Deputy General Director, General Department of Taxation Dang Ngoc Minh

Many figures show that the economy has recovered positively, businesses are optimistic and regain confidence. How will this affect the tax sector's budget collection results in 2024, sir?

According to the 2024 budget revenue estimate, the National Assembly assigned the Tax sector to collect VND1,486,000 billion in domestic revenue. Currently, VND1,446,000 billion has been collected, reaching 97.5 percent of the plan and this revenue is evenly distributed across all sectors. Of which, value-added tax (VAT) revenue exceeded the estimate by about 9 percent, and corporate income tax (CIT) exceeded by more than 12 percent compared to the same period.

In 2024, the Government will continue to implement tax deferral, postponement, and exemption measures, and these policies have had an impact on promoting economic recovery... Through the assessment data on VAT and CIT, it can be seen that economic indicators are all positive, GDP growth in 2024 is likely to reach over 6.5 percent and the 2025 plan to set a growth target of over 7 percent is completely grounded.

Some businesses or some sectors may not see positive signs yet, but through the general overview figures of the Tax sector, it can be seen that economic activities have resumed and grown again. We are completely confident that in 2025, budget revenue will continue to be stable and the macro economy will be stable, ensuring the Government can implement expansionary fiscal programs.

Currently, businesses are very interested in tax policies such as VAT, CIT, special consumption tax... which are being discussed in this National Assembly session. Could you please share the orientations on these tax policies in the time to come?

The National Assembly Standing Committee has discussed and consulted on tax policies, including the draft amended Law on Value Added Tax submitted to the 8th Session of the 15th National Assembly. Vietnam is currently one of the countries that has successfully implemented the Law on Value Added Tax.

We also believe that VAT is one of the taxes that helps Vietnam integrate into the international market, especially creating favorable conditions for export activities.

In particular, the 0% tax rate mechanism that we are applying to export goods. The implementation of the VAT mechanism since 2006 has improved the competitiveness of Vietnamese goods in the international market. Currently, Vietnam is a country with a large import-export scale compared to GDP, with the total import-export turnover expected to reach US$800 billion this year.

One of the recent issues that businesses are interested in is whether or not to expand and continue to maintain support policies for the operations of export processing zones and enterprises in export processing zones. After evaluating the relevant factors, the National Assembly has decided to stick to the policy of continuing to support the operations of export processing zones and export processing enterprises. Therefore, export processing enterprises will continue to enjoy the same regulations as export processing zones, that is, not being subject to VAT and not having to pay import tax.

In addition, some services serving export processing enterprises to produce export goods will be subject to a 0% tax mechanism, which was not previously clearly defined in the law. Another important content is to continue to maintain the preferential mechanism for on-site import and export activities, and the application of a tax refund mechanism for imported goods, then exported to a third country, which is also considered in the Draft Law on VAT to be approved by the National Assembly at this session.

Recently, the management of import and export taxes, especially VAT refunds, has created risks that affect tax management. How will this policy be amended in the time to come, sir?

Tax refund is one of the preferential policies in line with international practices, helping to increase the export competitiveness of Vietnamese goods, as well as creating opportunities for Vietnam to become an export manufacturing and processing country. While the total revenue in 2024 is VND1,486,000 billion, the estimated tax refund is VND171,000 billion, accounting for a very large proportion. Of which, tax refund for export activities accounts for 90 percent.

However, recently, there have been many major cases of tax refund fraud. This time, in the amendment of the VAT Law, there will be regulations to tighten the management of tax refunds for export activities such as conditions for exporting, importing and then exporting to a third country to be eligible for tax refunds.

At the same time, include in the provisions of the Law on Tax Administration the relevant contents on the responsibilities of taxpayers and tax authorities in resolving tax refunds. Clearly define responsibilities to promote and facilitate export production enterprises, while also complying with management issues for export activities, avoiding risks of fraud, tax evasion, and appropriation of State tax refunds.

In addition, the Law on Tax Administration will also amend enforcement measures in a way that ensures strict implementation of tax regulations, but at the same time avoids problems for businesses such as tax enforcement through exit restrictions. Enforcement measures will be applied flexibly, not mechanically, especially the enforcement provisions on assets...

Thank you, sir!