Coca-Cola suggests broader approach to SCT

VietNamNet Bridge – The latest Finance Ministry proposal to reduce income tax levels from seven to five will significantly benefit those earning below VND10 million (US$450) per month. Under the finance ministry’s new proposal, the 5 per cent personal income tax will apply to monthly incomes below VND10 million. — Photo: VNN Pham Dinh Thi, head of the ministry’s Tax Policy Department revealed this at a press briefing on Tuesday while announcing changes proposed to the Law on Personal Income Tax. Under the current seven taxation levels for personal income tax, those earning below VND5 million ($225) a month are taxed 5 per cent and this increases to 10 per cent for those with incomes between VND5 million and VND10 million ($225 – S450) a month. Under the new proposal, the 5 per cent personal income tax will apply to monthly incomes below VND10 million.   According to the General Taxation Department, those having income of below VND10 million per month account for 70 per cent of the people paying income tax from their salary, Thi said. Need for changes Thi said that the changes were necessary to adapt to current realities. Many people have said that seven levels for personal income tax are too many, complicating things for both taxation agencies and tax payers. There were also complaints about the small gap between tax levels that led to much higher taxes for a very small increase in income. For instance, currently those earning VND10 to VND18 million ($450 -…... [read more]

The Ministry of Finance (MoF) introduced a draft of amendments to laws on Value Added Tax, Special Consumption Tax, Corporate Income Tax, Personal Income Tax and Natural Resources Protection Tax at a press conference on Tuesday. Tax payers at the Ha Noi Tax Department on Giang Vo street, Ha Noi - VNA/VNS Photo Hoang Hung Pham Dinh Thi, Director of the ministry’s Tax Policy Department, said at the conference that the amendments were needed to address difficulties that remained for tax paying businesses and individuals, ensure a coherent legal framework, and better deal with rising public debts. He said that under adjustments made to the Law on Value Added Tax, there will be less goods and services entitled to the preferential level of five per cent VAT. The proposed amendments contain two options: increase the base VAT level from 10 per cent to 12 per cent from the beginning of 2019, or increase it to 12 per cent from 2019 and to 14 per cent from 2021. Other changes include a regulation on businesses having the current level of 5 per cent VAT being reimbursed in full if they can prove that their input VAT amount (levied on input goods used for export) has yet to be completely deducted after 12 months or four quarters. Under another change, VAT deduction for non cash payment with invoices is now inapplicable to purchases of less than…... [read more]

Hanoi, August 16 (VNA) - The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 percent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their costs.  Speaking at a press conference in Hanoi on August 15, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 percent of the car value, the tax on the pickups should be 33 percent.  The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less.  According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 percent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 percent for those with over 2,500cc-3,000cc and 25 percent for those with over 3,000cc.  In recent years, the number of pickups has sharply increased in Vietnam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales soared to 28,233 units, of which 27,265 units were imported and 968…... [read more]

The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 per cent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their cost. Speaking at a press conference in Ha Noi on Tuesday, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has sharply increased in Viet Nam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales soared to 28,233 units, of which 27,265 units were imported and 968 units were locally-assembled. Thi…... [read more]

The Ministry of Finance on Tuesday proposed levying a special consumption tax on a range of sweetened beverages. If approved, the proposal would see the tax imposed on carbonated and non-carbonated soft drinks, energy drinks, sports drinks and bottled instant coffee and tea. The ministry has suggested either a 10 percent or a 20 percent rate for the new sugary drink tax to be applied from 2019, with 10 percent being the preferred option. “The tax will help regulate the consumption of sweetened beverages, and it's also an international norm,” the proposal said. A can of carbonated soft drink, for example, currently costs around VND10,000 ($0.44). At Tuesday's press conference, the ministry cited a report by the World Health Organization (WHO) that shows excessive consumption of sugary drinks can lead to obesity. Obesity, in turn, has been linked to many health risks such as cardiovascular disease, hypertension and strokes. Meanwhile, a study unveiled in June found that about 25 percent of Vietnamese adults are overweight or obese. The obesity rate for children under 5 years old is also rising fast. Many Southeast Asian countries have already imposed sugary drinks taxes, according to the ministry. The current rate is 20-25 percent in Thailand, 5-10 percent in Laos and 10 percent in Cambodia. Myanmar, the Philippines and Indonesia are also considering imposing the tax. In Vietnam, special consumption taxes are levied on items and services considered unhealthy or luxurious such as tobacco, alcoholic drinks and cars.... [read more]

