VietNamNet Bridge - More countries want to collect taxes from multinational technology groups like Google and Facebook, but the problem they face is how to do it. The global and local media has reported that the Indonesian government decided to collect tax arrears for the past 5 years from Google, estimated at over $400 million for 2015 alone. Indonesia is the first Southeast Asian nation that will collect tax arrears from Google. Earlier this year, Google's head office in Paris was inspected by the local government, with the request of paying $1.76 billion in tax arrears. In 2013, the UK accused Google of tax evasion. In recent years, the question whether Google and Facebook has dodged or evaded taxes and how to collect taxes from these groups has been repeatedly raised. In Vietnam, advertising on Google and Facebook is done via two methods: through agents and online transactions. For the first method, only a few firms have registered and paid taxes for the services. For the … [Read more...] about Google faces tax penalties in Indonesia – does it pay tax in Vietnam?
Tax evasion definition
Last year, the arrival of a 2008 Bugatti Veyron, one of the world's fastest cars, in Vietnam made headlines in the local media. The car's cost was US$800,000 and under Vietnamese law, used luxurious cars are subject to import taxes which can be higher than 100 percent of their value. If the law was applied in this case, the owner would end up paying more than $1.6 million for the car. But the law also says cars are exempted from import and value-added taxes, if they are imported as used assets by overseas Vietnamese citizens who had moved back permanently to Vietnam. Although the car's arrival made headlines, there was not much more information reported, except that its owner was an overseas Vietnamese, Viet kieu, who had returned to settle down in Vietnam. So the owner of the super fast car ended up paying no import duties, just a special consumption tax of around $480,000 (which meant he spent $1.28 million on the car). The Bugatti Veyron is not the only luxurious … [Read more...] about Tax evasion suspected in import of luxury cars
Logistics key to competitiveness With its export-driven economy, Viet Nam should prioritise investment in trade logistics to improve competitiveness, economists have suggested. Speaking at a consultative workshop on trade promotion, value creation and competitiveness on Wednesday, the World Bank economist Pham Minh Duc said it predicted the country's export volume would triple by 2020. However, poor commercial infrastructure and logistics services cost Viet Nam in terms of of time, money and reliability, making it less competitive than rival nations, he said. Meanwhile, according to the World Bank's latest report, solid infrastructure and logistics can help boost GDP by up to one per cent. It also claims that every 10 per cent reduction in logistics costs can help save resources worth two per cent of GDP. However, in Viet Nam, according to the General Statistics Office, transported goods volume increased over 12 per cent annually for the last 15 years and trade volume saw a … [Read more...] about BUSINESS IN BRIEF 24/12
Building in HCMC collapses, injures 11 11 workers were injured when a three-story building under construction in Ho Chi Minh City suddenly collapsed Saturday morning. The site of the collapsed building. (Photo: Tuoi Tre) The accident occurred at 8:30 am Saturday when 16 workers were working at the construction site near a swamp in Can Gio District's An Thoi Dong Ward. Of these workers, 11 were hit by or buried in the ruins of the collapsed building. They were later taken to the People's Hospital 115 for emergency treatment. Two of the victims are in serious conditions. Works on the building started two months ago and its owner has obtained a construction license, the ward police said, adding that the contractor has bought insurance for the construction. Some local residents blamed the collapse on the weak foundation of the house as it had been built next to a swamp. The ward's construction inspectorate and police are blocking the site and investigating the … [Read more...] about SOCIETY IN BRIEF 16/10
Tax agreement to forge closer ties between Vietnam and HKBy Thanh Trung - The Saigon Times DailyHANOI – Enterprises from both Vietnam and Hong Kong will see trade and investment opportunities more plentiful once the agreement on avoidance of double taxation comes into effect, said speakers at a seminar in Hanoi on Tuesday.The agreement, signed between the two sides in Hanoi last December, will take effect on April 1, 2010 for Hong The agreement will definitely bring benefits for Hong Kong companies doing business in Vietnam, said Alice Lau, commissioner of the Inland Revenue Department under the Hong Kong Special Administrative Region Government.It will enable businesses and individuals to better assess their investment positions and, no doubt, will further foster closer investment and trade links between the two sides, she told some 100 business executives attending the seminar.Charles Ng, associate director general of Invest Hong Kong, told the Daily on the sidelines of the … [Read more...] about Tax agreement to forge closer ties between Vietnam and HK