Experts dwell on customs, taxation
HA NOI (VNS) — Policymakers and experts yesterday discussed the evolution and current shortcomings of tax and customs regulations in Viet Nam in the annual dialogue between the Ministry of Finance and the European Chamber of Commerce in Viet Nam.
|Custom officers check imported products in Sai Gon Port in HCM City. Businesses suggest the authorities further improve tax and customs regulations. — VNA/VNS Photo Ha Thai
Deputy minister Do Hoang Anh Tuan said this event had great significance as comments and recommendations of businesses would help the ministry improve its policy-making process which would create a fair and more attractive business environment for foreign companies.
"Some of the recommendations made last year have been implemented such as tax deductions on life insurance premium for employees and personal incomes," Tuan said, noting the ministry expected to receive more comments from European businesses.
Representatives of the general departments of Taxation and Customs updated businesses on new regulations introduced from June 2011 until now.
With regard to tax regulations introduced this year, Tom McLelland, chairman of Eurocham Tax Working Group, raised concerns about some issues relating to tax deductions, particularly the cap on advertising and promotion expenses.
Law on Corporate Income Tax stipulates advertising and marketing costs may not exceed 10 per cent of the total allowed cost of one business, but McLelland said market research and advertising new products were an indispensable activity of every business and limiting such cost could constrain business activity.
He also discussed unclear regulations on hot areas such as transfer pricing, e-invoicing, tax incentives, profit remittance and value-added tax (VAT), as well as the different treatment applied to commercial versus non-commercial shipments.
Tuan admitted that although many advances had been made in tax and customs procedures and regulations, some of these were just provisional.
He said since the beginning of this year, the Government had issued many tax incentives to help companies overcome the economic crisis. He added that the National Assembly was expected to pass the Law on Personal Income Tax by the end of this year and the ministry would submit the new Customs Law and modified Law on Value Added Tax to the National Assembly next year.
Tuan said opinions of businesses during this process would be very important and the ministry would study business recommendations and make amendments to suit their practical operation. — VNS