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Domestic Tax Revenue Increases Quite Steadily In Localities And Economic Regions Across The Country.


Different sections have different financial management mechanisms, the proportion of revenues through the agency

Taxes decreased from 25% to 14.5% and down to 10.5% in total state budget revenue.

2.1.3.2. The scale of domestic tax collection is constantly increasing.

After 16 years of implementing the State Budget Law (1997 - 2013), total state budget revenue has increased more than 11 times. In the 5 years (2008 - 2012) alone, the average domestic tax revenue increased by 390% compared to previous years , the ratio of domestic tax revenue to GDP increased from 17.54 % in 1997 to 19.39 % in 2012 , the ratio of domestic tax revenue to GDP increased from 17.54 % in 1997-2002 to 19.39 % in 2008-2012 . It is actually the process of thoroughly concentrating the state budget in order to promptly meet the spending needs of the majority of the state budget, control budget expenditures, and achieve

The country has completely escaped the crisis, contributing significantly to the successful implementation of the goals and tasks of the period of industrialization and modernization of the country.

Table 2.3. Revenue scale and structure of domestic tax collection in the period 1997-2012


Time

TB stage

(1997-2002)

TB stage

(2003-2007)

TB stage

(2008-2012)

Total state budget revenue (billion VND)

88,825

242,056

731,696

Total domestic revenue (billion)

copper)

74,066.67

115,305.40

450,535

Domestic revenue (excluding crude oil)

(Billion VND)

55,166.67

80,498.60

367.110

Revenue from crude oil (billion VND)

18,900

34,806.80

83,425

GDP (billion VND)

422,214

955,327

2,323,000

Domestic revenue ratio

land/GDP (%)

17.54

12.07

19.39

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Domestic Tax Revenue Increases Quite Steadily In Localities And Economic Regions Across The Country.

Data source: [3, 11, 20, 23]

Thus, after 26 years of innovation, the level of mobilizing domestic tax revenue for the State budget has increased sharply in scale, contributing to creating resources for economic development. Although the size of the economy is still small, the principles for high and continuous economic growth and the improved legal environment have been properly motivated, so the national financial potential has a good growth rate in tax collection and maintenance.


High growth rate in a horizontal direction. The scale of domestic tax collection in 2007-2012 increased 608 times compared to 1997-2002, increased 390 times compared to 2003-2006 . The revenue structure has changed in a positive direction: Domestic revenue has become the largest source of revenue for the national budget (accounting for nearly 80%), in which the proportion of domestic revenue from oil has increased rapidly, if in 1997-2002 it accounted for 62.1% of total budget revenue, in 2008-2012 it increased to 63.7%. In total domestic revenue (excluding oil and land use fees), revenue from business establishments accounts for a major proportion and has become an important source of revenue for the state budget. In the period 1997 - 2002, it accounted for 66.4%, then in the period 2008 - 2012 it increased to 81.4%, with an average growth rate of 40.1%/year.

2.1.3.3. Domestic tax revenue increased steadily in localities and economic regions across the country.

There were 42/64 localities with a fairly high revenue growth rate of over 20.5%, of which 25/33 localities had a revenue growth rate of over 20%. The scale of domestic tax collection in most localities has improved significantly, the number of localities with domestic revenue of over 500 billion VND increased from 38/61 localities in 2007 to 42/63 localities in 2012. Due to the rapid increase in the scale of domestic tax collection in many localities, more and more localities are able to balance their revenue and expenditure in the area and have it regulated by the central government. In 2001 there were only 5 localities, in 2012 there were 30 localities (an increase of 6 times).

Thanks to the relatively high increase in domestic tax revenue, in addition to ensuring regular spending needs, the State has stepped up investment in developing socio-economic infrastructure, developing education, culture, health care, ensuring national defense and security, implementing hunger eradication and poverty reduction, increasing national reserves, controlling inflation, and reducing the deficit to the allowable level (under 5% of GDP) which are decisive factors for a healthy national financial system.


