Most businesses to file tax returns electronically by 2015

This is one of the most important objectives of the department's five-year IT development strategy, one that will reduce the time needed for tax payment and cut administrative costs, according to the GDT's Information Technology Bureau.

For the purpose, the tax sector will intensify investment in IT infrastructure to upgrade the tax-related information supply and management system. They include upgrading its current website and setting up another portal.

The sector also plans to create an online personal income tax (PIT) management system linking the entire country by 2015 to change the tax management process and facilitate tax agencies to cross-check PIT.

It hopes to use IT to manage all data and information relating to tax – such as declaration, payment, and accounts – to ensure the data is secure.

Other services like online public administrative services will be expanded to make e-tax more accessible.

The Information Technology Bureau would tie up with companies (Value-added network-VAN) that can provide online tax declaration services, and draft regulations to facilitate use of the services, a bureau spokesperson said.

Though the programme was planned for implementation in 2011-15, some preparatory steps had already been taken.

Companies' tax returns were already being accepted online and taxpayers were allowed to use the Internet to register their tax codes and receive feedback from tax agencies, he said.

The agencies had finished a draft of regulations governing relations between themselves and companies providing online tax declaration services, he added.

The bureau expects, if the programme goes on schedule, 70 per cent of firms to file returns and pay tax online by the end of 2012.