Prime Minister Requests Strict Action Against Organizations and Individuals Engaging in Business Without Business Registration
Prime Minister Orders Strict Handling of Organizations and Individuals Engaging in Business Without Business Registration
On June 23, 2023, the Prime Minister of the Government of Vietnam issued Directive 22/CT-TTg 2023 on rectifying and strengthening discipline in the enforcement of laws on state finance and budget.
Regarding state budget revenue management, the Prime Minister requires the Ministry of Finance to take the lead and coordinate with ministries, central agencies, and localities to strictly implement the provisions of tax laws, tax administration laws, and related legal provisions:
- At the same time, to enhance the management of revenue appropriate to each sector, locality, and revenue entity, ensuring correct, sufficient, and prompt collection of revenues into the state budget;- The Ministry of Finance and related agencies must account for and regulate the revenues of each budget level and locality accordingly;- Additionally, the Government of Vietnam requests the Ministry of Finance and related agencies not to create additional revenues or retain revenues outside the state budget contrary to the provisions of the law; urgently handle according to policies the temporarily collected, held amounts, declared taxes that are late in payment, and amounts discovered by audit and inspection agencies, recommended for collection into the state budget; accelerate the reform of tax administrative procedures and enhance the application of information technology in all stages of the tax management process, facilitating taxpayers;- Strengthen tax inspection and post-clearance audit, and fight against smuggling, commercial fraud, focusing on high-risk businesses, sectors, commodities, financial activities, banking, real estate business, and digital platform businesses, etc. Increase the percentage of enterprises subject to tax inspection and audits;- Promptly detect and handle cases of incorrect declaration (especially the lumpsum tax collections), tax fraud, tax evasion, and transfer pricing; strictly control tax assessment prices, especially in the customs sector; rigorously check and control before and after tax refunds, ensuring timeliness, appropriateness of law, efficiency for enterprises, not prolonging the tax refund process, particularly in the digital sector.
- Inspect and strictly handle organizations and individuals who do not register a business but actually engage in business to bring them into tax management; review and handle businesses, business households, and individuals who engage in production-business activities but do not declare, pay taxes according to regulations, and businesses that register a business but do not actually operate.
The Prime Minister directed strict handling of organizations and individuals engaging in business without registering to bring them into tax management.
Prime Minister Orders Strict Handling of Business Entities Without Registration
Promote Organizational Restructuring and Streamlining of Personnel to Rebalance State Budget
Also in Directive 22/CT-TTg 2023, the Prime Minister of the Government of Vietnam requires ministries, central agencies, and localities to undertake several tasks related to state budget expenditure management, emphasizing the promotion of organizational restructuring, streamlining of personnel, and implementation of the self-governance mechanism of public service providers based on the practical situation of each sector and unit to reduce regular expenditure and rebalance the state budget.
Formulate plans to enhance the financial autonomy of public service providers according to regulations; promote the participation of societal components in providing public services, contributing to improving the quality of public services, and simultaneously reducing the pressure on the state budget.
In addition, ministries, central agencies, and localities must review, arrange, and adjust the state budget's regular expenditure tasks according to the conformity of the State Budget Law, ensuring the completion of assigned professional tasks, thoroughly saving, efficiently, correctly following standards, quotas, and policy regulations; improving the efficiency of state budget usage.
Urgently Study and Amend the State Budget Law According to the Government Directive
According to Directive 22/CT-TTg 2023, one of the tasks related to legal institution building and completion that the Prime Minister assigned to the Ministry of Finance, in coordination with ministries, central agencies, and localities, is to urgently study and amend the State Budget Law and related legal documents according to the provisions of Resolution 23/2021/QH15 to:
Align with the practical direction of renovating the budget decentralization mechanism, fundamentally addressing the overlap in state budget management, enhancing the leading role of the central budget, and the proactiveness of local budgets;
Promote decentralization, encourage localities to be creative, increase revenue, and mobilize resources for socio-economic development in the area, creating proactivity and accountability for local governments in deciding and using the budget. Continue to innovate the budget allocation mechanism for agencies and units.
LawNet