What are the general principles for preparing the state budget revenue estimate for 2024 in Vietnam?
What are the general principles for preparing the state budget revenue estimate for 2024 in Vietnam?
According to Clause 1, Article 18 of Circular 51/2023/TT-BTC governing the preparation of the state budget revenue estimate for 2024:
Preparing the state budget revenue estimate for 2024
1. General Principles
a) The preparation of the state budget revenue estimate for 2024 must comply with the provisions of the Law on State Budget, the Law on Tax Administration, and other relevant tax laws, fees, and charges, ensuring accurate and sufficient collection of all state budget revenue sources.
b) The preparation of the revenue estimate for 2024 must closely follow the socio-economic and fiscal conditions domestically and internationally, calculating specific factors of increase, decrease, and shifts in revenue due to changes in tax policy and tax administration, especially policies of tax exemption, reduction of fees and charges, and tax payment extensions that end in 2023, the implementation of the roadmap of tax reduction and incentives to fulfill commitments of the Government of Vietnam in the process of international economic integration with foreign investors.
c) The preparation of the revenue estimate must be tied to the decisive implementation of administrative reform and modernization of tax administration; enhancing management to prevent revenue loss, especially preventing tax loss in business activities and real estate transfers; effectively managing new revenue sources arising from the digital economy and cross-border electronic transactions; strengthening tax inspections and audits, combating transfer pricing, tax evasion, and tax fraud, decisively handling tax arrears, and strictly controlling tax refunds.
d) The internal revenue estimate for 2024, excluding land levy, lottery revenue, proceeds from selling state capital at enterprises, dividends, profit after tax, and the difference in revenue and expenditure of the State Bank, nationwide on average, should increase by approximately 5-7% compared to the estimated implementation in 2023 (excluding factors of revenue increase and decrease due to policy changes); the growth rate of revenue in each locality should be consistent with the economic growth and revenue sources arising in each area, taking into account enhanced tax management, loss prevention, and tax debt recovery. The customs revenue estimate for 2024 should increase by about 4-6% compared to the estimated implementation in 2023.
Thus, there are four general principles in preparing the state budget revenue estimate for 2024 as stipulated in Clause 1, Article 18 of Circular 51/2023/TT-BTC.
What are the general principles for preparing the state budget revenue estimate for 2024 in Vietnam? (Image from the Internet)
What is the process of preparing the internal revenue estimate for 2024 in Vietnam?
According to Clause 2, Article 18 of Circular 51/2023/TT-BTC on the preparation of the revenue estimate for 2024:
Preparing the state budget revenue estimate for 2024
…
2. Preparing the Internal Revenue Estimate:
a) Localities must prepare the internal revenue estimate for 2024 ensuring the objectives and requirements stipulated in Clause 1 of this Article, comprehensively aggregating all state budget revenue sources arising in the locality, and excluding amounts not included in the state budget’s balancing revenue according to policies, based on a complete assessment of the actual implementation in 2023, specific conditions in 2024, and the estimated revenue figure for 2024 as notified by competent authorities.
b) The state budget revenue estimate for 2024 must be prepared based on the land data information system and taxpayer information; ensuring accurate and comprehensive allocation of each revenue source, tax category, and fiscal area for each locality, detailing revenue from significant new projects in compliance with current tax, fee, and other state budget revenue regulations; specifically detailing revenues from fees and charges as stipulated; policy adjustments scheduled to continue affecting the state budget revenue in 2024, and anticipated regulatory amendments to be applied in 2024.
c) All revenue from the use of defense and security land, from the re-arrangement of public land, disposal of public assets, lease of exploitation rights, transfer of exploitation rights of infrastructural assets, state budget revenue from managing and using infrastructural assets invested and managed by the State without including state capital at enterprises, and revenue from the exploitation of land and water (after deducting related expenses) must be fully estimated and paid into the state budget in accordance with the law. Revenue from the conversion of ownership at enterprises, public service providers, transfer of state capital, and the difference between state capital and charter capital at enterprises shall be carried out in compliance with Decree No. 148/2021/ND-CP of the Government of Vietnam.
d) Estimate revenues from fees and charges (listed under the Law on Fees and Charges) detailing each revenue item as stipulated.
đ) Estimate other state budget revenues in accordance with relevant legal regulations (if any).
e) For revenues not aggregated into the state budget revenue estimate of ministries, central authorities, and localities (revenues from fees, public non-business service charges, tuition fees, medical service charges, and other lawful revenues retained for use by the respective agencies and units), the relevant agencies and units must prepare separate estimates, provide explanatory calculations, and outline utilization plans to be submitted to the supervisory authorities and financial agencies at the same level as required.
Thus, the preparation of the internal revenue estimate for 2024 involves five components as stipulated in Clause 2, Article 18 of Circular 51/2023/TT-BTC.
Localities must prepare the internal revenue estimate for 2024 ensuring the objectives and requirements stipulated in Clause 1 of this Article, comprehensively aggregating all state budget revenue sources arising in the locality, and excluding amounts not included in the state budget’s balancing revenue according to policies.
What are the principles for preparing the state budget expenditure estimate for 2024 in Vietnam?
According to Clause 1, Article 19 of Circular 51/2023/TT-BTC on principles for preparing the state budget expenditure estimate for 2024 in Vietnam:
- Complying with the Law on State Budget, the Law on Public Investment, and other relevant legal regulations; complying with the resolutions of the National Assembly’s Standing Committee, decisions by the Prime Minister of the Government of Vietnam on principles, criteria, and norms for allocating development investment capital and recurrent state budget expenditures; meeting the requirements of budget restructuring, organizational arrangement initiatives and workforce streamlining within the political system, enhancing the quality and efficiency of public sector activities as per the resolutions of the Central Committee and the Politburo.
Ensuring resources for wage reform, social insurance policy linked to organizational restructuring, and workforce streamlining according to the resolutions of the Central Committee.
- Upholding the principles of transparency, accountability, and requirements for practicing thrift and preventing wastefulness according to Resolution 74/2022/QH15 from the stage of task determination, ensuring the execution of tasks consistently from budget planning to allocation, management, and utilization of the state budget.
- Aligning with feasible implementation capacity, minimizing budget cancellation and carry-forward to the next year. Based on the assessment of the 2023 implementation, ministries, central authorities, and localities should review overlapping tasks; and unfinished tasks to be continued in 2024.
Prioritizing the execution of newly approved tasks as per urgency, importance, and implementation feasibility, while preparing the state budget estimate in line with the capability to mobilize and balance resources (including other lawful sources as regulated).
Circular 51/2023/TT-BTC shall take effect from August 31, 2023.
LawNet