State budget collection to reach 20% of GDP

State budget collection for the next five years is expected to make up 20%-21% of the GDP, Deputy Minister of Finance Do Hoang Anh Tuan said at a meeting of the Ministry’s Party Committee on July 17. Tax and fee collections are expected to range between 19%-20% of the GDP and domestic collection (excluding collections from crude oil) is set to reach 80% of the state budget revenue by 2020, according to Tuan. The sector also aims to keep the budgetary overspending at 4% of GDP and the public debt below 65% of GDP by 2020. In order to realise the targets, the sector needs to pursue a tight and effective fiscal policy, improve the management of tax collections to reduce the impact of decreasing budget revenues from natural and mineral resources, Tuan said. He also underlined the importance of the private sector in increasing investment resources for the society. Meanwhile, Minister Dinh Tien Dung highlighted the opportunities and challenges faced by the sector in … [Read more...]

State budget collection to reach 20 percent of GDP

Tax collection in Dong Da district (Hanoi). Photo: baotintuc.vn

State budget collection for the next five years is expected to make up 20-21 percent of the GDP, Deputy Minister of Finance Do Hoang Anh Tuan said at a meeting of the Ministry’s Party Committee on July 17th. Tax and fee collections are expected to range between 19-20 percent of the GDP and domestic collection (excluding collections from crude oil) is set to reach 80 percent of the state budget revenue by 2020, according to Tuan. The sector also aims to keep the budgetary overspending at four percent of GDP and the public debt below 65 percent of GDP by 2020. In order to realize the targets, the sector needs to pursue a tight and effective fiscal policy, improve the management of tax collections to reduce the impact of decreasing budget revenues from natural and mineral resources, Tuan said. He also underlined the importance of the private sector in increasing investment resources for the society. Meanwhile, Minister Dinh Tien Dung highlighted the opportunities and … [Read more...]

State budget collection to reach 20 pct of GDP

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State budget collection is expected to make up 20-21 percent of the GDP for the next five years (Illustrative image. Source: VNA) State budget collection for the next five years is expected to make up 20-21 percent of the GDP, Deputy Minister of Finance Do Hoang Anh Tuan said at a meeting of the Ministry’s Party Committee on July 17. Tax and fee collections are expected to range between 19-20 percent of the GDP and domestic collection (excluding collections from crude oil) is set to reach 80 percent of the state budget revenue by 2020, according to Tuan. The sector also aims to keep the budgetary overspending at four percent of GDP and the public debt below 65 percent of GDP by 2020. In order to realise the targets, the sector needs to pursue a tight and effective fiscal policy, improve the management of tax collections to reduce the impact of decreasing budget revenues from natural and mineral resources, Tuan said. He also underlined the importance of the private sector … [Read more...]

Tax arrears to be publicised

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HA NOI (Biz Hub) — More than 600 enterprises owing large tax debts will be made public this month, according to the Ministry of Finance. Under guidance from the Minister of Finance this month, the tax departments in Ha Noi and HCM City, and the General Department of Taxation, will each publicise 200 businesses' names. Of the 600 firms, 300 have tax debts larger than their charter capital, chinhphu.vn reported. Deputy Minister of Finance Do Hoang Anh Tuan said the country's total bad debt reached VND72 trillion (US$3.3 billion), doubling the permitted target set by the National Assembly. Ha Noi is a locality with one of the highest tax debt rates. To minimise tax arrears, tax authorities must strengthen control over businesses and inspect them more often. The finance ministry has asked tax authorities to ensure a 10 per cent increase in tax collection over estimated collection figures. According to the Ministry of Finance, slumping crude oil prices lost the State VND32 … [Read more...]

Social News 4/7

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Police seize 387kg of smuggled elephant tusks Police at Ha Tien International Border Gate and Kien Giang Province seized 387kg of elephant tusks smuggled into Viet Nam on Tuesday. The border police found a suspected truck travelling from Cambodia to Viet Nam through Ha Tien International Border Gate. The soldiers asked Tran Minh Chien, the driver of the truck, to pull over for random inspection and found 387kg of elephant tusks inside. The goods were seized. The case is being investigated further. On the same day, customs officers at Noi Bai International Airport seized two ivory statues weighing 2.31kg each. The statues had been smuggled from France. Construction begins on Orange Village The HCM City Association for Victims of Agent Orange/Dioxin on Wednesday began construction of the Orange Village in Hoc Mon District. The 49,000sq.m centre will provide treatment, vocational training and rehabilitation for victims of Agent Orange (dioxin). The project with a cost of … [Read more...]

