Why Are So Many People Suddenly Owing Taxes?

The General Department of Taxation has revealed that individuals suddenly find themselves in tax debt for a variety of reasons. These include tax code fraud by businesses, which falsely declare expenses, and taxpayers with multiple sources of income who are unaware of or forget about the self-declaration regulations.

0
123

Vietnam’s General Department of Taxation reported that personal income tax revenue for the first seven months of the year reached VND 117,337 billion, equivalent to 73.7% of the estimated amount and a 17.7% increase compared to the same period last year. Of this, tax revenue from salaries reached VND 80,803 billion, an increase of 11%, while tax revenue from real estate transfers, inheritances, and gifts of real estate reached VND 16,335 billion, a 66.3% surge. Additionally, tax revenue from securities transfers stood at VND 3,663 billion.

Regarding recent complaints from individuals about unexpectedly receiving tax debt notifications, the Department explained that this issue arises from various reasons. These include cases where individuals’ tax codes were fraudulently used by enterprises to declare non-existent expenses, as well as taxpayers with multiple sources of income who are unaware of or unfamiliar with the self-declaration process.

The tax authority also notifies individuals of their tax debts via email or their registered electronic tax accounts. For those who have not provided an email address or registered for an electronic tax account, the authority will send physical notifications through the postal service.

People doing procedures at the tax agency. (Photo: NL)

Taxpayers are advised to proactively install and register for the Etax mobile app, provide their email addresses, and keep the tax authority updated with their latest information to stay informed about their tax debt status.

Furthermore, the tax agency has been actively promoting awareness of regulations concerning late payment charges, tax debt notifications, enforcement measures for tax debt collection, and temporary exit bans to ensure taxpayers’ understanding and compliance.

During the first half of the year, the tax authority issued nearly 32 million notifications of tax debts, fines, and late payment charges to taxpayers. Additionally, almost 175,000 decisions on tax debt enforcement measures were made.

Enforcement measures include: debiting money from accounts, freezing accounts, enforcing invoices, seizing assets, collecting money from third parties holding assets, and revoking business registration certificates.

The tax authority publicly disclosed information and the tax debt amounts of nearly 632,000 delinquent taxpayers, totaling nearly VND 230,000 billion.

You may also like

The Power to Prohibit: When Personal Tax Debts Ground You

The proposed amendments to the Law on Tax Administration by the Ministry of Finance suggest that individuals and household businesses who owe taxes may be subject to exit bans. This addition aims to temporarily restrict the outbound movement of those with tax arrears, emphasizing the importance of tax compliance for all entities and individuals in the country.

The Art of Taxation: A Legal Dissection of the Pause on Land Tax in Ho Chi Minh City

The upcoming land price list, which was supposed to be released on August 1st, has been postponed by the Ho Chi Minh City authorities due to delays in the completion of the necessary procedures. Only 6 steps out of the entire process have been finished so far. This has caused a halt in administrative procedures for citizens, while other provinces continue to process real estate-related applications, including those for changing land use purposes.

Unveiling the Illicit: Exposing Businesses Selling Invoices Illegally

The General Department of Taxation has released a list of businesses engaged in the illicit sale of invoices, urging authorities to scrutinize and address these illegal practices.