Tax problems resolved at Ho Chi Minh City dialogue
Tax problems resolved at Ho Chi Minh City dialogue
Representatives of more than 400 businesses operating in Ho Chi Minh City had their tax problems resolved at a dialogue between businesses and tax department leaders held last week.
The gathering addressed issues of business concern. Tax department leaders directly responded to inquiries from the businesses on all aspects of tax procedures.
One of major concern was related to foreign workers. SCS Global Consulting Vietnam wondered how to settle the personal income tax (PIT) liability of its Japanese workers that had been residing in Vietnam for 183 days from June to December 2014.
Deputy head of Ho Chi Minch City Tax Department Tran Thi Le Nga said that the Japanese employee was considered a tax resident of Vietnam, so PIT was imposed from the first arrival date in Vietnam.
Likewise, she provided guidelines for Shibusawa Logistics Vietnam Co. Ltd to calculate PIT for its foreign employers.
Regarding investment incentives, a Nippon Express representative wondered about the preferential enterprise income tax when the company expands businesses in the Amata Industrial Park in the southern province ò Dong Nai.
According to Nga, the tax department received the recommendation from the company and sent a dispatch to General Department of Taxation (GDT) for further guideline.
Meanwhile, Japanese-based Gunze Vietnam presented its current operations and asked if the firm is eligible for preferential corporate income tax.
“Based on Circular 78/2014/TT-BTC dated June 18, 2014,” Nga said, “the company does not meet the criteria for preferential treatment because it is located in the Tan Thuan Export Processing Zone in Ho Chi Minh City.”
At the dialogue, most of problems have been addressed clearly and thoughtfully. For unresolved issue, the city tax department promised to hold a direct meeting with each firm in the near future.
