Update news tax evasion
Local authorities are trialing ways to prevent multinationals from structuring affairs in order to divert profits to low tax jurisdictions.
Some Vietnamese exports have been investigated for origin fraud and tax evasion, which requires tougher action from the Vietnamese Government to settle the problem and keep its exports growing.
The Government will adopt stricter penalties to prevent foreign goods being exported to the other markets under Vietnamese labels to avoid tariffs.
VietNamNet Bridge - About 50 dollar millionaires in Vietnam earn billions of dong a month via Facebook, according to a Facebook representative. However, the taxation body said it cannot collect taxes from these sellers.
Agoda, Traveloka, Booking and Expedia have to pay VAT (value added tax) and CIT (corporate income tax), which is 5 percent of total revenue, for profits from doing business in Vietnam, according to the Ministry of Finance (MOF).
VietNamNet Bridge - Vietnamese enterprises are complaining that they cannot compete with cheap Chinese car imports that evade taxes.
VietNamNet Bridge – A number of foreign-invested enterprises have allegedly tried to evade tax over the last 10 years but no proof of guilt has been found.
VietNamNet Bridge - Tax obligations often significantly burden businesses operating in Vietnam. To maximize profit, companies often seek out ways to avoid mandatory tax payments.
VietNamNet Bridge – Given the legal loopholes that exist in current tax laws, many have found it easy to circumvent government regulations and decisions by ministries and agencies.
VietNamNet Bridge – Novelis Vietnam has been suspected by Vietnamese concerned agencies of attempting to evade tax by outsourcing aluminum strip coil abroad for export to third countries.
VietNamNet Bridge – The HCM City Taxation Sub-department has found that a lot of the capital transfer deals have been made recently, but the tax sums the agency has collected from the deals are modest.