Car tax which post office

The Hanoitimes – Hanoi’s tax authorities have been promoting IT application in the tax payment process, in turn creating convenience and helping enterprises save costs.

Nearly 7,400 enterprises in Hanoi used e-tax payment with the total amount of VND63 billion (US$2.7 million) as of the end of 2020, according to the municipal Tax Department.

Director of the Hanoi Tax Department Mai Son said that his department has piloted the mandate of tax collection via post to improve the efficiency of tax collection management for individuals and businesses.

Tax officers guide individuals and businesses to pay online tax. Photo: Thuy Linh

The department has currently authorized the municipal Post Office to collect tax in seven districts, including Thanh Tri, Dong Anh, Chuong My, Thanh Oai, Phuc Tho, Son Tay and Phu Xuyen.

The move has created favorable conditions for taxpayers to fulfill their tax obligations at the best convenience, and contribute to the transparency of tax collection and payment.

“We have taken advantage of available technology and locations of units authorized to collect tax to modernize the tax administration. Thus, tax officers have time to focus on guiding people on tax policies and declaration,” Mr. Mai Son said.

Besides, the Hanoi Tax Department has coordinated with commercial banks to conduct tax payment via a bank, including Internet Banking or mobile banking, among other methods.

The tax officer added that e-tax payment helps companies meet their tax obligations quickly and accurately, save time and costs. In addition, they can pay taxes at any time (24 hours a day, 7 days a week, even on holidays) and anywhere with an Internet connection.

“When a business make e-tax payment, the commercial bank will immediately confirm the whether the payment is successful or not. Tax payment information is guaranteed to be safe and confidential,” said Mr. Son.

Over the past years, tax authorities of Hanoi in particular and Vietnam in general have been promoting IT application in the tax payment process, in turn creating convenience and helping enterprises save costs.

In 2020, the General Department of Taxation targeted to integrate 93 administrative procedures at online advanced stages of 3 and 4 out of the four -scale level into the national public services portal. As many as 120 procedures have been integrated so far, or 130% of the target.

The General Department of Taxation attributed a lower State budget revenue against the same period of last year to the Covid-19 economic impacts and the Government’s supporting programs in the form of deferrals of tax payment.

A tax official guides a business owner through online tax procedures. In the latest proposal by the Ministry of Finance, businesses may have several months more before they must pay taxes and land use fees. — Photo laodong.vn

Businesses may have several additional months before they have to pay income tax and land use fees, said a proposal by the Ministry of Finance (MoF) to the Government.

The ministry purposed a five-months extension for business VAT tax, a three-month extension for income tax (for certain businesses only) and land use fees, which may result in over US$5 billion reductions in the State’s budget collection during the first half of 2021.

The proposal also included household and private businesses in sectors that were eligible for support as well as their income tax.

MoF said the State’s budget would still even out as taxpayers were expected to make full payments by the end of the fiscal year while citing numerous difficulties faced by the business community in dealing with adverse effects of the COVID-19 pandemic as gound for the proposal.

The ministry stressed the importance of allowing businesses to hold on to their cash as it’s essential to the country’s economic recovery as a whole. This is the third proposal made by the ministry in support of the business sector.

Last year, tax offices issued extensions for nearly 185,000 businesses with a total tax payable of $3.8 billion with the main benefits being 14 domestic car manufactures with an amount of $870 million.

Economist Dinh Trong Thinh said the Government must do more to support the business community, saying it is an important factor in maintaining social and economic security. Thinh, however, added inspection and oversight over support policies must be thorough to prevent waste and corruption during the implementation phase.

Head of the General Department of Taxation Cao Anh Tuan said reviews had been conducted by his department to gauge the damage caused by the pandemic to the business sector, local tax offices have been instructed to submit reports on if and how the pandemic has affected businesses under their jurisdiction.

The department also established online channels to answer tax-related questions, carried out administrative reforms and simplified the inspection process to support businesses. — VNA/VNS

A tax official guides a business owner through online tax procedures (Photo: laodong.vn)

Hanoi (VNS/VNA) – Businesses may have several additional months before they have to pay income tax and land-use fees , per a proposal from the Ministry of Finance (MoF) to the Government.

The ministry proposed a five-month extension for business VAT tax, a three-month extension for income tax (for certain businesses only) and land-use fees, which may result in a more than 5 billion USD reduction in the State’s budget collection during the first half of 2021.

The proposal also included household and private businesses in sectors eligible for support as well as their income tax.

The MoF said the State budget would still even out as taxpayers were expected to make full payments by the end of the fiscal year while citing numerous difficulties faced by the business community in dealing with the adverse effects of the COVID-19 pandemic as grounds for the proposal.

The ministry stressed the importance of allowing businesses to hold on to their cash as it’s essential to the country’s economic recovery. This is the third proposal made by the ministry in support of the business sector.

Last year, tax offices issued extensions for nearly 185,000 businesses with a total tax payable of 3.8 billion USD with the main benefits being 14 domestic car manufactures to the tune of 870 million USD.

Economist Dinh Trong Thinh said the Government must do more to support the business community, saying it is an important factor in maintaining social and economic security. He, however, added inspection and oversight of support policies must be thorough to prevent waste and corruption.

Head of the General Department of Taxation Cao Anh Tuan said reviews had been conducted by his department to gauge the damage caused by the pandemic to the business sector and local tax offices have been instructed to submit reports on if and how the pandemic has affected businesses under their jurisdiction.

The department has also established online channels to answer tax-related questions, carried out administrative reforms and simplified the inspection process to support businesses./.

The Hanoitimes – While car prices in 2020 were significantly lower compared to the pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units.

Major car dealers in Vietnam, including Savico, Haxaco and City Auto, posted modest return on sales (ROS) of 1-2% in 2020, mainly due to customers tightening their belt amid a difficult Covid-19 year.

Customers at a car dealer center in Le Van Luong street. Photo: Pham Hung

“The pandemic had led to fierce competition in car prices, causing a downturn in the company’s business performance,” stated Savico in its financial statement.

Savico, a distributor of major car brands of Toyota, Volvo, Honda, Mitsubishi, recorded the highest revenue among the three with VND16.13 trillion (US$700.2 million), down 12% year-on-year, and profit of VND224 billion (US$9.72 million), or ROS of 1.38%.

While car prices in 2020 were significantly lower compared to pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units, data from the Vietnam Automobile Manufacturers’ Association (VAMA) noted.

City Auto, a major distributor of Ford and Huyndai, suffered a same fate with a decline of 11% year-on-year in revenue to VND5.67 trillion (US$246.1 million) and net loss of over VND4 billion (US$173,800).

Last year, City Auto predicted a challenging year of 2021 for the automobile industry following a sharp drop in market demand.

In a letter to the Ho Chi Minh City Stock Exchange, City Auto attributed its negative business performance to lower car sales volume.

In contrast, Haxaco, a leading Mercedes-Benz car dealer in Vietnam, recorded a rise of 8% year-on-year in revenue to VND5.57 trillion (US$241.8 million) and after-tax profit of VND125 billion (US$5.42 million), up 150% year-on-year.

A senior official at Haxaco said the firm took advantage of the government’s policy of reducing 50% of the registration fee for domestically-produced cars to boost sales revenue. However, Haxaco’s ROS remained at a modest rate of 2.24%.

A study from SSI Securities Corporation suggested 2021 could start the upward trend of Vietnam’s automobile industry with a 16.3% year-on-year growth rate in terms of car sales number, citing high demand from the domestic market for cars.

Vietnam aims to obtain a GDP growth rate of 6.5 percent this year and average income per capita of $3,700. With rising incomes, car sales are expected to boom.