Brian Jeffrey
On October 5, the General Department of Taxation, part of the Ministry of Finance, announced that in September, they managed to recover a total of VND 2.321 trillion in tax debts.
Through the first nine months of 2024, the total tax collected reached VND 56.092 trillion, indicating a remarkable 30% increase compared to the same period last year. Of this sum, VND 52.408 trillion resulted from efficient debt management, while VND 3.684 trillion was gathered through enforcement actions.
From January to September 2023, tax authorities issued a total of 23,747 travel bans correlating with unpaid taxes, accounting for VND 50.665 trillion in tax debt. As a result, only VND 1.844 trillion was collected from 2,873 taxpayers affected by these travel restrictions.
In the entire year of 2023, there were 2,411 travel bans issued concerning individuals with a cumulative tax debt of VND 6.719 trillion.
So far this year, from January to September, 21,366 individuals faced travel bans due to outstanding tax debts, averaging about 2,374 cases per month.
Recently, the General Department of Taxation disseminated Official Dispatch No. 4216 to local tax departments, focusing on strategies for managing and recovering tax debts effectively.
This directive mandates tax authorities to send electronic notifications to individuals who owe taxes beyond the 30-day overdue mark. These notifications will be directed through the taxpayers’ eTax accounts, while those without eTax accounts but possessing registered emails will receive alerts via email and the eTax Mobile app.
Tax officials are also instructed to remind taxpayers with debts older than 60 days about their overdue payments, explicitly warning them that enforcement measures will be initiated once the debt surpasses 90 days.
For tax debts extending beyond 90 days or necessitating urgent collection, tax authorities will promptly apply enforcement measures and publicly disclose this information as per legal requirements.
The Department further requires local tax offices to utilize the centralized Tax Management System (TMS) for executing debt enforcement decisions to promote an automated process nationwide.
Additionally, travel ban notices are to be issued through the TMS, ensuring accessibility of travel ban information on the tax department’s website and through the eTax and eTax Mobile applications.
Tax agencies also urge taxpayers to download the eTax Mobile app to keep track of their tax debt status and receive timely updates and notifications, enhancing the likelihood of prompt payment.
Between January 1 and September 30, tax authorities carried out 44,670 inspections, which fulfilled 67.03% of the 2024 inspection target of 66,639 enterprises, and accounted for 98.43% of inspections conducted during the same timeframe last year. Additionally, they reviewed 365,344 tax filings, achieving 82.44% of the goal compared to last year.
The cumulative amount recommended for resolution through tax inspections and audits exceeded VND 46.779 trillion, showing a significant increase of 103.78% year-on-year. This total comprised VND 11.392 trillion in additional tax revenue, VND 1.913 trillion for deductions reduced, and VND 32.473 trillion in salvaged losses. Ultimately, VND 7.867 trillion was added to the state budget, equating to 69.06% of the additional tax revenue accrued through inspections and audits.
