In the process of accelerating the establishment of a world-class <x1>Management System<\/x1>, <x2>Tax<\/x2> <x3>Management<\/x3> is a crucial component. Especially with the comprehensive advancement of the Golden Tax Phase IV, tax digital supervision has become more precise, and the tax management functions of enterprises are also facing transformation, accelerating the implementation of smart taxation.<\/p>\n

Against this backdrop, state-owned key enterprises must enhance their tax management from a new perspective to promote the establishment of a financial management system, while also advancing the transformation of tax management based on a first-class financial management system. So, how should state-owned enterprises confirm their transformation goals in building a smart tax management system? How to develop smart tax systems? The practices of Henan Investment Group Co., Ltd. (hereinafter referred to as “Henan Investment Group”) provide a model for state-owned enterprises to create smart tax systems.<\/p>\n

Henan Investment Group was established in 1992 and is the first state-owned capital operation company in Henan Province. It is recognized by the State-owned Assets Supervision and Administration Commission of the State Council as a “Double Hundred Enterprise” for state-owned enterprise reform. The company holds the highest domestic AAA and international A credit ratings and is the first enterprise in the central region to have the qualification for issuing three major mainstream bond shelf programs. In 2023, Henan Investment Group, in accordance with the requirements for building a “Smart Group,” combined with the group’s financial digital transformation plan, partnered with Kingdee to initiate the construction of smart tax management, breaking through the bottlenecks in tax management.<\/p>\n

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Focus on overcoming three major challenges.<\/b><\/p>\n

For over 30 years since its establishment, the Henan Investment Group has always closely followed the theme of the times and kept pace with the province’s strategic plans. In recent years, following the identification of state-owned capital operation companies, the main business has been equity investment operations, using major projects as carriers, direct investment + funds as tools, and capital operations and financial services as support. This has formed a development pattern driven by both finance and industry, with mutual promotion between basic industries and emerging industries, and complementary advantages between strong cycle industries and weak cycle industries. The investment layout focuses on four industrial fields: financial industry, infrastructure, basic industries, and emerging and future industries, as well as modern service industries.<\/p>\n

Under the dual influence of internal development and external environment, Henan Investment Group and its subsidiaries need to achieve breakthroughs in tax management in the following three areas:<\/p>\n

First, how to optimize tax control. Previously, the group’s tax management adopted a hierarchical reporting method, which left room for improvement in statistical efficiency; the acquisition, training, and communication of policy and regulatory information, as well as the latest preferential policies, were relatively scattered, making it difficult for precise inquiries and applications; tax risk prevention requires intelligent analytical tools and policy-based guidance.<\/p>\n

Secondly, how to optimize the operation method. Except for the group headquarters and sector headquarters, tax personnel in other companies usually serve as staff for general ledger reports and other positions. There is a significant amount of manual work involved in output Instrument Issue, and the automation of invoicing needs improvement. The preparation and submission of tax declaration forms are still done manually, resulting in low declaration efficiency.<\/p>\n

Finally, how to optimize the system construction. The group’s financial domain information system, centered around a financial shared platform, has integrated financial data related to costs and expenses, as well as investment and financing activities. However, tax-related data is scattered across various business systems, financial systems, and the electronic tax bureau. There is an urgent need to build a tax information system to break down the tax data silos and enrich the dimensions of financial data.<\/p>\n

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The breakthrough path in the era of data governance.<\/b><\/p>\n

From the perspective of development stages, the enterprise digital transformation has gradually begun to shift from “digitalization” to “intelligent” and then to “data governance.” The so-called “data-driven management” is to fully utilize the capacity of digitalization to manage enterprises, representing the highest stage of digital transformation for businesses, and will become the key to leading a new round of management reform in Chinese enterprises.<\/p>\n

As a leading enterprise digital transformation service provider, Kingdee deeply understands the significance of “data governance.” For this reason, Henan Investment Group has partnered with Kingdee to launch the smart tax platform construction using Kingdee Cloud. By building an integrated digital system of “business, finance, tax, and resources,” they aim to create a smart tax management system for the group, achieving a highly integrated business and finance management closed loop.<\/p>\n

At the beginning of the collaboration, focusing on the upgrade of smart tax, the Henan Investment Group set the goal of “strong management, improving efficiency, controlling compliance, reducing risks, and creating value,” striving to build a first-class smart tax <Platform> in the country. Including:<\/p>\n

