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
Paying late taxes
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
Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes Info Alert Alert Chia sẻ bài viết qua e-mail
The tax department of Ho Chi Minh City has given Uber an ultimatum to pay VND66.68 billion (US$2.95 million) in back taxes in the next ten days after the company has failed to comply with earlier requests. Netherlands-based Uber B.V., which oversees the ride-hailing app’s operations in Vietnam, was first requested to pay the sum in September after the municipal taxman completed an inspection into the company’s operations in the southern hub. The unpaid taxes include VND10.3 billion ($453,744) worth of wrongly declared taxes, nearly VND51.48 billion ($2.27 million) worth of tax arrears and a fine of more than VND4.9 billion ($215,859) for late payment. However, Uber has completely ignored the requests and failed to pay any part of the demanded back taxes. The company later filed a petition against the tax claim to Vietnam’s Ministry of Finance, claiming it had fulfilled its tax duties in the Netherlands in accordance with a treaty against … [Read more...] about Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes Info Alert Alert Chia sẻ bài viết qua e-mail
Thousand billions in lost tax from foreign enterprises
Massive revenue without having to pay taxesThe Ho Chi Minh City Department of Taxation has recently issued an ultimatum for Uber B.V Netherlands Co., Ltd. to pay VND66.68 billion ($2.90 million) in tax arrears within 10 days of December 13.Previously, in September, the taxation department asked Uber B.V to pay the tax arrears which included personal and corporate income tax, withholding tax, and value-added tax (VAT), as well as late payment fines. However, Uber B.V refused to pay, arguing that the Double Taxation Avoidance Agreement between Vietnam and the Netherlands gives them exemption.In another case, Le Thi Ai Lien, representative of Saigon Mui Ne, said that the company signed a co-operation contract with international booking site Booking.com. According to regulations, Booking.com will have to deduct a part of its benefits (including profit from business activities in Vietnam) for Saigon Mui Ne so that it can pay corporate income tax (CIT). However, Booking.com … [Read more...] about Thousand billions in lost tax from foreign enterprises
HCMC determined to tax Uber
HCMC determined to tax UberMinh Tam By Minh Tam - The Saigon Times Daily HCMC - The HCMC Tax Department is seeking to collect taxes from Uber, the operator of the taxi-hailing app, though Uber has shown no signs of cooperation. Tran Thi Le Nga, deputy director of the HCMC Tax Department, told reporters last week that in late November 2015, the department requested Uber International Holding B.V. headquartered in the Netherlands to file and pay taxes for the service. The department said Uber has business ties with Uber Vietnam, as indicated by registration fees used to open accounts for the app applicable to Uber customers and fees for cancellation of the service. The fees have been transferred to the account of Uber International Holding B.V. in the Netherlands. Therefore, the company must be governed by Vietnam’s corporate income tax and value-added tax laws. Because the company has not paid any tax for Vietnam, the HCMC Tax Department has required it to pay the taxes from … [Read more...] about HCMC determined to tax Uber
Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes
The tax department of Ho Chi Minh City has given Uber an ultimatum to pay VND66.68 billion (US$2.95 million) in back taxes in the next ten days after the company has failed to comply with earlier requests. Netherlands-based Uber B.V., which oversees the ride-hailing app’s operations in Vietnam, was first requested to pay the sum in September after the municipal taxman completed an inspection into the company’s operations in the southern hub. The unpaid taxes include VND10.3 billion ($453,744) worth of wrongly declared taxes, nearly VND51.48 billion ($2.27 million) worth of tax arrears and a fine of more than VND4.9 billion ($215,859) for late payment. However, Uber has completely ignored the requests and failed to pay any part of the demanded back taxes. The company later filed a petition against the tax claim to Vietnam’s Ministry of Finance, claiming it had fulfilled its tax duties in the Netherlands in accordance with a treaty against … [Read more...] about Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes
Booking.com obligated to pay taxes
This was the conclusion of the Binh Thuan Department of Taxation, answering the proposal of Saigon Mui Ne Resort asking its partner Booking.com to either pay tax or the tax department to refund Saigon Mui Ne’s taxes paid instead of Booking.com, according to newswire Vnexpress.According to Le Thi Ai Lien, representative of Saigon Mui Ne, the company signed a co-operation contract with the Booking.com international booking site. According to regulations, Booking.com will have to deduct a part of its benefits (including profit from business activities in Vietnam) for Saigon Mui Ne so that Saigon Mui Ne can pay corporate income tax (CIT). However, Booking.com refused, claiming it was exempt, based on the Double Taxation Avoidance Agreement between Vietnam and the Netherlands.Regarding Saigon Mui Ne, Booking.com’s refusal to deduct a part of its benefits for CIT to Saigon Mui Ne will impact the company’s revenue. Due to the available listed prices, the company cannot … [Read more...] about Booking.com obligated to pay taxes