The number of foreign direct investment (FDI) enterprises continues to increase in Vietnam, but more are reporting losses. The Ministry of Finance (MoF) said FDI firms' contributions were not yet commensurate with the preferential policies given to them.
Inspections against transfer pricing will be increased as per a proposal by the Ministry of Finance in the context that more than half of foreign direct investment (FDI) enterprises reported losses.
The Government’s recently-issued Decree 132/2020/ND-CP would help prevent transfer pricing and limit thin capitalisation to develop a healthy investment market, Deputy Director of the General Department of Taxation Dang Ngoc Minh said.
Anti-transfer pricing measures were included in the Law on Tax Administration for the first time, but a guiding decree has not yet been written. Experts said this could mean the rules are less effective.
The interest expense deduction limit may be raised from the current 20 percent to 30 percent to support businesses, according to a draft decree on tax management for enterprises with related party transactions the Ministry of Finance recently made public for comments.
The State Audit of Vietnam (SAV), through its regular auditing activities, has discovered many violations of law by foreign-invested enterprises in various fields such as environmental protection, land use, and transfer pricing, said Deputy Auditor General Doan Xuan Tien.
National Assembly (NA) Chairwoman Nguyen Thi Kim Ngan met with voters in the districts of Ninh Kieu and Cai Rang of the Mekong Delta city of Can Tho on October 4.
A recently issued resolution of the Politburo stated that the foreign direct investment (FDI) sector is equal to and has to comply with Vietnamese law like other economic sectors.
Tax evasion, tax avoidance and transfer pricing are getting more complicated, particularly through affiliated transactions, due to incomplete and impractical policies, said Deputy Minister of Finance Tran Xuan Ha on July 15.
Ho Chi Minh City’s State budget collection topped 378.5 trillion VND (16.4 billion USD) as of December 31, 2018, or 100.47 percent of the estimate and marking a 8.65 percent increase year-on-year, Chairman of the municipal People’s Committee Nguyen Thanh Phong told a local conference on January 3.
The Finance Ministry reported on November 12 that total State budget collection was estimated at 1.12 quadrillion VND in the January-October period, equivalent to 84.9 percent of the yearly estimates, and up 15.1 percent from the same time of 2017.
The opposing viewpoints of domestic and foreign experts on transfer pricing – a hot topic attracting much public interest in recent times – were the focus of a workshop held by the American Chamber of Commerce in Vietnam (AMCHAM) in Hanoi on November 9.
Prime Minister Nguyen Xuan Phuc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy.
An international workshop on transfer pricing was held in Hanoi, drawing 200 delegates from the National Assembly, ministries, associations, universities, institutes, and businesses.
The Hanoi Taxation Department shared information about tax policies of Vietnam and Hanoi in particular with the Japanese firms operating in the capital city during a seminar on August 10.
HCM City has asked the municipal tax authority to enhance preventative measures against tax fraud and transfer pricing to ensure tax revenue and improve business confidence.
The Ministry of Finance is seeking a joint force comprising relevant ministries and agencies to combat transfer pricing under a draft decree which was being raised for public comments.
The tax sector will focus on creating a decree to prevent tax losses and transfer pricing in the second half of the year, said Do Hoang Anh Tuan, Deputy Minister of Finance.
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