by Le Hung Vong Despite huge annual sales turnovers, many foreign direct investment (FDI) enterprises in HCM City have declared losses for several consecutive years to avoid tax, reports the Sai Gon Giai Phong (Liberated Sai Gon) newspaper. According to the HCM City Taxation Bureau, most of the 20 FDI enterprises it has studied have reported losses while attaining annual turnover of tens of millions US dollars and continuing to expand their business and production. The bureau pointed to a Taiwan-based garment company, saying it has reported losses over many years despite a 10-fold increase in its turnover and operational scale during the same period. After the tax evasion was discovered and these FDI enterprises were asked to explain, eighteen of them suddenly reported profits for 2009. As many as 708 of 1,254 FDI enterprises that made tax declarations in 2008 reported losses. Most of them specialised in manufacturing, garments, footwear, and communications, and were from Asian … [Read more...] about Foreign firms post losses to avoid taxes
Foreign affairs auto
DA NANG – Japan's Tokai Kogyo Group plans to build an automobile spare parts factory in the central city of Da Nang. The site will occupy an area of up to 5ha. The project has a total capital investment of about US$20 million. The plant will supply parts to leading car makers such as Honda, Toyota, Nissan and General Motors. "Tokai Kogyo Group chose Da Nang after three careful studies," Doan Phuoc Thanh, from the city's Foreign Affairs Department, said. The city's excellent infrastructure and attractive environment influenced the company's decision, he added. "Moreover, the cost of human resources in Da Nang is cheaper than in the South and the North," he said, adding that the fact Da Nang was on the East-West Economic Corridor and had good road and sea links was also of prime importance – particularly as the company has a plant in Thailand. The Tokai Kogyo Group also has spare parts plants in the US, China, Indonesia and India. The Tokai Kogyo project is in keeping with … [Read more...] about Japanese firm to build local auto parts factory
The Ministry of Finance is proposing the government collect back taxes from overseas Vietnamese (Viet Kieu) repatriates who imported automobiles and other vehicles into Vietnam for personal use but later sold them when they were obligated to register. Under current regulations, each Viet Kieu repatriate is allowed to bring one personal car to Vietnam for personal use. This vehicle would be exempted from import duties and value added tax and only incur special consumption tax. In a report en route to the prime minister, Deputy Minister of Finance Do Hoang Anh Tuan argued that in light of Clause 21 in the Import Export Tax Law, people who had imported commodities that were exempt from tax and changed their use would have to pay back taxes up to the time they changed the use of those commodities. Clause 6 stipulated that commodities that had changed their usage would pay the appropriate tax rates at the time the change occurred. Accordingly, Viet Kieu repatriates who brought cars … [Read more...] about MoF considering penalising loophole auto importers
Supplemented Regulations for Auto Import: Hard Nut for Car Dealers to Crack? After the Ministry of Industry and Trade issued Circular 20/2011/TT-BCT on additional regulations on car import procedures, many businesses have complained that “this is really a big technical barrier and seems to be against World Trade Organization (WTO) principles”. Under the circular, car importers have to show papers stating that they are authorized importers or distributors of genuine car makers and the papers must be certified by Vietnam’s diplomatic agencies abroad when they import cars of less than nine seats. In addition, they have to own certificate of maintenance establishment which is licensed by the Ministry of Transportation. Who will protect interests of consumers? According to Deputy Minister of Industry and Trade Nguyen Thanh Bien, the circular does not mean trade barriers to imported cars or quota limit and it also does not impinge on WTO principles. In fact, the … [Read more...] about Supplemented Regulations for Auto Import: Hard Nut for Car Dealers to Crack?
President Barack Obama will launch a trade complaint against China over what his administration says is Beijing's unfair government backing of its auto industry, a White House official said on Sunday. U.S. President Barack Obama waves as he returns to the White House in Washington September 13, 2012, after campaigning in Colorado. Obama will announce during a campaign tour of Ohio on Monday that he is initiating a case against China at the World Trade Organization over allegedly illegal subsidies for automobiles and auto parts, the official said. The move allows Obama to take a stand on China and advance the interests of a major job-providing industry in a state that could tip the balance in a close election. His opponent, Mitt Romney, has attacked Obama for what he says is an overly cautious approach to pressuring China into … [Read more...] about Obama to launch auto trade case against China: official