Impressive growth in budget revenue

	State budget revenue in 2021 reaches the finish line a month early
	Budget collection while preventing of budget revenue loss
	Reform tax system, ensure a sustainable budget revenue structure

Tax revenue achieved positive results

Budget revenue in the first quarter reached 33.1% of the estimate

In the first quarter, as the pandemic was controlled and the economy recovered, the tax revenue was positive.

According to a report by the General Department of Taxation, by the end of March, the total State budget revenue managed by the tax agency was estimated at VND389,320 billion, equaling 33.1% of the ordinance estimate and 105.3% over the same period last year.

Some tax revenues and taxes have achieved good progress, such as personal income tax collection reached 43.3%; the state-owned enterprise sector was estimated at 27.5%; foreign-invested enterprise sector was estimated at 30%; the industry, commerce and non-state service sector was estimated at 34%.

Compared with the same period last year, 11 out of 19 revenues and taxes saw growth. Specifically, personal income tax was estimated to increase by 20.6%; environmental protection tax was estimated to increase by 7.1%; registration fees estimated to increase by 5.1%; fees were estimated to increase by 4.2%; collection of land rent was estimated to increase by 26.9%; and land use levy was estimated to increase by 21%.

According to the General Department of Taxation, the number of newly established and enterprises returning to operation in the first quarter increased by 36.7% over the same period last year. Accordingly, on average, there were 20,000 enterprises that were newly established and returned to operation per month.

Notably, thanks to the control over the pandemic, the service sector in the first quarter prospered. Some service industries have contributed a large proportion of the total added value in the first quarter, including financial, banking, and insurance activities increased by 9.75% over the same period last year; transportation, warehousing increased by 7.06%; and wholesale and retail increased by 2.98%.

Focus on inspection and examination of the real estate sector

In addition to enterprises promoting production and business activities and making great contributions to the budget, the above revenue was also due to the tax sector's synchronous implementation of management solutions, especially in inspection and examination.

The latest statistics showed that, as of March 14, 2022, the whole Tax sector carried out 4,890 inspections at the taxpayer's headquarters and checked 90,503 tax declaration dossiers at the tax office, achieving 113.32% over the same period in 2021.

The total amount proposed to be handled through inspection and examination was VND4,255 billion, of which the increased tax collected through inspection and examination was VND1,050.2 billion; the deduction amount was VND237.8 billion; and loss reduction was VND2,967.1 billion.

It is worth mentioning that since the beginning of the year, the tax sector has increased tax inspection and examination activities in a number of key areas. For example, in the field of real estate, Ly Thi Hoai Huong, Deputy Director of Tax Administration Department for small and medium enterprises, business households and individuals, said that the management of real estate transfer was currently facing many difficulties because it involved many laws and agencies.

Along with that, the people's sense of self-discipline to fulfill their tax obligations has not been high. Tax authorities are also facing many difficulties. According to the tax law, if a taxpayer declares and pays tax not in accordance with the actual transfer price, the tax authority has the right to impose tax. Meanwhile, the tax office does not have an investigating function, so it is difficult to collect information as a basis for tax assessment.

Therefore, the General Department of Taxation has directed the local tax authorities to build thematic inspections of subjects and inspection of official duties in the field of notarization and tax administration for real estate transfer activities at tax offices.

Compare tax returns to check the accuracy and completeness of the information provided by taxpayers, identify cases of understatement of revenue, false declaration of the selling price or inappropriate selling price. On that basis, identify high-risk tax cases to request taxpayers to explain and supplement information according to the provisions of the Law on Tax Administration.

In the future, tax authorities will coordinate with relevant agencies in tax administration for business activities and real estate transfer; propose the People's Committees of provinces and cities to develop a project to prevent loss of revenue for real estate transfer activities; and actively coordinate with relevant State management agencies to advise and report to the People's Committees of provinces and cities to build a land price list that is close to the common land price in the market.

In particular, tax offices at all levels will actively coordinate with the Department of Justice to direct notarial practice organizations in the area to propagate and guide people to correctly declare the actual purchase and sale prices in real estate transfer transactions; collect information, review the database to determine revenue, and urge tax declaration and payment according to regulations; and strictly handle organizations and individuals that commit violations, thereby gradually improving the efficiency of tax administration for real estate sales and transfers.