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

1612420-xwj9ruxc

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...]

Vietnam doesn’t sell crude oil below production costs

1610955-20141222112606-oil-price

VietNamNet Bridge – Vietnamese officials and experts have denied that the world’s oil price has dropped to below $55, while the exploitation cost in Vietnam is $50-70 per barrel. Bloomberg newswire has quoted BP-sourced figures as reporting that the crude oil reserves in Vietnam are the second largest in East Asia, just under China, with 4.4 billion barrels, or 630 million tons. The black gold brings high revenue to the country’s budget, and therefore, the 40 percent oil price fall since July has forced ministries to discuss the way out. The Ministry of Planning and Investment (MPI) said that it costs $30-70 to exploit a barrel of crude oil. The figure coincides with the HCM City Securities Company’s report that $50 is the break-even point for PetroVietnam, the national oil & gas group. With this production cost, Vietnam would only make a profit if it can sell crude oil at above $70 per barrel. According to the General Department of Customs (GDC), … [Read more...]

Authorities mitigate impact of falling oil price to State budget

The government will implement comprehensive measures to meet next year's annual state budget collection target of VND911.1 trillion (US$42.774 billion), notwithstanding the insignificant effect of the global oil price decline. Some experts are concerned about the reduction of the state's budget next year as the export value of crude oil, which has fallen by 30% to a four-year low of roughly $60 per barrel, contributes significantly to the nation's coffee. However, Deputy Finance Minister Do Hoang Anh Tuan said that as of 2014, the state coffer has not been heavily dependent on the fluctuation of the world's oil price due to a shift in the state's budget collection sources. Tuan explained that the oil export revenue is estimated to account for only approximately 10.2% of the total state budget in 2014 compared with the previous 20–25% rate. State budget collection from domestic production makes up more than 70% of the total budget, which diminishes the gravity of the impact of … [Read more...]

MOF to raise taxes to offset losses from oil export revenue

1606677-20141215114559-tax-oil

VietNamNet Bridge – The Ministry of Finance (MOF) has sharply raised the tariff on petrol imports in order to cope with plummeting crude oil prices. The Ministry of Industry and Trade (MOIT) reported great success in crude oil exports for 2014, estimating an export volume of 7,549 tons and export turnover of $6.802 billion. MOF has reported a 12 percent increase over the estimated collection for the state budget, and a 14-15 percent higher collection rate from oil exports alone. However, if the oil price keeps falling, according to Do Hoang Anh Tuan, MOF Deputy Minister, the State will lose VND1 trillion in 2015 budget revenue for every one dollar in the drop in oil prices. If the oil price hovers around $80 per barrel, Vietnam would lose VND20 trillion in taxes, including 10 percent crude oil export tax, natural resource tax, corporate income tax and other kinds of fees and charges. The oil price plunge has reminded people of the 2009 oil crisis. The oil price has … [Read more...]

Viet Nam to perfect tax and customs policies

Representative from Ministry of Finance and European Chamber of Commerce in Vietnam at the event. — Photo mof.gov.vn

HA NOI (Biz Hub) — Viet Nam is in the process of implementing reforms in its tax and customs administration, Deputy Minister of Finance Do Hoang Anh Tuan said in a meeting here last week. The reforms are expected to create a transparent business environment for European investments in Viet Nam. The meeting was themed "Dialogue on tax, customs and transfer pricing." Participants discussed the issues encountered by European businesses in Viet Nam. The event was jointly organised by the Ministry of Finance (MOF) and the European Chamber of Commerce in Vietnam (Eurocham). Thomas McClelland, Eurocham's chairman of taxation and transfer pricing sector committee, raised five issues faced by European businesses, including accounting, taxation preferential measures and value added tax on export services. McClelland disclosed that European businesses in Viet Nam were concerned about the issue of foreign contractor taxes being paid on warranty services. Meanwhile, Deputy Minister Tuan … [Read more...]

