Reform of Personal
Income Tax Administration in Vietnam – Towards a More Efficient and
Fair System”; International Monetary Fund (2008), “Vietnam implements
personal income tax”, group of economists of the International Monetary
Fund; Nguyen Thi Thanh Thuy (2008), "Improving the Vietnamese income
tax law in the process of international economic integration and the
experience of some countries in the world".
1.3. Research gaps and theories
1.3.1. Thesis research gap
Theoretically: The thesis analyzes the theoretical basis for effective
personal income tax management, theoretical research model and
analytical framework design.

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In terms of practice: Through research and analysis of domestic and
foreign works on personal income tax management, it shows that personal
income tax management is very rich and diverse, mentioned in many other
research works. different, at different times and in different contexts, and
there is no research on the theoretical basis of personal income tax
management to apply to improve management efficiency. Personal income
tax for Ho Chi Minh City from the perspective of economic development.
On that basis, the PhD student inherits the results of domestic and foreign
studies and applies theoretical models of development economics and
appropriate theories to analyze the current situation of income tax
management. individuals in recent years to propose solutions to "Improve
the efficiency of personal income tax management in the city Ho Chi Minh
City” in the near future.
1.3.2. Research theory
The thesis uses two important theories, namely the theory of
management science and the theory of development economy, as the
foundation for thinking critically, analyzing, commenting, evaluating and
proposing solutions. Besides, the thesis also applies other theories such as:
Theory of development economy; Theory of traditional tax administration;
Theory of modern tax administration; Tax theory - exchange; Tax theory solidarity; Theory of perfecting the law.
CHAPTER 2: THEORETICAL BASIS ON PERSONAL
INCOME TAX MANAGEMENT AND EFFECTIVELY IMPROVE
PERSONAL INCOME TAX MANAGEMENT IN THE PROVINCES
AND CITY
2.1. Personal income tax and personal income tax management
2.1.1. Personal income tax is a direct tax levied directly on an
individual's income

2.1.1.1. Personal income tax features
There are 6 outstanding features: is a direct tax; individuals often have
multiple sources of taxable income; enter the income of each individual;


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tools to regulate population's income to ensure social justice goals; directly
on the income of each individual; progressive in nature.
2.1.1.2. Contents of personal income tax
(1) Taxpayers; (2) Taxable income; (3) Income is exempt from PIT; (4)
Taxable income; (5) Expenses are deducted; (6) Family circumstances
deduction; (7) Tax period; (8) PIT rate; (9) How to calculate personal
income tax; (10) Declare, pay tax and withhold personal income tax; (11)
Finalization of personal income tax; (12) Examination and inspection of
personal income tax.
2.1.1.3. Role, position of personal income tax
Personal income tax plays a very important role and position in the tax
system of each country, reflected in the following 4 aspects: (1)
Contributing a part of revenue to the state budget; (2) Contributing to the
regulation of incomes among classes of the population; (3) Contributing to
the management and control of social income; (4) Expanding revenue
sources.
2.1.2. Personal income tax management is an organized and oriented
impact of tax authorities and tax officials on the subject of personal income
tax management according to the contents and by methods and tools
prescribed by law. determined, in order to achieve the State's personal
income tax management objectives determined by the State.
2.1.2.1. Features of personal income tax management
The goal is to make all personal income tax payers comply with

regulations, ensure the effectiveness of personal income tax management
activities with the most economical personal income tax management
costs, fairness among taxpayers, openness, transparency, conformity and
compliance with international standards and practices.
2.1.2.2. Contents of personal income tax management
(1) Tax administration of the tax authority is responsible for tax
administration for taxpayers under its management according to
regulations, such as: Tax registration, use of MST according to regulations;
Tax declaration, tax calculation, tax payment, tax deduction, tax


