Total state budget revenue in 9 months of 2017 increased by 13.9% compared to the same period in 2016

Deputy Minister of Finance Vu Thi Mai chaired the press conference on October 11, 2017

As reported by the Ministry of Finance, the total state budget revenue in September 2017 was estimated at 77 trillion vnd; accumulating nine months of this year reached 843 trillion vnd, equal to 69.5% of the yearly estimates, increased by 13.9% compared to the same period in the last year (equivalent to 70.3% of the yearly estimates).

Of which, the domestic revenue in September was estimated at 57.7 trillion vnd; Accumulating the revenue in 9 months reached 663.7 trillion VND, equal to 67% of the yearly estimate, increased by 11.4% compared to the same period in 2016; The domestic revenue excluding land, lottery, dividends, profits and the sale of state-owned shares in enterprises in 9 months was estimated at 519.3 trillion vnd, equal to 66.4% of the yearly estimates, rose by 9.1% compared to the same period in 2016.

For import and export tax collection, in the first nine months of this year, the state budget revenue was 213,644 billion vnd, accounted for 75% of the total state budget revenue in 2017, an increase of 10.92% compared to the same period in 2016 thanks to a 21.4% increase in export turnover compared to the same period of 2016. In which, some items with high revenue also increased such as machinery, equipment, tools and spare parts that increased by 32.9%, computers and electronic accessories rose by 28.3%, plastic raw materials increased by 14.9%, telephone and accessories rose by 41.3%, iron and steel increased by 16.1%, crude oil rose by 9.7%.

According to the Ministry of Finance, the total state budget expenditure in September 2017 was estimated at 111 trillion vnd. Accumulated expenditures in the first nine months reached 904.6 trillion vnd, equal to 65.1% of the yearly estimates, rose by 6.6% compared to the same period in the last year.

On the situation of capital mobilization for the state budget, it issued 148.179 billion vnd of government bonds by the end of September 30, 2017, equal to 80.8% of the plan assigned in 2017.

According to the Ministry of Finance, in the first nine months of the year, the Ministry of Finance has closely followed and implemented financial solutions to strengthen the management of state budget revenues and expenditures, public debts under the Government's resolutions. Thanks for that, the task of managing State budget collection and spending is to ensure strictly and effectively, increase the management of the use of public assets.

The State Treasury system has spent about 531.9 trillion vnd on regular expenditures and 161.2 trillion vnd in the development investment capital; Accordingly, about 12,000 expenditures have not been observed in accordance with the procedures and have been requested by the unit to add necessary procedures; not accepting payment about 47 billion vnd.

The Ministry of Finance has also announced that it has implemented adequate and timely payments in accordance with the progress of the social security funds allocated in the state budget estimates for 2017 for beneficiaries. At the same time, about 109,000 tons of rice were aiding for the hungers and students in disadvantaged areas.

About the inspection and accumulations in September 2017, the financial sector has conducted more than 67,000 audits; inspecting nearly 355 thousand tax declaration documents at the tax offices, and detecting about 10,000 cases through anti-smuggling investigations; requesting for financial settlement of 13,608,274 million vnd; the amount paid to the state budget is 8,928,553 million vnd.

About the management of public assets, the Ministry of Finance has submitted to the Prime Minister for the issuance of Decision No. 41/2017/QD-TTg regulating the order and procedures for the transferring the capital of electricity projects from State to the Electricity of Vietnam...

Answering the questions of the media on the business activities of Uber and Grab in Vietnam, Mr. Nguyen Thanh Tri, Deputy General Director of the General Department of Taxation, said that the Ministry of Finance and the General Department of Taxation have issued the Official Letter No. 11828/BTC-CST dated August 24, 2016, sent to the Tax Department of provinces and cities under central authority; the Official Letter No. 3166/BTC-CST dated March 10, 2017, replying to the HCMC Taxi Association and the Official Letter No. 5471/BTC-CST dated April 27, 2017, to the General Confederation of Labor of Vietnam on the current tax rate applying to all enterprises, unifying the tax rate, conditions on investment incentives, exemption and reduction…

Mr. Tri confirmed that, the Uber and Grab’s transport business that did not meet the conditions for paying VAT by the deduction method and did not meet the CIT payment on the basis of declaring turnover and expenses to determine the revenue, this is applicable to foreign organizations and individuals doing business in Vietnam or earning incomes in Vietnam.

Accordingly, the calculation of Uber tax obligations as follows: The percentage for calculating the VAT on the turnover is 3%; The percentage for calculating CIT on turnover is 2%.

For transport business organizations and enterprises established under the law that signs contracts with Uber BV for business, they are obliged to declare and pay VAT and CIT with the revenue portion of the contract (excluding the revenue of Uber BV).

For those signing contracts with the Uber B.V for transport business, the tax obligations are as follows: The percentage for calculating VAT on turnover is 3%; The percentage for calculating personal income tax (PIT) on turnover is 1.5%.

For the Grab transport business, Mr. Tri said that it is also implementing this model, guiding the tax policy to be implemented in accordance with the principles of business cooperation contract revenue sharing as applied to Uber...