Tax Case Study in Vietnam
CASE 1
Mrs Nguyen Thi Thuy is the reporter of An Giang newspaper. She has won the second prize in the competition “ Creative day for Vietnam” supported by World Bank with the project “creating job for the blind”. With the money given by the competition she opened her first shop “Van Tho” in An Giang. Then she opened the second shop in Can Tho at Ngo Duc Ke Street.
The problem is that when opening the second shop, she is asked to pay the excise tax (massage business is one of the taxable objects). However, she is not asked to do that at An Giang and even be exempt from paying any tax except the license tax because of the characteristic of her business (business for society, specifically the blind). So, does the action of taxing on her business –a business for the blind-against or according to the law? Solution: Actually, massage business is the taxable object according Chapter I, Article 2.2. However according to article 22 of Ordinance On Disabled Persons published in 1998: “Production and business establishment reserved for disabled persons shall be exempted from tax and can borrow capital at low interest rate proportionally with the project of production and business development, are considered for capital loans or financial support from the Fund reserved for disabled persons, are eligible for assignment or rent of land by the locality at a place convenient for their production and business activities.” (http://moj.gov.vn/vbpq/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=7564 )
Therefore, the action of taxing Mrs Thuy’s business is against the law.
CASE 2
Four helicopters are imported into Vietnam. Do these four helicopter be taxed (excise tax) given that they are gift from Green Planet to Northern Aviation Club which belongs to Military Aviation Air force? These four helicopters are disposable and controlled by Department of Control. (Extracted from Nguoilaodong newspaper)
Solution: The department of Defense has sent document to the
Mrs Nguyen Thi Thuy is the reporter of An Giang newspaper. She has won the second prize in the competition “ Creative day for Vietnam” supported by World Bank with the project “creating job for the blind”. With the money given by the competition she opened her first shop “Van Tho” in An Giang. Then she opened the second shop in Can Tho at Ngo Duc Ke Street.
The problem is that when opening the second shop, she is asked to pay the excise tax (massage business is one of the taxable objects). However, she is not asked to do that at An Giang and even be exempt from paying any tax except the license tax because of the characteristic of her business (business for society, specifically the blind). So, does the action of taxing on her business –a business for the blind-against or according to the law? Solution: Actually, massage business is the taxable object according Chapter I, Article 2.2. However according to article 22 of Ordinance On Disabled Persons published in 1998: “Production and business establishment reserved for disabled persons shall be exempted from tax and can borrow capital at low interest rate proportionally with the project of production and business development, are considered for capital loans or financial support from the Fund reserved for disabled persons, are eligible for assignment or rent of land by the locality at a place convenient for their production and business activities.” (http://moj.gov.vn/vbpq/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=7564 )
Therefore, the action of taxing Mrs Thuy’s business is against the law.
CASE 2
Four helicopters are imported into Vietnam. Do these four helicopter be taxed (excise tax) given that they are gift from Green Planet to Northern Aviation Club which belongs to Military Aviation Air force? These four helicopters are disposable and controlled by Department of Control. (Extracted from Nguoilaodong newspaper)
Solution: The department of Defense has sent document to the