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assessment; tax exemption, tax reduction, payment of outstanding tax, tax
refund, tax arrears, complaints and settlement of complaints about personal
income tax, information provision, and additional information in tax
declaration dossiers...
(2) Taxpayer compliance management
In the law on personal income tax management, there are limits on the
corridor, setting up legal barriers so that the subjects participating in the
legal relationship managing personal income tax have the "freedom in
frameworks" and if they go beyond those "frameworks", of course
taxpayers will be subject to severe sanctions.
2.1.2.3. The role of personal income tax management
Personal income tax management plays an important role in increasing
revenue for the state budget; bridge between personal income tax policy
and each taxpayer; develop and expand taxpayers, encourage taxpayers to
increase taxable income, transfer income from other places, develop new
sources of income and voluntarily comply with taxpayers.
2.2. Effectively manage personal income tax and improve the

efficiency of personal income tax
Effective personal income tax management is the result of
implementing the contents of personal income tax management by tax
management methods and personal income tax management tools. Based
on the criteria for evaluating the effectiveness of personal income tax
management, analyze the impact of objective and subjective factors on the
management of personal income tax in the province and the city.


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2.3. International experience and lessons learned for Vietnam
reference
2.3.1. Experience in managing personal income tax of certain
localities in the world
The thesis studied the personal income tax management models of
some localities such as the US, France, Japan, Singapore, Australia and
Sweden to draw and draw lessons that can be used as reference for
Vietnam. Nam in the management of personal income tax.
2.3.2. Lessons learned from reference for Vietnam
Promote communication, propaganda and support; Personal income tax
management is increasingly simple, modern, transparent and public with
less tax rates; Taking taxpayers as the center to provide all services and
utilities, creating an environment of voluntary and voluntary fulfillment of
personal income tax obligations; Applying information technology to all
stages in the personal income tax management process; Must be selected
and trained to build a team of tax officers who are both honest and
professional; Build a complete database to always know information about
taxpayers and increase the effectiveness and efficiency of personal income
tax inspection and examination; Completing legal regulations; Strengthen

the coordination of tax authorities with departments and branches; Promote
cashless payments.
CHAPTER 3: THE REALITY OF PERSONAL INCOME
MANAGEMENT EFFICIENCY IN HO CHI MINH CITY
3.1. Overview of the socio-economic situation
3.1.1. Geographical location
Ho Chi Minh City is the largest city in our country, an important
political, economic, cultural and scientific and technical center of the
country. With an important geo-economic position of the whole country,
located in the southern key economic region, it is an important traffic hub
with arterial traffic routes that help Ho Chi Minh City easily expand interregional exchanges. domestic as well as integration into regional and world


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markets. To promote the strong advantages of a megacity to create
breakthroughs so that the city has conditions for faster and more
sustainable development. On November 24, 2017, the National Assembly
voted to approve Resolution No. 54/2017/QH14 on piloting specific
mechanisms and policies for the development of Ho Chi Minh City.
3.1.2. Socio-economic situation
During more than 35 years of renovation, Ho Chi Minh City's
economic growth is quite and stable, averaging 10.7%/year, 1.6 times
higher than the national average. The economic structure always maintains
a reasonable proportion, the service sector regularly holds the largest
proportion in Gross regional domestic product, in 2020 is estimated at
62.13%, exceeding the set target of 56% - 58%. industry - construction is
estimated at 24.61%. The growth rate of state budget revenue from the
economic sector in the 2016-2020 period is 12.17%, higher than the growth
rate of Gross regional domestic product . The city's labor productivity is

2.7 times higher than the national average labor productivity, the city's
labor resources are qualified among the highest income groups in the
country.
Ho Chi Minh City actively promotes regional linkage activities in
terms of goods supply and demand, traffic development, tourism,
environmental protection, disease control, human resource training to serve
economic development. socio-economic conditions of the region, such as:
signing a cooperation agreement to implement the highway project Moc
Bai City (Tay Ninh) and with 13 provinces and cities in the Mekong Delta
signed a tourism development cooperation program. The stage 2020-2025
calendar period actively contributes to creating jobs for local workers in
the region, reducing the pressure of working-age migrants to the city by
creating favorable conditions for their businesses to Currently investing,
contributing to the formation of many industrial parks in the provinces in
the region.
3.2. The basis of personal income tax revenue in Ho Chi Minh City


