The top tax payers of Vietnam were honoured on August 3 (Photo: VNA) Hanoi (VNA) - The1,000 biggest tax payers in Vietnam in 2017 contributed more than 110 trillion VND(4.72 billion USD) to the State budget, increasing 8.45 percent from theprevious year, and accounting for 63 percent of total tax contributions.
The information was released byNguyen Dai Tri, Deputy General Director of the General Department of Taxationunder the Ministry of Finance, at the ceremony to announce the list of the1,000 biggest tax payers in Vietnam held in Hanoi on August 3.
Tri said this was the secondyear that the ranking had been announced. The list this year includes 703 firmsfrom the rankings of 2016, and 297 new companies.
The processing andmanufacturing sector continued to top the list of biggest tax payers,accounting for 36 percent of total tax payment among the 1,000 companies. Itwas followed by the finance, banking and insurance industry with 14.8 percent;and telecommunications with 9.3 percent.
The capital city of Hanoi andthe southern largest economic hub of Ho Chi Minh City continued to take thelead in terms of the number of businesses and tax contribution in the ranking,with 36 percent and 32.5 percent respectively. Southern Dong Nai and Binh Duongprovinces, with high numbers of enterprises each, followed with 5.8 percent and4.4 percent respectively.
The ranking this year included117 State-owned enterprises, contributing 27.7 percent of the total taxpayment.
Notably, the private sectormade up 45.8 percent of the total number of businesses on the list with 458firms, and contributing 34.1 percent of the total tax payment. Thisdemonstrates that private companies have performed their key role in theeconomy.
Foreign direct investment (FDI)companies accounted for 40.4 percent in term of number of businesses, with 404,and contributing 36.7 percent on the list.
Bui Van Nam, General Directorof the General Department of Taxation, said the department had taken drasticmeasures to facilitate businesses’ operation, thus improving the economy’scompetitiveness in recent years. The reduction of administrative procedures hadreceived a positive response from the business community, society andinternational organisations.
Nam said corporate incometax had been an important part of the tax policy system as it accounted for abig portion of total State budget collection.
The ranking aims to honourbusinesses which have striven to overcome difficulties, developing their productionand contributing to the State budget.
The information of the top1,000 biggest tax payers has also helped the Government review businesses’operation, thus developing more effective tax policies.
Vu Tien Loc, Chairman of VietnamChamber of Commerce and Industry (VCCI), said last year, there were 26,000newly established firms. However, around 60,000 companies closed down so farthis year.
This had shown that the economyfaces difficulties. This was also a reason to honour businesses which had madea profit and contributed to the State budget, Loc said.
“Vietnam had more than 250,000out of 600,000 businesses paying corporate income tax in 2017. The top 1,000biggest taxpayers contributed 63 percent of the total. This is a meaningfulfigure,” he added.
The top 10 biggest tax payersare Viettel Group; Honda Vietnam; PetroVietnam Gas JSC (PV Gas), Vietnam DairyProducts Joint Stock Company (Vinamilk); Heineken Vietnam Brewery LimitedCompany; Samsung Electronics Vietnam; Joint Stock Commercial Bank for ForeignTrade of Vietnam (Vietcombank); Vietnam Joint Stock Commercial Bank forIndustry and Trade (Vietinbank), the Bank for Investment and Development of Vietnam(BIDV) and Siam City Cement Vietnam Company Limited.-VNA
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