(1) Strong Management: Through the construction of the tax management system, a unified invoice pool, declaration platform, risk control cloud, and regulatory database will be established to achieve panoramic visualization of tax data and strengthen the tax control functions of the headquarters.<\/p>\n

(2) Improve efficiency: Based on the standardization of tax-related data and process management, achieve automation of tax compliance reporting for all tax types across the entire group and manage the entire lifecycle of invoices, enhancing the level of information technology in the group’s tax management and empowering the group to improve efficiency.<\/p>\n

(3) Control Compliance: Based on its current tax management situation, strengthen the research on finance and taxation policies, establish an online database of policies and regulations, and update and improve it on-time, while achieving precise policy push to ensure that all payable taxes are paid and all entitled benefits are enjoyed.\u00a0 \u00a0<\/p>\n

(4) Reduce risk: By establishing a tax risk system, we can achieve proactive warning and forward-looking prevention of tax risks, standardize responses to tax audits, and maximize the avoidance of tax risks.<\/p>\n

Core Value: <\/b>Provide tax personnel with digital tools to release the value of tax management and enhance the professional level of tax personnel through learning, discovery, analysis, and creation. By means of multi-dimensional statistical analysis of tax data, seek value from the data.<\/p>\n

The transition to data governance is not an easy task. With the support of the Kingdee team, the Henan Investment Group has developed an effective implementation path, establishing a three-tier architecture for management: “basic layer – business application layer – data application layer.”<\/p>\n

First, implement a unified standard control of tax master data at the foundational level to provide data standards and sources for business execution; second, achieve intelligent tax declaration for all tax types from instrument issue to business application level, supporting tax personnel in efficient business execution; third, at the data application level, realize multi-dimensional statistical analysis of tax data across the group, various sectors, and enterprises, fulfilling the needs for tax data visualization and data value mining.<\/p>\n

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A new outlook on smart tax.<\/b><\/p>\n

Relying on the one-stop Tax Management Service provided, Kingdee assists Henan Investment Group in achieving a transformation in tax control methods, presenting a new outlook on tax control. In summary, the Henan Investment Group’s tax intelligence is mainly reflected in ten aspects.<\/p>\n

1.The quality and efficiency of output management have both improved. Through the construction of the smart tax platform, we achieve the issuance of paper and electronic invoices under the dual regulation of tax control devices and digital data, expanding the usage scenarioses for electronic invoices; by integrating with existing information systems, we replace simple repetitive manual labor with automated processes, optimizing the positions of dedicated invoicing staff or reducing the time occupied by invoicing personnel, freeing up human resources, enhancing the automation level of invoicing scenarioses, improving invoicing efficiency and data accuracy, and promoting the integration of business and finance as well as the transformation of financial personnel; at the same time, we establish a group-level output invoice pool, realizing comprehensive statistical analysis of all output invoice pool data to meet the data retrievals requirements for tax declaration business.<\/p>\n

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2.Unified management of tax-related basic data. Through the smart tax platform, the information of various organizations within the group, registration information, and tax type information are constructed to achieve unified maintenance and management of the basic information and tax-related basic data of each organization.<\/p>\n

3.Auto tax-related data collection rate reaches \u00a080% <\/b>Manage the data scattered across various financial systems through the smart tax platform, supporting enterprises in quickly, efficiently, and automatically collecting tax-related data when calculating and reporting taxes, improving the efficiency of tax data collection, and enhancing the accuracy of tax declarations, ensuring that tax declarations are traceable.<\/p>\n

4.Full VAT lifecycle management. Achieve full lifecycle management of value-added tax (VAT) declaration through the smart tax platform, including maintenance and control of VAT tax calculation rules, prepayment management, tax calculation working papers and tax declaration, process approval, accrual and payment voucher entry, etc. Moreover, by logically sorting out the income business, exemption policies, and tax declarations of each company, the group can standardize tax calculation rules and manage them uniformly, ensuring that the calculation process is traceable.<\/p>\n

