Vietnam to extend taxes as more firms shut doors

vietnam

 

Prime Minister Nguyen Tan Dung pledged to offer tax extensions and simplify payment procedures on the heels of more bad news about business closures and suspensions.

The Ministry of Investment and Planning reported that the number of businesses who either declared bankruptcy or suspended their registrations hit 37,612 in the first seven months this year, up 9.8 percent from the same period last year.

PM Dung then pledged to offer the tax relief measures to save businesses in turmoil.

He said the solutions may include value-added tax extensions for equipment imports and income tax extensions for contractors working on state-funded projects which have suffered stagnant disbursement from the troubled state budget.

The government leader said his cabinet will propose that the legislature approve more income tax support for businesses working in supporting industries and projects worth at least VND12 trillion.

Do Hoang Anh Tuan, Vice Minister of Finance, said the efforts will not only focus on cutting or extending taxes, but also on cutting the average tax declaration procedure to 171 hours by the end of 2015.

At present, its estimated that businesses spend more than 700 hours preparing taxes per year.

The Finance Ministry, which was ordered by the government to think of solutions to tackle rising business shutdowns, has proposed exempting struggling businesses from a huge amount of tax debt.

An unidentified ministry official told Tuoi Tre that around VND6.54 trillion (US$308.41 million) of taxes and penalties are expected to be cleared.

Bui Van Nam, director of the General Department of Taxation, said unpaid taxes and overdue tax penalties reached more than VND60.9 trillion ($2.88 billion) by the end of December 2013–a 10.64 percent increase year-on-year.

The arrears climbed a further VND7.5 trillion by the end of May.

 

 

Source : Thanh Nien News | August 5, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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