VN to publish major tax defaulters

VGP – The Ministry of Finance has annouced a plan to publish the names of 600 enterprises with the most unpaid taxes and debts in July. According to the plan, the names of 300 biggest tax defaulters and 300 with debts much higher than their capital will be realeased by the General Department of Taxation and Tax Offices of Ha Noi and Ho Chi Minh City. The move aims to reduce the unpaid taxes over collections amid sharp decrease in crude oil prices. The total unpaid taxes amounted to VND72 trillion (US$3.29 billion), equal to 10 of the country’s total tax reveue, said Deputy Minister of Finance Do Hoang Anh Tuan./. By Huong Giang … [Read more...]

Hanoi improves tax payment procedures

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Supports desks for taxpayers at Hanoi Taxation Department. Photo: VNA Hanoi aims to further improve the local taxation procedure in a bid to fufill budget collection targets of this year. During a working session with the Hanoi Taxation Department on July 1, Deputy Minister of Finance Do Hoang Anh Tuan urged the Department to boost the application of information technology and online procedures to facilitate the tax payment process. He also stressed the need for a data base on taxpayers connecting all tax bureaus to facilitate the monitoring of tax collection. The deputy minister put particular emphasis on reforming administrative procedures relating to taxation, saying that it contributes to improve the local business climate and enhance the competitiveness of the capital city. According to Deputy Director of the Department Thai Phuc Tien, total tax collection in Hanoi is estimated at 66.24 trillion VND (3.1 billion USD) in the first half of this year, up 13.4 percent from … [Read more...]

Government News 22/5

Smuggling, trade fraud worsen national economy: PM Smuggling, trade fraud and counterfeit goods are seriously damaging the national economy and negatively affecting society, stated Prime Minister Nguyen Tan Dung at a teleconference on tobacco smuggling. Chairing the May 21 teleconference reviewing the six-month implementation of a Government decree on intensifying the fight against tobacco smuggling, the PM said the Government always considers combating smuggling and trade fraud a key task. He asked ministries and localities to synchronously carry out measures to fight tobacco smuggling, with the focus on ringleaders. The Government leader stressed the need to strictly address sales of contraband tobacco, while intensifying communications to raise public awareness of tobacco trafficking. Disseminating the bad impacts of smoking among the public, particularly among the young, is also essential, he added. Ministries and localities were also asked to prevent smuggling activities at … [Read more...]

Smugglings, trade frauds worsen national economy: PM

PM Nguyen Tan Dung addresses the teleconference. Photo: chinhphu.vn

Smugglings, trade frauds and counterfeit goods are seriously damaging the national economy and negatively affecting society, stated Prime Minister Nguyen Tan Dung at a teleconference on tobacco smuggling. Chairing the May 21 teleconference reviewing the six-month implementation of a Government decree on intensifying the fight against tobacco smugglings, the PM said the Government always considers combating smugglings and trade frauds a key task. He asked ministries and localities to synchronously carry out measures to fight tobacco smugglings, with the focus on ringleaders. The Government leader stressed the need to strictly address sales of contraband tobacco, while intensifying communications to raise public awareness of tobacco trafficking. Disseminating the bad impacts of smoking among the public, particularly among the young, is also essential, he added. Ministries and localities were also asked to prevent smuggling activities at border areas, and at the same time improve … [Read more...]

Smuggling, trade fraud worsen national economy: PM

PM Nguyen Tan Dung chairs the teleconference on tobacco smuggling. (Photo: VNA) Smuggling, trade fraud and counterfeit goods are seriously damaging the national economy and negatively affecting society, stated Prime Minister Nguyen Tan Dung at a teleconference on tobacco smuggling. Chairing the May 21 teleconference reviewing the six-month implementation of a Government decree on intensifying the fight against tobacco smuggling, the PM said the Government always considers combating smuggling and trade fraud a key task. He asked ministries and localities to synchronously carry out measures to fight tobacco smuggling, with the focus on ringleaders. The Government leader stressed the need to strictly address sales of contraband tobacco, while intensifying communications to raise public awareness of tobacco trafficking. Disseminating the bad impacts of smoking among the public, particularly among the young, is also essential, he added. Ministries and localities were also asked … [Read more...]

