Efforts to reduce outstanding tax debts

Business representatives held a dialogue with the Provincial Tax Department.

Mr. Duong Duy Bay, Deputy Director of the Provincial Tax Department, stated: Facing the general economic difficulties caused by international conflicts, inflation, rising input material prices, increased interest rates, disruptions to global supply chains, and the impact of the Covid-19 pandemic, the production and business activities of enterprises have been negatively affected. Many businesses, cooperatives, and household businesses in the province have temporarily suspended operations or are operating at a reduced capacity, resulting in a decrease in the amount of taxes declared and payable monthly and quarterly. Furthermore, the support policies of the Socio-Economic Recovery and Development Program aimed at alleviating difficulties and assisting taxpayers affected by the Covid-19 pandemic have significantly reduced revenue in the province.

In 2023, the Provincial Tax Department was assigned a target of VND 1,575.3 billion by the Ministry of Finance ; and VND 2,420 billion by the Provincial People's Council and People's Committee, including: VND 1,120 billion from taxes, fees, and other budget revenues; and VND 1,300 billion from land use fees. As of June 30th, the total outstanding tax debt in the province was VND 68 billion. The Provincial Tax Department issued 38 decisions imposing administrative penalties for late submission of tax declarations, totaling over VND 179 million. It also confirmed tax obligations electronically for 227 electronic taxpayers. Furthermore, it received and processed 274 tax refund applications totaling VND 34.8 billion; and 30 applications for overpaid taxes and fees totaling VND 377.8 million. Simultaneously, 127 tax files were analyzed, resulting in increased revenue and penalties totaling 32 million VND. Three businesses were referred for on-site inspection. The increase in revenue after inspections and audits was 10.3 billion VND, with a reduction in deductions of 2.5 billion VND and a reduction in losses of 37 billion VND; 5.8 billion VND was collected for state budget payments after inspections and audits.

To date, the Provincial Tax Department has completed debt settlement in accordance with the regulations of the General Department of Taxation and issued 90 decisions to freeze debts totaling 1.5 billion VND. Eight debt freezing decisions totaling 563 million VND have been canceled.

Regarding this year's state budget revenue collection, Mr. Duong Duy Bay stated that although the revenue collection in the first six months of the year achieved quite good results, the task of collecting revenue in the remaining months is still very challenging, requiring high efforts and determination from civil servants and employees of the Tax Department. The entire sector must continue to maintain and organize well the emulation movements, striving to achieve and exceed the budget revenue targets. The Tax Department will continue to promote administrative procedure reform in taxation; focus on resolving difficulties and obstacles for businesses in a timely manner, improving the business environment, creating conditions for businesses to develop stably and sustainably, attracting investment, increasing new production capacity, promoting economic growth, and creating a foundation for increasing state budget revenue. Strictly implement the directives of the Ministry of Finance, the General Department of Taxation, and the Provincial People's Committee on directing and managing budget revenue collection. Promote and innovate forms of propaganda, support, and legal advice on taxation, effectively assisting and resolving difficulties for taxpayers. Improve the efficiency of electronic tax declaration, payment, and refund. Focus on the following targets: 100% of operating businesses will file taxes electronically, participate in electronic tax payment services, use electronic invoices, and electronic invoices generated from cash registers. In particular, improve the quality of inspection and auditing; combat tax evasion; strive to review tax refund applications submitted to tax authorities, and conduct pre-audit before refunds. Review and collect outstanding taxes, limiting tax arrears to under 90 days. Strengthen debt management and enforcement, urging taxpayers to pay outstanding tax amounts to the state budget, ensuring that the debt is reduced to below 5% of total budget revenue.

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