Classifying tax debts to develop appropriate solutions for each

VCN - To handle tax debts and avoid revenue loss for the State budget and remove difficulties for taxpayers, the Tax sector will focus on classifying tax debts to offer appropriate solutions for each.
Two companies’ owners suspended from exit for owning tax debts Two companies’ owners suspended from exit for owning tax debts
Many solutions offered to deal with increasing tax debts Many solutions offered to deal with increasing tax debts
Review and handle safeguarding and anti-dumping duties Review and handle safeguarding and anti-dumping duties
The Tax sector has offered flexible solutions to manage tax debts. Photo: General Department of Taxation
The Tax sector has offered flexible solutions to manage tax debts. Photo: General Department of Taxation

Land tax debts increase

According to the latest report from the General Department of Taxation, the total tax debt as of September 30, 2022 is VND133,973 billion, reducing 0.1% compared to August 31, 2022, and increasing 14.4% year-on-year, up 16.5% compared to December 31, 2021.

If excluding the tax debts under processing or complaint, the total tax debt as of September 30, 2022 is VND115,919 billion.

According to the General Department of Taxation, total tax debt over estimated revenue for 2020 as of September 30 is 11.4%. Of which, recoverable tax debt rate is 7.7% and irrecoverable tax debt rate is 2.2%.

According to the General Department of Taxation, the total tax debt as of September 30, 2022 higher than it of December 31, 2021 is due to an increase of VND4,789 billion in tax and fee debts (13.1%).

This is due to the impact of the Covid-19 pandemic, taxpayers faced difficulties in production and business, resulting in delayed payment of tax debts to the state budget. In addition, a number of taxpayers in industries that have been granted a tax payment extension have not yet submitted an application for tax payment extension under Decree 34/2022/ND-CP. Furthermore, fines and late payment interest rose by VND 3,373 billion (17.3%).

According to the General Department of Taxation, in fact, the total increase in tax debt is mainly due to land-related debts, which rose 64.1% or VND10,241 billion, mainly in a few cities and provinces such as: at the Ho Chi Minh City Tax Department: SHEEN MEGA MEGA JSC owes VND3,796 billion and DREAM REPUBLIC JSC owes VND3,704 billion, these two companies won the auction for the land area in Thu Thiem New Urban Area but have not made the payment and have not decided to cancel the auction results. Or at the Hoa Binh province Tax Department, Hoa Binh Urban Petroleum JSC owes VND1,019.5 billion of land use fees; at Quang Binh province Tax Department, FLC Group JSC owes VND470 billion of one-time payment land rental; or at the Tax Department of Da Nang City, Landcom Investment JSC owes VND529 billion of land use fee.

Hanoi Tax Department said that according to Plan 235/KH-UBND, the City People's Committee assigned the inter-branch agency to review, urge and handle debt for 40 slow-moving projects in the city. Therefore, 23 projects made the payment to the state budget. For those who deliberately delay and do not fully fulfill their obligations to the state budget as prescribed, the city's inter-branch agency will resolutely implement measures to handle outstanding debts. Specifically, investors who still owe tax will not be approved for investing in new projects or carrying out administrative procedures on land according to Resolution 04/NQ-HDND.

Reviewing and classifying debts

In fact, debt management is always a problem for the tax sector because the tax has to ensure revenue for the state budget while solving difficulties for businesses and taxpayers to nurture long-term revenue sources. Therefore, the most important task at this time for the tax sector is following up and reporting the tax debt situation, tax debt collection; carefully reviewing and analyzing the debt nature and advising the General Department of Taxation on appropriate solutions to urge, coerce and collect tax debts according to the Law on Tax Administration and guiding documents to reduce debts.

If the tax debtor intentionally delays the payment and shows signs of violating the law, the tax sector will resolutely implement measures to enforce debt collection, and coordinate with the police for settlement.

The tax sector has also stepped up the settlement and appraisal of applications for debt cancellation for late payment fines and late payment interest in accordance with the provisions of the Law on Tax Administration. According to the report of the General Department of Taxation, in the first nine months of 2022, tax authorities at all levels have frozen tax debt, written off late payment fines, late payment interests that are no longer able to be paid to the state budget according to Resolution 94/2019/QH14 of VND2,405 billion.

Thus, from the effective date of Resolution 94/2019/QH14 (July 1, 2020) to the end of September 2022, about VND34,806 billion of tax debts were handled, of which frozen tax debt amount was VND28,164 billion; debt cancellation of late payment fines and late payment interest was VND6,642 billion.

Moreover, the tax sector will also focus on implementing exemption for late payment interest arising in 2020 and 2021 for loss-making enterprises and organizations in 2020 to support taxpayers and nurture revenue sources for the state budget. Besides, the tax sector will focus on the timely settlement of the extension of tax payment and land rent in 2022 according to Decree 34/2022/ND-CP.

Why has tax debt increased? Why has tax debt increased?

VCN – There are many reasons that lead to an increase in the tax debt of 2021 ...

In particular, the tax sector will upgrade information technology applications to meet changes in debt management and tax debt enforcement in accordance with the Law on Tax Administration.

By Thuy Linh/ Huyen Trang

Related News

Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Tax sector determines to take enterprises as the center of service

Tax sector determines to take enterprises as the center of service

VCN - That was the affirmation of Deputy General Director of the General Department of Taxation Mai Son at the Tax - Customs forum in 2024 organized by Vietnam Financial Times on the afternoon of October 16, 2024.
Accelerate implementation of solutions to disburse public investment capital

Accelerate implementation of solutions to disburse public investment capital

VCN - Facing the impact of storm No. 3 on economic growth, many experts continue to believe that public investment will play a key role in economic recovery and growth for the entire year of 2024. However, there is only one quarter left until the end of 2024. The target of disbursing at least 95% of investment capital is facing many difficulties.
Over 5,000 firms with tax debts at HCM City Customs publicized

Over 5,000 firms with tax debts at HCM City Customs publicized

VCN - HCM City Customs Department has just publicized the list of over 5,500 enterprises with tax debts, overdue fines and enforced overdue debts since the deadline for payment in July 2024, with a total debt of over VND2,453 billion.

Latest News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.

More News

State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Ensure timely and effective management and use of public asset

Ensure timely and effective management and use of public asset

VCN – In order to promptly and effectively implement public asset management and use, ensuring compliance with legal regulations, the Ministry of Finance has just issued an official dispatch requesting ministries, branches and localities to comply with regulations in the Government’s Decree No. 114/2024/ND-CP dated September 15, 2024.
Accelerating decentralization in public asset management

Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
Difficulty in finding banks eligible to receive compulsory transfers

Difficulty in finding banks eligible to receive compulsory transfers

VCN - Reporting to the National Assembly, the State Bank of Vietnam (SBV) said that one of the difficulties in restructuring the credit institution system is the long process of finding and negotiating banks eligible to receive compulsory transfers.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.
Read More

Your care

Latest Most read
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigne
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

According to the report of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Mobile Version