Tax experts expect that the cap on interest expense for tax reduction would help prevent transfer pricing and tax evasion. (File Photo) Hanoi (VNA) - In the latest draft of Law on Corporate Income Tax, the Ministry of Finance has raised a regulation aimed at preventing multinational companies with related-party transactions from evading taxes. According to the proposed regulation in the amended draft, the part of interest expense that exceeds 20 percent of the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) will not be subject to tax deduction. The ministry said several foreign-invested companies operating in real estate, trade and services, for example, reported losses despite posting growths in revenue and expanding their businesses. Looking at their financial reports, the ministry found that one of the reasons for the loss was the huge sum of interest expense the parent companies needed to pay. Experts said the cap on interest … [Read more...] about New corporate income tax law aims to halt tax evasion
Corporate
Experts support corporate deposit interests tax
Many experts have backed the Ministry of Finance's controversial proposal to levy taxes on corporate deposit interest. Economists recommend levying taxs on interest In an act to amend the corporate income tax law, the ministry has expanded the list of taxable income. According to the proposal, the government will levy tax on the deposit interest and even the lending interest of corporations. The proposal has been met with strong opposition from enterprises. The owner of one company said, "The Ministry of Finance should reconsider their decision because a lot of that interest goes to pay wages and bonuses for employees." Meanwhile, several experts said it is reasonable to levy tax on interest. Economist Nguyen Minh Phong said that the proposal might even prevent corporations from delaying paying salaries, taxes or investments to upgrade member companies to make profits from bank saving accounts. Nguyen Tri … [Read more...] about Experts support corporate deposit interests tax
VATM signs technical cooperation deal with US corporation
At the signing ceremony (Photo: VNA) Hanoi (VNA) – The Vietnam Air Traffic Management Corporation (VATM) on February 2 inked a contract with the US-based Mitre Corporation for technical assistance for an Air Traffic Flow Management (ATFM) implementation master plan in Vietnam. In the context of increased domestic and regional aviation activity, VATM has been implementing strategic solutions to enhance the air navigation capacity. It also requires a master plan on ATFM for providing an integrated vision and a systematic roadmap for implementing ATFM operations in Vietnam. The project, funded by the US Trade and Development Agency (USTDA), will be launched in 16 months from the signing date. It will develop an ATFM vision and devise an implementation plan by 2025 and beyond, as well as build the roadmap for participation in the “Concept of Operations for a distributed multi-nodal ATFM” project in the Asia – Pacific region, and the roadmap for international … [Read more...] about VATM signs technical cooperation deal with US corporation
Connecting Corporate Responsibility With The Youth
Connecting Corporate Responsibility With The YouthBy Trung ChauSome 350 Vietnamese and foreign students from universities in Asia Pacific, Europe and Africa last week joined the week-long Asia Pacific Exchange and Leadership Development Seminar (APXLDS) in HCM CityThe seminar was held annually by AIESEC, a global youth organization that develops leadership capabilities through their internal leadership programs which engage students and graduates in international student exchange and internship programs for profit and non-profit organizations.At the AIESEC Youth Forum held on March 24 in HCM City, which was part of the APXLDS, the young people were classified into many groups to discuss connecting corporate responsibility to the youth.Several case studies were given by companies sponsoring the events—PepsiCo, CapitaLand and ACB, to name just a few. They were about driving forces for organizations to invest in the community, importance for businesses to integrate corporate social … [Read more...] about Connecting Corporate Responsibility With The Youth
ANZ, Vietinbank finish corporate bond issue
ANZ, Vietinbank finish corporate bond issueBy Phuong Thao - The Saigon Times DailyANZ Vietnam and VietinBank are joint lead advisors and issuing agents for the transaction, helping Vinacomin issue VND500 billion worth of floating-rate corporate bonds with a five-year tenor.The successful transaction will enable Vinacomin to raise senior funding from the local bond market.Tareq Muhmood, CEO of ANZ Vietnam, said in a statement released on Thursday that it is appropriate for Vinacomin to use corporate bonds for mid-term and long-term capital mobilization given improving macro economic conditions and dong liquidity. Le Duc Tho, deputy CEO of VietinBank, said the successful bond issue reflects Vinacomin’s dominant position in the market and favorable outlook for energy demand in Vietnam. This is the right time for investors to consider investing in bonds. … [Read more...] about ANZ, Vietinbank finish corporate bond issue
