Vietnam to tighten tax management of online businessesThe Saigon Times Daily A man holds his smartphone which displays the Google home page. A draft law on tax management has added many regulations on ecommerce businesses that transact on Google and social media platforms – PHOTO: REUTERS HCMC - A draft law on tax management has added many regulations on ecommerce businesses that transact on Google and social media platforms, including building a database and launching e-taxation services such as e-tax declarations and e-invoices, heard attendees at a meeting held on August 7. The move is aimed at strictly monitoring online businesses, reported the local media. The General Department of Taxation, the Vietnam Chamber of Commerce and Industry and the Vietnam Tax Consultants’ Association (VTCA) jointly organized the meeting to collect feedback on the draft Law on Tax Management. The amendment to the law is set to deal with tax evasion by online account holders, as in … [Read more...] about Vietnam to tighten tax management of online businesses
General department of taxation
Nguyen Duc Tam, Vietjet vice president, (third from left) at a ceremony honouring the country’s top tax payers last week in Ha Noi. — VNS Photo Vietjet has been recognised as one of the 1,000 biggest tax payers in Viet Nam in 2017, following a list announced by the Ministry of Finance’s General Department of Taxation last week in the capital. This recognition resulted from Vietjet’s business performance in 2017. Accordingly, the airline recorded revenue of over VND42.3 trillion (US$1.86 billion) and pre-tax profit of nearly VND5.1 trillion ($224 million), increases of 54 per cent and 73 per cent respectively, compared to the previous period. During the year, the company contributed VND4.2 trillion to the State budget, including direct and indirect taxes, charges and fees. “After six years of operation, Vietjet is proud to be recognised as a top corporate income taxpayer to the Government for the second time. We look forward to further supporting the … [Read more...] about Vietjet recognised as one of biggest tax payers in VN
The finance ministry’s proposal to raise environmental taxes to the highest level permitted for fuels has been met with criticism from other ministries, industry experts and economists, who are calling for a thorough impact assessment and greater transparency. Under the proposal, which is currently reviewed by the legislative National Assembly, petroleum tax will increase by 33 percent to VND4,000 per liter (17 cent) and diesel tax by 33 percent to VND2,000 per liter. The finance ministry argues the tax would encourage consumers to switch to more environmentally friendly and energy efficient alternatives, effectively reducing pollution and carbon emissions. But the transport ministry argues that since the government is already taking measures to encourage consumers to switch from gasoline to biofuels, the additional tax would just distort prices. The ministry is also concerned that the tax on fuels could cancel out the government’s efforts to boost the transport … [Read more...] about Vietnam’s planned environmental tax hike under scrutiny for lack of transparency
Handing over the right of prosecution and investigation to tax authorities may halt tax evasion? Authorities powerless in face of tax evasion by foreign firms In reality, despite the fact that foreign firms are acquiring massive annual revenue and profit from their operations in Vietnam, the local government faces difficulties in collecting tax from them, as could be seen with the examples of Uber and booking sites Agoda, Booking.com, and Traveloka. A number of these enterprises have been delaying tax payments, while others took advantage of loopholes to evade tax obligations. Notably, in late January 2017, the Ministry of Finance (MoF) asked booking sites that allow tourists to book hotel rooms in Vietnam to calculate and pay VAT and CIT. Targeted websites include Agoda, Traveloka, Booking, and Expedia. The CIT rate is 5 per cent of the total revenue. VAT is calculated on the added value that the companies, called “the foreign contractor” by the ministry, make. MoF … [Read more...] about Extending mandate of tax authorities may halt tax evasion?
VietNamNet Bridge - Under a proposal by the Ministry of Finance (MOF), the payment for cross-border services will be made through the national payment portal NAPAS, a unit belonging to the State Bank (SBV). The payment for cross-border services must be made through NAPAS This will allow taxation bodies to control revenue from services and to ask foreign institutions to pay tax. MOF, which is drafting the amended Tax Management Law, has asked all relevant agencies to tighten management over e-commerce activities and fight against the loss of revenue from tax collections. The State Bank has been asked to set up a regulation which forces all the payments for cross-border services to be made via NAPAS. Foreign network operators in Vietnam will be asked to set up divisions or representative offices in Vietnam to closely coordinate with Vietnamese state management agencies. MOF has also asked MIC (Ministry of Information and Communication) to work with them and ask foreign … [Read more...] about Finance Ministry vows to tighten management of cross-border services