Guidance for assessing the situation of tasks regarding state budget revenues in Vietnam for 2024

Guidance for assessing the situation of tasks regarding state budget revenues in Vietnam for 2024 (Image from the internet)

The Minister of Finance (Hanoi, Vietnam) issued Circular 49/2024/TT-BTC on July 16, 2024, guiding the development of the state budget estimate for 2025 and the state financial - budget plan for the 3 years 2025-2027.

Guidance for assessing the situation of tasks regarding state budget revenues in Vietnam for 2024

(1) Principles of assessment:

Carry out as per Law on State Budget 2015 and guiding documents, legal regulations on budget revenue, and directives and administration documents of competent authorities regarding the state budget; fully assess all tax revenues, fees, charges, and other budget revenues; do not include fees that have been converted to service prices according to Law on Fees and Charges 2015, deductions for state agencies, or service fees collected by public service providers as assigned by competent state agencies into the state budget balance.

Ministries, central and local agencies must review and assess factors affecting the implementation of state budget revenue in the first 6 months and forecast the feasibility for the last 6 months of 2024, focusing on clarifying advantages, difficulties, and proposing solutions to strive for the highest completion of the state budget revenue estimates decided by the National Assembly, assigned by the Prime Minister of Vietnam, and decided by People’s Councils at all levels.

(2) Assessment contents:

- Assess, analyze causes of increase and decrease in state budget revenue for 2024, clarifying achieved results, objective and subjective causes for each revenue target with abnormal changes; specifically:

+ Factors affecting the production-business activities, services, and import-export of enterprises and economic organizations in each field; production and consumption volume, selling prices, profits of main goods and services in the area; impact of crude oil price fluctuations, input raw material prices, fluctuations in the stock market, real estate market; evaluating and analyzing the impact of adjusting the roadmap of increasing public service prices, state-regulated goods; projects that have expired tax incentives and the ability to implement investment expansion projects or new investments.

+ Specifically calculate factors for increased or decreased revenue due to policy changes affecting revenue in 2024; impact from implementing policies of the Economic Recovery and Development Program; implementing the roadmap for tax reduction in accordance with international economic integration commitments.

+ Efforts to urge, collect, and handle tax debts in the first 6 months of 2024; forecast results of debt collection and handling in the last months of 2024 (compared to assigned targets and plans - if any) and estimate total tax debt by December 31, 2024. Implementation results of recommendations by the State Audit, inspection agencies, and tax authorities’ recovery decisions after conducting inspections and legal compliance checks on taxes.

- The state of Value Added Tax (VAT) refunds (excluding overpaid VAT refunds) and the expected refund funds for 2024 based on accurate policy compliance and practical developments; reporting to competent authorities for additional refund funds (if any) to fully, promptly, and strictly refund VAT to taxpayers as per legal regulations; oversight, inspection, post-refund audits, prompt wrongful VAT refund recoupments; and related proposals (if any).

- Assessing the situation of returning overpaid taxes, late payment interest, and fines that taxpayers have overpaid according to legal regulations under criteria: processed cases/decision to refund, refunded amount. Also, note difficulties, obstacles, and propose solutions regarding policy mechanisms, management technology, and collaborative organization during implementation (if any).

- The state of budget revenue from land use (including land levies, land rents) as per land law and Resolution 132/2020/QH14, Decree 26/2021/ND-CP;

- The state of budget revenue from asset disposition and arrangement as per Decree 167/2017/ND-CP, Decree 67/2021/ND-CP;

- The state of budget revenue from leasing exploitation rights, transferring exploitation rights on a term basis, state budget revenue from managing and using state infrastructure assets invested and managed by the State without including them as state capital in enterprises, exploiting the land fund, water surface (after deducting related costs);

- Assessment of revenue from enterprise ownership conversion, public service providers, revenue from state capital transfers, and the difference between owner’s equity greater than charter capital in enterprises according to Decree 148/2021/ND-CP; specifically reporting the amount submitted to the budget, the arisen amount yet to be submitted to the budget (if any), and proposing solutions for this revenue source (if any).

- Collaboration outcomes between ministries, central agencies, and localities in budget revenue management, resolving difficulties, auctions of state assets, land-use rights auctions, implementing inspections, recoveries of tax debts, anti-tax loss, anti-transfer pricing; existing issues, obstacles, and rectification solutions.

- The situation of fees and charges revenue as per Law on Fees and Charges 2015 (assess fee and charge revenue; the amount submitted to the state budget); revenues from administrative violations, fines, confiscations, vehicle license plate auction proceeds, and other state budget revenues in 2024 as per regulations.

- The implementation status of aid revenues for the first 6 months and projections for the entire year of 2024.

- Assessing the implementation and difficulties in budgeting, evaluating revenue and expenditure balances of the State Bank of Vietnam, and proposing (if any).

Nguyen Ngoc Que Anh

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