Decrease in tax payments of financial and real estate enterprises

Some real estate enterprises reduced the amount of tax payment. Photo: T.H

According to Ho Chi Minh City Tax Department, total domestic revenue in two months was VND51,658 billion, reaching 17.76% of the current appropriation in 2020, an increase of 2.58% compared to the same period in 2019. In particular, revenue collection from business activities decreased.

Revenue collecting from the State economic sector in two months was VND4,198 billion, 14.72% of the current appropriation estimate, down 7.14% over the same period in 2019.

In particular, the central State-owned enterprise area (SOE) paid VND2,779 billion in two months to State revenue, down 3.31% over the same period in 2019. The central State-owned enterprise area is the area with the highest amount of corporate income tax collection in the economic sector (increased by 26.16%, equivalent to an increase of VND 210 billion).

The reason is the number of companies increased in the number of tax payments, as Vietnam Airport Corporation filed increased 417.68% (equivalent to an increase of VND200 billion) and Southern Power Corporation Limited increased 442, 19% (equivalent to an increase of VND70 billion).

Local State-owned enterprises paying tax with the amount of VND1,419 billion in two months, down 13.83%, equivalent to VND 228 billion compared to the same period in 2019. Of that, total revenue and main revenues decreased sharply over the same period. The reason was that some enterprises reduced in the amount of tax payment, such as Saigon Industry Corporation - One-member limited liability company reduced 46.31% (equivalent to VND122 billion); Ho Chi Minh City State Financial Investment Company reduced 49.96% (equivalent to VND69 billion); District 4 Public Services Co., Ltd. reduced 65.35% (equivalent to a reduction of VND50 billion).

Revenue collected from foreign-invested enterprises in two months was VND 13,971 billion, up 5.42% compared to the same period in 2019. This is the only area in the four economic sectors that had an increase in total revenue, however, the growth rate was still low compared to the growth rate of the previous year.

Revenue collecting from non-State industrial and commercial enterprises was VND 14,324 billion, down 2.34% compared to the same period in 2019. This area had the largest proportion of revenue in four economic sectors (accounting for 44%) and a decrease in total revenue due to the decline of the real estate and banking finance sector.

Asia Commercial Bank decreased 29.09%; Vietnam Prosperity Banking Limited Company decreased 45.3%; SSI Securities Joint Stock Company decreased 39.13%; Sai Gon Thuong Tin Commercial Joint Stock Bank decreased 14.2%; Binh Thien An Real Estate Joint Stock Company decreased 77.12%; Unicons Investment and Construction Co., Ltd. decreased 73.23%; Dai Quang Minh Real Estate Joint Stock Company decreased 65.27%; Ha Do Joint Stock Company - 756 Saigon, down 78.72%; Ricons Construction Investment Joint Stock Company reduced 75.92%; and Hoa Binh Construction Group Joint Stock Company decreased 34.57%.

Some revenues increased over the same period, including collecting from personal income tax increased by 13.83%; collecting from land use fees increased by 14.8%; non-agricultural land use tax increased 7.84%; collecting from land and water surface rental increased 25.74%; collecting from selling State-owned houses increased by 43.43%; collecting from environmental protection tax increased 9.12%; other revenues increased by 13.84%; profit after tax increased by 7.69%, and collecting from the lottery also increased.