In terms of value-added tax declaration, the smart tax platform integrates tax-related data, including invoices and account balance sheets, into the tax data management application. By combining data retrievals rules, it automatically prepares the working paper for tax calculation and generates the tax declaration form. At the same time, for the approval process, through the transmission with third-party interfaces, generate the corresponding tax accrual forms, tax payment forms, and tax payment request forms, which will be uniformly submitted to the group shared center for approval, and push the corresponding vouchers for accounting, achieving full-process automated management from tax calculation to accounting processing.<\/p>\n

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5.Corporate Income Tax Prepayment Closed-loop Management. Through the smart tax platform’s corporate income tax application, achieve full lifecycle management of corporate income tax-related practices, including income tax-related data management, data extraction rule configuration, tax calculation working paper services, tax declaration, and inquiry features.<\/p>\n

In the prepayment of corporate income tax for online enterprises, the financial statements, account balance sheets, and other tax-related data from the front-end business system are integrated into the tax cloud’s tax data management application through an integrated interface. For enterprises that have consolidated reporting for their branches, the allocations ratio of income tax payable for the branches is automatically calculated based on the ledger and data extraction rules, and the prepayment tax calculation draft is prepared, along with the generation of the tax declaration form. At the same time, the system also supports direct connection to the tax bureau for declaration and payment, connecting to the shared system for process approval, pushing vouchers for entry, and achieving a complete business loop for corporate income tax prepayment.<\/p>\n

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6.Automatic collection of tax source information for each tax type. The Henan Investment Group’s business involves multiple sectors such as finance, funds, comprehensive energy, and gas, covering various types of property and behavior taxes, including stamp duty, property tax, urban land use tax, water resource tax, and environmental protection tax. The collection and management of tax source information for each tax type is a significant challenge in the group’s tax-related data management. After the launch of the Smart Taxation Platform, a unified management platform for tax source information collection has been established, achieving automatic collection of taxable documents such as stamp duty, property tax, and environmental protection tax. At the same time, it links to the financial shared service center to conduct closed-loop management of tax-related business approvals and document generation.<\/p>\n

7.Build the Taxes Workbench. Through the smart tax platform’s tax workbench, tax-related calculations and declaration tasks are processed uniformly. The tax workbench enables automatic calculations from tax-related data to declaration drafts and then to declaration forms, allowing for one-click direct generation of declaration forms. It also provides validation warnings for the calculated data in the declaration forms, ensuring unified management of tax-related data and drafts during the tax payment process, achieving traceability. At the same time, it supports batch declarations, allows multiple organizations to batch generate drafts and declaration forms, and supports direct connections to the tax bureau for batch declarations and payments, enhancing tax handling efficiency.<\/p>\n

In addition, the tax workbench also provides features for the accrual and payment of various taxes, supports generating tax accrual data with customizable frequencies, and supports generating tax payment data based on the actual declaration payment status and results. Accrual and payment can be integrated with the shared system according to the organization, tax type, and period, with process approval conducted in the shared system. After the approval is completed, the accrual and payment vouchers will be posted.<\/p>\n

8.Centralized management of tax data. Through the tax information management feature of the smart tax platform, the collection and archiving of tax-related documents for each enterprise can be achieved. Additionally, tax declaration forms can be automatically archived after being downloaded directly from the tax bureau, making it convenient for review and use.<\/p>\n

9.Establish a policy and regulation database. By building a policy and regulation database on the smart tax platform, it automatically updates the latest information from the national tax bureau, local tax bureaus, and various tax professional websites daily, keeping up with new fiscal and tax policies to assist in tax management decision-making; the launched thematic analysis and keyword search features allow for quick and accurate queries of various tax-related policies; it supports internal submissions and targeted push notifications, encouraging tax personnel to interpret new policies and submit contributions, achieving knowledge sharing, and supports mobiles and web access to tax policies anytime and anywhere, realizing “learning on the go, policies in hand,” helping tax personnel better grasp and implement tax policies, and improving the accuracy of policy execution.<\/p>\n

10.Comprehensive Tax Statistical Analysis. Through the intelligent tax platform’s tax statistical analysis feature, real-time panoramic statistical analysis of the group’s tax data is achieved. For example, through tax statistics and penetration queries, it is possible to achieve multi-dimensional tax data statistics at the group level by tax type, tax period, sector, branch, etc. The tax statistics feature can intuitively display the total tax amount for each tax period while supporting tax amount penetration to view the specific tax situation of each company for each month. The declaration progress monitoring feature allows the group to monitor the real-time declaration completion progress of each enterprise and supports penetration to view the tax filing situation of each company. Additionally, before each monthly tax period, the system will automatically push pending tax filing information to the tax agents of each company, reducing the risk of missed filings. It can also visually display the tax contribution situation of each region through the Henan Province tax map, tax rankings of various cities, sector tax situations, and branch tax situations, and can penetrate to the tax return interface of each company to view the specific tax situation.<\/p>\n

