Category Taxation in Vietnam

Anti-corruption Tax in Vietnam Allows Money Laundering

March 13, 2018 Taxation in Vietnam

Vietnamese DongHANOI – Vietnam’s crackdown on corruption could prove itself to be effective, or it could be a handy tool to facilitate money laundering.

Over the weekend a delegate of the National Assembly of Vietnam Truong Trong Nghia said that the newly proposed tax to be paid by civil servants with undeclared incomes and assets could lead to money laundering.

The government of Vietnam recently proposed that civil servants with undeclared or under-declared incomes and assets will be liable to pay a 45 percent tax on the true value of the assets unless the individual can provide adequate explanations of how the assets were acquired.

However, Truong Trong Nghia believes that a simple tax of 45 percent will lead to money laundering, as the offending civil servant will simply pay the fee and keep the re...

Read More

Vietnam Needs to Drop Tax Penalty Rate

September 21, 2015 Taxation in Vietnam

HANOI – Unpaid taxes in Vietnam are charged a penalty of as high as 18.25 percent, a rate that is too high for some taxpayers to keep up with.

In a media report issued late last week the Ministry of Finance in Vietnam called on the government to change the regulations regarding the rate of interest applied to unpaid taxes, as currently the rate is effectively 18.25 percent.

Currently the rate applied to unpaid taxes is approximately 0.05 percent per day, equating to an annual rate of 18.25 percent.

Until January 1st 2015 the rate was previously set at 0.05 percent over the first 90 days when the tax is unpaid, rising to a rate of 0.07 percent per day, equating to a rate of 25.5 percent.

The Ministry has called for the rate to be occasionally revised in order to ensure that the effective ...

Read More

Corruption Still Rampant in Vietnam

August 13, 2015 Taxation in Vietnam

HANOI – Despite efforts by the government of Vietnam to stop corruption, a significant portion of businesses claim that they still have to pay bribes to tax inspectors.

Nearly a third of businesses in Vietnam have been asked by tax inspectors and other tax workers to pay bribes, according to the results of new research released by the Vietnam Chamber of Commerce and Industry (VCCI).

The VCCI surveyed 2 542 registered businesses from across Vietnam, including state enterprises and foreign businesses, and found that 32 percent claimed that they have had to pay “unofficial fees” to tax officials.

The VCCI added that there are approximately 1...

Read More

Vietnam Shames Tax Evaders

July 24, 2015 Taxation in Vietnam

HANOI – The government is publicly naming businesses with overdue tax obligations, before resorting to taking the money directly from the offenders’ bank accounts.

The government of Vietnam is using name-and-shame tactics to coerce businesses with overdue tax obligations to pay up.

The national tax authority has issued a public list naming 600 companies with tax debts which were at least 121 days old at the end of June.

The total of the taxes owing by the delinquent businesses is approximately VND 12.658 trillion.

The new tactic has already seen moderate success with at least 10 percent of the businesses coming forward already to pay back all the overdue taxes, with even more coming forward to pay back a portion of the taxes owed.

The tax authorities are reputed to have leaked similar li...

Read More

Vietnam Hikes Sin Taxes

October 3, 2014 Taxation in Vietnam

Sin TaxHANOI – The government of Vietnam is looking to drastically lower the country’s consumption of beer and cigarettes by introducing steep incremental hikes on all such products.

Earlier this week the National Assembly Standing Committee of Vietnam announced that the taxes applied on the sale of tobacco, beer, wine and spirits will be raised at the start of 2016 in order to bolster the government’s tax collections and encourage national citizens to lead healthier lifestyles.

From January 1st 2016 the taxes applied to the sale of tobacco products will be raised from the current rate of 65 percent to 70 percent, and up to 75 percent in 2018.

The rate applied to the sale of beer will be raised from 50 percent by 5 percent per year from 2016 until 2018.

Wines with an alcohol rating below 20 ...

Read More