{"id":37224,"date":"2023-06-12T20:35:23","date_gmt":"2023-06-12T13:35:23","guid":{"rendered":"https:\/\/anvilaw.com\/vi\/?p=37224"},"modified":"2024-11-25T11:11:18","modified_gmt":"2024-11-25T04:11:18","slug":"3-521-firms-call-for-measures-to-end-delays-in-tax-refunds","status":"publish","type":"post","link":"https:\/\/anvilaw.com\/vi\/3-521-firms-call-for-measures-to-end-delays-in-tax-refunds\/","title":{"rendered":"3.521. Firms call for measures to end delays in tax refunds"},"content":{"rendered":"

Firms call for measures to end delays in tax refunds<\/span><\/h4>\n
(VNN) – By 2023, delayed refunds in the timber sector\u00a0had amounted to over VN\u01106 trillion (US$255 million).<\/h5>\n\n\n\n\n
\"delays<\/td>\n<\/tr>\n
Workers make wooden furniture at a factory\u00a0in Tuy\u00ean Quang Province. Experts said delays in tax refunds had put many timber firms on the line financially. \u2014 VNA\/VNS Photo V\u0169 Sinh<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

H\u00c0 N\u1ed8I \u2014 Firms are clamouring for tough measures to accelerate the pay-out of value-added tax (VAT) refunds to lift them out of financial hardship.<\/p>\n

Thang V\u0103n Th\u00f4ng, a representative from the Association of Vietnam Timber and Forest Products (VIFOREST), said delays in VAT refunds had driven scores of\u00a0timber firms to the brink of bankruptcy. By 2023, delayed refunds in the sector\u00a0had amounted to over VN\u01106 trillion (US$255 million).<\/p>\n

Delays in tax\u00a0refunds were running\u00a0rampant because tax reimbursement requires proof of origin (P\/O), which is difficult for timber firms to obtain given the multiple layers of sellers in the supply chain. Origin tracing is so complicated a task that if passed to the police, Th\u00f4ng said, it would take them around 15 years to complete.<\/p>\n

And the situation is not better for manioc exporters, who are required to disclose their partners’ identities to be eligible for VAT refunds. The rationale behind this requirement is to prevent bad exporters from using bogus identities to commit tax evasion.<\/p>\n

Vietnam Chamber of Commerce and Industry (VCCI) believed that\u00a0the P\/O requirement is too burdensome for firms because they buy feedstock from multiple suppliers and it is not an easy feat to trace their timbers back to every single one of them.<\/p>\n

According to a\u00a0survey\u00a0by the Private Economic Development Research Board (Board IV), about 51 per cent of the respondents said they were facing cash flow problems and 45 per cent\u00a0were hampered by red tape.<\/p>\n

“And many firms have been driven into indebtedness\u00a0because of delays in tax refunds. Some of them have not received tax refunds for almost three years,” the survey said.<\/p>\n

The VIFOREST representative called for the abolishment of the legal document that requires P\/O as a prerequisite for tax refunds. He suggested firms be eligible for tax reimbursement upon entering into a commercial contract.<\/p>\n

“Firms with good track records should receive tax refunds first and have\u00a0the refunds reviewed later,” Th\u00f4ng added.<\/p>\n

Board IV urged tax authorities to accelerate the payment of tax refunds to free up money for firms. The board also suggested exporters\u00a0be tax-refunded for a batch of products\u00a0within three months from the date they export\u00a0the batch.<\/p>\n

VCCI Vice President Ho\u00e0ng Quang Ph\u00f2ng said a delay of two to three years in tax refunds would put many firms out of business. He suggested firms be tax-reimbursed for a transaction as soon as the\u00a0transaction\u00a0is\u00a0verified by the authorities.<\/p>\n

Tr\u01b0\u01a1ng Thanh \u0110\u1ee9c<\/span><\/a>, Director of\u00a0ANVI<\/a><\/strong> Law Firm<\/a>, said the current procedures for tax refunds are cumbersome because it takes at least one to two years for firms to get reimbursed from tax authorities.<\/em><\/p>\n

He called for an ex-post approach to tax refunds to improve firms’ cash flow. His suggestion goes as follows: all firms will be immediately tax-refunded and only those with suspicious activities will get their refunds reviewed by tax authorities.<\/em><\/p>\n

Tr\u1ea7n \u0110\u00ecnh Thi\u00ean, former head of Vietnam Institute of Economics, shared Ph\u00f2ng’s view. He called for simplified procedures for tax refunds to help firms get their money back from the taxman more easily.<\/p>\n

In late May, Prime Minister asked Ministry of Finance to accelerate the pay-out of tax refunds to ease firms’\u00a0financial problems. He said: “Ministry of Finance should chase up tax refunds to help firms and individuals”. \u2014 VNS<\/p>\n

————-<\/em><\/p>\n

Vi\u1ec7t<\/em><\/strong> Nam News<\/em><\/strong> (Economy) ng\u00e0y <\/em><\/strong>12-6<\/em><\/strong>-2023:<\/em><\/strong><\/p>\n

https:\/\/vietnamnews.vn\/economy-business-beat\/1549651\/firms-call-for-measures-to-end-delays-in-tax-refunds.html<\/a> <\/em><\/p>\n

(<\/em>73\/620<\/em>) #VAT #TCT<\/em>","protected":false},"excerpt":{"rendered":"

Firms call for measures to end delays in tax refunds (VNN) – By 2023, delayed refunds in the timber sector\u00a0had amounted to over VN\u01106 trillion (US$255 million). Workers make wooden furniture at a factory\u00a0in Tuy\u00ean Quang Province. Experts said delays in tax refunds had put many timber firms on the line financially. \u2014 VNA\/VNS Photo […]<\/p>\n","protected":false},"author":1,"featured_media":37225,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17,26],"tags":[38],"class_list":["post-37224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binh-luan-gop-y","category-legal-media","tag-luat-su-thue"],"acf":[],"yoast_head":"\n3.521. 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