Nghe An reduces tax debt by over 2.3 trillion VND compared to the same period last year.
In the first nine months of the year, Nghe An's budget revenue is estimated at 16,671 billion VND, reaching 104.8% of the provincial People's Council's projected target, and 143.2% compared to the same period in 2023. Tax arrears as of August 31, 2024 amounted to 3,314 billion VND, a decrease of 2,384 billion VND compared to the same period in 2023.
Many effective solutions
Despite ongoing economic challenges, Nghe An province achieved significant results in tax collection during the first nine months of the year. From the beginning of the year, the Nghe An Tax Department implemented tasks related to state budget revenue collection and tax debt recovery. They continued to focus on managing and combating tax evasion in sectors such as transportation and e-commerce. In addition, they set performance targets for inspection, auditing, and debt collection for their respective departments and tax branches.
The Tax Department proactively monitors the production and business activities of enterprises. It focuses on collecting tax debts from large, long-standing, and delinquent cases; and continues to closely coordinate with local Party committees, authorities, and relevant departments and agencies such as the Police, commercial banks, the Department of Planning and Investment, the Market Management Department, and the Department of Natural Resources and Environment... in recovering outstanding debts, especially those related to land and mineral exploitation rights fees.
According to Mr. Nguyen Canh Huong, Head of the Tax Debt Management and Enforcement Department (Nghe An Tax Department): The total debt of the entire sector as of the debt closing date of August 31, 2024, is 3,314 billion VND, a decrease of 2,448 billion VND, or 42%, compared to December 31, 2023.
The total amount of tax debt is mainly concentrated in real estate businesses (owing land use fees), petroleum distribution businesses (owing environmental protection tax), and dissolved or bankrupt entities, making tax collection difficult...
To reduce tax arrears over the past nine months, the Tax Department has intensified its efforts in directing and managing tax debt. The first solution was that, from the beginning of the year, the Tax Department assigned tax debt collection targets for 2024 to each department and branch through various official documents such as Official Letter No. 539/CT-QLN dated January 23, 2024, Official Letter No. 669 dated January 25, 2024, on strengthening tax debt management and enforcement; Official Letter No. 1019 dated February 16, 2024, on implementing enforcement measures... The focus was on handling debts related to land, which accounted for nearly 60% of the total as of December 31, 2023. For this group, the Nghe An Tax Department focused on classifying the debts into different categories for processing.
The second set of solutions involves the Tax Department consolidating and assigning specific tasks for monitoring and directing debt management to each officer, civil servant, and head of the debt management department in each tax branch. This is an important measure to create a central point for connecting and handling work seamlessly from the tax branches to the department, ensuring timely monitoring and supervision of the contents and policies in debt management implemented by the General Department and the Tax Department.
After assigning tasks, the head of the debt management department monitors and supervises the work interactions of each staff member to make timely and appropriate adjustments.
The third group of solutions, and the most effective, involves developing plans and programs to organize working groups led by department leaders to directly work with tax branches on debt management and tax debt enforcement. This includes improving the effectiveness of leadership and guidance for tax branches in general tax management and debt management in particular. This has enabled the timely identification and resolution of long-standing difficulties and obstacles in debt management at tax branches. Specifically, it has resulted in the resolution of over 100 billion VND in recorded revenue and expenditure debts at the Bac Vinh Tax Branch; the urging of relevant agencies to complete documentation to facilitate the adjustment and resolution of land use fee debts at the Song Lam II Area Tax Branch; and the prompting of tax branches to focus on debt restructuring and timely tax debt enforcement.
Intensify the "final sprint" phase.
Nghi Loc District has performed well in budget revenue collection and tax debt recovery. In the first nine months of 2024, the total amount of outstanding tax debt collected by Nghi Loc District was 13 billion VND out of 21 billion VND, reaching 61% of the debt collection target. The district has coordinated with communes to broadcast announcements about businesses with long-standing tax debts via loudspeakers; publicly disclosed tax debt information on the electronic tax system; and coordinated with the Tax Department to send debt collection messages to business owners and directors to urge them to pay their debts.
The district also conducts a review and classification of tax debtors, closely monitors and supervises the tax debt situation in accordance with the guidelines in the Tax Debt Management Process, and regularly compares tax debts and standardizes tax debt data to ensure that there is no fictitious debt. In addition, it strengthens measures to urge taxpayers with tax debts under 90 days to pay into the State budget, preventing tax arrears from accumulating and limiting the 발생 of new debts. It coordinates with departments and agencies in the district, and local authorities at the commune and town levels to publicly disclose tax debt information and cooperate in debt collection.
Currently, a strong measure implemented by the Tax Department is the temporary travel ban imposed on business owners with long-standing tax debts. For example, on September 30th, the Tax Department issued 38 official letters regarding the temporary travel ban on business owners. In addition, they are also seizing funds from businesses' accounts and enforcing collection measures.chemistryThis applies to tax arrears that are subject to enforcement in accordance with the Law on Tax Administration and its implementing regulations.
The Tax Department also closely monitors the production and business activities of enterprises to apply appropriate and effective tax debt enforcement measures. Enforcement measures are implemented against taxpayers showing signs of delinquency or failure to pay taxes. For land use fee debts, debt classification is carried out according to the type and nature of the debt to ensure effective debt resolution. For debts overdue for more than 90 days in auction cases, the auction results are reviewed and canceled to update and adjust the debt.
Forecasts indicate that the regional and global situation will remain complex in the coming period. Alongside favorable conditions, the economic growth prospects for the province in the last six months of the year still present difficulties and challenges. The Government has directed the Ministry of Finance to urgently advise competent authorities on regulations affecting state budget revenue in the province in the coming period, such as: extending the deadline for paying value-added tax, corporate income tax, personal income tax, land rent, and special consumption tax on domestically produced and assembled automobiles; continuing to reduce fees and charges applicable in the last six months of 2024; reducing registration tax for domestically produced and assembled automobiles, etc.
Therefore, revenue collection in general and tax debt collection in particular will face certain difficulties, requiring flexibility, timely response, and at the same time, creating favorable conditions for businesses to expand their revenue sources. Local authorities, where necessary, should establish inspection teams to urge the recovery of tax debts in their areas.
The Nghe An Tax Department will continue to promote the implementation of electronic invoices generated from cash registers and the issuance of electronic invoices after each sale for retail gasoline and oil businesses to taxpayers throughout the province, accelerating administrative reforms in taxation and creating the best possible conditions for taxpayers to fulfill their obligations to the State budget.
Continue to vigorously implement tax debt management and enforcement. Strengthen inspection, supervision, and management of tax declarations. Enhance measures to combat tax evasion through inspection, auditing, and supervision. Strictly control tax exemptions, reductions, and refunds, ensuring that tax exemptions, reductions, and refunds are granted to the correct subjects and in accordance with policies; focus on urging the recovery of outstanding tax debts.
Currently, the measure of temporarily suspending the departure of individuals and legal entities with tax debts is implemented by the tax authorities according to a specific procedure. After reviewing, verifying, and accurately determining the tax obligations of the individual, the tax authority directly managing the taxpayer compiles a list of individuals subject to temporary departure suspension and prepares a document to send to the immigration management agency, while also notifying the taxpayer to fulfill their tax obligations before departure.
On the same day that the tax authority receives the document, the immigration management agency is responsible for implementing the temporary suspension of exit as prescribed and posting it on the website of the immigration management agency.
If the taxpayer has fulfilled their tax obligations, within 24 working hours, the tax authority must issue a document canceling the temporary travel ban and send it to the immigration authorities for implementation as prescribed.
