Bangkok (VNA) – Thailand’s Government has approved incentives to spur private investment of 110 billion THB (about 3.56 billion USD) and add 0.25 percent to economic growth in 2020. The measures include a corporate income tax deduction of 2.5 times expenditure on machinery, a one-year tax exemption for importing new machinery, and special-rate loans offered by the Export-Import Bank of Thailand for exporters to alter their machinery for export. The tax measures apply to new machinery purchased from Jan 1 to Dec 31, 2020. The 2.5-time tax deduction is not applicable to leased machinery. The measures are estimated to cost the government 8.6 billion THB in forgone tax revenue, said Narumon Pinyosinwat, a government spokeswoman. According to Narumon, the cabinet has approved a 350-million-THB budget to compensate Exim Thailand for the special interest rates. The Thai Finance Ministry said the fresh measures are essential to stimulate private investment and the local … [Read more...] about Thai government approves measures to stimulate private investment
Consumption tax vs income tax
Hanoi (VNA) - Nearly 400,000 cars were sold in the Vietnamese market in 2019 thanks to valuable gift and discount programmes, which were launched at the beginning of the year, said the Vietnam Automobile Manufacturers’ Association (VAMA). Of the figure, more than 320,300 units were sold by VAMA members, marking a year-on-year increase of 12 percent. The other nearly 80,000 units came from TC Motors. VAMA said that the above sales did not fully reflect the overall figures for the automobile market, because there was also the presence of Audi, Jaguar, Land Rover, Mercedes- Benz, Subaru, Volkswagen, Volvo and Vietnamese automaker VinFast. To achieve the above sales, businesses offered promotions, incentives, discounted car sales and valuable accessories for car buyers. Toyota Motors Vietnam offers up to 100 million VND (4,300 USD) for customers buying Corolla Altis, Vios, Innova and Fortuner cars. VinFast also offers a discount of 100 million VND to buyers of Trailblazer SUVs. … [Read more...] about Discounts drive car sales in Vietnam
If business households are forced to become enterprises, they will bear pressure because of the strict requirements on accountancy regime, books, invoices and vouchers. If so, they may ‘go underground’, try to evade tax, and escape the state’s control. Meanwhile, other business households are small and do seasonal business. … [Read more...] about What should be done to help Vietnamese businesses grow?