Difficult to collect taxes because businesses are far away
(Baonghean) - To manage taxes for enterprises outside the province, Point 1.4, Section II, Part B of Circular No. 60/2007/TT-BTC dated June 14, 2007 and Clause 1, Clause 6, Article 10 of Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance stipulate: "In case a taxpayer has construction, installation, and itinerant sales business activities without establishing a affiliated unit in a different provincial-level locality where the taxpayer has its head office (hereinafter referred to as extra-provincial construction, installation, and itinerant sales business), the taxpayer must submit tax declaration dossiers to the Tax Department managing the locality where such construction, installation, and itinerant sales activities are carried out". “6. a) Taxpayers engaged in construction, installation, and itinerant sales outside the province shall declare provisional value-added tax at a rate of 2% for goods and services subject to a value-added tax rate of 10% or at a rate of 1% for goods and services subject to a value-added tax rate of 5% on revenue from goods and services not including value-added tax with the local Tax Department managing the place of business or sale.”
With that regulation, the Tax sector has now collected taxes from construction enterprises outside the province. However, currently, some investors outside the province who are implementing real estate and mineral exploitation projects in the area have been leased land, granted mineral exploitation rights by the provincial authorities, etc., but have not yet established enterprises or branches in Nghe An. This reality has "made it difficult" for the management of functional sectors, especially the Tax sector, because these units in the production and business process have incurred taxes payable related to the use of resources, such as: Resource tax, land rent, land use fee, etc., but the tax authorities cannot implement tax collection measures or enforce tax debts because they do not have information about the investors and do not have enough authority to enforce tax debts.
There are currently 29 out-of-province units operating in the area, but "ignoring" this procedure, including large-scale production and business units, so our province loses a large source of revenue to the state budget. Therefore, it is necessary to have measures to handle this situation, and at the same time, when out-of-province investors implement projects in the area, relevant levels and sectors need to require investors to establish enterprises or branches to be granted tax codes and declare and pay taxes in Nghe An.
Vinh Hoang
