Online business, stocks, real estate in the "sights" of the Tax authorities

Budget is "tight as a bowstring"

According to data from the General Department of Taxation, budget revenue has continuously decreased over the months, quarters and compared to the same period. Total budget revenue in September 2021 managed by the Tax authority is estimated at VND 52,000 billion, equal to 4.7% of the estimate, equal to 55.8% compared to the same period in 2020.

Cumulative budget revenue managed by the Tax authority in the third quarter of 2021 reached about VND 239,409 billion (only 21.4% of the estimate, 88.8% over the same period).

Meanwhile, revenue in the first and second quarters was VND369,688 billion and VND289,717 billion, respectively. Thus, revenue in the third quarter was only 64% of that in the first quarter and 71.9% of that in the second quarter.

Also according to the General Department of Taxation, by the end of September, only 12/18 revenue items and taxes ensured progress in implementing the budget (reaching over 75%) and only 10/18 revenue items and taxes had revenue growth.

Total budget revenue in September 2021 managed by the Tax authority is estimated at VND 52,000 billion, equal to 4.7% of the estimate, equal to 55.8% over the same period in 2020.

Explaining this decline, Mr. Cao Anh Tuan, Director General of the General Department of Taxation, said that the complicated developments of the epidemic since April and its spread to the southern provinces since July have greatly affected the tax management work of the industry. Although the state budget revenue for the first 9 months of 2021 is still close to the assigned estimate, the source of increased revenue is mainly concentrated in the first 4 months of the year.

“Since the end of April, the Covid-19 epidemic has broken out with a strong infection rate of new virus strains, complicated developments in some key economic areas and many large industrial zones, causing commercial establishments and production and business activities to stagnate, affecting the economy and state budget revenue,” said the leader of the General Department of Taxation.

Furthermore, to continue supporting people and businesses to overcome the difficulties of the pandemic and accelerate economic recovery in 2021, the Government issued Decree No. 52/2021/ND-CP on extending tax and land rent payments in 2021. These solutions have been effective in helping businesses have more capital to promote production and business, but have also affected the implementation of budget collection tasks. As of the end of September 2021, there were 138,984 applications for tax and land rent payment extensions with a total extended tax and land rent amount of VND 78,108 billion.

Recently, the Ministry of Finance is submitting to the Government for submission to the National Assembly Standing Committee for consideration and promulgation of a number of solutions on tax exemption and reduction to support businesses and people affected by the Covid-19 pandemic. Notably, this support package also targets the most vulnerable groups when the pandemic "sweeps through", which are business households.

Accordingly, the Ministry of Finance proposed to completely exempt all types of taxes arising in the third and fourth quarters of business households, from value added tax, special consumption tax, environmental protection tax, personal income tax, etc. In addition, the land rent reduction will be doubled to 30% of the total tax payable in 2021, without any restrictions on industries or scope as before. If this proposal is approved, it could reduce the State budget revenue by about VND 21,300 billion.

“The new support package worth VND21,300 billion directly exempts and reduces the amount of tax payable for businesses. This will help businesses not have to prepare a sum of money to pay the budget when the deadline comes, but use that resource to cover more urgent needs such as epidemic prevention costs, support for workers to return to production or payment for input materials,” informed Ms. Nguyen Thi Thu Ha, Director of the Department of Propaganda and Taxpayer Support, General Department of Taxation.

On average, each month at the end of the year, we have to collect more than 86,800 billion VND.

The 2021 revenue collection task assigned by the National Assembly and the Government to the Tax sector is VND 1,167,400 billion. Thus, in the fourth quarter, the entire Tax sector must collect at least VND 260,400 billion, an average of more than VND 86,800 billion per month.

Mr. Cao Anh Tuan, Director General of General Department of Taxation

"This is a very challenging figure in the context of the complicated developments of the pandemic, requiring tax authorities to find many solutions to clearly assess budget revenues and resolutely and synchronously implement solutions to collect state budget revenues," said Mr. Cao Anh Tuan.

The General Department of Taxation said that in the last months of the year, it will require tax departments and tax branches to strengthen management and detect cases of taking advantage of preferential policies to evade taxes, avoid taxes, delay and delay tax debts... At the same time, local tax agencies will step up coordination with departments, branches and sectors, exchange information with local land registration offices... to advise the People's Committees of provinces and cities to promptly remove obstacles in mechanisms, policies and procedures for rapid implementation of projects, and promptly urge land revenue sources to enter the State budget.

“The General Department of Taxation will coordinate with departments and units under the Ministry of Finance to urge the collection of central budget items such as land use fees, fees, dividends, etc. At the same time, review potential areas, areas that develop well in the epidemic conditions such as e-commerce, online business, securities, real estate, etc., especially in big cities with high population density,” said a representative of the General Department of Taxation.

According to VOV