New tax form to save time, money

A new tax declaration form for use by larger companies will come into use in Vientiane next month, the Ministry of Finance announced on Friday.

The Tax Department has been running trials of the new form among business operators for the past six months and has found it to be a success.

“We will start providing the new form for larger enterprises on May 15,” said the Deputy Head of Office, Ministry of Finance, Mr Sanya Praseuth, on Friday.

When companies pay their taxes next month, they will need to do so at the ministry's new tax declaration service centre, which will offer improved services.

The new form incorporates the three documents previously used by tax payers, and covers taxes paid on turnover, excise and salaries.

“This system will reduce the administrative cost to companies from 600,000 to 250,000 kip per year,” Mr Sanya said.

The previous system was more costly because companies had to pay the Tax Department for a seal for each of the three forms and also to have them printed out each month. This meant they had to pay for 36 seals and forms each year.

“The new system will require only one stamp for the declaration form, so companies will need to pay for only 12 forms each year,” Mr Sanya said. “They will also avoid having to pay extra service charges as they had to do in the past.”

The ministry has also developed a tax form for use over the Internet, called e-tax, which will also make tax declaration easier for companies.

“Companies can declare their taxes from anywhere in the country using the Internet,” Mr Sanya said.

Tax Department Deputy Director General Lamngeunh Tanelamany said the new forms and service centre would help businesses to declare their taxes promptly, reduce transport costs and save time.

“The new system provides a simpler and faster procedure for tax payers and the service centre,” Mr Lamngeunh said.

Ministry officials are also talking to banks about the provision of tax declaration services for their customers. Discussions are centred on companies that hold bank accounts being able to pay taxes through the bank.

The new tax system will initially only be available in Vientiane . If it proves successful, the ministry will consider expanding the system throughout the country.

“Our plan is to extend it to the larger provinces of Savannakhet and Champassak first,” Mr Sanya said.

Until then companies in the provinces are required to use the old forms and will have to continue to file three each month.

By Phonsavanh Vongsay
(Latest Update April 28, 2008)