Tax sector has already recovered 96% of land rent and tax extending deadline of payment in 2020

Total amount of debts managed by Tax sector was VND 89,796 billion by the end of 2020. Photo: Thùy Linh

The General Department of Taxation has directed and instructed tax departments to extend the deadline for tax payment, process on exemption of late payment interest for taxpayers affected by the Covid-19 pandemic in accordance with the Law on Tax Administration and Decree 41/2020/ND-CP dated April 8, 2020 of the Government on the deadline extension of tax payment and land rental. At the same time, to review, urge and coerce tax debts to collect debts after the extension of tax and land rental payment extension expires.

Along with that, the tax sector has disseminated and explained the legal provisions on tax debts to taxpayers to improve taxpayers' compliance in the implementation of the tax payment regulations.

The Tax Department also promoted reforms of administrative procedures, the application of information technology in all stages of debt management and tax debt enforcement; the electronicisation of professional processes of tax debt management and debt enforcement system from the stage of debt notices issuance and decisions on debt enforcement, implementing fully and accurately debt assignment and classification to enhance the efficiency of tax debt management.

According to a report of the General Department of Taxation, in 2020, the entire tax sector issued nearly 37 million notices of tax debts, fines and late payment sent to taxpayers, reaching 100% of taxpayers subject to be notified and sent email for exchanging information via email about the tax debt situation of businesses.

The entire tax sector also made a total of 714 public posts on mass media and on the website of the tax agency with the number of taxpayers who intentionally delayed paying tax debt on time 139,846 taxpayers, 139,049 decisions have been issued for accounts coercion, 22,659 decisions to coerce invoices, 19,004 decisions to coerce license revocation and 1,933 decisions to coerce property distraint and collect money of assets from third parties.

As of December 31, 2020, the entire tax sector is estimated have to recovered VND 28,476 billion of outstanding debts as of December 31, 2019, reaching 84.2% of the target of debt collection, down by 19.1% compared to with the same period in 2019. In particular, collecting from applying debt management measures is VND 19,388 billion, while collecting from debt enforcement is VND 9,088 billion.

According to the General Department of Taxation, implementing Decree 41/2020/ND-CP and Decree 109/2020/ND-CP, the total amount of tax and land rent to be extended the deadline for tax payment is VND 87,232 billion. By the end of 2020, the tax authority has implemented measures to recover 96% of the extended tax and land rental amount into the State budget.

The total tax debt of the tax sector by the end of 2020 is VND 89,796 billion, down 5.5% compared to the same period in 2019. The ratio of total tax debt from total revenue in 2020 will be 7%; the ratio of total receivable debt over total revenue in 2020 will be 4%.