FPT Information System, a subsidiary of FPT Corporation, is the prime contractor for personal income tax (PIT) management project in Vietnam.
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| FPT IS\'s project will help streamline the process of personal income tax management (Illustrative photo) |
This is one of the largest software projects in Vietnam. Most often undertakings of this size are outsourced to foreign firms.
This time, however, FPT IS was granted the contract to develop what is the largest SAP-based tax project in the world.
Launched in November 2008, with financing from the General Department of Taxation, under the Ministry of Finance, it was designed to serve 7,000 users at 800 points of transaction in 63 cities and provinces across the country. Nearly 700 district tax departments and 15 million tax payers will benefit from the project.
Great project brings about great contributions
Vietnam’s current Law on Personal Income Tax took effect on January 1, 2009. Apart from the benefits of the new regulations, they also pose a challenge to the country’s tax sector that is functioned to manage personal incomes of all layers in the society precisely and equally.
The implementation of the project is of great significance to tax professionals because it streamlines the process of income tax management.
The pilot programme included in the first part of the project are now being finalised while the second phase which focus on building the IT infrastructure for the project has been implemented.
The pilot programme gets the first fruits in providing income tax management support to 70 separate “transaction points” in five localities: Hanoi, Bac Ninh, Bac Giang, Binh Duong and Dong Nai. More than 500,000 data sheets were processed, and 3,000 tax officials received training.
The plot phase took the collaboration of tax officials, technicians from FPT IS, and specialists from three sub-contractors, SAP, Accenture and Earnst and Young. After a two-year trial period, the Person Income Tax Management System was officially unveiled on December 15, 2010.
Ms Le Hong Hai, Deputy Director of the General Taxation Department, said the project has helped this agency meet the PIT requirements stipulated by the Government.
By the end of March 2011, the PIT project has issued over 9 million taxpayer ID numbers, bringing the total amount of taxpayer IDs nationwide to over 14 million. In addition, around 69,559 income tax finalisation forms of 2010 were collected.
Advantages of the new system
The personal Income Tax Management System (PITMS) is designed to fulfill the tax management process best than ever before, which is proved to be great use for both taxpayers and tax officials.
It also facilitates transactions at anytime and anywhere, along with ensuring consistent tax database.
Mr. Luc Vanwers, a SAP senior expert, said, “SAP is a product that enables information to be processed and managed even with a sharply increasing number of taxpayers.”
“SAP TRM (Tax and Revenue Management) software offers basic solutions for security, e-service, document management as well as a support centre for tax payment,” he noted.
He added that such an integrated solution has been acknowledged and utilised widely in various fields worldwide including tax, public administration, telecom, and insurance.
Contracting a new goal for FPT IS
Being the prime contractor of PIT project has helped FPT IS to heighten its prestige in both the local and in the international marketplaces. This continues to be one of the most important strategies of this company in the coming years.
“The decision by the Ministry of Finance to grant the contract to a Vietnamese firm has set an important precedent in the IT sector,” said Do Cao Bao, the chairman of FPT IS, at the launching ceremony of the Personal Income Tax Management System occurred last December 2010.
He emphasised that the achievement has proven that Vietnamese IT firms are now able to do many things that have had to be outsourced in the past.
FPT IS also won a contract bid from the General Statistics Office in March 2009. The firm provided support for data collection for the 2009 census. The software they created was praised by the United Nations Population Fund (UNFPA).
In the same year, the company was also choosen as the contractor of the USD12.6 million ERP contract by Vietnam National Petroleum Corp, or Petrolimex which is regarded as the largest ERP project in Vietnam until now.
According to the company’s audited financial report, FPT IS made a net profit of VND396.66 billion (USD18.95 million) in 2010, a 16.71% rise from the year before.