Banks and corporate clients ink 28 price stabilization deals
Banks and corporate clients ink 28 price stabilization dealsMinh Tam By Minh Tam - The Saigon Times Daily HCMC – Eight banks and 28 corporate customers have signed 28 deals to carry out the city’s program aimed at stabilizing prices of dairy products, food and school stationery. Leaders of the HCMC government, the Ministry of Industry and Trade, the central bank, southern provinces and cities witnessed the signing of the contracts during a review meeting last Friday between HCMC and other provinces. There are eight banks involved in this year’s price stabilization program – Sacombank, VietinBank’s branch No. 7, Eximbank, BIDV’s Ben Thanh branch, Agribank’s Ly Thuong Kiet branch, Military Bank, DongA Bank and HDBank. Last year’s program had only five banks taking part. Meanwhile, the 28 corporate borrowers are producers of essential products, milk and school stationery, such as Saigon Co.op, Saigon Trading Group (Satra), Pham Ton Co., Ltd, … [Read more...] about Banks and corporate clients ink 28 price stabilization deals
Quang Ninh, Vietnam Airlines Corporation ink strategic cooperation
A cooperation deal was inked between the northern province of Quang Ninh and the Vietnam Airlines Corporation on January 22 to boost tourism promotion, expand flight network from and to Van Don International Airport and popularise local tourism and Vietnam Airlines’ services.Quang Ninh will prepare facilities and support mechanisms for new air routes to lure more tourists while introducing local destinations in key markets like the EU, Australia and Northeast Asia.Meanwhile, Vietnam Airlines will study and increase flights to and from Van Don airport in 2018 and beyond. It will work with Quang Ninh to carry out tourism and investment programmes and sponsor cultural and tourism activities during 2018-2021.At the signing ceremony, Chairman of the provincial People’s Committee Nguyen Duc Long stressed that various key transport works will be put into use in June, including Ha Long-Hai Phong and Ha Long-Van Don expressways and Van Don International Airport. They have a crucial … [Read more...] about Quang Ninh, Vietnam Airlines Corporation ink strategic cooperation
Steel Corporation committed to finish 2017’s leftover projects
The Vietnam Steel Corporation (VNSTEEL) needs support from the Government to resolve any remaining problems associated with its two key projects, general director Nguyen Dinh Phuc said at a meeting on Friday. VNSTEEL’s focus this year will be completing the two projects of Viet Trung Metallurgy and Mineral Co Ltd (VTM) and Thai Nguyen Iron and Steel JSC (TISCO), especially in TISCO’s second expansion phase, he said. Phuc said that the plan is part of the Government’s efforts to improve domestic long rolled steel and plated steel production and in line with the Ministry of Industry and Trade’s efforts to support local steel producers in 2018. He conceded that VNSTEEL met with difficulties during the expansion in 2017, as well as in VTM’s Lao Cai Iron and Steel Plant Project, so they both fell behind schedule. VNSTEEL’s negotiations and final settlement with contractors from the China Metallurgy Group were also fraught with difficulties. Due to the … [Read more...] about Steel Corporation committed to finish 2017’s leftover projects
Coffee growers strike outside corporate offices in Gia Lai
More than 200 workers from Dak Doa Coffee and Tea Company went on strike a week ago to protest the company\'s a new contract. Workers eat paltry meal waiting for management boardDak Doa Coffee and Tea Company is operating under Vietnam National Coffee Corporation (Vinacafe).The workers have been gathering at the company’s headquarters, asking for a meeting so the management board could explain the new contract, which was presented without negotiation. The contract offers them "sharecropper" terms, in which they will be paid a flat fee for their crops.Previously, they had a monthly salary with quotas.Another difference in the new contract is that the labourers would be responsible for paying for their own insurance.They sent a collective letter to DTiNews, in which they divulged the terms of the contract.According to the letter, Dak Doa Company will pay a flat rate to upwards of 300 workers on the plantation, which covers 320.73 ha, for the five-year period from 2011 to 2015. The … [Read more...] about Coffee growers strike outside corporate offices in Gia Lai
Duc Giang Corporation achieves profit target in 2017
Customers shop at a showroom of Duc Giang in Ha Noi. — Photo mayducgiang.com.vn The Duc Giang Corporation (Dugarco), one of Viet Nam’s leading garment enterprises, aims to earn VND3.3 trillion (US$144 billion) in revenue and VND48 billion in profit this year. The company earned a total revenue of VND2.9 trillion in 2017, up 7 per cent year-on-year and fulfilling 98 per cent of its annual target. Last year’s profit was estimated at VND45 billion, meeting the profit target set for the whole year. Duc Giang’s Board of Directors (BoD) plans a dividend payment of 35 per cent last year, equivalent to VND25.12 billion. The firm’s BoD also plans to hold the 2018 annual shareholder meeting on April 20. — VNS … [Read more...] about Duc Giang Corporation achieves profit target in 2017