HCM City taxman urges quick guidance from top tax, finance regulators

15-Jan-2019 Intellasia | The Saigon Times | 6:00 AM Print This Post

The HCM City Tax Department has proposed the general Department of Taxation and the finance ministry present timely instructions to collect tax arrears from Saigon Beer, Alcohol and Beverage Corporation (Sabeco) and Unilever Vietnam, the head of the department, Tran Ngoc Tam, told the local media at a tax review teleconference on January 10.

The department has refrained from its efforts to coerce Sabeco into paying VND3.14 trillion (US$135.4 million) in special consumption tax and fines for violations of tax laws in the 2007-2015 period, following the request of prime minister Nguyen Xuan Phuc.

The PM has asked the relevant ministries and agencies to take the conclusions of the State Audit of Vietnam (SAV) and the government Inspectorate on the brewer’s violations into careful consideration.

Thai Beverage Public Co., Ltd has officially converted Sabeco into a foreign-owned brewery by hiking its charter capital in Vietnam Beverage the firm that holds 53.59 percent of all issued shares of Sabeco.

SAV had earlier also requested the general Department of Taxation and the HCM City Tax Department to urge Unilever Vietnam to pay over VND575 billion (US$24.7 million) in corporate income tax.

According to SAV, Unilever Vietnam applied for the extension of their operations in the 2009-2013 period and needed to pay tax arrears for it.

Later, the HCM City taxman warned it might have to force Unilever to pay. However, the firm sought the PM’s help over the warning, proposing the government leader direct the competent ministries and agencies to wait for the government’s final conclusion.

Impressive tax collection results

Head of the general Department of Taxation Bui Van Nam noted that 61 of the country’s 63 localities had achieved their tax collection targets, with 48 localities surpassing their targets by more than 7.3 percent.

The taxation sector collected more than VND1,140 trillion (roughly $50 billion) in taxes for the State budget in 2018, equivalent to 107.2 percent of estimates and up 12.3 percent from 2017.

Deputy prime minister Vuong Dinh Hue stated that 2018 marked the first time that tax collection had surpassed the mark of VND1,000 trillion, adding that the growth in domestic revenue was higher than the gross domestic product growth plus inflation, which demonstrated the strength of the economy.

The senior government leader said the National Assembly was scheduled to consider and approve the revised Law on Tax Management, which is expected to create opportunities for the sector.

He noted that the sector should make recommendations on revising laws related to taxation policies based on the Politburo’s resolution on tax reform, in line with international practices.

He also requested the tax sector, in collaboration with the finance ministry, to report on foreign direct investment (FDI) issues, helping the government submit to the Politburo a resolution containing guidance for FDI attraction.

The sector should study and propose to the finance ministry and the government various taxation systems and policies that are suitable for a digital economy and new business models, he added.

https://english.thesaigontimes.vn/65515/hcmc-taxman-urges-quick-guidance-from-top-tax-finance-regulators.html

 


Category: Economy, Vietnam

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