The report on the tax debt situation of the General Department of Taxation reveals that the total tax debt under the administration of the tax industry as of the end of September 2020 is VND 106,548 billion, down 2.4% from 31 August 2020 . With strong commitment, the entire sector is working hard to reduce tax debt.

In order to minimize tax arrears, the tax industry as a whole is focusing on its powers to set up missions to urge tax arrears; to audit the execution of tax debt handling in the local tax service, which is unable to fund the state budget.

9 months of collection reached 60% of tax debt.

Mr. Doan Xuan Toan - Deputy Director of the Department of Debt Management and Tax Enforcement (General Department of Taxation) said that by 2020, the Ministry of Finance is assigning the entire tax sector with the collection goal of VND 33,800 billion in tax arrears; the aim of the entire industry is to hit VND 40,000 billion.

Accumulated as of September 30, 2020, the whole industry has earned VND20,292 billion, reaching 60% of the assigned debt collection target, up 5.9% over the same period in 2019.

Sharing more on tax debt management, Mr. Doan Xuan Toan said that as of the end of September 2020, the cumulative amount of tax debts under management for the whole sector is VND 106,548 billion, declining by 2.4 percent compared to August 31, 2020; a rise of 9.8 percent over the same period in 2019. Of which VND 60,071 billion tax debt could be collected, down 2.8 percent from 31 August 2020; a rise of 8.8 percent over the same period in 2019; irrecoverable tax debt (taxpayer) is deceased, absent, incapable of legal actions, criminal responsibility, self-dissolved, bankrupt, terminating production and business activities, no longer operating at the registered business address) was 46,477 billion VND, down 1.9% from 31/8/2020, but up 11.1% compared to same period in 2019.

Specifically analyzing the rise and reduction of tax debts, Doan Xuan Toan stated that, by the end of September 2020, tax debt had decreased compared to August, in addition to strong debt collection, in September 2020 tax agencies had enforced frozen tax settlements at all levels pursuant to Resolution 94/2019 / QH14 (the entire sector had frozen VND 2.244 billion); reducing the amount of special consumption tax debts of some domestic automobile manufacturers and assemblers according to Decree No. 109/2020 / ND-CP dated September 15, 2020 of the Government on the extension of the time limit for payment of special excise tax for domestically manufactured or assembled automobiles.

“However, if compared to the same period in 2019, the tax debt in 9/2020 still increased by 9.8% because a part of taxpayers was in a precarious situation, stop production and business due to the impact of the Covid-19 epidemic, which leads to delay in paying tax into the State budget ”- Mr. Toan said.

Strengthen coordination to urge tax debt collection

Referring to solutions to recovering tax arrears in the last months of the year, Mr. Doan Xuan Toan said that the whole industry continues to closely follow and effectively implement the instructions of the Minister of Finance and the plan to handle construction tax arrears. At the same time, to step up the implementation of debt settlement under the National Assembly's Resolution No. 94/2019 / QH14 and the Finance Ministry's Circular No. 69/2020 / TT-BTC, focusing on settling tax debt freezing dossiers, write off fines for late payment, late payment interest for taxpayers that are no longer able to pay the state budget according to the strict principle, right subjects, ensuring maximum handling of outstanding debts that cannot be recovered.

According to the General Department of Taxation, by the end of September 2020, the ratio of total tax debt to total revenue in 2020 under the management of the whole industry is 8.5%, 3.5% higher than the assigned target of 5. %. In which, the ratio of tax debts that can be collected over total revenue by 2020 will be 4.8%; The ratio of tax debt that is no longer able to collect on total revenue in 2020 will be 3.7%.

The tax sector is continuing to review and handle large debt enterprises, and organize to urge the immediate collection of newly arising debts, avoiding the situation of long debt age causing difficulties in tax collection.

Parallel to that, the whole industry also focused on urging debt collection for tax, land rent has expired tax payment extension according to Decree 41/2020 / ND-CP of the Government; reviewing, classifying debts, analyzing debt causes of each tax debt object, making a list of enterprises (enterprises) and individuals with tax debts according to each group of debt causes, especially focusing on reviewing and classifying taxpayers are directly affected and taxpayers not affected by Covid-19 translation, on that basis, apply debt collection measures suitable to each subject.

Mr. Doan Xuan Toan added that the tax authorities were motivating, persuading and exchanging problems with taxpayers who were directly impacted by the translation of Covid-19, allowing taxpayers to stabilize, restore production and industry. At the same time, the tax industry continues to study and maintain significant debt undertakings and to mobilize to urge the urgent collection of newly generated debts, preventing the long-term debt-age condition, which is creating difficulties in collecting tax debts. Strongly enforce tax debt compliance, report taxpayer debt information, fail to pay tax on time to newspapers, radio, websites ..., in accordance with the Law on Tax Administration. At the same time, the tax agency will conduct inspection and examination of the observance of tax obligations for those who take advantage of the effects of the epidemic to defer tax debts.

Furthermore, cooperation with the state treasury, commercial banks, credit institutions and investment planning agencies has also been strengthened in the industry..., Carry out the task of encouraging the repayment of the tax debts owing to the State budget; organize work missions, urge tax arrears and audit municipal tax departments for the enforcement of tax debt agreements unable to fund the State budget.