PVN extracts more crude despite falling prices

An offshore oilrig operated by Vietnamese-Russian oil firm Vietsovpetro. PVN has extracted more crude oil than the target although oil prices have kept falling on global markets - PHOTO: TTXVN

Ngoc Lan A source from PVN said the group has realized the target to pump 16.21 million tons of crude oil from domestic and foreign fields as assigned by the Government and 9.5 billion cubic meters of gas as of December 9. The volume from the oil fields within Vietnam was 14.37 million tons. … [Read more...]

Vietnam introduces ‘single-door’ customs clearance mechanism

1589707-faoa829f

Vietnam on Wednesday unveiled a simplified customs procedure at three international seaports, claiming it will help cut customs clearance time by up to four days. The new mechanism was kicked off by Deputy Prime Minister Vu Van Ninh during a ceremony in Hanoi, and is being applied at the ports in the northern city of Hai Phong, as well as Ho Chi Minh City and Ba Ria-Vung Tau Province in the south. … [Read more...]

Tax and customs authorities told to connect database

Chi Thinh Responding to a question about the tax and customs authorities keep asking enterprises to submit the documents they have previously filed, Deputy Minister of Finance Do Hoang Anh Tuan told the meeting on administrative procedures and policies of tax and customs that the two bodies should not ask for what they already have in their database. The tax authority can access the data bank consisting of five million customs declarations to verify information about enterprises, he added. Nguyen Thai Linh, director of Lien Son Computer Paper Co., asked why businesses have to pay the cargo scanning fee while scanning machines are assets of the State, which were bought with taxpayers’ money. … [Read more...]

Explaining Tax, Customs Procedures to Businesses

An annual dialogue on tax and customs policies was recently held in Hanoi by the Ministry of Finance in cooperation with the Vietnam Chamber of Commerce and Industry (VCCI), attracting more than 400 businesses and consultant companies.

In his opening speech, Deputy Finance Minister Do Hoang Anh Tuan said that this conference took place while business performances of enterprises are in grave difficulty. The Ministry of Finance expected to share and discuss to find way-outs for policy difficulties. Although the economy expanded 5.8 percent in the first nine months of 2014, companies still underperformed. The country witnessed 57,000 corporate bankruptcies while new business start-ups were not that many. Only 29 percent of companies made a profit. The customs sector saw little change in importers and exporters from previous years. … [Read more...]

Tax talks highlight policy deficiencies

Customs officers check goods at My Thoi Port, An Giang Province. - VNA/VNS Photo Hoang Hung

HA NOI (Biz Hub) - Difficulties in tax and customs policies topped the agenda of the dialogue that the Ministry of Finance (MoF) and Viet Nam Chamber of Commerce and Industry (VCCI) conducted with enterprises yesterday. … [Read more...]

Ministry considers lifting ceiling on advertising expenses

1555270-20140911103925-ads

VietNamNet Bridge - The Ministry of Finance (MOF) is considering removing a regulation that requires businesses to pay no more than 15 percent of total expenses on advertisements. A senior official of the ministry has revealed that MOF will ask the National Assembly to reduce a number of taxes and fees, including the 15 percent ceiling expenditure on ad and marketing activities. … [Read more...]

Vietnam may remove advertising cost cap

Ngoc Lan The ministry is expected to present a relevant proposal to the National Assembly next month as one of the key tax and customs reforms urged by the Government to support the business community. Currently, the Corporate Income Tax Law restricts expenditures for advertising, marketing and promotions at 15% of total legitimate costs and any surplus expenses cannot be deducted. The rule is aimed at helping local businesses avoid falling into a disadvantage over foreign-invested enterprises that have deep pockets. … [Read more...]

New customs reforms are insufficient, businesses say

1544963-20140825083503-customs-procedures

VietNamNet Bridge - Taxation and customs agencies have begun to streamline administrative procedures but businesses say they have not enjoyed the benefits of such action. The Prime Minister has issued an instruction requesting that taxation, customs and social insurance agencies to reduce by half number of hours that businesses have to spend on certain administrative procedures by December 31. … [Read more...]