Personal income tax management at the Nghe An Provincial Tax Department: Current situation and solutions

Personal income tax (PIT) is a critical component of total budget revenue and a key direct tax in economies worldwide, essential for promoting social equity. Effective PIT management is necessary to achieve both revenue generation for the state budget and equitable taxation. Recently, the Nghe An Provincial Tax Department has focused on strengthening PIT management, with PIT revenues showing an upward trend year-over-year. However, PIT currently accounts for only 3-5% of the province’s total budget revenue - a relatively low proportion compared to national figures and the province’s potential. This paper examines and evaluates the current state of PIT management at the Nghe An Provincial Tax Department and proposes solutions to enhance PIT administration and maximize revenue potential.