(Haiphong.gov.vn) - On the morning of June 13, Vice Chairman of the City People's Committee Nguyen Van Thanh attended and chaired a meeting of the Working Group to urge and combat tax loss in [...]
(Haiphong.gov.vn) - On the morning of June 13, Vice Chairman of the City People's Committee Nguyen Van Thanh attended and chaired a meeting of the Working Group to urge and combat tax loss in FDI enterprises, contractors, and capital construction taxes.
At the Working Group meeting, Deputy Director of Hai Phong Tax Department Nguyen Huy Nhan said: By the end of May 31, 2019, the Tax Department managed taxes for 544 FDI enterprises (excluding branches and contractors) operating in the fields of production, trade, services... an increase of 12 enterprises compared to December 31, 2018. Accumulated in the first 5 months of 2019, the total domestic budget revenue of the foreign-invested enterprise sector reached 2,303 billion VND. Of which, VAT reached 933.47 billion, special consumption tax reached 45.68 billion, corporate income tax reached 1,303.5 billion, and natural resources tax reached 20.4 billion.
The City Tax Department reports the results to the Working Group.
Regarding tax management for foreign contractors operating in construction and temporary contractors outside the province, according to the review, as of May 31, 2019, the number of main contractors and foreign subcontractors operating in construction is 67 contractors, the management of foreign contractor tax collection in the first 5 months of the year paid to the state budget is 1,245 billion VND; For temporary contractors from outside the province, the 5-month budget payment is 183 billion VND. Regarding the issue of tax debt of foreign contractors, the Tax Department has advised the city to report to the Ministry of Transport, the Ministry of Planning and Investment, and the Ministry of Finance to have a plan to provide additional counterpart capital to the Maritime Project Management Board II to pay the contractors. Up to now, the contractors have paid 261 billion VND, no longer owe taxes.
Activities of urging tax debt collection from construction enterprises and implementing the Conclusion of the Vice Chairman of the City People's Committee, the City Tax Department has coordinated with departments and branches to review. From the first 5 months of the year until now, we have urged businesses, enforced bank accounts, collected debts... businesses have built up 15.5 billion VND.
Tax collection management activities for private capital construction activities, according to a report from the Tax Department, in the first 5 months of 2019, 1,694 organizations and individuals engaged in construction activities in the districts paid taxes in the amount of VND 10.46 billion. Decentralize tax departments and local authorities to manage tax collection for out-of-province construction contractors, and assign tax collection targets to out-of-province construction contractors. The total amount of extra-province construction tax revenue paid to the budget is 183,409 billion VND.
However, leaders of the Tax Department said that although the city attracts large foreign investment capital, has a high growth rate and export turnover, the amount paid to the budget is not corresponding. Current revenue does not arise regularly. Projects put into operation do not incur foreign contractor tax. In addition, revenue decreased due to some sudden and unstable revenues of VND 148,109 billion; decreased due to the sudden increase in revenue from 2018 to 2019 and no longer being paid; Revenue decreased due to ineffective business operations of some businesses.
As for the private capital construction sector, the coordination of some Tax Departments with local authorities, the Tax Advisory Council has not been proactive with contractors building individual housing projects in the area; not resolute in collecting private construction taxes; Most of the revenue is collected in the form of mobilizing the householder (Investor) to pay on behalf of the contractor, so the amount of revenue paid is not close to reality; Determining taxable prices for each unit is different, with no clear specific basis...
At the meeting, many issues were discussed and dissected by members of the group who are leaders of departments such as the Department of Taxation, Department of Planning and Investment, Natural Resources and Environment, Economic Zone Management Board... to find the causes of limitations and existence, thereby providing the most effective solutions for the work of urging and preventing tax loss in FDI enterprises, contractors, and basic construction taxes.
Vice Chairman of the City People's Committee Nguyen Van Thanh highly appreciated the Group's work of preventing tax loss in FDI enterprises, contractors, and capital construction taxes.
Vice Chairman of the City People's Committee Nguyen Van Thanh commented that in the first 5 months of the year, the Group's activities on tax collection were very good, bringing in more than 500 billion VND to the state budget. Vice Chairman of the People's Committee requested the City Tax Department to continue to proactively review FDI enterprises in state management; review policies in the Government's new Decree on investment incentives; discuss with the General Department of Taxation and implement the direction of Deputy Prime Minister Vuong Dinh Hue to proactively urge businesses in the field of tax arrears. For late payment taxes according to the new Decree, the City Tax Department records and waits for the Government's official opinion to collect them according to regulations.
Continuing to carry out tasks in the last 6 months of the year, Vice Chairman Nguyen Van Thanh requested the Department of Finance, the Economic Zone Management Board, and the People's Committees of districts to review the transfer of domestic enterprises, avoid the acquisition of operating licenses of foreign and domestic enterprises, and avoid tax revenue loss and tax revenue loss in incentives for FDI enterprises. Assign the Department of Taxation to preside over and coordinate with Departments, branches, and districts to unify the unit price of tax collection for private construction across the city to guide the Department and localities to collect tax for private capital construction. The Department of Planning and Investment presides over and coordinates with other Departments and branches to accurately inspect and evaluate the suspension of investment and production.of FDI enterprises, strictly managing the transfer of assets and sale of inventory of these enterprises.
During the implementation process, departments and branches need to provide guidance and proactively report to city leaders for their opinions to avoid revenue loss affecting the city's budget revenue. The Economic Zone Management Board and the Department of Finance continue to proactively develop industry plans to review FDI enterprises and the preferential policies they are enjoying in accordance with regulations and legal documents.
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