Vietnam - Most firms lose in first quarter

About 70 per cent out of more than 250,000 surveyed businesses reported losses of over 40 trillion dong (US$1.9 billion) in the first quarter of this year, the Ministry of Finance's General Department of Taxation reported.

Director of the department Bui Van Nam said the figure was based on corporate tax declaration papers gathered from 63 vicinities around the country.

He added that total costs accounted for 97 per cent of business turnover.

However, statistics will have to be double-checked due to some firms declaring losses despite profiting to avoid paying taxes.

Nam said the department would inspect around 8,000 enterprises and check-up on 56,000, 1.5 and 12.5 per cent of total 446,000 businesses, respectively.

"If we do mange to uncover tax fraud, we would co-operate with relevant agencies, such as auditors, in taking appropriate measures," he added.

Nam acknowledged that companies were facing difficulties and that Government Resolution 13 to reduce and extend tax payments has done much to counter the problem.

Ministerial calculations have shown that relevant support initiatives could reduce State budget spending by around 9 trillion dong ($428 million), of which a part could be transferred to next year due to tax extension.

The department has focused on developing a taxpayer database and implemented e-payments across 41 localities and among 120,000 enterprises, Nam affirmed.

In time, it would be applied by an additional 200,000 out of 446,000 businesses across the country.

VNS

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