By Anh Tran  December 12, 2018 | 04:09 pm GMT+7 A survey by market research firm Vietnam Report released in October shows 42.9 percent of respondents said tax burden was the biggest concern. Photo by VnExpress The finance ministry has rejected businesses’ claim a shortage of tax officials to carry out timely annual tax inspections is causing them trouble. Kenneth Atkinson, chairman of the British Business Group Vietnam, said companies are having to pay late tax payment penalties because the tax office is unable to carry out annual tax inspections in a timely fashion. "The under resourcing of the tax and customs departments often means that inspections take place late and up to five years after the reporting period," Atkinson said at the recent Vietnam Business Forum (VBF). "Where there are genuine administrative errors, which are not challenged for up to five years, the administrative fines and late payment penalties are unfair and onerous." But Deputy … [Read more...] about Deputy minister rebuts companies’ allegations of delayed tax scrutiny
Paying late taxes
Uber BV completely pays off tax arrears
The Netherlands-based Uber BV Company has completed its remaining tax arrears payment of 53 billion VND. (Photo: vneconomy.vn) HCM City (VNA) – The Netherlands-based Uber BV Company has completed its remaining tax arrears payment of 53 billion VND (2.26 million USD), immediately after the firm withdrew its petition against the Ho Chi Minh City’s Department of Tax department. According to the deputy general director of the department, his agency in early September 2017 issued a decision on the punishment of administrative violations on tax and collection of over 66.68 billion VND of arrears for Uber BV. However, Uber BV paid only 13.3 billion VND (568,761 USD) and refused to pay the remaining 53 billion VND, which included the value added tax and personal income tax payable by its drivers. It made a complaint to the Ministry of Finance and sued the tax department to the Ho Chi Minh City People’s Court. In late March 2018, Uber BV stopped operations and closed all … [Read more...] about Uber BV completely pays off tax arrears
Uber pays back taxes
Uber pays back taxesBy Minh Tam A Uber driver uses the app to connect with his client in this file photo. Uber has finally paid its back taxes - PHOTO: TL HCMC - The Netherlands-based ride-hailing firm Uber International Services Holding B.V. has paid its back taxes after withdrawing its lawsuit against the HCMC Tax Department, noted the department’s deputy director, Nguyen Nam Binh. Binh today, September 10, told The Saigon Times that Uber B.V. on September 4 had paid more than VND53.6 billion (US$2.3 million) in tax arrears and fines due for tax payment delays up to September last year to the Vietnamese State budget. The amount is the remainder of the total VND66.6 billion that the HCMC taxman had earlier ordered Uber to pay. However, the firm still owes an interest sum for the back taxes from September last year to September 4. The HCMC Tax Department will calculate the amount and ask Uber to make the payment in line with the law, Binh added. The VND66.6-billion … [Read more...] about Uber pays back taxes
Uber dispute ends as firm pays back taxes, fines
By Le Chi  September 10, 2018 | 03:53 pm GMT+7 A HCMC taxman has confirmed that ride hailing firm Uber has paid all its outstanding dues. Nguyen Nam Binh, deputy director of the HCMC Tax Department, told VnExpress that the Netherlands-based ride hailing firm has paid VND53 billion ($2.3 million) in back taxes and fines. In September 2017, the department asked the Vietnamese branch of Uber International to pay VND66.68 billion ($2.91 million) in back taxes and fines. Uber did not agree with this demand and only paid VND 13.3 billion. The company complained to the Ministry of Finance that it should not be subject to certain taxes under Vietnam’s agreement on double taxation avoidance with the Netherlands. However, the Ministry of Finance issued an official reply, which rejected Uber’s argument. In response, the company filed two lawsuits against the Ho Chi Minh City Tax Department. On August 17, Uber withdrew its lawsuit over HCMC’s demand for $2.3 … [Read more...] about Uber dispute ends as firm pays back taxes, fines
HCMC taxman to continue collecting back tax from Uber
HCMC taxman to continue collecting back tax from UberBy Tam An Uber has sold its business in Vietnam to Grab. - PHOTO: TL HCMC - The HCMC Tax Department will continue ordering the Netherlands-based ride-hailing firm Uber to pay back taxes after the firm has withdrawn its lawsuit against the department, noted the department’s deputy director, Nguyen Nam Binh. Binh told The Saigon Times that the department has received a notification from the HCMC People’s Court dismissing Uber’s lawsuit against the department. The department will calculate the back taxes and fines due for tax payment delays by Uber to date, Binh added, confirming that the amount will not be lower than VND53 billion (US$2.3 million). The HCMC Tax Department had earlier required Uber to pay VND66.6 billion, including VND26.3 billion in value-added tax, VND14.6 billion in personal income tax payable on behalf of their drivers, VND10.5 billion corporate income tax on foreign contractors, VND4.9 … [Read more...] about HCMC taxman to continue collecting back tax from Uber
Banks to seize US$6.46 billion in back taxes, fines from Nguyễn Kim
