The Tax sector: Gained significant revenues

	Increase revenue by over 1,600 billion VND after tax inspection
	In 5 months, the revenue collection of Tax sector achieved 41% of current appropriation
	Revenue of the Tax sector reached 24.5% of the 2018 estimate

The conference

Revenue reached 49.7% of the estimate

Reporting on the task performance in the first half of 2018, Mr. Dang Ngoc Minh, Deputy Director of the General Department of Taxation said that in the first half of 2018, revenue managed by the General Department of Taxation was estimated at VND 531,520 billion, accounting for 49.7% of the estimate and increasing by 13.9% compared to the same period in 2017.

Of which, revenue from crude oil was estimated at VND 29,565 billion (accounting for 82.4% of the estimate, up 25.3%); domestic revenue was estimated at VND 496,782 billion (accounting for 48% of the estimate, equivalent to 112.1% compared to the same period in 2017); revenue excluding land use fees, remaining profit and revenue from lottery were estimated at VND 402.506 billion (equivalent to 46.4% of the estimate, increasing by 13% compared to the same period in 2017).

According to the General Department of Taxation, the revenue in the first half of the year, the tax sector gained a significant revenue compared to the recent year in both progress and growth rate due to the increase in revenue from crude oil and land. Besides, the economic recovery boosted the revenue in the first half of 2018, almost all revenues increased compared to the same period in 2017 (14/17 revenues). Domestic revenue of 44 of 63 provinces gained a significant growth compared to the estimate (reaching over 50% of the estimate).

“In order to achieve this revenue, from the beginning of the year, the tax authorities at all levels drastically deployed the revenue collection; implemented directions by Party Committee, local governments and coordinated with competent authorities to review tax payers and exploit the revenues in the area, closely controlled the registration, declaration, tax payment, tax finalization for accuracy, for due and prompt tax collection into the State budget. The entire Tax sector also promoted the support and dialogues with enterprises to remove shortcomings and difficulties in a timely fashion, facilitated enterprises to develop production and business, supported start-ups and boosted economic growth,” Mr. Minh emphasized.

For the goal of striving for the inspection and examination to reach at least 18.5% of enterprises in operation, in the first half of 2018, the Tax authorities inspected over 30,000 enterprises with total additional tax revenue collected of VND 5.7 trillion, deducting VND 508 billion, reducing losses of over VND 9 trillion. Accordingly, the tax revenues contributing to the State budget was over VND 2.6 trillion (reaching 45.37% of additional tax revenue through inspection and examination).

Notably, the leader of the General Department of Taxation said that as of 30th June 2018, Tax branches collected VND 17,944 billion of tax debt. This revenue accounted for 43.1% of 90-day debts and over 90- day tax debts as of 31st December 2018, of which, VND 12,633 billion was collected by tax management method and VND 5,311 billion was collected by coercive method.

Striving to increase in revenue by 5% of the estimate

According to Mr. Dang Ngoc Minh, in the second half of 2018, the Tax sector will continue to follow the direction and administration of the Government, the Ministry of Finance and the Party committees, People's Committees at all levels to implement solutions such as: expanding the tax base and creating changes in revenue management, especially the informal sector; enhancing the inspection, examination and prevention of losses, smuggling, trade fraud; Strictly controlling taxable value and anti-transfer pricing to increase the State revenue by 5% compared to the target assigned by the National Assembly.

The General Department of Taxation will also closely monitor the progress of revenue collection, evaluate, analyze and identify potential revenues from lost taxes to promptly introduce effective management solutions, and propose the People's Committees to direct the branches and levels in localities to coordinate with the tax agencies in order to enhance the collection management and step up measures against revenue loss. Speeding up the collection of low-growth revenues behind progress, especially for 16 localities with the revenue contributing to the central budget to ensure the fulfillment of the task of central budget revenue in 2018.

For the inspection and examination, the Tax sector will also conduct in-depth inspections and examinations according to each key sector and field, and for sensitive items, concentrate on the sectors such as: inspection of capital transfer, related-party transaction, e-commerce, mineral exploitation. At the same time, to continue well implementing the anti-losses in revenue from non-state enterprises and business households in accordance with the Prime Minister’s Directive No. 26/CT-TTg dated 6th June 2017.

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From now to the end of the year, the General Department of Taxation will implement all the debt management measures planned at the beginning of the year to increase revenue, strive to gain the total of tax debts as of 31st December 2018, not to exceed 5% of revenue compared to the revenue in 2017.

The Tax branch will also promptly upgrade the TMS application to meet the amended and supplemented policies in 2018. At the same time, it will accelerate the provision of electronic services to taxpayers, such as by: Electronic tax declaration, electronic tax payment, electronic tax refund; Electronic tax declaration and payment for house leasing, car registration, motorcycle tax, personal income tax for real estate transfer; Electronic tax payment for business individuals through authorized organizations.