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Ho Chi Minh City has the largest personal income tax revenue base in
the country with a variety of taxable income types, both regular income
and irregular income, focusing on business, services, tourism, e-commerce,
capital transfer, real estate, inheritance, stocks, cultural and artistic
activities... In which, the proportion of individual business establishments
in Ho Chi Minh City accounting for 9.07% of the whole country; employs
more than 9.3% of the country's workforce; FDI enterprises account for
nearly 30% of enterprises in the country. In addition, PIT revenue from
foreigners coming to work in the City.
3.3. Actual situation of effective personal income tax management

in Ho Chi Minh City
3.3.1. Tax administration status of tax authorities
3.3.1.1. Regulations on administrative procedures
Strictly implementing the process of controlling tax administrative
procedures as guided in Article 10, Article 11 of Circular No. 05/2014/TT–
BTC, dated January 6, 2014 of the Ministry of Finance.
3.3.1.2. Tax administration apparatus
The organizational apparatus consists of 22 functional rooms
arranged in a vertical system from the city to the districts to perform the
task of managing tax collection activities.
3.3.1.3. Infrastructure, technology
The tax branch of Ho Chi Minh City has full facilities and technical
infrastructure to meet the requirements of personal income tax collection
and management. In addition, the Ho Chi Minh City Tax Department aims
to build an electronic invoice system to optimize the management process,
improve working efficiency, and save costs, marking a turning point in the
development of the trend. New direction of Ho Chi Minh City tax industry.
3.3.2. Assessing taxpayer compliance
3.3.2.1. Tax information management of taxpayers in Ho Chi Minh City
Under the responsibility of two levels, the City Tax Department and the District
Tax Departments. As of 2019, Ho Chi Minh City Tax Department manages
more than 230,000 businesses and more than 488,000 individual business


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households and millions of individual income tax payers; City Tax Departments
manage more than 520 businesses and about 4,900 individual households, with
large revenues of 150-200 billion/year.
3.3.2.2. Actual situation of tax declaration, calculation, withholding

and paying personal income tax in Ho Chi Minh City
(1) Declare, calculate, withhold and pay tax on personal incomes from
salaries and wages paid by agencies, organizations and individuals,
achieving important results; The personal income tax revenue from salaries
and wages next year always increases higher than the previous year's and
nearly 75% of the total personal income tax revenue of the whole City.
(2) Declare, calculate and pay taxes for freelancers with positive
results. However, some writers and artists have not yet shown their selfdiscipline to the tax office to declare and fulfill the obligations of citizens
to the State.
(3) Tax declaration, calculation, deduction and tax payment for
business individuals all make annual tax declaration dossiers in accordance
with regulations, helping to determine the flat tax rate smoothly and
achieving results.
(4) Declaration, tax calculation, deduction and payment of taxes on
other sources of income have not been given due consideration, together
with a large volume of data, while the processing capacity is limited, there
are not enough sources The effort to strengthen the inspection and regular
inspection leads to a lot of revenue loss and low efficiency of personal
income tax management.
3.3.2.3. Actual situation of personal income tax finalization in Ho Chi
Minh City
The situation of loss of personal income tax collection in Ho Chi Minh
City due to the failure to perform well the tax deduction responsibilities at
agencies, administrative and non-business units located in Ho Chi Minh
City is still relatively large. .
3.3.2.4. Actual situation of personal income tax inspection and
inspection in Ho Chi Minh City