An automobile assembly line at Xuan Kien Automobile Joint Stock Company in Ha Noi. The Ministry of Finance has proposed applying a special consumption tax on pickup trucks. — VNA/VNS Photo Huy Hung The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 per cent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their cost. Speaking at a press conference in Ha Noi on Tuesday, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has…... [read more]

Speaking at a press conference in Hanoi on August 15, Pham Dinh Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has sharply increased in Việt Nam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales soared to 28,233 units, of which 27,265 units were imported and 968 units were locally-assembled. Thi said the five-seat pickups had for many years enjoyed special consumption tax lower than that of vehicles with the same number of seats (lower than SUV models, with engine displacement from over 2,500cc to…... [read more]

The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 per cent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their cost.   Speaking at a press conference in Hà Nội yesterday, Phạm Đình Thi, head of the finance ministry’s Tax Policy Department, said pickups mainly have engine displacement of between 2,000 and 3,000cc, so if the tax on the car with nine seats and less is currently 55 per cent of the car value, the tax on the pickups should be 33 per cent. The proposal was made after the Prime Minister required the ministry to study and check the tax on pickups in the region. The ministry found that regional countries usually levy special consumption tax on pickups lower than that of autos with nine seats or less. According to the Law on Special Consumption Tax regulations, a special consumption tax of 15 per cent is levied on pickup trucks with engine displacement of 2,500cc or less, 20 per cent for those with over 2,500cc-3,000cc and 25 per cent for those with over 3,000cc. In recent years, the number of pickups has sharply increased in Việt Nam, the majority imported. In 2012, 3,291 units were sold, of which 3,252 were imported and 39 units were locally-assembled. In 2016, sales…... [read more]

Although companies have rushed to conduct many promotional programs offering big discounts, in fact auto prices are still high. For instance, after providing discounts of more than VND40-50 million (US$1,760-2,200) since June, a Mazda CX-5 is priced VND800-910 million. Honda has reduced the price of its automobiles by VND110-170 million but it is still swinging around VND1 billion ($44,000) a product. Specifically Honda CR-V 2.0 AT, 2.4 AT and 2.4 AT TG are priced VND898 million, VND988 million and VND1.028 million respectively. Thaco Truong Hai has slashed the price of Kia products by VND10-40 million. The most discounted one is Kia Qouris 3.8 GAT but its prices is still as high as VND2.708 billion. Despite the discount programs, the prices have been high and purchasing power has gone backward. Statistics by Vietnam Automobile Manufacturers Association (VAMA) show that the market’s sales reduced 16 percent to 21,000 automobiles in July. At present, only those who do need automobiles are buying while most residents wait for the zero percent import tariff next year. Mr. Pham Anh Tuan, head of the policy division of VAMA, said that auto prices have been high despite businesses’ many discount programs because component import tariff have not had a roadmap to reduce to 0 percent. Manufacturers have to pay taxes to import 70-80 percent of components from Thailand, South Korea and Europe to assembly an automobile. So manufacturing cost in Vietnam is 10-20 percent higher than in Thailand and Indonesia. Ongoing protection High…... [read more]

Illustrative image (Source: VNA) Hanoi (VNA) – 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.  Speaking at the event, Deputy General Director of Taxation and Director of the Hanoi Taxation Department Nguyen The Manh said the event aims to promptly deal with arising obstacles in the process of adopting tax policies targeting the Japanese enterprises. Several Japanese investors spoke of tax policy flaws involving transfer pricing, franchising, added value tax software, corporate and individual income tax, and special consumption tax. A representative from the Japan Business Association in Vietnam said the association will continue acquiring Japanese firms’ feedback on tax policies and working behaviours of tax officials and cadres to report to the Hanoi Taxation Department. In recent years, the Japanese businesses’ revenue to the Hanoi’s State budget has accounted for nearly 30 percent of the total paid by foreign-invested ones. In 2016, Japanese firms contributed 4,819 billion VND (209.5 million USD) to the city’s budget. The figure rose to 2,854 billion VND (124 million USD) in the first half this year, up 23 percent annually. Under a scheme on developing Hanoi’s economy in the context of carrying out Vietnam-Japan free trade agreements until 2020, the city asked departments, agencies, and the taxation sector to reform administrative procedures by improving the quality of tax filing and payment, …... [read more]




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