• Ministry of Finance introduced the automatization of the process issuing tax debt certificate

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Ministry of Finance introduced the automatization of the process issuing tax debt certificate

Dili – On the 16 March 2015, the Vice Minister of Finance, Mr. Helder Lopes, accompanied by the Director General of Tax, Ms. Monica Rangel, and the Director National of Domestic Tax, Mr. Uldarico Rodrigues, and attended by the staff of the Domestic Tax Directorate and representatives of private sector – the Banco Nacional Ultramarino (BNU), Ensul and Monta Diak, launched, for the first time in the history of Timor-Leste, the automatization of the process issuing tax debt certificate (TDC).

The TDC is an official certificate issued by the Tax Directorate of the Ministry of Finance that shows whether or not a business establishment, natural or legal person, has an outstanding debt owed to the Government. The new automated system issues both tax debt certificate and registry certificate.

The Vice Minister, in his brief opening address, remarked that the automatization of the TDC processing is “part of the Government’s fiscal reform initiative”. The reform, which started with the assessment done by a Portuguese mission in the earlier month of the year, aims at increasing tax revenues by broadening the tax base while remaining attractive to investors. He further added that the new system “provides automatization, control, timeliness and transparency”.

The new automated process is a big improvement from the previous method, of which the TDC was issued manually. It is part of the big reform that the Tax Directorate of the Ministry of Finance undertook in late 2013, in which a Tax Identification Number (TIN) re-registration was carried out to ensure that the information of the TIN holders is accurate, complete and up-to-date.

As of to-date, about 15,000 tax payers have registered with the new system. The Ministry of Finance continues to appeal for the taxpayers, both residents and non-residents of the country, to re-register with the Tax Authority to get a new TIN. In doing so, it is every good citizen’s responsibility to contribute to the development of the country.