Table 2.4 Domestic tax collection by economic sector



STT


Target

2007

2008

2009

2010

2011

2012


Amount (Billion VND)

Total weight vs.

total state budget revenue (%)


Amount (Billion VND)

Total weight vs.

total state budget revenue (%)


Amount (Billion VND)

Total weight vs.

total state budget revenue (%)


Amount (Billion VND)

Total weight vs.

total state budget revenue (%)


Amount (Billion VND)

Total weight vs.

total state budget revenue (%)


Amount (Billion VND)

Total weight vs.

total state budget revenue (%)

1

Revenue from state-owned enterprises


50,180


19


71,835


22


84,049


25


112,143


25


126,418


23


155,378


27

2

Revenue from foreign-invested enterprises (excluding crude oil)


32,274


12


43,953


13


50,785


15


64,915


15


77,076


14


97,748


17

3

Public tax

non-state business


31,192


12


43,527


13


47,903


14


70,023


16


84,503


15


111.161


19

4

Revenue from crude oil


78,634


30


89,603


27


61,137


18


69,179


16


110,205


20


87,000


15

5

Collect

other


69,347


27


80,761


24


97,375


29


129,949


29


155,734


28


130,313


22



6

Total domestic tax revenue


261,627


100


329,679


100


341,249


100


446,209


100


553,936


100


581,600


100

Data source:[3]

In addition, domestic tax revenue increased quite evenly in all economic sectors. The sharp increase was mainly in the state-owned enterprise sector, increasing from 19% in 2007 to 27% in 2012; the foreign-invested enterprise sector increased from 12% in 2007 to 17% in 2012 and the non-state sector from 12% in 2007 to

19% in 2012.

Thus, domestic tax collection is increasing. This further confirms that domestic tax collection is increasingly developing, contributing to sustainable economic development for Vietnam.

2.2. Current status of domestic tax collection coordination between Tax authorities - State Treasury - Commercial banks

Currently, the coordination status of the three agencies implementing the collection coordination according to the implementation mechanism, responsibilities and regime is as follows:

- Tax Authority:

+ Transmit, provide complete, accurate and timely information on tax codes, names of state budget payers, state budget tables, tax periods and tax amounts payable by each state budget payer.

+ The organization receives documents for domestic tax collection into the State budget from the State Treasury and compares the amount collected into the State budget with the State Treasury according to the provisions of Circular No. 128/2008/TT-BTC and Decision No. 1027/QD-BTC.

+ Manage the database and data exchange application of the unit. Control data transmission and reception; detect and coordinate timely handling of data transmission and reception errors.

+ Coordinate with taxpayers, State Treasury and commercial banks in comparing data, ensuring correctness in receivables and tax collected; at the same time, handle errors related to tax collection and payment.


+ Coordinate with the State Treasury and commercial banks to develop solutions and implement connection and sharing of centralized databases and information to organize coordination in collecting state budget, ensuring the connection and exchange of data and information between agencies and units is safe and in accordance with the law.

+ Build a database of taxpayers' lists and state budget receivables on its electronic information portal to connect and exchange information with commercial banks to serve domestic tax collection into the state budget; at the same time, regularly update complete, timely and accurate information and data on shared lists, lists of state budget payers and state budget receivables via its electronic information portal so that commercial banks can organize collection and reconcile data between parties according to prescribed regimes.

+ Coordinate and agree with commercial banks on methods of exchanging and comparing information and data on tax receivables and collected taxes, and ensure security and related IT technical criteria.

+ The Tax Authority shall preside over and coordinate with relevant units to develop and submit to the Ministry of Finance for promulgation regulations on management, use and confidentiality of information of state budget payers to serve the coordination of domestic tax collection with commercial banks.

+ Obligated to periodically receive information from the State Treasury and commercial banks about organizations and individuals with tax debts to implement tax enforcement measures.

+ Coordinate with the State Treasury and commercial banks to organize propaganda, dissemination, and guidance for state budget payers to pay state budget according to the new process (such as collecting cash at branches and transaction points of commercial banks; collecting via bank cards, collecting via Internet banking, mobile banking, ...).

- State Treasury:

+ Take the lead in coordinating with the Tax authority and commercial banks to develop agreements and detailed procedures on organizing coordination in collecting state budget revenue between the State Treasury, the General Department of Taxation and commercial banks.


