Invalid contract cannot be refunded

VietNamNetVietNamNet14/07/2023

This message was given by Minister of Finance Ho Duc Phoc at the conference reviewing the first 6 months of 2023 of the Ministry of Finance held today (July 13).

"Recently, some businesses that were not able to get tax refunds, such as wood, cassava... Some businesses asked why the police confirmed but still did not refund the tax? The police agency verified to see if there were signs of violations. Therefore, when the police asked the Chinese side, the Chinese side did not answer. So there were no signs of crime," said the leader of the Ministry of Finance.

The tax refund must meet the necessary conditions.

"Tax refunds must meet necessary conditions. For example, one of the conditions for tax refunds is to have an economic contract with a partner. When checking with the Chinese side, the Chinese tax authority replied that there was no such transaction. That means this contract is invalid," Mr. Ho Duc Phoc shared.

The Commander of the Finance sector commented: If the contract is invalid, the tax cannot be refunded. Some enterprises have also sued in court, and the court also ruled that this contract cannot be refunded. Tax authorities and localities must pay special attention to this issue.

Assessing the situation in the first 6 months of 2023, Minister Ho Duc Phoc said: In the first months of 2023, the economic growth slowdown has directly affected the budget revenue. In that context, the Finance sector has made great efforts in managing fiscal policy, ensuring revenue to meet spending tasks.

At the same time, the Finance sector has implemented many fiscal policies to ease the burden on the people. The scale of the policy packages for exemption, reduction, and extension of taxes, fees, charges, and land rents that have been and will be issued in 2023 is about VND200 trillion. Of which, VND79 trillion will be exempted and reduced; VND121 trillion will be extended.

Many businesses complain about delayed tax refunds.

The Ministry of Finance leader shared: The Finance sector has made great efforts to operate in the context of economic slowdown, budget revenue decreased compared to the same period in 2022, but overall still reached 54%, ensuring budget collection progress compared to the estimate. This is also a factor that must be taken into account when building the 2024 budget estimate.

Speaking at the conference, Deputy Prime Minister Le Minh Khai shared: Over the past six months, the Ministry of Finance has advised on the issuance of a large number of quality, rigorous, and practical legal documents, especially legal documents related to financial policies to support people and businesses such as tax and fee exemptions and reductions, with a total amount of up to 200 trillion VND.

In difficult economic conditions, many taxes and fees must be exempted, but the Finance sector has strived to collect revenue to meet the budget requirements (collected 54% of the budget in 6 months, striving to meet the budget for the whole year).

At the same time, the Ministry of Finance advised the Government and the Prime Minister to handle arising issues such as arranging funding for purchasing vaccines for the expanded immunization program; actively coordinating and participating in urging public investment disbursement (the disbursement rate reached 30.49% of the plan assigned by the Prime Minister, 43.4% higher than the same period).

According to the Deputy Prime Minister, it is forecasted that the second half of 2023 will still face many difficulties and challenges that will greatly affect the completion of the socio-economic development goals of the whole year, including the goals of the Finance sector.

Therefore, the Deputy Prime Minister requested that ministries, branches and localities also enhance their determination, contribute their efforts, closely coordinate with the Finance sector, consistently implement the Government's management guidelines, and strive to achieve the highest socio-economic development goals set for 2023.

According to the Ministry of Finance, the state budget revenue in the first 6 months reached VND875.8 trillion, equal to 54% of the estimate. The state budget revenue in the first 6 months decreased compared to the same period last year. Accordingly, the total state budget revenue in the first 6 months decreased by 7.8% (central budget revenue reached 57.1% of the estimate; local budget revenue reached 50.6% of the estimate). Of which, domestic revenue reached 53.9% of the estimate, down 4.7%; revenue from crude oil reached 72.9% of the estimate, down 15%; budget balance revenue from import-export activities reached 52.9% of the estimate, down 20.6%. The reason for the decrease in state budget revenue is that many unfavorable factors continued to arise during the implementation of tasks in the first 6 months of the year. The implementation of policies on tax, fee, charge and land rent exemption, reduction and extension has not been included in the estimate, affecting the state budget revenue and the state budget balance in 2023.
The National Assembly Chairman requested a hearing on the delay in tax refunds for businesses . Faced with the situation where many businesses are slow to receive value-added tax refunds, the National Assembly Chairman requested a hearing and requested that the tax authority immediately refund taxes to businesses.

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