Confused when doing tax procedures
In reality, in some cases, although businesses have provided complete documents and records to prove tax refund purposes as prescribed, tax authorities have not yet processed tax refunds within the time limit.
"Now the tax authority believes that the responsibility to prove the origin of goods belongs to the enterprise. This can be said to be a burden of proof, which in many cases leads to a deadlock. There needs to be an answer to handle it properly, meeting the interests of the State and enterprises" - a tax expert shared his opinion.
From another perspective, the law stipulates that in some cases, the production of goods and service businesses is subject to a preferential VAT rate of only 5%, but the input is mainly 10%. Therefore, the amount of tax that has not been fully offset cannot be refunded, and the accumulation increases, causing capital pressure on businesses.
In addition to the VAT refund issue, many issues related to corporate income tax are still major problems for the business community. For example: determining what is a reasonable expense to not calculate corporate income tax, and the requirement to separate income from real estate transfer when declaring taxes are also confusing for businesses.
Ms. Huong Vu - Deputy Head of the Business Support Department, Association of Foreign Investment Enterprises (VAFIE) - said: "According to the current Corporate Income Tax Law, profits from real estate transfer transactions will not be offset. However, according to the latest draft of the Ministry of Finance, offset will be allowed, but on the condition that production and business activities do not enjoy incentives. In our opinion, the law or sub-law documents must also clearly state so as to avoid problems during implementation, so that we can choose the appropriate offset method."
Towards favorable support policies for businesses
Discussing this issue, Ms. Pham Thi Minh Hien - Deputy Director of the Policy Department (Directorate of Tax) said: "Ministry of Finance has submitted to the Government to submit to the National Assembly 3 draft laws. In which, the amended Law on VAT will be passed at the 8th Session in October this year. There are some very important amendments and supplements, including specific regulations on deduction for erroneous VAT amounts".
Regarding corporate income tax problems, answering at the recent Business and Law Forum, Mr. Mai Xuan Thanh - Directorate of Tax Directorate - said that as the agency assigned by the Government to preside over the draft Law, the Ministry of Finance will receive opinions, synthesize and report to the Government.
According to Mr. Thanh, amending regulations related to deductible and non-deductible expenses when determining corporate income tax will ensure consistency and synchronization of tax laws and specialized laws, increasing compliance with the law in general and the law on investment and business in particular.
Adjusting the regulations on offsetting between business incomes, including income from real estate transfers, will aim to correctly determine the tax obligations of multi-industry and multi-field businesses according to the nature of their general business.
Currently, the Law on Corporate Income Tax is being proposed to be amended with many policies that are deeply humane, creating favorable conditions for businesses to maintain investment capital, especially for small and micro enterprises such as reducing the tax rate from 20% to 15%, expanding the scope of expenses considered reasonable when calculating taxes, especially including expenses to support natural disasters, floods, sponsoring cultural, sports and charity activities.
Previously, at the end of September, the Tax Directorate held a conference for taxpayers with more than 300 issues answered right at the conference. The tax authority showed an attitude of listening receptively to the difficulties, problems as well as suggestions and recommendations of businesses and taxpayers in order to research and propose tax management solutions, perfecting mechanisms and policies.