+ Take the lead in agreeing with commercial banks on methods of connecting communication networks; methods of exchanging and comparing data information on state budget revenue.

+ Receive information and electronic data on collected amounts at commercial bank branches to fully and promptly account for the State budget.

+ Organize the management and storage of information and electronic data on the amount of domestic tax collected into the State budget received from commercial banks according to regulations on electronic transactions in financial activities and instructions of the Ministry of Finance, ensuring safety, security, integrity, completeness, no changes or deviations during the storage process; store correctly and for the full period as prescribed for the storage of paper documents on State budget collection; can be printed on paper and looked up when requested.

+ Fully and promptly transmit/send information on the amount collected to the State budget to the Tax authority in accordance with regulations. Send the list of electronic documents for tax payment to the State budget to the Tax authority as a basis for accounting.

+ Organize the management of the database and information exchange application of the unit. Control the transmission and reception of data; detect and coordinate the timely handling of errors in data transmission and reception. Manage the revenue and expenditure management system to participate in the organization of coordination of state budget collection with commercial banks.

+ Coordinate with taxpayers, commercial banks, and tax authorities to compare data, ensure accuracy in tax receivable and tax collected; at the same time, handle errors arising related to domestic tax collection and payment to the State budget.

+ Coordinate with Tax authorities and commercial banks to develop solutions and implement connection and sharing of centralized databases and information to serve the work of organizing and coordinating State budget collection.

+ Take the lead in coordinating with the General Department of Taxation and commercial banks to organize propaganda, dissemination, and guidance for state budget payers to pay state budget according to the process.


- Commercial banks:

+ Ensure adequate conditions for information systems, equipment, facilities and staff to meet the needs of organizing and coordinating State budget collection;

+ Coordinate and agree with the General Department of Taxation and the State Treasury on methods of connecting communication networks; methods of exchanging data information; criteria on security and related information technology.

+ Provide guidance and provide fast, convenient and quality payment services for state budget payers in paying state budget in accordance with regulations of the Ministry of Finance and the State Bank.

+ Enter correct and complete information on domestic tax collection documents into the State budget to transmit information to the State Treasury and tax agencies.

+ Transfer payment and account for state budget revenues fully, accurately and promptly into the State Treasury account opened at a commercial bank branch in accordance with regulations.

In case of incomplete and untimely transfer of payment and accounting of collected State budget amounts, commercial banks must return the State budget amounts and arising interest (if any) to the State Treasury according to the regulations of the Ministry of Finance and the State Bank.

+ Coordinate with the State Treasury to fully and promptly transmit/receive information and documents on domestic tax payment to the State budget of taxpayers via commercial banks according to regulations.

+ Print, manage and store State budget collection documents according to State regulations.

water.

+ Coordinate with the State Treasury and the General Department of Taxation to receive data on the list of used items.

in accordance with the regulations of the Ministry of Finance; coordinate with the State Treasury, Tax authorities and develop solutions and implement connections and sharing of centralized information databases to serve the work of organizing and coordinating domestic tax collection.


+ Strictly and fully comply with the regulations on management, use and confidentiality of information of state budget payers to serve the coordination of state budget collection as prescribed by the Ministry of Finance.

+ Manage the database and information exchange application of the unit. Control the transmission and reception of data; detect and coordinate timely handling of errors during the data transmission and reception process.

+ Provide complete and timely information on account numbers, symbols, and account balances of organizations and individuals subject to tax enforcement at the request of the Tax authority, and at the same time, coordinate with the Tax authority to implement measures to enforce tax debt against tax debtors.

The implementation mechanisms, responsibilities and regimes of the parties are detailed and shown through the specific contents of domestic tax collection coordination as follows:

2.2.1. Coordination of domestic tax collection in cash through the State Treasury

Depending on specific conditions, the State Treasury arranges collection points in the two following forms.

2.2.1.1. In case the Treasury treasurer receives the Tax Payment List from the taxpayer

Figure 2.2. Collection coordination process by cashier through State Treasury

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