Finance Ministry to issue bond-for-debt swap

The Ministry of Finance (MoF) has asked the Government of Viet Nam to issue new Government bonds in the international capital markets for debt rescheduling. MoF asks the Government of Viet Nam to issue new Government bonds in the international capital markets for debt rescheduling.-Photo Vietstock.vn MoF Deputy Do Hoang Anh Tuan said at the Government's regular meeting on April 25 that a draft resolution for the issuance during the period 2016 to 2020 period had been submitted to Prime Minister Nguyen Tan Dung for his approval. Tuan said the bond-for-debt swap would raise funds for developing the country's economy, implement key projects and restructure foreign debt. He added that the issuance would not exceed 65 per cent of the GDP or the debt ceiling during the next five years. The Minister-Chairman of the Government Office, Nguyen Van Nen, said the bond-for-debt swap was a normal operation, adding it would restructure debts in a sustainable and more efficient way. Late in … [Read more...]

Vietnam plans to sell more bonds abroad next year: report

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A man walks past the Hanoi Stock Exchange in Hanoi. Photo: Bloomberg The Ministry of Finance has advised the government to continue issuing more bonds next year to refinance existing debts and raise funds for long-term projects, local media reported. Deputy Finance Minister Do Hoang Anh Tuan did not reveal how much the bonds are worth and whether the borrowings are denominated in US dollar, euro or another currency. He was quoted as saying that the plan will not affect Vietnam's public debt position, which will not exceed 65 percent of the country's gross domestic product by 2020 and beyond. Vietnam's public debt-to-GDP ratio was estimated at 54.2 percent in 2013 and 60.3 percent last year. According to Tuan, the upcoming bond issue will take advantage of falling borrowing costs, allowing the country to refinance existing loans. Vietnam's credit rating has improved recently, raised from B2 to B1 by Moody's and from BB- to B+ by Fitch, he noted. The new bonds will also help fund … [Read more...]

Honda Vietnam at odds with ministry over almost $10mn tax arrears

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The Vietnamese unit of motor maker Honda and the Ministry of Finance still fail to reach an agreement on a preferential tax treatment the company is supposed to enjoy, thanks to which it refuses to pay nearly US$10 million in tax arrears. Honda Vietnam Co. Ltd. has been asked to pay VND182 billion ($8.48 million) in tax arrears and fines, Deputy Minister of Finance Do Hoang Anh Tuan said at a government meeting on Saturday. While the company has followed the order, it still owes "a large sum of money" to the state budget, Tuan added without elaborating the violations of the motor manufacturer. Honda Vietnam went under a tax inspection in 2014, and was eventually asked to pay nearly VND400 billion ($18.64 million) in tax debts and fines, another finance ministry official told Tuoi Tre (Youth) newspaper on Sunday. The company, which has two motor-manufacturing plants and a car-making facility in Vietnam, has so far paid only VND182 billion of the sum, and thus still owes around … [Read more...]

General Department of Taxation Implements Resolution 19/NQ-CP

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As of January 2015, after implementing many solutions, the General Department of Taxation has reduced the number of hours of tax compliance by 370 hours a year. This result means that the sector will need to continue to cut down another 45.5 hours to reach the average tax time of the ASEAN-6, which is 171 hours a year including time of social insurance payment, that is 49.5 hours. On April 6, the General Department of Taxation held an online conference on the implementation of the government’s Resolution 19/NQ-CP in 2015 and to sum up the refund work of value-added tax (VAT) in 2014. Finance Minister Dinh Tien Dung chaired the conference. Participating in this online conference were also Deputy Minister of Finance Do Hoang Anh Tuan and 62 local tax departments across the nation. Reporting the results of implementing Resolution 19 of the government, Mr Cao Anh Tuan, Deputy Director of the General Department of Taxation said that shortly after the issue of Resolution 19, Minister … [Read more...]

Coordination in Tax, Customs Monitoring

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Recently, the Steering Committee of the Central Committee of Vietnam Fatherland Front (VFF), led by VFF Chairman Nguyen Thien Nhan, paid a working visit to the Ministry of Finance and member organisations engaged in the joint tax and customs supervision programme. The programme, aimed to carry out tasks and solutions to improve the business environment and enhance national competitiveness in tax and customs fields, is joined by the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Cooperative Alliance, the Vietnam Association of Small and Medium Enterprises, and the Vietnam Association of Young Entrepreneurs.Appreciation from business community VCCI President Vu Tien Loc said that the financial sector is at the forefront of serving the business community through tax and customs affairs. The business community showed its appreciation for the financial sector for its effective and practical operations. The financial sector needs to raise public intelligence for administrative … [Read more...]

