HANOI TAX DEPARTMENT TO SCRUTINISE TRANSFER PRICING IN 2020

The Hanoi Tax Department will scrutinise transfer pricing among foreign-invested enterprises in 2020, announcing it as its key task for the year.

Mai Son, director of the Hanoi Tax Department, made the statement at the press briefing on January 15.

Accordingly, the department will inspect foreign-invested enterprises (FIEs) who reported losses for years but still made business expansions, and those who have been conducting suspicious transactions.

In 2019, the Hanoi Tax Department made great achievements, with state budget collection hitting a five-year record high with tax collection reaching VND252.18 trillion ($10.96 billion), up 15 per cent on-year. Tax collection from manufacturing business rose 17 per cent on-year, up from the 11.2 per cent in 2016-2018.

2019 was also the second year that the tax department fulfilled its inspections by carrying out over 18,700 inspections and investigations, surpassing the target by 12 per cent with the total collection in arrears and fines of VND3.7 trillion ($160.87 million).

During the year, the Hanoi Tax Department will also promote IT application in tax management with online declarations and e-payment, among others.

This year, the department sets out six key tasks to fulfill the target.

Source: VIR