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(1) Examination and inspection of personal income tax for residents
earning income from salaries and wages paid by agencies, organizations
and individuals is mainly carried out in conjunction with the inspector.
corporate income tax, there are few cases of organizing separate thematic
inspection on personal income tax.
(2) Examination and inspection of personal income tax for selfemployed people has not been focused.
(3) Inspection and inspection of personal income tax for individuals
earning income from business, individual business households is imposed
on individuals earning income from business due to the implementation of
the business contract mechanism. tax collection and payment.
(4) Examination and inspection of personal income tax for individuals
who are residents and have other types of taxable income, which is
concerned by the tax department of Ho Chi Minh City. Within 10 years,
the number of files inspected and examined increased by more than 18
times, the amount of arrears for the state budget increased by 6 times.
However, in the age of science and technology, many new business models
appear, there are certainly many revenue sources that are still being
abandoned, causing loss of state budget revenue.
3.4. General assessment of the current situation of personal income
tax management in Ho Chi Minh City
3.4.1. These achievements
3.4.1.1 Increase State budget revenue: In the period of 2009–2019, the
actual situation of personal income tax management tasks of the Ho Chi
Minh City Tax Department always met and exceeded the personal income
tax collection estimate, making a great contribution to the total budget
revenue in the city. Ho Chi Minh City. Personal income tax management in
Ho Chi Minh City has achieved good results, gradually raising taxpayers'
awareness of personal income tax. During the research period, the city's
total state budget revenue contributed on average over 16% to the country's

total state budget revenue. The proportion of personal income tax revenue
in the total state budget revenue in each year and the growth rate of


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personal income tax collection over the previous year over the past 10
years in Ho Chi Minh City has always been higher than average country.
3.4.1.2. Effective personal income tax management in terms of cost and
human resource use: Through comparative data between local tax departments
of the General Department of Taxation in 2019, it can be seen that the cost to
collect 1 dong of personal income tax for the state budget is that of Ho Chi Minh
City and the cost of income tax. For the personal income tax management
department compared to the total tax administration costs of the whole tax
agency, Ho Chi Minh City has the lowest cost, but the amount of personal
income tax is managed by one officer. Personal income tax collected in 1 year is
over 1.17 billion VND. However, Ho Chi Minh City has a higher number of
personal income tax administrators compared to the total number of tax
authorities than other localities and the satisfaction level of taxpayers with tax
officials. tax accounting for 70% compared to other localities is still low. In
general, the management of personal income tax in Ho Chi Minh City in terms
of personal income tax administration costs is more effective than in other
provinces.
3.4.1.3. Effective personal income tax management in terms of compliance
with tax administration laws
(1) Regarding declaration and registration for tax identification numbers: Ho
Chi Minh City strictly adheres to regulations on the use of tax codes compared to
taxpayers who have been granted tax codes, reaching a very high rate of 99%, of
which the number of taxpayers who strictly comply with regulations on the use
of tax identification numbers compared to taxpayers who have been granted tax

identification numbers is 89%;
(2) Regarding tax declaration, calculation, tax deduction and payment of
personal income tax: Ho Chi Minh City has a block of businesses and individual
business households that comply with tax laws on declaration, tax calculation
and withholding. deduction and payment of personal income tax into the state
budget accounts for 99%, higher than that of provinces and cities such as Hanoi,
Da Nang, Dong Nai, and Can Tho. The effectiveness of the penalty for late
payment of personal income tax of the number of taxpayers who are fined for


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late payment compared to the total number of taxpayers who have paid personal
income tax, accounting for 4.6%, is 2 times higher than that of Hanoi. and Dong
Nai, nearly 3 times higher than Da Nang and Can Tho City. This shows that the
tax compliance awareness of these taxpayers is not high, they have not really
voluntarily complied with the self-declaration and payment of personal income
tax;
(3) Regarding the inspection and examination of personal income tax: In
general, the inspection of personal income tax on tax returns of business
individuals and enterprises has been approved by the tax authorities in Vietnam.
Ho Chi Minh City makes relatively regular, periodic tax declarations. However,
the majority of cases of personal income tax fraud are discovered, provided or
reported by taxpayers, not from the inspection, comparison and verification by
tax authorities;
(4) Regarding budget revenue: The state of Ho Chi Minh City's budget
revenue is positive, especially budget revenue from personal income tax. In the
period of 2009–2019, Ho Chi Minh City had a total personal income tax revenue
of over 232 trillion, of which the highest contribution to the state budget in 2019
was over 43 trillion, exceeding 105.5%. revenue plan.

