Regulations on the classification of revenue sources and expenditure tasks for the State budget in 2025 in Vietnam

Regulations on the classification of revenue sources and expenditure tasks for the State budget in 2025 in Vietnam

The classification of revenue sources and expenditure tasks between the central budget and the local budget in Vietnam is implemented according to the provisions of the Law on State Budget and guiding documents for the implementation of the Law on State Budget. To be specific:

- Continue to implement 100% adjustment in favor of the central budget for:

+ Revenue from e-commerce business activities, platform-based businesses, cross-border services, and other services conducted by foreign suppliers who register taxpayers, file taxes, and pay taxes directly through the General Department of Taxation's electronic portal.

+ Revenue from licensing fees for the use of radio frequency spectrum.

+ Supplementary corporate income tax under global minimum tax regulations.

- Implement the distribution of revenue from water resource exploitation licensing fees as prescribed in Resolution 64/2018/QH14 of the National Assembly; division of environmental protection tax on gasoline and oil products between the central budget and local budget in accordance with Clause 5, Article 3 of Resolution 70/2022/QH15 of the National Assembly.

- Revenue from road usage fees collected through motor vehicles (after deducting collection costs) is 100% remitted to the central budget; at the same time, arrange state budget expenditure estimates for the Ministry of Transport equivalent to 65% of the revenue and targeted supplements from the central budget to local budgets equivalent to 35% of the revenue for road management and maintenance.

- Revenue from administrative penalties for road traffic safety violations is 100% remitted to the central budget; arrange state budget expenditure forecasts for the Ministry of Public Security equivalent to 85% of actual state budget revenue in 2023 and provide targeted supplements from the central budget to local budgets equivalent to 15% of the actual local revenue in 2023 to ensure road traffic safety.

- Land levy according to legal provisions on land, revenue from equitization, and state capital withdrawal at state-owned enterprises managed by local authorities are to be used for development investment under the local budget's investment subjects.

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More details can be found in Circular 88/2024/TT-BTC which takes effect from February 7, 2025.

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