Jan 27, 2013

Vietnam - Tax sector budgets for success

Follow Me on Pinterest
VietNamNet Bridge – General Department of Taxation deputy chief Vu Van Truong talks about the tax sector’s achievements in 2012 and ways to complete the government’s tasks for 2013.

Before the end of 2012, people thought the tax sector would fulfill 2012 budget revenue targets. What was the final result?

By January 31, 2013 the State Treasury will unveil its tax finalisation report in 2012. Therefore, the final results about budget collections in 2012 will be apparent after that date. However, based on reports given by tax bodies in localities budget collections under the tax sector management would come to VND607.844 trillion ($29 billion), tantamount to 104.5 per cent of the projection and up12.4 per cent against 2011’s actual level.

If collections from crude oil were excluded, the 8.6 per cent hike was seen in budget revenue from domestic sources. If collections from land rental and crude oil were excluded, budget revenue from production-trading activities surged 11.3 per cent against 2011.

Significantly, albeit economic growth was slowing down, part of the business community was in a fix with many firms running at losses or liquidating.

For instance, budget revenue from state-owned enterprises jumped 13.6 per cent, the foreign-invested sector up 6.9 per cent, non-state industry and trade businesses picked up 7.3 per cent, personal income tax leaped 17 per cent and environmental protection fees up 13 per cent.

Such figures were quite upbeat on the back of dragging economic hardships both at home and abroad. Why?

There were multiple factors leading to positive budget figures like gross domestic product (GDP) growth figures rose from quarter to quarter and firms’ production and business was improved gradually.

In the past year, the tax sector came up with synchronised and drastic management measures to confront tax evasions, drive down tax arrears as well as violations in production and business practices.

The tax sector was tasked to raise VND506.500 trillion ($24 billion) in budget revenue from domestic sources in 2013, surging 20 per cent against 2012. What the sector will do to make the goal come true?

The tax sector will continue grappling with hardships in 2013 since GDP growth is forecast to hover around 5.5 per cent and the government mulls series of measures on tax reduction and differed payment to support firms which will cast a dent on tax collections.

Therefore we have set forth 15 solution groups with 36 concrete measures. Tax bodies at diverse levels shall regularly set eyes on business registrations to timely detect tax faults and scale up inspections in transfer pricing, e-business, online transactions, tax refund, private trading households aspects. Inspecting big businesses and foreign-invested enterprises is also a priority.

Source: VIR

Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.

No comments:

Post a Comment