Tax sector implements solutions on revenue management to achieve dual goals


Tax sector implements solutions on revenue management to achieve “dual goals”
Mr. Mai Son, Deputy Director General of General Department of Taxation.

Could you tell us about achievements in revenue collection in 2023 as well as advising and implementing tax policies to support the business community and people to overcome difficulties, restore and develop production?

2023 is the year that the domestic economy faces many difficulties and challenges and is negatively impacted by the world economy, causing great pressure in the revenue collection of the Tax sector.

Responding to the situation, the General Department of Taxation has promptly advised and submitted to the Ministry of Finance for promulgation and submission to the Government and competent authorities to issue many policies to support enterprises to overcome difficulties and restore business production and economic development.

Total extended and exempted tax amount is worth about VND 200 trillion. The Tax sector has effectively implemented solutions to manage and prevent revenue loss. The total tax revenue reached 1,522.8, meeting 110.9% of the estimate.

With the motto “The Tax industry always supports taxpayers”, the Tax industry closely follows economic development and operation of enterprises to submit competent agencies to promptly issue tax policies to support enterprises, and implement the policies in the reality after they are issued, helping businesses and traders quickly access and fully benefit from the State’s support policies.

The Tax industry continues to promote digital transformation in tax administration, meet tax management requirements in the new situation, and well implement e-invoices generated from cash registers, promote digital transformation in managing e-commerce business activities, doing business on digital platforms and cross-border trade, deploy the electronic information portal for foreign suppliers and the domestic e-commerce portal, apply eTax Mobile, digital map of business household management, digital map of land prices, real estate transfer prices, mineral mines… to combat tax evasion, thereby preventing revenue loss.

The Resolution on Global minimum tax was approved by the 15th National Assembly at its 6th Session. Could you please tell us how this Resolution will be implemented in the coming time?

On November 29, the National Assembly approved Resolution No. 107/2023/QH15 on the application of additional corporate income tax under Global Anti-Base Erosion Rules. The Resolution takes effect from January 1, 2024. Currently, General Department of Taxation is incharge of submitting the decree detailing the implementation of Resolution 107/2023/QH15 to competent authorities. The Decree is expected to be submitted to the Government for promulgation in October 2024. In addition, in the near future, when the global minimum tax takes effect, the Government will conduct a comprehensive assessment of the current tax incentive policy system and develop a project on amending and supplementing the Law on Corporate Income Tax and plans to appropriately adjust the tax rate system and tax incentives.

The General Department of Tax will continue to research to provide new support policies to replace tax incentives that are no longer effective in practice to gain investors’ confidence and attract major and strategic investors, domestic businesses, thereby achieving the goal of increasing sustainable revenue.

The General Department of Taxation has worked with international organizations (WB, IMF…) and tax authorities of other countries, proposed tecnical support programs and surveys in 2024 to get good expenrience and international practices in tax administration to train and improve the capacity of tax officials and evaluate the effectiveness of tax agencies, aiming to build a modern, effective and transparent tax administration.

Could you tell us about biggest task of the Tax industry in 2024?

The world and regional situation in 2024 is forecast to have complicated developments., in addition to continuing to maintain macroeconomic stability and control inflation, the country still faces potential difficulties and challenges, affecting the implementation of the revenue collection. To support operation of enterprises in 2024, the Tax industry will implement solutions on revenue management.

First of all, the Tax industry will follow and assess the world and domestic situation in 2024; analyze and assess the impacts of fiscal and monetary policies on the operation of domestic enterprises to identify risks and promptly advise the Ministry of Finance and Government to provide solutions and scenarios in managing state budget revenues.

The industry will submit compentent agencies to issue tax extension policies to support businesses and people with more short-term capital flows for business and production.

At the same time, the regulator will promote the review and reduction of administrative procedures and simplify business conditions; expedite modernization and digitalization of tax administration at all operations; upgrade applications to stably operate the e-invoice system across the country; comprehensively reform the tax system in all fields, simplify administrative procedures, apply scientific, technological advances and innovation, and drastically implement digital transformation… to create a favorable and transparent business environment for taxpayers. Foster the application of big data analysis and artificial intelligence for tax administration and invoice management, contributing to controlling and detecting invoice fraud.

The Tax industry will strengthen strict control of VAT refund documents, ensuring timely tax refund in accordance with the provisions of law. Urgently develop, promulgate and implement plans on inspection and examination and debt collection targets; focus on tax insepction for enterprieses that show high risks on tax.

The Tax industry will focus on preventing revenue loss, transfer pricing, and tax evasion, and strive to increase revenue from capital transfer, real estate, mineral resource exploitation, chain business, house rental, and personal income tax of individuals with multiple sources of income … to expand the tax base and prevent revenue erosion.

The industry will ccoordinate with ministries, sectors and localities to review and revise the policy system in the direction of expanding and preventing tax base erosion, managing revenue sources, increasing revenue from potential revenue sources, combating transfer pricing, tax evasion, resolutely abolish mechanisms, causing difficulties for taxpayers’ production and business activities.

Thank you, Sir!


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