Tax sector ensures implementation of support policies to the right businesses

	Extending deadline for paying tax, exempting penalty tax of late payment for enterprises suffering from Covid-19
	Tax sector dractically reduces tax debt
	Tax sector strengthens online tax finalization support

Tax authorities focus on removing difficulties and problems in policies and mechanisms for businesses. Photo: Internet.

State budget deficit is forecast at least 2%

Statistics from the General Department of Taxation show some industries and fields have initially been affected by temporary labour shortages, disruption of input material supply chains; many small and micro-sized enterprises have narrowed production business. This situation will directly affect the revenue from Value Added Tax, Corporate Income Tax, Special Consumption Tax and charges and fees in many localities in the country.

According to the preliminary assessment of the General Department of Taxation, if the economy decreases by 0.55% compared to the plan, the State budget revenue managed by the tax authority will decrease by about 2% compared to the estimate assigned by the National Assembly. If the economy decreases 0.84%, the State budget revenue managed by the tax authority is forecasted to decrease by 2.8-3% compared to the estimate. However, this is only the primary assessment at the beginning of February when the Covid-19 epidemic broke out in China and spread to about 20 countries. The disease has sincespread globally in more than 100 countries, thereby, the difficulties for the tax sector in completing the State budget target will be heavier.

To strive to achieve the highest revenue target and create a budget revenue source for the Government to balance and fulfill economic development tasks set by the National Assembly and the Government, and have funds for the prevention and suppression of the pandemic quickly, helping enterprises quickly recover and develop production and business, increase revenues for the State budget, the General Department of Taxation has requested tax authorities remove difficulties and problems regarding mechanisms and policies for enterprises, improve the business environment, create favourable conditions for enterprises to develop stably, attract investment and support businesses in renewing and restoring production and business activities as soon as Covid-19 pandemic under control, promoting economic growth and creating a basis for increasing revenues for the State budget.

Another important task that the tax sector needs to do is to continue reforming and modernising the tax system, simplifying tax administration procedures, maintaining services of e-tax declaration e-tax payment, e-tax refund and e-invoice. Ensuring a smooth information technology system 24/7 to support taxpayers to fulfill their obligations to the State budget from tax registration, declaration, payment and tax refund online fail to directly work with the tax authority, reducing time to carry out the procedures and create favourable conditions for taxpayers.

The General Department of Taxation also requires tax departments to coordinate with the police, customs and market surveillance agencies to strictly control commodity prices, combat smuggling, trade fraud, fake goods and poor quality goods, thereby preventing revenue loss, creating a fair business environment to encourage and attract investment, increasing State revenue. Particularly, it is necessary to focus on implementing promptly and effectively solutions for revenue collection, prevention of revenue loss, transfer pricing, tax evasion and collection of tax debts; strictly control the VAT refunds; increasing revenues through expanding tax bases, reviewing projects with expired tax incentives, newly arising projects and tax arrears as the recommendations of the audit and inspection authorities to accurately, sufficiently and promptly collect taxes, fees, charges and other revenues for the State budget.

Supports each business

After the request of the General Department of Taxation, tax departments have planned to solve difficulties and support businesses and taxpayers. According to Ha Van Truong, Director of Hai Phong Tax Department, facing the impact of Covid-19, the department has developed a scenario to respond. Accordingly, the department will review, evaluate, analyse and forecast businesses’ situation.

“In the near future Hai Phong Tax Department will pay attention to businesses showing signs of risk in 2019 that their declaration are inconsistent with actual business as well as fail to meet the tax mobilisation ratio, affecting the revenue. From this result, we will build an inspection plan for this business. Hai Phong Tax Department will continue to exploit new revenues, revenues from natural resources, land and minerals after the Covid-19 pandemic, as a basis for strengthening management as well as increasing budget revenue,” Truong said.

In Hung Yen, after the Ministry of Finance submitted to the Government a draft decree on extension of tax and land rent payment deadline to support businesses and people directly affected by the Covid-19 pandemic, Hung Yen Tax Department strengthened publicity contents of the draft decree and policies related to extension and exemption of late payment interest for the business community and taxpayers, thereby, they can have peace of mind for their production and business.

Based on the provisions of law, the Hung Yen Tax Department will instruct enterprises, organisations and individuals affected by the pandemic to apply for extension and exemption of late payment interest to the tax authority. When the decree is issued, Hung Yen Tax Department will immediately implement it to facilitate businesses and individual business households concentrate capital on production and business stability.

However, to avoid abuse of this policy to evade taxes by businesses, tax authorities have also strengthened control on compliance of tax laws correctly to ensure effective and transparent support.

The General Department of Taxation has also instructed tax offices to closely review tax declaration dossiers of taxpayers before conducting tax examination and inspection at taxpayers' headquarters. The General Department of Taxation affirmed it will not conduct periodic inspections in 2020 for businesses without signs of violations. However, it will not allow businesses to take advantage of this policy for violations of the law.

In addition, it will share information and experience to more effectively manage e-commerce activities and business online such as Facebook, Zalo and YouTube accounts to prevent revenue loss, expand tax bases, combat revenue erosion and increase revenues for the State budget.