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Create “qualitative change” with “intelligent change”<\/b><\/p>\n

Embarking on the path of “qualitative change” upgrade is the common aspiration of all enterprises. The smart tax upgrade practice created by the Henan Investment <Group> in collaboration with <Kingdee> proves that “intelligent transformation” is the best way for an <enterprise> to achieve “qualitative change.”<\/p>\n

Overall, the Henan Investment Group’s smart tax platform effectively utilized the advanced technologies of the group’s data middle platform, technology middle platform, and Kingdee Cloud Cosmic platform in the face of a large amount of tax-related data and the need for business process integration. It completed the integration of more than ten systems and developed over thirty interfaces, achieving comprehensive, real-time, and automated collection of tax-related data through Kingdee Cloud Tax Cloud, with unified standard control by the group; the output invoicing and tax declaration business processes and data achieved interconnectivity between systems.<\/p>\n

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The qualitative changes triggered by this are mainly reflected in four aspects: strengthening the Group’s tax control, improving Business Processing efficiency, enhancing risk control and compliance, and achieving value creation.<\/p>\n

In strengthening the group’s tax control, a unified output invoice pool, tax declaration platform, and policy and regulation database have been completed, supporting and achieving the centralization of Instrument Issue, tax calculation, and declaration work to be fully completed on the smart tax platform, and effectively integrating with the financial shared system for business process approval and handling.<\/p>\n

In terms of improving business processing efficiency, we have streamlined the Finance and Taxation information channels, achieving an 80% automation rate for the collection of tax-related data. This allows for automatic tax calculation for Value-Added Tax and Corporate Income Tax prepayments, with a tax calculation efficiency increase of about 75%. We have also established a business and finance Instrument Issue process, enabling online business applications to seamlessly connect to finance for Instrument Issue, resulting in an approximately 50% increase in Instrument Issue efficiency.<\/p>\n

In enhancing risk management and compliance, establish a group policy and regulation database, update various tax policies in real-time, collect enterprise qualification information, and create over a thousand tax calculation rules in conjunction with business sorting. During tax declaration, these rules are automatically invoked to achieve automatic and scientific tax calculation, ensuring that enterprises comply with tax regulations and achieve “full payment of taxes owed.” Additionally, automate the collection of tax-related data, generate standardized working papers for tax payments, and ensure that the tax calculation process is transparent and traceable. In the future, in conjunction with the risk indicator database, maximize the avoidance of tax risks.<\/p>\n

In terms of value creation, Henan Investment Group has established a management portal to achieve statistical analysis of tax data for the group and its various subsidiaries. It can monitor and provide early warnings on the tax filing progress of each enterprise in real time, match the latest Tax Incentive Policy during tax declarations, and automate calculations, thereby reducing the learning and operational costs for tax personnel and ensuring that all entitled benefits are fully utilized.<\/p>\n

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Interest settlement:<\/b><\/p>\n

Looking ahead, the Henan Investment Group’s smart tax platform will gradually achieve comprehensive promotion of various tax applications, strengthen the system control of tax risks, and gradually enrich the risk indicator models and tax statistical analysis applications; further leverage the value of data to provide the group’s management and data users with more comprehensive and accurate information to support decision-making and improve operations.<\/p>\n","protected":false},"excerpt":{"rendered":"

In the process of accelerating the establishment of a world-class <x1>Management System<\/x1>, <x2>Tax<\/x2> <x3>Management<\/x3> is a crucial component. Especially with the comprehensive advancement of the Golden Tax Phase IV, tax digital supervision has become more precise, and the tax management functions of enterprises are also facing transformation, accelerating the implementation of smart taxation. Against this\u2026<\/p>\n","protected":false},"author":27,"featured_media":5062,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[177],"tags":[],"by_industry":[],"by_product":[206],"by_topic":[],"class_list":["post-5913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-pt-pt","by_product-taxation-pt-pt"],"yoast_head":"\n