Danang Hi-Tech Park
Dinh Vu

Economic Sector

Last updated: Tuesday, July 17, 2018


Tax Sector Striving to Achieve Budget Revenue Targets

Posted: Wednesday, July 19, 2017

Tax authorities collected VND464.5 trillion of domestic budget revenue in the year to June 30, equal to 48 per cent of the estimate and nearly 13 per cent higher than that of the same period of 2016, according to the latest data from the General Department of Taxation. Local budget revenue was fairly high, reaching 54 per cent of the estimate on average, and higher than a year ago. Wherein, 45 out of 63 provinces and cities reported to complete from 48 per cent onward of domestic budget revenue and 54 localities reported higher values than that of the same period of 2016.

The General Department of Taxation said that, the General Department has introduced many synchronous solutions to fulfil its tax collection tasks in 2017. Accordingly, tax authorities from central to grassroots levels have actively communicated on tax mechanisms and policies to taxpayers, especially contents relating to administrative procedure reform, support the business to tackle difficulties faced by enterprises in production and business activities. The tax service has further reformed administrative procedures and modernised tax collection works; expanded the scope of electronic tax collection, the application of electronic invoices and focused on fields with high tax risks like supermarkets, restaurants and hotels; intensified collection coordination with banks and diversified budget collection channels (through POS, ATMs and internet banking among others). These have helped taxpayers to spend less time with tax payment and tax authorities to focus on their tasks better. These are also the premise for taxpayers to raise their knowledge and compliance to tax laws.

In addition, to closely and accurately manage all entities and all sources of revenue, the entire tax sector has regularly inspected and reviewed tax codes; tightened receivables management solutions; utilised revenue sources and expanded tax bases in both entities and taxing principles. To effectively fight against State budget revenue loss, ensure a healthy business environment and improve the law compliance of taxpayers, the General Department of Taxation established and assigned inspection plans and tasks to local tax departments from the beginning of 2017. With the principle of applying risk analysis methods and focusing companies with high risks of tax refund and tax incentives, companies using illegal invoices and records, companies with signs of transfer pricing and suspicious banking transactions, and companies engaged in mineral resources, retail distribution and tourism. As of June 26, 2017, the sector had inspected 36,664 companies, or 40.5 per cent of the full-year plan. The value of tax added after inspections was VND7.644 billion, up 34.07 per cent year on year, including VND3,430 billion payable to the State Budget. The sector also recovered VND16,004 billion of overdue taxes occurred in 2016 in the first five months of 2017, up 13.3 per cent year on year.

The tasks in the last six months will be tougher because the performance of the first half fell short of expectations to a certain extent. Worse, the central budget collection met only 41.5 per cent of the full-year estimation. Therefore, the General Department of Taxation has directed all tax authorities to take drastic solutions to collection, kept a close watch of tax collection progress and assessed potential sources of incomes. The General Department will seek solutions to effectively address tax loss. Tax authorities at all levels shall step up information and communications on tax policies and administrative procedures at all stages, sections and domains to facilitate taxpayers to fully grasp and implement them and supervise the service of civil servants in charge according to the laws. In addition, the General Department will further review tax registration works nationwide to standardise input data, check contradictory forms and rectify lump-sum tax payment management by obliging big business households to declare taxes.

Hien Hung

Other news

Trien lam ICT
Sunny World Property Development Corporation
Thanh Binh Phu My
Golf Long Thanh
Nam Kim
Cty Sai Gon- Tay Bac