State budget revenue of Tax sector surpassed 9.3 percent of the target in 2019

An overview of the conference.

Revenue exceeds 9.3 percent of the estimate

In 2019, the total budget revenue managed by the tax agency is VND1,276,219 billion, equaling 109.3 percent of the estimate, up by 11.2 percentcompared to the same period in 2018. Of which, revenue from crude oil reached VND56,233 billion (equaling 126.1 percent of the estimate, increasing by 85.1 percentcompared to the same period last year); domestic revenue excluding oil reached VND1,219,635 billion (equaling 108.6 percent of the estimate, up by 12.7 percent compared the same period last year).

In 2019, the inspection and examination of the Tax sector has been continuously improved,asit is carried out by risk management and application of information technology to increase efficiency, ensure publicity and transparency. As a result, the whole Tax sector has conducted 96,343 inspections at taxpayers' offices and 517,554 records at tax offices with atotal amount of VND64,525 billion.

Notably, with the management of tax debt, as of the end of December 2019, tax agencies at all levels have implemented measures to promote debt collection to reach VND35,200 billion, increasing by 9.8 percent compared to the same period last year.

Last year, the Tax sector also constantly reformed and modernized its tax administration. Tax authorities have implemented electronic tax declaration systems at all 63 tax departments and 100 percent of tax offices nationwide. The number of enterprises filing electronic tax returns reached 99.35 percent of the total number of operating businesses,while the number of applications received was over 11.47 million. The Tax sector has also connected with 52 commercial banks across the country to implement electronic tax payment systemswith the participation of 99.01 percent. Currently, 93.61 percent of enterprises participating in electronic tax refunds with a total of 19,140 applications, equaling 95.8 percent of VAT refund applications.

In particular, institutional reform was a bright spot in theTax sector in 2019 with the General Department of Taxation studying and submitting to competent authorities for amendments and supplements to tax institutions and policies such as: the Law on Tax Administration No. 38/2019/QH14 approved by the 14th National Assembly on June 13, 2019, which takes effect from July 1, 2020; the National Assembly's resolution on freezing tax arrears, clearing fines for late payment for taxpayers who are no longer able to pay the state budget was approved by the National Assembly on November 26, 2019.

Assign quarterly revenue estimates

General Director of the General Department of Taxation, Cao Anh Tuan, said that in 2020, the entire Tax sector will concentrate and strive drastically to exceed 3% percent of the state budget collection task in 2020 that has been approved by the National Assembly, the Government and the Ministry of Finance. The main target is revenue of VND1,254,300 billion, of which crude oil is VND35,200 billion and domestic revenue is VND1,219,100 billion.

In order to achieve this goal, the Tax sector will set up and deliver quarterly revenue estimates to the Tax Departments to ensure feasibility and positivity, consistent with the economic development in the area. Since then, closely monitoring the progress of budget collection, evaluation and analysis of each area and each type of tax. Review and identify potential revenue sources, sectors and taxes.

“The Tax sector will step up inspection and supervision of taxpayers' declarationsfrom the beginning of the year, focusing on checking conflicting declarations and business areas showing potential of insufficient tax declaration, resolutely sanctioning cases of violating the regulations on tax declaration and tax imposition for taxpayers who violate the tax law in strict compliance with the provisions of the Tax Administration Law,”Mr. Cao Anh Tuan said.

In addition, the Tax sector will develop an inspection plan in 2020 on the basis of risk analysis and assign the plan to tax departments, ensuring the minimum inspection and examination rate reaches 19.5 percent of businesses under its management. At the same time, strengthening the inspection and examination of the observance of tax laws in enterprises in combination with the inspection and use of invoices in order to detect the illegal use of invoices by enterprises, thereby handling violations of invoices and tax as prescribed.

In particular, the tax authorities will work closely with the agencies, exchange information,promptly detect enterprises athigh risk of price transfer, profit transfer and tax avoidance to focus on inspecting, examining and strictly handling enterprises that violate tax laws in the field of transfer prices.

Also, according to the Director of the General Department of Taxation, with the management of tax debt, in 2020, the tax industry will implement the National Assembly's Resolution No. 94/2019/QH14 on freezing tax arrears, clearing late payment fines and late payment interest for taxpayers who are no longer able to pay the state budget, ensuring the handling of tax amounts, late payment interest and fines.