At the first instance hearing, the representative of Standard Chartered Vietnam asked Quang Minh Corporation JSC (QMC) to pay its debts of VND89.9 billion ($4 million), and Standard Chartered Mauritius also asked for the repayment of over VND38 billion ($1.7 million). Quang Minh Corporation is not the only large debtor of Standard Chartered Vietnam that has defaulted on payments In 2013 Standard Chartered Vietnam and Standard Chartered Mauritius granted letters of short-term credit for Quang Minh Corporation JSC (at No.1 Thanh Nien street, Ba Dinh district, Hanoi) limited at $20 million. Then they signed contracts of mortgaging goods, receivables, insurance contracts, as well as all of QMC’s accounts and deposits in banks to secure the loans. Standard Chartered Vietnam lent VND60.9 billion ($2.7 million) at the annual rate of 7.6 per cent first (later adjusted to 8.3 per cent), and an additional VND5.1 billion ($225,000). These debts expired in April 2015, but QMC has … [Read more...] about Standard Chartered Vietnam asks Quang Minh Corporation to pay $4 million debt
Vietnam tax authority website
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?
A helpful starting point to identify where tax obligations fall after a transfer With the increasing number of mergers and acquisitions (M&A), transfer of contributed capital and securities is becoming more common and is widely used by both domestic and foreign investors. Complying with the regulations and having a tax efficient approach is one of the key concerns of most shareholders who would like to invest or divest from a Vietnamese company. In general, share transfer in Vietnam includes the sale of capital contributed in a limited liability company (LLC) and securities of a joint stock company (JSC), and in certain circumstances, the taxes imposed on each transaction are different. Tax liability of the sellers Corporate sellers/transferors For local corporate sellers, any gain derived from the transfer of capital/securities in another Vietnamese entity is regarded as ‘other income’ and is accordingly subject to corporate income tax (CIT) at the current … [Read more...] about Tax implications of selling equity or shares in Vietnamese entities
Experts have recommended amending e-commerce regulations that would allow authorities to better manage and collect tax as well as develop the sector.- Photo bizlive.vn Mạch Thị Tuyết Mai from the General Department of Taxation’s policy division, said: “We have encountered difficulties in tax collection.” The issuance of business licenses for e-commerce firms remains confusing because some kinds of e-commerce are not included on the tax list. Therefore, it is hard for tax authorities to determine the appropriate tax collection form. Most businesses in Việt Nam still use paper invoices, while some businesses have used e-invoices but do not have a system to connect with the tax agency. As a result, tax agencies found it hard to identify the revenue of these businesses, she told the Vietnam Online Business Forum held in HCM City on March 17. “We are now conducting an electronic invoice project to submit to the Government. The project will … [Read more...] about E commerce grows but taxes hard to collect
A new plan by Ho Chi Minh City tax department looks to name and shame owners of Facebook shops that intentionally evade tax responsibilities. The move is expected to tighten tax collection over the blooming field of e-commerce, including those conducted via the social media Facebook, in the southern metropolis. Accordingly, the city’s tax department will coordinate with their colleagues in the departments of trade and information, as well as with Facebook and Google, to compile a comprehensive list of unregistered online businesses in the city. The list will include individuals and organizations that use internet platforms to sell or provide solutions for payment, transport, and delivery. The municipal tax department also requested that the local police submit information regarding registered e-commerce websites that have not filed taxes while The State Bank of Vietnam was tasked with providing a list … [Read more...] about Ho Chi Minh City to name and shame tax-evading Facebook shop owners