Tax sector’s revenue affected by Decree 100
The Tax revenue in May 2020 is estimated at VND58,000 billion. Photo: T.L |
Domestic revenue reached 65% over the same period 2019
According to the General Department of Vietnam Customs, the Tax revenue in May was estimated at VND58,000 billion, reaching 4.6% compared to the ordinance estimate and 63.1% over the same period in 2019.
Of which, revenue reached 25.1% compared to the same period last year; domestic revenue was estimated at 65.8% compared to 2019. The revenue excluding land use fees, dividends and remaining profits, lotteries and difference of the State Bank's revenues and expenditures was estimated at 63.4% over the same period in 2019.
The General Department of Taxation said that the accumulated revenue by the end of May was estimated at VND499,832 billion, reaching 39.8% compared to the ordinance estimate and 97.6% over the same period in 2019.
Explaining the cause of the reduction in the revenue, the General Department of Taxation said that in April, following the Government’s direction on the implementation of measures to prevent diseases, including social distancing, the closure of almost all non-essential servicesand the restriction of production have affected the production and business activities of enterprises in April and May, thereby reducing the State revenue.
In addition, the implementation of Government Decree 41/ND-CP dated April 8 on extension of deadlines for tax and land use fee payment forbusinesses, organizations and individuals of sectors hit hard by Covid-19 and small and micro enterprises significantly reduced the State revenue in May over the same period last year.
Notably, the reduction in the revenue in the first five months is partly due to the strengthening of measures to implement Decree 100/2019/ND-CP, causingthe consumption of wine and beer in many localities to fall.
The General Department of Taxation said that with the impact from policy and the disease on revenue, although the Tax revenue does not have growth compared to the same period in 2019 (reaching 97.6%), the tax authorities at all levels have synchronously deployed revenue management solutions.
Accordingly, the General Department of Taxation has directed tax departments to deploy revenue estimates from the first day and the first month, striving to increase the revenue by 7% compared to the estimates assigned by the National Assembly; to implement the task of inspection and examination for enterprises in 2020 to tax departments; to inspect and review all businesses to put into tax management, and identify the accurate number of enterprises that temporarily suspendoperations, and the number of enterprises that stop operations.
In addition, tax authorities at all levels have inspected and closely controlled the VAT refund and strengthened management of sales invoices.
The General Department of Taxation has assigned a target of tax debt collection 2020 to tax departments, with the goal of collecting at least 80% of the recoverable tax debt as of December 31, 2019 and reducing tax debt to less than 5% of the state budget revenues in 2020.
Strengthen IT application
The General Department of Taxation said that after the implementation of Decree 41/2020/NĐ-CP, as of June 1, 2020, the general department has received 128,684 applications for extension of deadlines for tax and land use fee payment with an amount of VND36,963 billion.
In addition, regarding the management of tax registration, declaration, payment and refund, the Tax authority has focused on reviewing the number of enterprises temporarily suspendingbusiness and stoppingoperation, especially after the Lunar New Year, ensuring tax administration for 100% of enterprises operating; inspect and strictly control the production, business, tax declaration and payment of enterprises.
In the first five months of 2020, the whole country had 48,341 new enterprises, down 5,419 enterprises compared to the same period in 2019; 30,607 enterprises stopping operations, down 90 enterprises; 19,963 enterprises temporarily stopping operations, up 3,078 enterprises; but there were 11,629 enterprises restoring their operations, up 1,421 enterprises. By the end of May 2020, there were 773,176 enterprises in operation in the country, up 15,643 enterprises (2.06%) compared to the end of 2019.
In addition, the tax office has also identified subjects and appropriate adjustments of the flat tax rate in line with business reality and preventing budget revenue losses.
In addition, the tax agency continues to provide electronic tax services for taxpayers, promoting the provision of online public services at levels 3 and 4 for people and businesses, and integrating these services withthe Government's portal.
In particular, implementing Decree 41/2020 / ND-CP, the tax authorities at all levels promptly upgraded the information technology system and integrated it into the National Public Service Portal to apply for payment extension of tax and land rent, thereby creating the most favorable conditions for taxpayers affected by the Covid-19 pandemic to enjoy the State's policy.
Related News
Launching virtual assistants to support taxpayers
17:50 | 23/11/2024 Finance
Regularly check tax obligations to avoid temporary exit suspension
09:47 | 21/11/2024 Regulations
Quang Nam Customs facilitates trade and increases revenue
09:41 | 19/11/2024 Customs
Striving for revenue to rise by over 15% compared to assigned estimate
10:01 | 14/11/2024 Finance
Latest News
Monetary policy forecast unlikely to loosen further
18:18 | 24/11/2024 Finance
Green credit proportion remains low due to lack of specific evaluation criteria
09:02 | 24/11/2024 Finance
Banks increase non-interest revenue
10:51 | 23/11/2024 Finance
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
More News
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance
State-owned securities company trails competitors
14:46 | 20/11/2024 Finance
Strengthening the financial “health” of state-owned enterprises
09:23 | 20/11/2024 Finance
U.S. Treasury continues to affirm Vietnam does not manipulate currency
13:46 | 19/11/2024 Finance
Exchange rate fluctuations bring huge profits to many banks
13:43 | 19/11/2024 Finance
A “picture” of bank profits in the first nine months of 2024
09:42 | 19/11/2024 Finance
Your care
Monetary policy forecast unlikely to loosen further
18:18 | 24/11/2024 Finance
Green credit proportion remains low due to lack of specific evaluation criteria
09:02 | 24/11/2024 Finance
Launching virtual assistants to support taxpayers
17:50 | 23/11/2024 Finance
Banks increase non-interest revenue
10:51 | 23/11/2024 Finance
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance