More tax reforms needed despite improvement

Tu Giang Up to 71% of enterprises were satisfied with improvements in tax procedures as shown in the 2014 report on enterprises’ satisfaction of tax reform. The report was released in Hanoi on August 11 by the Vietnam Chamber of Commerce and Industry (VCCI), the General Department of Taxation, the Advisory Council for Administrative Procedures Reform and the International Finance Corporation, a member of the World Bank Group. VCCI president Vu Tien Loc said that 71% of enterprises said they were satisfied with tax procedures. The report assessing changes in tax policies in the past five years indicated value-added tax and corporate income tax have undergone more positive changes, thereby saving much time for corporate taxpayers. According to the report, 90% of respondents said tax inspections were carried out on time and around 53% said tax officers were friendlier to enterprises. Nguyen Dai Chi, deputy head of the General Department of Taxation, said 97% of … [Read more...]

Ministry promises help for firms victimized by false tax debt info

Tu Giang Deputy Minister Do Hoang Anh Tuan told a press conference last Friday that if those enterprises could prove the tax debt information led them to lose new contracts, tax authorities would have proper solutions to assist them. The ministry has sent apologies to six out of 600 enterprises listed as tax debtors over inaccurate information about their tax obligations. As explained by Tuan, the six firms are among the eight that told the ministry about the false information about their tax obligations. Late updates of enterprises’ tax payments were to blame for the inaccurate information. Tuan said before 2012, the National Assembly and the Government approved tax payment delays and cuts to help enterprises weather the economic slowdown. However, though the economy has improved since 2013, enterprises have still cited economic difficulties as reasons to postpone their tax payments. Tuan said enterprises with late tax payments were publicized as tax arrears have … [Read more...]

Tax evaders pay up US$32m to Gov’t

Tax officials instruct taxpayers on procedures in Hanoi. — VNA/VNS Photo Hoang Hung

Of the 268 businesses that owed the Hanoi Government back taxes, 136 have paid up more than VND700 billion (US$32.1 million) after being publicly named last week, according to the city tax department. Most of the money related to land-use tax payable for housing projects. A department official said outing the names of evaders is an effective measure to get businesses to pay taxes. However, after the department released a list of 600 dodgers, some were found to be wrong. Eight businesses did not belong while 27 others owed less than proclaimed. The department blamed the errors on a new software. At a recent press briefing, Deputy Finance Minister Do Hoang Anh Tuan said the tax sector apologised for including inaccurate information when it published the names of the debtors. The ministry would put in place measures to solve problems caused by the incorrect information if it affected those businesses' operations, he said. Publishing the names was compulsory because the amount of … [Read more...]

Tax evaders pay up $32m to Gov’t

Tax officials instruct taxpayers on procedures in Ha Noi. — VNA/VNS Photo Hoang Hung

HA NOI (VNS) — Of the 268 businesses that owed the Ha Noi Government back taxes, 136 have paid up more than VND700 billion (US$32.1 million) after being publicly named last week, according to the city tax department. Most of the money related to land-use tax payable for housing projects. A department official said outing the names of evaders is an effective measure to get businesses to pay taxes. However, after the department released a list of 600 dodgers, some were found to be wrong. Eight businesses did not belong while 27 others owed less than proclaimed. The department blamed the errors on a new software. At a press briefing last Friday, Deputy Finance Minister Do Hoang Anh Tuan said the tax sector apologised for including inaccurate information when it published the names of the debtors. The ministry would put in place measures to solve problems caused by the incorrect information if it affected those businesses' operations, he said. Publishing the names was … [Read more...]

Press digest – July 17

Party & State leaders greet Chinese Vice Premier Party General Secretary Nguyen Phu Trong and State President Truong Tan Sang on July 17 separately hosted receptions for a high-ranking Chinese Party delegation headed by Politburo Standing Committee member and Vice Premier Zhang Gaoli. The Party leader recommended that the two sides should strictly carry out common perceptions reached by their Parties and States’ leaders, foster result-oriented exchanges and cooperation in all fields. The same day, during his reception for the Chinese Premier, State President Truong Tan Sang said that amidst the global and regional complicated situations, the two countries must beef up their political trust on the basis of strict adherence to their high-ranking agreements. Leaders welcome Lao PM Party General Secretary Nguyen Phu Trong and National Assembly Chairman Nguyen Sinh Hung on July 17 received Lao PM Thongsing Thammavong who is on a working visit to Viet Nam. The Party leader … [Read more...]

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...]

Foreign-invested businesses top all others in 2014 social insurance debt in Vietnam: report

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Foreign-invested enterprises (FIEs) and foreign organizations last year topped all other economic sectors of Vietnam’s economy in social insurance debt with over VND2.13 trillion (US$97.9 million), according to a government report on the management and use of social insurance funds in 2014. This was a staggering 192.5 percent year-on-year surge, according to the report submitted recently to the ongoing National Assembly meeting, which kicked off in Hanoi on Wednesday. The foreign sector was followed by the non-state sector which owed about VND1.9 trillion ($87.4 million), down about 50 percent compared to the rate of over VND3.8 trillion in the previous year. The non-state sector held the top position in social insurance debt in 2013 as the debt it owed accounting for about 16 percent of total social insurance debts that should be recovered, according to the report. In general, the government said in the report that the balance of the country’s social insurance … [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...]