Tax reforms to target better business climate

The General Department of Taxation said during an online meeting on April 6 that it would step up tax reforms to improve the business environment. The department plans to cut at least 10 per cent of tax administrative procedures and simplify at least 20% of the current procedures to reduce tax filing hours to 121.5 hours per year as per a Government Resolution or to 171 hours per year (included social insurance filing hours). As of January 2015, tax filing hours were reduced by 370 hours per year and must be cut by another 45.5 hours to reach the average level of ASEAN-6. The Minister of Finance Dinh Tien Dung said at a meeting detailing measures that a determination from the tax agencies was needed to achieve the target. The General Department of Taxation said the application of information and technology would be hastened during tax filings going forward, adding that IT applications would be implemented before June 30. Specifically, 60% of tax refund filings and tax … [Read more...]

Vietnam strives for big tax reform

Deputy Prime Minister Vu Van Ninh said every province strives to implement an e-tax service to cut tax declaration procedural times to 171 hours per year in 2015. Under Ninh's instructions laid out in a recent tax review meeting, all tax departments must continue reviewing and minimising paperwork to create favourable conditions for taxpayers. The Government is strongly determined to implement online tax declarations, as Vietnam is one of the countries that spends the greatest amount of time on tax procedures, with 872 hours spent annually for each small and medium-sized enterprise, according to Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consultancy Association (VTCA). This figure is four times higher than that of many other Southeast Asian countries. Indonesia spends 259 hours, Thailand 264 hours, Malaysia 133 hours and Singapore 82 hours. Vietnam ranks 149th out of 189 nations in terms of time required to complete tax payments. According to Deputy Finance Minister Do … [Read more...]

VN strives for big tax reform

People pay tax at a branch of Ha Noi Tax Department. All tax departments need to implement the e-tax service to cut down tax declaration procedural times. — VNA/VNS Photo HA NOI (Biz Hub) — Deputy Prime Minister Vu Van Ninh said every province would strive to implement an e-tax service to cut tax declaration procedural times to 171 hours per year in 2015. Under Ninh's instructions, laid out in a tax review meeting in February, all tax departments must continue reviewing and minimizing paperwork to create favourable conditions for taxpayers. The Government is strongly determined to implement online tax declarations, as Viet Nam is one of the countries that spends the greatest amount of time on tax procedures, with 872 hours spent annually for each small and medium-sized enterprise, according to Nguyen Thi Cuc, chairwoman of the Viet Nam Tax Consultancy Association (VTCA). This figure is four times higher than that of many other Southeast Asian countries. Indonesia spends … [Read more...]

Ho Chi Minh City surpasses revenue targets

Ho Chi Minh City. — File Photo

Budget revenue for HCM City last year reached VND164.23 trillion (US$7.7 billion), 8 per cent higher than the year's target and a year-on-year increase of 4.73 per cent. The figures were released during a conference held last Friday to review tax operations in HCM City. Le Xuan Duong, deputy head of the HCM City's Tax Department, said last year domestic revenue (excluding budget collections from crude oil) exceeded the target to reach VND129.5 trillion ($6.07 billion), an increase of nearly 9 per cent over the previous year and four per cent higher than the year's target. The budget collection from the economic sector in the city, for the first time, surpassed the city's target last year to top $92.5 trillion ($4.3 billion), accounting for more than 70 per cent of total domestic revenue. Le Thanh Hai, secretary of the Party Committee of HCM City, said tax collection from the city's four key industrial sectors had increased significantly over the past years and contributed up to … [Read more...]

Uber must pay 5pct income tax on total revenue in Vietnam: ministry

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Uber will have to pay tax if it is licensed for legally operating in Vietnam, said a senior state official from the Ministry of Finance on Wednesday. If being licensed for legally operating in Vietnam, Uber will have to pay 5 percent income tax on total revenues it gain from the local market, said Deputy Minister of Finance Do Hoang Anh Tuan, citing General Taxation Department’s calculation. Accordant to the General Taxation Department under the ministry, Uber International BV, which enjoy 20 percent of the total the payments of passengers for using Uber services, will have to pay 5 percent value added tax and 5 percent corporate income tax on total revenues it gains from the local market. For the local transport firms directly contracting with Uber International BV, they will have to pay tax worth 80 percent of their earnings from using Uber service through banks. In addition, those businesses will also be charged with some other kinds of fees and all other kinds of … [Read more...]