The HCM City’s District 1 Tax Department has instructed banks to seize VNĐ148 billion from the accounts of Nguyễn Kim company to pay for back taxes and fines. – Photo plo.vn Viet Nam News HCM CITY — The HCM City’s District 1 Tax Department has sent instructions to banks to seize VNĐ148 billion (US$6.46 billion) from Nguyễn Kim Joint-Stock Company for back taxes and fines the company owes. The company improperly manipulated the amount of personal income tax its employees had to pay over the past 10 years, according to the tax department. The department asked the company to pay by July 13 VNĐ104.74 billion in personal income taxes that are in arrears. It also said the company had to pay VNĐ19.41 billion in fines for administrative violations and another VNĐ24.18 billion for late tax payments. Because the company did not make the payments willingly, instructions were sent to banks on July 13 to seize the amount from … [Read more...] about Banks to seize US$6.46 billion in back taxes, fines from Nguyễn Kim
Lawmakers still split over tax on unexplained assets
Viet Nam News HÀ NỘI — Measures to handle the assets of potentially corrupt officials remained the focus of debate in yesterday’s meeting of the National Assembly Standing Committee to discuss the draft revised anti-corruption law. According to the draft bill, officials who failed to provide proper accounts of or wrongly declared their assets and income would be required to pay a 45 per cent tax. The proposal has met with diverging opinions amongst lawmakers and the public, with many fearing the tax might legitimise the holding of corrupt assets and calling for confiscation instead. Presenting the bill at the meeting, Lê Minh Khái, head of the Government Inspectorate, the agency in charge of drafting the revised bill, said there were six options for handling unexplained assets: criminal proceedings, civil proceedings, administrative fines, administrative – judicial fines, collecting individual income tax, and finally, means provided by … [Read more...] about Lawmakers still split over tax on unexplained assets
Electronics retailer owes $6.42m in fines, back taxes over past decade
Viet Nam News HÀ NỘI — HCM City-based electronics retailer Nguyễn Kim has been asked to pay nearly VNĐ150 billion (US$6.42 million) in fines and tax arrears after it was found to have been improperly manipulating the amount of personal income tax its employees had to pay over the past 10 years. The whopping sum includes VNĐ104.74 billion (US$4.5 million) in personal income tax arrears, a VNĐ19.41 billion fine for administrative violations and another VNĐ24.18 billion penalty for late tax payment, according to the HCM City tax department. The city’s taxman launched an inspection into Nguyễn Kim, in which Thailand-based Central Group holds a 49 per cent stake, on May 28 and announced the results on June 29. Last year, the employees of Nguyễn Kim authorised the company to settle the tax bill but Nguyễn Kim dodged the payment of personal income tax for its executives and employees by shifting its employees’ … [Read more...] about Electronics retailer owes $6.42m in fines, back taxes over past decade
Liquidation of a Vietnamese entity—critical tax exposures
The liquidation of a Vietnamese legal entity is a lengthy and complicated process in which the final tax audit involves a lot of effort from the dissolving entity. This article is to provide a list of key and common issues, which are frequently challenged by the tax authorities during a tax audit upon dissolution for the enterprises’ perception and compliance in order to mitigate the risks of additional tax liabilities, penalties, and interest on late tax payment. There is a lot to consider when liquidating a company, with tax issues a major issue General procedures of liquidating a company The voluntary dissolution procedures of a company include the following steps with relevant parties and regulatory authorities: Resolution on dissolution to be passed by investors, disclosed to relevant stakeholders and announced publicly in the newspaper; Terminating contracts (with customers, suppliers, landlord, etc.) and liquidating assets; Settling liabilities in accordance … [Read more...] about Liquidation of a Vietnamese entity—critical tax exposures
Forgiving tax debts must be done transparently
A recent proposal by the Ministry of Finance to clear over VND26.5 trillion (US$1.16 billion) of tax arrears, accounting for more than a third of all tax arrears and irrecoverable fines, has raised public concern about the fairness and transparency of handling tax debts. The finance ministry’s statistics revealed that the total amount of tax debt, late payments and fines under the ministry’s management exceeded VND73 trillion by the end of 2017. The amount of such funds under the management of the customs authority was more than VND5.4 trillion. Over VND35.5 trillion, or half of total tax debts owed to both customs and the finance ministry, was deemed irrecoverable. Facing a heavy burden of rising outstanding tax arrears and irrecoverable fines, the finance ministry has proposed to free and eliminate tax arrears for a number of select groups. The ministry plans to free tax debts – meaning it would temporarily cease collection of tax and fines for late tax payment … [Read more...] about Forgiving tax debts must be done transparently