3.4.2. Points that are still limited
Compliance with the law on personal income tax management is still
low among some taxpayers; The cost of personal income tax administration
and the use of human resources in personal income tax management are
low; Exploiting the potential of personal income tax revenue to increase
Ho Chi Minh City's budget revenue has not been effective.
3.4.3. Causes of shortcomings in the effectiveness of PIT
management in Ho Chi Minh City
3.4.3.1. Subjective reasons: Not paying attention to the development of
practical skills in digital economy; Tax administration according to the
concept of mere collection has not fully promoted responsibility in revenue
management and exploitation of revenue sources; the coordination between
tax authorities and relevant branches is not close; equipment for tax
administration has not yet met the requirements of tax administration in the


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new situation; the level of application of modern technology in tax
administration is still inadequate; slow in renovating tax administration
methods towards non-traditional business activities; the inspection and
inspection of personal income tax has not paid due attention; no measures
to exploit e-commerce data, payment data to compare with personal
income data to detect tax fraud cases; There is no mechanism for
classifying taxpayers according to the principles of risk management and
probabilities.
3.4.3.2. Objective reasons: Regulations on family deduction levels in
the Law on Personal Income Tax are equal in nature, applicable to all
taxpayers across the country, affecting the lives and psychology of
taxpayers; The provisions on the presumption mechanism in the Personal

Income Tax Law lack flexibility, reduce the meaning of competition and
fail to control the cost structure of production and business establishments;
Personal income tax payers always have potential risks; The capacity of the
Tax Advisory Council of communes and wards as well as the experience in
tax administration of the tax authorities in Ho Chi Minh City is still
limited.
3.5. Evaluation of the effectiveness of personal income tax
management in Ho Chi Minh City
3.5.1. Quantitative research sample design: Design a survey with 34
questions belonging to 8 factors mentioned in the research model to
conduct a survey of 350 observations by convenient method combined with
norm method. The results obtained were 308 observations that were
eligible for quantitative analysis.
3.5.2. Testing the research model: On the basis of analyzing the
results of descriptive statistics, evaluating the reliability of the scale and
adjusting the research model to analyze multiple linear regression to test
the research hypotheses, quantify the impact of factors on the effectiveness
of personal income management.
Through the study, it was found that the effectiveness of personal
income tax management belongs to the dependent variable, after testing the


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reliability of the scale, 5 observed variables belonging to the scale for the
concept were included in the EFA analysis and using the Extract Principal
Component to perform EFA analysis for dependent variable. As a result,
we have the following regression equation:
Effectiveness of personal income tax management = 0.055 + 0.137 Tax
administration staff capacity + 0.087 Policy communication + 0.085

Personal perception + 0.437 Infrastructure, technology + 0.072 Tax law +
0.053 Photo Social benefits + 0.125 Coordinate with agencies and
departments.
The factor of tax administrator's capacity is based on the results of
factor regression with a standardized Beta coefficient of 0.187 and a Beta
Sig test value of 0.000, showing that at 95% confidence level, we can
conclude that capacity The force of tax administrators positively affects the
efficiency of personal income tax management, which means that when we
improve the capacity factor, the more active the tax administrators are, the
more effective the tax administration will be. At the 95% confidence level,
when other factors are constant, if the capacity of tax administrators is
increased by 1 unit, the efficiency of personal income tax management will
increase by 0.187 units.
The factor of tax policy propaganda, the factor regression results, have
a standardized Beta coefficient of 0.110 and a Beta Sig test value of 0.007,
showing that at 95% confidence level, we can conclude tax policy
propaganda. has a positive effect on the efficiency of personal income tax
management, which means that when we improve the factor of tax policy
propaganda, the more effective the tax administration efficiency will
increase, at the 95% confidence level. All other things being equal, if
policy propaganda is increased by 1 unit, the personal income tax
management efficiency will increase by 0.110 units.
The factor of individual tax payer awareness based on the regression
results of the factor has a standardized Beta coefficient of 0.105 and a Beta
Sig test value of 0.019, showing that at 95% confidence level, we can


