Management of state budget revenue in 2025 in Vietnam

Management of state budget revenue in 2025 in Vietnam​ (Image from the internet)

On December 24, 2024, the Minister of Finance of Vietnam promulgated Circular 88/2024/TT-BTC stipulating the implementation of the state budget estimate for 2025.

Management of state budget revenue in 2025 in Vietnam​

According to Article 6 of Circular 88/2024/TT-BTC, the management of state budget revenue in 2025 in Vietnam​ is as follows:

- Implement according to regulations in Article 55 of the State Budget Law 2015. At the same time, note the following contents:

+ Implement in accordance with tax laws.

+ Intensively direct, strictly implement the Tax Administration Law 2019, prevent revenue loss, combat transfer pricing, tax evasion, commercial fraud; urge tax debt recovery, reduce outstanding tax debts; urge state-owned enterprises to fully remit the remaining post-tax profits into the state budget after setting up funds as prescribed; instruct representatives of state capital to urge enterprises to promptly remit dividends, profits divided on state capital at joint-stock companies, multi-member limited liability companies into the state budget.

- Tax and Customs authorities continue to reform tax administrative procedures, enhance information technology application in tax management; regularly monitor, inspect, control the tax declaration of organizations and individuals according to tax law regulations, declare goods names, codes, tax rates, values, quantities, etc., to promptly detect incorrect, incomplete or fraudulent tax declarations.

Enhance revenue management, prevent revenue losses, focusing on areas such as land, minerals; revenue from projects after the incentive period, revenue from e-commerce, businesses based on digital platforms.

- Ministries, central agencies, and localities must fully and promptly implement the Public Asset Management and Utilization Law 2017 and related documents. Expedite approving plans for rearranging and handling houses, land.

Organize reviews, inspections, and urge the implementation of approved plans for rearranging and handling houses, land; rearrange and handle automobiles, machinery, equipment in accordance with standards and norms for the use of public assets.

Strictly implement auction regulations when selling, transferring, leasing public assets, granting land, leasing land according to the laws on managing and using public assets, and land laws. Enhance inspections, audits on compliance with laws on public procurement.

- During budget management, if an investor voluntarily advances compensation, site clearance funds according to an approved plan but the estimate sanctioned does not include compensation, site clearance expenses, local People's Committees shall, based on the regulations of point c clause 3 Article 52 of the State Budget Law 2015, submit to the Standing People's Councils at the same level to adjust local budget estimates and report to the People's Councils at the nearest session to serve as a basis for accounting of state budget revenues and expenditures as per regulations.

Assignment of state budget revenue estimates for 2025 in Vietnam

- Ministries, central agencies, and People's Committees of provinces, central-affiliated cities shall assign revenue targets for the 2025 state budget to subordinate units and lower-level governments to ensure at least the level of the revenue estimates assigned by the Prime Minister.

- Assignment of the 2025 state budget revenue estimates to agencies, units, and lower-level governments must be based on a comprehensive review, analysis, evaluation of emerging revenue sources, and results of budget collection in 2024; the basis must include policies, laws on budget revenues; projections of economic growth in each industry, sector, and the production-business situation of taxpayers in the area.

- Assignment of revenue estimates from fees, fee amounts to be retained for ministries, central agencies is implemented as follows:

+ Within the scope of collected fees, fees submitted to the state budget, retained fees for operational expenditures assigned by the Prime Minister, ministries and central agencies shall assign estimates to subordinate agencies, units. Based on the progress of collections and the scope of expenditure estimates from retained fees, ministries, and central agencies proactively manage and utilize according to the stipulations in clauses 2, 3, 4, 5 of Article 5 of Decree 120/2016/ND-CP (amended, supplemented in clause 4 Article 1 of Decree 82/2023/ND-CP), Public Investment Law 2024, and guiding documents, submit to the Ministry of Finance for review along with the budget allocation plan as per regulations. In case during the year the retained fees for expenditures exceed the estimates assigned at the beginning of the year, ministries, and central agencies shall develop a usage plan, and submit a report to the Ministry of Finance for compilation to submit to the Prime Minister for consideration and decision.

+ Apart from implementing according to the aforementioned provision, agencies and units applying special financial mechanisms as regulated by competent authorities (if any) must comply with Article 3 of Resolution 160/2024/QH15 and point e clause 2 Article 3 of Decision 1500/QD-TTg of 2024.

(Article 3 of Circular 88/2024/TT-BTC)

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