Tax audit status in the first six months of 2020 (1)

Tax audit status in the first six months of 2020

Tax audit status in the first six months of 2020 (1)
On 8 July 2020, the General Department of Taxation held an online conference to review the result of the first six months of 2020 and planning for the last six months of 2020.

According to the General Department of Taxation’s assessment, the completion ratio of the State budget managed by the tax authority for the first six months of 2020 is at the lowest among recent years. During the first 6 months of 2020, the General Department of Taxation has recorded the actual revenue of VND574,237 billion, equivalent to 45.8% of the planning budget, and around 96.1% of the 2019 figure for the same period.

By the end of June, the tax authority has conducted 29,280 tax audit and inspections. Especially, 72 enterprises having related transactions with signs of transfer pricing violation have been audited/inspected. Reassessment of arm’s length principle in related party transactions has resulted in additional collection of VND107.18 billion, loss reduction of VND1,251.92 billion, and increase of taxable income by VND 1,265.82 billion.

Tax audit in the first six months of 2020 (2)
In general, due to the epidemic’s impact, the amount of tax audit and inspection at taxpayers' sites has decreased sharply, however, tax authorities have increased inspection work of tax dossiers at tax offices. Thus, many targets had exceeded 2019 result for the same period. Specifically, the total amount of tax collection resulted from tax audit / inspection increased by VND10,386.19 billion, increased by 82.47% compared to 2019; loss reduction amounted to VND17,924.68 billion, up by 28.73% compared to 2019.

For the last 6 months of the year, the tax authorities will continue to strengthen tax audit and inspection activities in order to complete the State budget plan. Some areas with low level of collection level such as state-owned enterprises, FDIs, and private sector will be focused to increase the collection data.

The tax authorities continue to implement the project of tax base expansion, focusing on large enterprises, small and medium-sized enterprises, micro-sized enterprises, households and individuals taking part in business activities; implement the Action Plan on Base Erosion and Profit Shifting, related transaction activities, e-commerce activities and digital business activities.