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?
Vietnam tax authority website
Vietnam Launches Anti-trade Fraud Council The Vietnam Chamber of Commerce and Industry (VCCI) made debut a consultancy council for warning and preventing trade frauds in certificates of origin (C/O) in Hanoi on October 14. The council led by Tran Thi Thu Huong is aimed to protect local producers and enterprises amid the rising number of C/O frauds, especially products being imposed anti-dumping taxes, according to VCCI Vice President Pham Gia Tuc. In order for effective operation, Vietnam needs to coordinate with foreign organizations on anti-trade frauds and commerce chambers and agencies granting C/O, plus close cooperation with domestic ones. The council will provide Vietnamese businesses with early warning about their to-be-signed contracts on products which are at risk of facing anti-dumping duties, Huong said. It will also join hands with the Ministry of Planning and Investment to provide consultancies to foreign enterprises before they decide to invest in the country. On … [Read more...] about Vietnam Launches Anti-trade Fraud Council
When releasing the list on July 20, the finance ministry said if the companies continued to delay paying up, tax agencies will deduct money from their bank accounts, invalidate their invoices or even freeze their accounts, if necessary. … [Read more...] about Vietnamese tax agencies ordered to apologize for shaming wrong companies
In an unprecedented move, the Ministry of Finance has released a list of 600 big tax defaulters around the country, assuring that it will take strong measures to make them pay their debts estimated at over VND12.65 trillion (US$573.38 million) in total. Tax agencies have been ordered to deduct money from the bank accounts of these companies, invalidate their invoices and even freeze the accounts if necessary, according to the ministry. All the listed defaulters were more than 121 days behind deadlines for paying their taxes which were huge, it said. Tax authorities have reminded them of the taxes many times in vain, it added. The biggest unpaid back taxes were reported in Hanoi, where 200 businesses defaulted on over VND4.67 trillion ($211.63 million). Meanwhile, 200 companies in Ho Chi Minh City, about 10 percent of which in the real estate sector, were accused of owing over VND3.51 trillion ($159.3 million) in taxes. Many of the blacklisted companies were big players in their … [Read more...] about Naughty list: Vietnam names 600 top tax defaulters, threatens to freeze bank accounts
Tough to tax online vendorsThe Saigon Times Daily Online shopping has grown popular among young buyers in major cities in Vietnam in recent years, helped by the rise of social media platforms like Facebook. But most online vendors do not pay taxes as tax authorities find it extremely hard to force them to comply with tax regulations. The HCMC Tax Department has recently threatened to make public a long list of individuals and organizations that sell goods and services on Facebook but never pay taxes. The move is aimed at protecting the interests of those fully paying taxes and thereby guaranteeing fair competition. The tax offices of the city’s 24 districts have informed online vendors of their obligations to file and pay taxes. Nonetheless, few have complied while the taxmen feel their hands tied because certain online vendors do not give truthful information. The tax office of Binh Thanh District, for instance, has found more than 1,100 e-commerce pages on Facebook and websites … [Read more...] about Tough to tax online vendors