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Tuesday, October 3, 2023

Tax reductions, exemptions likely to amount to VND60 trillion next year

By Van Phong

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HCMC – The Government has proposed to the National Assembly (NA) a package worth over VND60 trillion to reduce and exempt taxes for residents and enterprises next year, said Minister of Finance Ho Duc Phoc.


At a conference on December 24 to review the tax management in 2021, Minister Phoc said the package’s value was recommended by the NA and was nearly triple the size of the package designed earlier.


In October, the NA’s Standing Committee issued a package worth VND21.3 trillion to reduce and exempt taxes, including cutting 30% of the corporate income tax for firms with a revenue of less than VND200 billion per year each, reducing and exempting personal income tax and value added tax for business households and individuals in pandemic-hit areas, and reducing 30% of the value added tax for production and service enterprises.


The significant tax reduction and exemption package will put pressure on the State budget management while the Covid-19 pandemic remains complicated, Phoc noted.


To fulfill the State budget revenue collection task in 2022, he asked tax agencies to support residents and enterprises to overcome the difficulties caused by the pandemic.


In addition, they must enhance the fight against transfer pricing, tax evasion and fraud and boost the collection of taxes from the ecommerce, digital, real estate, mining, banking and securities sectors.


Tax agencies were also asked to strengthen the digital transformation, build a data center and control e-invoices.


As for e-invoices, Phoc asked tax agencies to study tools to control and prevent tax frauds through the use of e-invoices.


Tax agencies must also make more efforts to prevent losses from tax refunds as they have amounted to hundreds of trillions of Vietnamese dong per year.


As for the results of policies to reduce and exempt taxes and land rentals and delay the deadlines to pay fees and taxes, tax agencies have reduced and exempted land rentals totaling some VND3.5 trillion as of November, according to a report by the General Department of Taxation.


Tax agencies have also reduced taxes worth VND19.7 trillion. Moreover, the deadlines to pay taxes and land rentals valued at VND92.9 trillion have been rescheduled for enterprises, organizations, business households and individuals this year.


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