The Taxman’s Triumph: Smashing Records with a Historic 1.7 Million Billion Dong Collection

## Seminar: “Taxes and Healthy Finance for Sustainable Development”

On December 18, 2024, in Hanoi, the Ministry of Finance, the General Department of Taxation, and the Labor Newspaper jointly organized a seminar on “Taxes and Healthy Finance for Sustainable Development.”

At the seminar, Mr. Mai Son, Deputy Director General of the General Department of Taxation (Ministry of Finance), said that the total state budget revenue for 2024 managed by the tax agency is estimated to exceed the target by 16.5%.

With a 13.7% increase compared to the same period in 2023, this is the first year that the tax sector’s revenue has surpassed the milestone of 1.7 quadrillion VND.

Thus, from 2021 to the end of 2024, the total state budget revenue is estimated to reach about 7.2 quadrillion VND, achieving 86.5% of the target for the period 2021-2025 of 8.3 quadrillion VND. Of this, the cumulative state budget revenue managed by the tax agency from 2021 to 2024 is estimated at about 6.1 quadrillion VND, equivalent to 119% of the estimate, with an average growth rate of about 8.6%/year.

To achieve this result, Mr. Mai Son attributed it first to the efforts of authorities at all levels, from central to local, in building a system of tax policies and organizing effective tax collection.

In the period of 2021-2024, the tax sector has implemented exemption, reduction, and extension for nearly 3.7 million taxpayers with 8 types of taxes and 36 types of fees.

At the same time, the tax sector has also effectively implemented solutions to support businesses and people by promoting administrative procedure reform and strengthening the digitization and modernization of budget collection management.

Up to now, 100% of enterprises have participated in using the electronic tax declaration service, 99% of enterprises have registered to participate in using the electronic tax payment service with the tax agency, 99% of operating enterprises are participating in electronic tax refunds; and 100% of enterprises and organizations are participating in electronic invoicing.

In 2022, the eTax Mobile application was launched to support individual taxpayers via mobile phones, with nearly 2.2 million installs to date and over 3.5 million bank transactions with a total successful payment of 7,761 billion VND.

In 2021, the electronic invoicing system was deployed, converting 100% of paper invoices to electronic ones nationwide. So far, over 11 billion invoices have been received and processed.

In 2023, the tax sector applied Big Data and AI to manage invoices, quickly detect and prevent invoice fraud, and build a digital map of business, resources, and land.

In terms of e-commerce, the cumulative tax management data in the three years from 2022 to the first ten months of 2024 recorded tax revenue from organizations and individuals engaging in e-commerce activities at VND 274,600 billion.

An electronic information portal for foreign suppliers has been built, and so far, 116 foreign suppliers have registered, declared, and paid taxes through this portal, coming from many countries, with a total tax amount of over 20,000 billion VND contributed to the state budget.

The tax sector has also actively inspected, audited, and prevented revenue losses in areas with significant potential, such as minerals, gasoline, catering services, and accommodation, contributing an additional VND 41,000 billion to the state budget in the period from 2021 to now.

Besides, the tax sector has strictly handled and recovered into the state budget about 176,400 billion VND of tax, fee, charge, and land use fee arrears, as well as money from land use rights and mineral exploitation rights, in the period from 2021 to now.

“2025 is the last year of implementing the medium-term financial budget plan for 2021-2025. To strive to achieve the set goals, the finance sector will continue to advise the Government and the National Assembly on solutions to proactively, reasonably, flexibly, and effectively manage fiscal policy in coordination with monetary policy and other macroeconomic policies,” said Mr. Mai Son.

At the same time, according to Mr. Mai Son, the tax sector will continue to support businesses and taxpayers, putting them at the center, closely following their business situation to grasp the “health” of enterprises, and promptly advising and proposing support solutions.

At the seminar, Mr. Hoang Quang Phong, Vice President of VCCI, said that in 2024, the estimated number of newly established enterprises and those returning to operation as of the end of November 2024 reached 218,500 enterprises, up 7.4% over the same period in 2023. The contribution of the business sector to the state budget continued to increase, making an important contribution to the state budget revenue in the first 11 months of 2024, which reached a record level of over 1.8 quadrillion VND, exceeding the estimate by 6.3% and up 16.1% over the same period.

However, 2024 continues to be a challenging year for the Vietnamese business community. Enterprises have had to respond to unpredictable fluctuations in the world market, overcome long-standing internal limitations and shortcomings, and spend a lot of time and resources to solve unexpected problems, especially responding to and overcoming the consequences of natural disasters and floods. In the first 11 months of 2024, the whole country had 173,200 businesses withdrawing from the market, up 9.1% over the same period last year.

The Vice President of VCCI assessed that although the tax sector has made important reforms in the past time, in reality, many enterprises are still facing difficulties in performing tax procedures.

The latest survey on the business environment conducted by VCCI in 2024 showed that up to 31% of enterprises encountered difficulties in administrative tax procedures, especially small and medium-sized enterprises.

“Although there have been improvements in the process of tax declaration, payment, refund, and finalization, it is still complicated and time-consuming and costly for businesses. Some tax regulations are not interpreted or applied consistently between central and local management agencies, leading to a lack of transparency and predictability for enterprises.

Especially, the application of digital technology is not uniform. Although the tax sector has strongly promoted digital transformation, not all enterprises, especially small and medium-sized enterprises, have sufficient resources and capacity to adapt,” said Mr. Hoang Quang Phong.

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