Thursday, August 17, 2017 - 2:42:53

State asset management firm handed tax bread boost

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The National Assembly’s Finance and Budget Committee has ratified a Government proposal to make the planned Vietnam Asset Management Company (VAMC) exempt from value added tax (VAT) and corporate income tax (CIT).

The move was made after receiving reports on amendments and supplements to the laws on VAT and CIT, which will be presented to the Assembly for approval at its next meeting starting on May 20.

Accordingly, debt or loan security sold by the VAMC would not be subject to VAT while the VAMC would not have to pay corporate taxes.

However, the committee noted that the Government should clarify functions, organisation and expected incomes of the VAMC as a basis of considering tax exemption for the firm.

The planned VAMC, a 100-percent State-owned organisation established by the Government to handle bad debts of credit institutions in Vietnam , has been approved in principle by the Politburo.

Last month, Minister and chairman of the Government Office Vu Duc Dam said the proposed VAMC was only one of the measures to deal with bad debts.

The State Bank of Vietnam and commercial banks had made efforts to settle their bad debts, the minister said, however, each bank had to form their own hedge funds under the State Bank’s instructions.-VNA
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