Tax sector: focusing on supporting localities to complete budget estimate

	Revenue and tax types record growth in the first six months
	Tax sector publicises questions and responses of taxpayers
	Tax revenue reached nearly 36% of the estimate

Operations at Dien Bien Tax Branch. Photo: Thuy Linh

Impressive revenue

Tuan said this was impressive because the average revenue of the first six months of previous years only was less than 50%. Especially, the revenue from state-owned enterprises, FDI enterprises and private enterprises in the first six months achieved 68.2% (while it was 41 percent in 2018 and 42 percent in 2017).
According to the General Department of Taxation’s report at the Ministry of Finance’s conference to summarize task performance in the first six months and deploy tasks of finance and budget for the last six months, in the first six months, the General Department of Taxation collected VND 598,786 billion, accounting for 51% of the estimate, up 13.6% compared to the same period in 2018.

Tuan also said that 50 of 63 localities achieve high revenue, more than 50 percent of the estimates in the first six months.

“This result was because the economy maintained good growth in the first six months with GDP of more than 6.7 percent and the Government continued to reform administrative procedures and facilitate the business environment,” Tuan said.

In addition, he said that in the past six months, the Tax sector has enhanced online tax declaration, payment and refund. Accordingly, 100 percent of enterprises perform online tax declarations; 98 percent perform tax payments; and more than 94 percent perform online tax refunds.

The Tax sector also piloted the declaration and payment of personal income tax (PIT) for individuals involved in house leasing and real estate transfer at the tax departments and branches and piloted the online payment of registration fees for cars and motorbikes in Hanoi and Ho Chi Minh City.

The Tax authority also supported enterprises and individuals in PIT settlement. Thereby, in the first quarter and the beginning of the fourth quarter, total PIT revenue was nearly VND 30,000 billion.

Moreover, under the strict guidance of the leaders of the Government, the Ministry of Finance as well as the efforts of the whole tax system, the Tax sector has focused on measures on inspecting, handling and collecting tax debts and then achieved positive results.

Specifically, the Tax sector conducted 27,000 inspections (3.4 times higher than the first quarter). The revenue through inspections increased 2.2 times, an increase of VND 14,200 billion compared to the first quarter.

Regarding debt collection, the Tax sector earned VND 9,000 billion in the second quarter, up 20% compared to the first quarter. In the six months, VND 16,400 billion was recovered.

Some localities actively implemented such as: Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Thai Binh, Vinh Phuc, Phu Yen.

Issuing a Decree, a Circular guiding the new Law on Tax Administration

Deploying tasks for the last six months of the year, Tuan said that in order to complete the revenue exceeding 5 percent compared to the estimate, the whole tax system would have to collect nearly VND 630 trillion. On average, each month strives to collect VND 150 trillion.

"In the context of the complex developments of the world’s politics, economy and trade, this is a very difficult task. Therefore, in order to rise revenue exceeding 5% of the estimate, immediately after this conference, the General Department of Taxation will organize an online conference to implement tasks in the whole system. In particular, focusing on inspection and recovery of tax debts, especially for enterprises with signs of transfer pricing and non-state enterprises. The Tax sector will also review and class large business households to adjust the presumptive tax rate as well as to implement the electronic invoice,” said the General Director of Taxation.

The Tax sector will also strive to achieve targets of inspection with total revenue of VND 640 trillion, doubling the revenue of the first 6 months.

In the management of tax debt, the Taxation sector will urge to collect over VND 20 trillion and limit newly arising debts.

Tuan also said that the Taxation sector determined to continue administrative reform to better serve taxpayers through strengthening digitalisation and providing online public services at levels 3 and 4.

In the merging of the regional tax branches, the Tax sector will continue to merge tax branches in the second period for 16 localities from the beginning of August 2019. Through 3 merging periods, so far, the Tax sector has reduced 102 tax branches. In the last six months of the year, the General Department of Taxation will review and merge 20 localities in accordance with the roadmap and faster than the roadmap under Decision 520 of the Minister of Finance.

In particular, the General Director of Taxation said that the sector will continue to advise all levels to issue documents to implement the Law on Tax Administration approved by the National Assembly in July.

“The General Department of Taxation has registered five Decrees and eight Circulars guiding the Law, especially the Decree on guiding tax administration with associated transactions. Accordingly, the Taxation sector will prepare the information technology and propaganda laws to ensure the right roadmap from July 1, 2020,” Tuan said.

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The General Department of Taxation will also focus on discussing the development of the plan on 2020 revenue estimate and the mid-term financial plan 2020-2022. At the same time, determining the 2019 year as a pivotal year, the Tax sector also focuses on reviewing and evaluating the implementation of each locality in 2019 and supports localities in difficulties such as Hanoi, Ho Chi Minh City, Dong Nai and Phu Tho, striving for 100 percent of localities to complete the estimates, creating an important premise to meet the estimates in 2020.