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conclude that awareness Taxpayers have a positive influence on the

effectiveness of personal income tax management, which means that when
we improve the perception of individual taxpayers, the efficiency of tax
administration will increase.
The infrastructure factor, the factor regression technique has a
standardized Beta coefficient of 0.510 and a Beta Sig test value of 0.000,
showing that at 95% confidence level, we can conclude the infrastructure
Infrastructure and technology positively affect the efficiency of personal
income tax management, which means that when we improve the
infrastructure and technical factors, the efficiency of tax administration will
increase, in terms of reliability. 95% confidence level when other factors
are constant, if infrastructure and technology are increased by 1 unit, the
efficiency of personal income tax management will increase by 0.510 units
(the factor that has the strongest impact on efficiency). personal income tax
administration).
Tax law factor, the factor regression results have a standardized Beta
coefficient of 0.087 and a Beta Sig test value of 0.035, showing that at 95%
confidence level, we can conclude that tax legislation has a positive effect
on the efficiency of personal income tax management, which means that
when we improve the tax legislation, the efficiency of tax administration
will increase.
Social influence factor results of factor regression have a standardized
Beta coefficient of 0.077 and a Beta Sig test value of 0.046, showing that at
95% confidence level, we can conclude that social influence affects has a
positive effect on personal income tax administration efficiency, which
means that the more positive the social influence, the more effective the tax
administration will be.
The agency coordination factor has a standardized Beta coefficient of
0.162 and a Beta Sig test value of 0.000, showing that at the 95%
confidence level, we can conclude that the agency coordination has a

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positive effect. It has a positive effect on the efficiency of value added tax
administration, which means that when we improve the coordination factor
between agencies, the efficiency of tax administration will increase.
CHAPTER 4: SOLUTIONS TO IMPROVE THE EFFICIENCY OF
PERSONAL INCOME MANAGEMENT IN HO CHI MINH CITY IN
THE PERIOD OF 2021 - 2025
4.1. The context of socio-economic development in Ho Chi Minh City
in the period of 2021 - 2025 and problems for PIT management
4.1.1. The context of socio-economic development in Ho Chi Minh
City in the period of 2021 - 2025
The socio-economic situation of the City develops at a fast and modern
pace. Digital technology is widely applied and prevalent in all areas of life
and has become the main means of all activities and the driving force of
development. The private and individual economy thrives, attracting and
creating jobs for a large number of workers. Many new and non-traditional
business models were born and developed, bringing unprecedented high
economic efficiency. As a result, the population's income has also
increased sharply, the middle class makes up the majority of the
population. There is also a larger gap between rich and poor. A new color
of the background in Ho Chi Minh City with more profound changes than
before, will create great potential for revenue sources for the state budget,
especially personal income tax.
4.1.2. Issues facing personal income tax management in Ho Chi
Minh City in the period of 2021 – 2025
Regarding revenue increase; The trend of official sector expansion;
Regarding the trend of a cashless economy that is developing strongly in
the context of the Industrial Revolution 4.0 and the outbreak of the Covid19 pandemic; Application of digital technology; E-commerce and digital

economy.


