Drastically handle tax debts in the last months of the year

VCN – The General Department of Taxation has directed tax branches to closely supervise and control the implementation of enforcement measures to ensure the debt collection targets and limit new debts.
Handling tax debts for imported goods under the type of processing Handling tax debts for imported goods under the type of processing
Over 5,000 firms with tax debts at HCM City Customs publicized Over 5,000 firms with tax debts at HCM City Customs publicized
Drastically handle tax debts in the last months of the year
The General Department of Taxation requests local tax departments to assign debt collection and handling bad debt targets to leader of each tax department, branch and division and officer. Photo: T.L

Tax debt remains high level

From the beginning of 2024, the General Department of Taxation requested and assigned tax departments to ensure the completion of tax debt collection targets in 2024, and enhance responsibility in tax debt management and collection, contributing to the completion of the state revenue collection in 2024. However, the monitoring debt management and enforcement by local and central tax departments and the Large Taxpayers Department showed that as of August 31, total amount of tax debts across the country remains the high level.

Regarding the implementation of the temporary exit suspension measure, as of August 14, 2024, the Tax authority has announced the temporary exit suspension for 17,952 taxpayers with the tax debt of VND30,388 billion, of which 10,829 taxpayers have abandoned their business address with the tax debt of VND 6,894 billion.

Through the implementation of temporary exit suspension measure, the Taxman has collected VND1,341 billion of 2,116 taxpayers. Notably, the Taxman has recovered VND46.7 billion of tax debts of tax payers.

The General Department of Taxation, the debt amount in August is estimated at VND 3,244 billion. Accumulated to the end of August 2024, the Tax sector collected VND53.771 billion of tax debt, increasing by 29% year-on-year, including VND 3,313 billion collected by debt enforcement measures. 41/63 localities that collected the tax debts in eight months, increased compared to the same period, of which 17 localities had debt collection increase of over 50%.

As of August 31, the total tax debt is estimate to reach 14.3%, of which the total recoverable debt in 2024 reached 10.4%. 19/63 localities have the total debt less than 8%. According to the assessment, the total tax debt under the management of the entire Tax sector increased by 21.1% compared to the end of 2023 and 23.6% compared to the same period of the previous year.

Regarding tax debt, at the conference on the performance of the financial and budgetary tasks of the Ministry of Finance on September, Mai Xuan Thanh, Director General of the General Department of Taxation, said that in implementing tax debt management, units have implemented policies and measures to urge and collect debts, but the units have not yet achieved positive results, which showed the difficult situation of enterprises. According to the Director General, the tax debt collection showed that land tax debts have faced problems related to procedures at the local level.

In fact, although some enterprises face many difficulties, they have paid a large amount of land use fees, even exceeded the initial amount payable. However, as per regulations, this amount is not included in the tax, so the enterprises are still subject to debt monitoring and late payment, and tax debt enforcement measures. This is one of the problems that needs to be considered and the General Department of Taxation will report to the Ministry of Finance and the Government for a common solution.

Focus on handling debts of land use fees and land rents

In the context of tax debts remaining at a high level, in order to achieve the tax debt collection target and enhance the responsibility of tax departments in completing the target in the last months of the year, the General Department of Taxation requests central and local tax departments to assign target and attach responsibility for tax debt collection, handling tax arrears to each leader of tax department, division, branch and each officer; and monitor, supervise and closely inspect the progress of implementing urging and enforcement measures to achieve debt collection targets and new debts.

The General Department of Taxation requires units to fully implement measures to urge and publicize information in accordance with the provisions of the Law on Tax Administration and guiding documents to collect tax debts to the State budget. For taxpayers with tax debts of more than 90 days or tax debts subject to enforcement, the Tax authority must immediately apply enforcement measures and publicize information in accordance with regulations.

For tax debts pending settlement or adjustment, the taxman needs to a document to the competent authority to speed up the deduction of compensation and site clearance fees from payable land use fees and land rents to promptly handle these debts...

One of the measures that the General Department of Taxation requested units, is to focus on handling debts of land use fees, land rents, and mineral exploitation rights fees. Accordingly, review and report to the Provincial People's Committee to direct relevant local agencies to remove difficulties and obstacles related to land area, land price, planning adjustment, deduction of compensation for site clearance... (if any) to promptly handle and recover debts of land use fees, land rent, and mineral exploitation rights fees.

Regarding tax debts, the Ministry of Finance requested the General Department of Taxation to closely monitor the extended taxes and fees to urge taxpayers to pay fully and promptly, and avoid new debts and late payment fees; classify tax debts accurately and in accordance with the instructions in the Tax Debt Management Process to provide appropriate management and collection solutions. At the same time, fully, promptly and effectively apply tax debt enforcement measures and accelerate the progress of develop the project on automated debt management and tax debt enforcement.

By Hoang Loan/ Thu Hien

Related News

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.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating conditions for enterprises and taxpayers to develop stable production and business as well as facilitate travel and trade activities.
Proactively mobilizing financial resources from the budget to modernize tax management

Proactively mobilizing financial resources from the budget to modernize tax management

VCN - The regulation of financial resources from the budget, proactively arranging modernization funds, investing in information technology (IT) applications, digital transformation... in a timely manner is very important, affecting the provision of online public services and ensuring the security and safety of taxpayers' databases.

Latest News

3 priority pillars of Japanese ODA capital flow in Vietnam

3 priority pillars of Japanese ODA capital flow in Vietnam

VCN - Mr. Sugano Yuichi, Chief Representative of the Vietnam Office of the Japan International Cooperation Agency (JICA), shared about the outstanding results in more than 30 years of implementing ODA projects in Vietnam and plans for the coming time.
Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

VCN - Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor, promptly removed obstacles, and created conditions for ministries, branches, and localities to proactively use regular expenditures to carry out tasks and projects outside the approved medium-term public investment plan, and to be proactive in performing assigned tasks.
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.

More News

Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.
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.
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.
Read More

Your care

Latest Most read
3 priority pillars of Japanese ODA capital flow in Vietnam

3 priority pillars of Japanese ODA capital flow in Vietnam

Mr. Sugano Yuichi, Chief Representative of the Vietnam Office of JICA, shared about the outstanding results in more than 30 years of implementing ODA projects in Vietnam and plans for the coming time.
Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Mobile Version