The misconceptions about transfer pricing being a tax avoidance or violation in Viet Nam are creating challenges for multinational enterprises, said Adam Sitkoff, executive director of the American Chamber of Commerce in Viet Nam (Amcham). In his opening speech at a workshop held to gain clarity on the changing world of transfer pricing, he expressed his concerns regarding the widespread perception of transfer pricing as a tool for tax evasion and a violation of laws. He told the workshop held in Hanoi yesterday, that in the context of Viet Nam’s increasing integration into the global economy, transnational transactions would start to become more and more frequent. The misconceptions about these types of transactions would create challenges and barriers for transnational investors when they decide to invest in Viet Nam, Adam said. He stressed that measures should be taken to determine appropriate prices, including tangible and intangible transactions, services, financial or … [Read more...] about Transfer pricing not always tax evasion
Income tax evasion
China's taxation authorities have fined A-list Chinese movie star Fan Bingbing more than 479 million yuan (US$70 million) over tax evasion and ordered her to pay back more than 255 million yuan in taxes, state news agency Xinhua said on Wednesday (Oct 3). Fan Bingbing has not been seen in public since reports of her involvement in tax evasion surfaced in June. (Photo: AFP/Anne-Christine Poujoulat) The Jiangsu provincial tax bureau delivered its judgments to Fan on Sunday, Xinhua said. The movie star dropped off the radar in June amid reports that she was involved in an investigation into tax evasion in the film industry. Her vanishing act sparked wild speculation in China about her fate, including reports that she had been detained. Fan's troubles began when Cui Yongyuan, a former presenter for state-run China Central Television (CCTV), posted purported contracts online in May that suggested the actress had received under-the-table payments. These agreements are known as … [Read more...] about Actress Fan Bingbing fined US$70 million for tax evasion
Tax experts expect that the cap on interest expense for tax reduction would help prevent transfer pricing and tax evasion - File Photo According to the proposed regulation in the amended draft, the part of interest expense that exceeds 20 percent of the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) will not be subject to tax deduction. Theo VNA … [Read more...] about New corporate income tax law aims to halt tax evasion
Domestic electronic retailer Nguyen Kim, in which Thailand-based Central Group holds 49 per cent, has just been imposed an administrative fine and collected tax arrears of VND148 billion ($6.5 million). Ho Chi Minh City Tax Department decided to collect VND148 billion from Nguyen Kim. Photo: zing.vn Deputy director of the Ho Chi Minh City Tax Department Nguyen Nam Binh on June 29 signed the Decision No.3506/QD-CT to issue an administrative sanction on Nguyen Kim Trading JSC due to corporate income tax evasion. Accordingly, the Tax Department decided to collect arrears of VND104 billion ($4.58 million), a fine of VND19 billion ($837,000), and collect the leftover payment of VND24 billion ($1.05 million). Previously, the Tax Department has received an unnamed complaint about Nguyen Kim’s tax dodging and carried out an inspection at the firm. According to the decision, the firm has to pay within 10 days after the decision was signed (June 29). However, to date (July … [Read more...] about Nguyen Kim dodged $4.58 million in taxes over past decade
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?