Ministry plans to tax shipping surcharges Lan Nhi By Lan Nhi - The Saigon Times Daily HANOI - The Ministry of Finance is working on a plan to classify and tax surcharges of shipping firms with annual tax revenue amounting to thousands of billions of Vietnam dong. The ministry might soon issue guidelines for local tax departments to review and tax surcharges imposed by shipping firms, having collected comments from relevant agencies on this matter in early April. Over the years, shipping firms have registered freight charges that are subject to a value-added tax exemption and a corporate income tax (CIT) of only 2% but have imposed dozens of surcharges on import-export companies to offset the low freight charges. Meanwhile, these surcharges should have been declared under the category of other services that are subject to a CIT of 10% and a VAT of 5%. This practice of shipping companies has caused huge tax losses for the State. According to a draft document of the ministry, … [Read more...] about Ministry plans to tax shipping surcharges
Massachusetts 529 plan state tax deduction
(VEN) - The General Department of Taxation recently provided regulations on personal income tax deduction and finalization for individuals that didn't have a taxpayer identification number (TIN) in 2010, 2011 and 2012. Referring to personal income tax deductions in 2010, 2011 and 2012 for resident individuals that signed a work contract of three months or more but didn't have a TIN, employers deduct the tax from their employees' salaries or wages on a monthly basis. Employers will be punished if they make a wrong declaration of tax to be deducted or paid. Referring to individuals that have had their income temporarily deducted for tax payment by their employers but no longer work for the companies, these persons have to make a personal income tax payment declaration at the relevant tax authority if the tax they really have to pay is higher than the amount that their employers temporarily deducted from their incomes for tax payment./. NTK … [Read more...] about Personal income tax deduction and finalization guidelines
Several business associations have joined Vietnam Chamber of Commerce and Industry's (VCCI) efforts to convince the country's supreme legislative body to nullify the cap when amending the Corporate Income Tax (CIT) law. The revised law is expected to be passed by the National Assembly on June 3. VCCI chairman Vu Tien Loc told Vietnam Investment Review that he supported businesses' call for the abolishment of the advertising and promotion (A&P) tax deduction cap. He said the VCCI had sent an official letter to the revised CIT law drafting committee, the National Assembly's Finance and Budgetary Committee and concerning bodies to formally request for the nullification of the cap."Despite the proposed CIT Law amendments insisting on capping businesses' A&P expenses, whether the cap is to be removed or not will depend on National Assembly deputies' ballots rather than the will of the drafting committee's members," said Loc.Under the current rules and the proposed … [Read more...] about Lawmakers feel heat to remove advertising tax deduction limit
State tax revenue in July reaches VND33.84 tril. By Hong Phuc - The Saigon Times Daily HANOI - State tax revenue in July was estimated at VND33.84 trillion, increasing nearly VND5 trillion over June due to higher local tax and tax from import export operations, said the Finance Ministry. In addition, July was the month enterprises gave taxes for the second quarter and paid 2008 fourth quarter tax which had been delayed. July tax revenue had been expected to increase by VND4 trillion from June. Total January-July tax revenue was estimated at VND222.12 trillion, 57% of the year's forecast and down 10% year-on-year. Of which, local tax revenue was expected to account for 59% of the year's plan and be down 2.8% year-on-year. Income from oil accounted for 48% of the forecast and fell 32.7% year-on-year while tax revenue from import export operations made 57.5% of the year's forecast and fell 5.7% year-on-year. In terms of State expenditures, the ministry said expenditures were estimated at … [Read more...] about State tax revenue in July reaches VND33.84 tril.
Insurance: Tax Deductibility And Awareness Increase Reported by Tu Tam Upon his working trip to Manulife Vietnam to celebrate the 2009 agency award dinner and chart out the strategy for the next two years, Philip Hampden-Smith, executive vice president and general manager, Southeast Asia Operations, Manulife Financial, talks with the Weekly about Manulife’s plans and his opinions on developing the market Q: How does Manulife look at Vietnam insurance market? A: We have a large business in Indonesia with over 2 million customers. We started the business in 1985 and it took a number of years to achieve that scale. We see a similar potential in Vietnam. We have been here for over 10 years and the business has increased rapidly. Demographically, Vietnam has the same opportunity with a young population showing increasing needs for financial products. I would say that Vietnam business will be like Indonesia in a few years – very large business with millions of customers to … [Read more...] about Insurance: Tax Deductibility And Awareness Increase