The task of revenue collection of the tax sector in the last two months of the year isdifficult in the context of the Covid-19 pandemic, natural disasters, storms and floods causing great loss of life and property in the central provinces.

By the end of ten months, the total budget revenue managed by
the tax agency is VND979,724 billion. Photo by Thuy Linh.

Budget revenue has positive changes

According to the latest report of the General Department of Taxation, the total budget revenue in October managed by the tax agency is estimated at VND135,511 billion, or 10.8% of the estimates. By the end of October, the total budget revenue managed by the tax authority reaches VND979,724 billion (equal to 78.1% of the estimate, as much as 93.9% compared to the same period in 2019), of which, revenue from crude oil as 83.8% of the estimate; domestic tax revenue was estimated at 77.9% of the estimate and equal to 95.4% over the same period in 2019.

According to the General Department of Taxation, the budget revenue in recent months has been changing positively because Vietnam has controlled the Covid-19 pandemic, while sectors of the economy are entering a state of operation under new normal conditions.

In addition to the positive signs of the economy, to achieve the above results, the tax agency has also deployed synchronous collection solutions. Specifically, as of October 15, the taxation branch has carried out more than 56,800 inspections and checks at the corporate’s headquarters and checked 494,400 tax declaration dossiers at tax offices. The total amount proposed to be handled through inspection and examination is VND49.4 trillion (equal to 118.97% compared to the same period in 2019). The total tax paid to the budget is VND7.6 trillion.

Particularly, for enterprises with associated transaction activities, the whole taxation branch has examined and verified 263 enterprises with associated transaction activities; retrospective collection, reimbursement and fines of VND525 billion; reduced losses VND9,042 billion; deducting VND4.74 billion dong and increasing taxable income of VND4,190 billion.

Along with promoting inspection of enterprises showing signs of risk, in the first months of the year, tax authorities at all levels have stepped up the implementation of measures to urge debt collection. It is estimated that in ten months, it has recovered VND22,713 billion, up 6.6% over the same period in 2019, of which, the collection by debt management measures was VND15,615 billion; revenue by debt enforcement is VND7,098 billion.

Speeding ​​up inspection and examination

According to the General Department of Taxation, in the last two months of the year, the taxation branch has to collect VND274,576 billion, or 21.9% of the estimate. This is a very difficult task in the context of of the Covid-19 pandemic, natural disasters, storms and floods which are causing great damage to people and property in the central provinces.

In order to strive to fulfill the budget collection task, the General Department of Taxation is asking provincial tax departments to review each revenue, tax, and estimated total budget revenue in 2020 to find suitable solutions to direct and administer collection.

The General Department of Taxation assigns the Tax Administration Department of large enterprises to collect information and data on the assessment of the state budget collection in November 2020 of 561 groups, corporations, companies and units; organize the urging of State budget revenues, especially a number of central budget revenues, to ensure the completion of assigned tasks.

Reducing tax arrears, the General Department of Taxation also requested the Debt Management and Tax Enforcement Department to continue to deploy missions to urge debt collection from localities with large debts; inspect the implementation of debt freezing and write-off according to the Resolution No. 94/2019/QH14 of the National Assembly; urgingthe value-added tax and special consumption tax amount of the tax period of May 2020 to be extended according to Decree 41/2020 / ND-CP, Decree 109/2020 / ND-CP, to be paid promptly to the budget.

Particularly for enterprises with large tax debts, the General Department of Taxation requires the tax department to assign specific tasks to each officer, and at the same time disclose information on mass media for enterprises intentionally avoiding tax debt. The Tax Department strives to reduce total tax debt by the end of 2020 compared to December 31, 2019.

As for inspection and examination, the General Department of Taxation is asking tax authorities to speed up inspection and examination, especially at enterprises that are in the process of inspection. The tax departments are directed to continue implementing the conclusions and recommendations of the Government Inspector and the State Audit, the Central Inspection Committee, the Inspector of the Ministry of Finance; urging these revenues to the budgetpromptly.

Along with strengthening budget collection measures, the General Department of Taxation continues to implement measures to reform tax procedures, thereby improving the business environment and national competitiveness; continuing to instruct tax departments to deploy electronic payments for income from property leasing.

Tax authorities at all levels will continue to deploy information technology in response to the Prime Minister's direction on tax reforms and building an e-government to ensure and support the stable and smooth operation of the system, thereby simplifying administrative procedures and reducing the number of tax compliance hours.