The Hanoitimes - The amount of tax arrears not collectible stood at VND34.94 trillion (US$1.49 billion), accounting for 42.1% of the total amount and up 11% compared to the end of last year. Vietnam’s total tax arrears as calculated by the tax authority reached VND82.96 trillion (US$3.54 billion) in the first nine months of 2018, up 13.4% against the end of 2017, according to the Ministry of Finance (MoF). Illustrative photo. Of the total, the amount of not collectible taxes stood at VND34.94 trillion (US$1.49 billion), accounting for 42.1% of the total amount and up 11% compared to the end of last year. The uncollected tax amount was reported at VND48.01 trillion (US$2.05 billion), accounting for 57.9% of the total and up 15.1%. The amount of tax arrears paid to the state budget and pending for adjustment reached VND8.66 trillion (US$370.29 million) down 23.7% compared to the end of 2017, tax arrears pending processing amounted to VND4.56 trillion … [Read more...] about Vietnam’s tax arrears increase by 13.4% in Jan-Sep
Vietnam tax calculator
Tax management for mergers and acquisitions activities has recently drawn a great deal of attention from the public. Nguyen Van Phung, director of the Department of Tax Administration at Large Enterprises under the General Department of Taxation, told Manh Bon about the major points of the current tax law governing these transactions. Nguyen Van Phung What taxes apply for mergers and acquisitions (M&A) transactions? Vietnam’s current regulatory system consists of several regulations governing M&A activities which are embedded in various legal documents, such as the Law on Enterprises, the Investment Law or the Competition Law. M&A transactions generally involve the seller, the buyer, and intermediary parties. The objects of the transaction can be assets and investment projects of businesses, whole production and business establishments, contract-based capital or stake transfer of businesses or gradual stock transactions in the stock market until reaching the … [Read more...] about Clear tax policies on M&A transactions now in place
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?
Tax authorities in Ho Chi Minh City have once again sent a request to Grab in Vietnam asking the company to provide details concerning its recent acquisition of rival Uber's Southeast Asia business. The reason for the request is due to the fact that Grab is legally obliged to pay tax on the transfer of capital and business market share following the deal. Vietnam’s tax law states that all income generated by foreign companies operating in the country should be subject to tax, regardless of where they are based. Organizations and individuals that receive capital from foreign organizations are required to declare and pay tax on behalf of those foreign organization, tax authorities cited the law as saying. With details of the Uber- Grab deal remaining undisclosed, authorities are still unsure how to calculate how much the latter owes in tax. Uber also allegedly still owes Vietnam’s government $2.3 million in taxes required, but claims that according to Vietnam’s … [Read more...] about Grab refuses to release details of Uber buy-out to Vietnam’s tax man
According to the ministry, the move will encourage the thrift and effective use of energy and natural resources, and the production and consumption of eco-friendly products, while reducing emissions and fulfilling Vietnam’s international commitments to environmental protection. Agreeing with the suggestion, experts underscored the need for strong measures to curb environmentally-threatening activities by both individuals and organizations and raise public awareness of environmental protection and eco-friendly products. Photo for illustration. Source: cafef.vn At the same time, the tax also contributes to the State budget. In other countries, environmental protection taxes are estimated to account for around 5 percent of the gross domestic product (GDP) on average. The ministry estimated that environment protection tax collection will hit nearly VND 57.3 trillion (USD 2.51 billion) per year, marking an annual rise of more than VND 15.68 trillion, some VND 55.6 … [Read more...] about Finance ministry suggesting raising environment protection taxes