Hanoi (VNS/VNA) - After collecting 11.6 million USD from violations sinceearly 2020, the General Department of Taxation (GDT) said it would reduceregular tax checks at businesses to help them focus on production to overcomethe COVID-19 pandemic.

TheGDT said it had collected more than 269 billion VND (11.6 million USD)from their recent inspections and examinations of 104 enterprises acrossthe country. According to the tax officials, most of the violations were foundin associated transactions and value added tax refunds.  

Althoughthe inspection and examination work was still a concern, due to thedifficulties amid the current COVID-19 pandemic, the GDT hasinstructed its tax departments to suspend planned inspections and examinationsof many businesses.

Arepresentative of GDT said: “To help reduce procedures, the tax department hasstepped up inspections at the tax office instead of checking at placesof business. Only when there are signs of tax risks, inspections andexaminations will be conducted at the enterprise's headquarters.”

Thereport by the general department showed that as of July 15, 2020, theentire taxation sector has carried out 32,851 inspections, reaching 35.53 percentof the yearly plan and about 82.69 percent compared to the same periodin 2019. The total amount collected was nearly 30.4 trillion VND andthe total amount of tax paid to the state budget is more than 5.1 billionVND.

Tax extension

Accordingto HCM City’s Tax Department, as of July 31, 2020, there were more than 28,000businesses, organisations and nearly 24,500 business households and individualsthat are subject to extensions of the tax payment time limit and land rentwith a total tax of 8.8 trillion VND.

Ofwhich, the value of added tax proposed for extension was 4.4 trillion VND, thecorporate income tax proposed for extension was estimated at 3.55 trillion VND,the land rent proposed for extension was 684 billion VND, and for businesshouseholds it was 166 billion VND.

HCMCity’s Tax Department said many firms faced the double influence of COVID-19and recent decree No 100 that clamped down on drunk driving in Vietnam.

Inthe first seven months of the year, the tax revenues on domestic and importedbeer and wine, which accounted for more than 51 percent of the revenue ofspecial consumption tax, was down nearly 15 percent, or more than 1trillion VND over the same period. In the same period, the total specialconsumption tax collected decreased by nearly 11 percent from the same periodlast year.

Thecity tax office also said it had been minimising the number of inspections andexaminations at businesses affected to help them focus on their productionand business activities./.