CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Draft resolution on handling tax arrears to be submitted to Vietnamese NA
Trung Kien 11:39, 2018/03/07
The Ministry of Finance (MoF) is working on a draft resolution on handling tax arrears and irrecoverable fines to submit to the National Assembly.
The MoF proposes to freeze tax arrears/debts. This means it would temporarily cease collection of tax and late payment fines for those who have terminated their business activities for more than one year, due to actual dissolution of taxpayers (except for cases for splitting, merger or acquisition), and those who already had their business licence revoked.
 
​Draft resolution on handling tax arrears to be submitted to Vietnamese NA
​Draft resolution on handling tax arrears to be submitted to Vietnamese NA
The estimated uncollected tax amount of this particular group is now more than 26.5 trillion VND (1.16 billion USD), making up the majority of total unpaid tax debt of around 1.18 billion USD.
The ministry also plans to relinquish late tax fees for taxpayers who were struck by natural disasters, fires, accidents or other force majeure circumstances.
Such exemption only applies to late payments not exceeding the paid value and the suffered damage, which the MoF estimated to be around 2.24 trillion VND (98.6 million USD) in total, as of the end of 2017.
In particular, tax debt exceeding the 90 days payment window accounted for more than 26 trillion VND (1.14 billion USD); overdue fines were more than 15.6 trillion VND (687.2 million USD); while irrecoverable tax from deceased or incapacitated people accounted for over 31.4 trillion VND (1.38 billion USD), up to 43 percent of total tax debt and 3.2 percent of total domestic revenue in 2017.
Meanwhile, the total amount of tax arrears, late payments and fines under the management of customs in 2017 was more than 5.4 trillion VND (237.8 million USD) - 70 percent of which is deemed irrecoverable - having increased by 23.5 percent from the end of 2016.
The combined amounts of tax loss under tax and customs agencies in 2017 amounted to almost half of the national tax debts.
Unrecoverable debt levels have been high in recent years, prompting tax authorities to implement drastic measures to speed up enforcement and recovery of tax debts.
In 2017, the entire tax branch scrambled to collect 44.7 trillion VND (1.96 billion USD) in debt, equal to 89.9 percent of outstanding tax debt from 2016.
According to the General Department of Taxation, the tax branch will implement changes in tax debts management in order to improve State budget’s revenues in 2018, by associating tax recovery with administrative reforms for taxpayers across all economic sectors.
In addition, the department will also review debts that are possibly no longer subjected to collection, thereby proposing appropriate remedial measures and reducing tax arrears.
Comments
Other news
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.