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4.2. Proposed solutions to improve the efficiency of personal
income tax management in Ho Chi Minh City in the period of 2021 2030:
(1) Taxes, fees and charges are tools of the State, contributing to the
management, regulation and stabilization of the macro-economy and
restructuring of the economy;
(2) Continue to improve the tax policy system to ensure consistency,
transparency, clarity, understanding, ease of implementation, appropriate
structure and expansion of the tax base to develop revenue sources;
(3) Reviewing additional taxable objects to suit the nature of personal
income tax according to international practices;
(4) Tax administration institutions continue to improve to simplify
administrative procedures and promote information technology application;
(5) Building the organizational structure of tax authorities at all levels
in a streamlined way to ensure effectiveness, efficiency, full authority and
capacity to actively enforce tax laws;
6) Improve inspection and inspection capacity to approach good
international practices;
(7) Collecting tax debt properly and timely, reducing tax arrears and
preventing loss of state budget revenue.
4.3. Solutions to improve the efficiency of personal income tax
management in Ho Chi Minh City in the period of 2021 – 2025
The thesis proposes 4 groups of solutions: (1) Expanding the scope of
personal income tax management both in terms of taxpayers and taxable
income in order to control residential income, increase budget revenue and
ensure fairness. society; (2) Investing in infrastructure and technical

development in combination with improving the quality of tax staff; (3)
Implementing digitization in tax administration; (4) Risk management in
tax administration.


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4.4. Some recommendations
4.4.1. Recommendations to the National Assembly
(1) Modifying the family deduction level to suit the current income
level in Vietnam and in line with the regulations of other countries,
contributing to improving the efficiency of personal income tax
administration in Ho Chi Minh City Bright. The deduction for family
circumstances must be calculated according to the adjusted rate for each
area where the taxpayer is working, living and generating income in the
year of personal income tax finalization.
(2) Supplementing regulations on personal income tax management for
business individuals, in Article 10 of the current Personal Income Tax
Law, specifically: “Personal income taxable income of individuals business
is determined according to revenue less reasonable expenses related to the
generation of taxable income from business in the tax period. For a smallscale business individual who has not yet properly complied with the
accounting, invoice and document regimes but cannot determine the
revenue, expenses and taxable income, the competent tax authority shall
determine the turnover. , the rate of taxable income to determine taxable
income in accordance with each production and business line, according to
the provisions of the law on tax administration. On that basis, the
Government will detail and guide the implementation of personal income
tax management for business individuals.
(3) Amendment of regulations on taxable revenue for business
individuals: adjustment of non-tax revenue with turnover (business

individuals) less than 132 million VND/year (11 million
VND/person/month) corresponding to the reduction in family
circumstances for incomes from salaries and wages according to the Law.
4.4.2. Recommendations to the Government
(1) Use tax management tools.


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(2) Instantly form a digital database.
4.4.3. Recommendations to the Ministry of Finance
(1) Digital enhancement of the tax industry;
(2) Good support for the goal of modernizing tax administration
agencies..
(3) Strengthening the propaganda and dissemination of tax law
(4) Strengthening the coordination of activities among the Ministries.
4.4.4. Recommendations to the General Department of Taxation
(1) Regulations on personal income tax declaration and finalization.
(2) Pilot data connection with all e-commerce platforms.
CONCLUDE
Income from personal income tax always accounts for a large
proportion of the total budget revenue of the country in general and of Ho
Chi Minh City in particular. Effective personal income tax management
has a great influence on budget revenue.
In the period 2009-2019, the actual situation of personal income tax
management of Ho Chi Minh City always met and exceeded the estimate
of personal income tax collection, making a great contribution to the total
budget revenue in Ho Chi Minh City. Chi Minh. However, the city is a
locality with a diverse, rich and very large source of revenue, but personal
income tax revenue still accounts for a low proportion of total state budget

revenue. The reason is that the City's tax sector has not paid much attention
to the development of practical skills in the digital economy, providing
modern technological equipment for tax administration staff; the number of
tax officials in wards and communes with modern technology application
skills is still limited; Tax administration according to the concept of mere
collection has not fully promoted responsibility in revenue management,
fully exploiting revenue sources; slow in renovating tax administration
methods towards non-traditional business activities; the coordination