Legal Focus
 
Red tape taxing HCMC businesses
Compiled by Thuy Hang

Ho Chi Minh City business reps moaned in a Friday meeting that corporate tax procedures are too complicated and time consuming.

The meeting was told that tax formalities take a business around 650 hours a year to complete. The most troublesome procedures are found within value added tax, which takes up to 350 hours a year to complete.

The HCMC Tax Department said there are 107 tax procedures in total; however, business reps said the number is actually much higher.

The Doing Business 2010 report released by the World Bank on September 9 said Vietnamese firms spend 1,050 hours a year filing taxes, ranking 147th among 184 countries.

Meanwhile, a Singapore firm reportedly needs only 84 hours, and the average across the Asia-Pacific region is 227 hours.

The General Department of Taxation in its defense said the World Bank’s figures are not accurate as the 1,050 hours calculated by the bank included the time businesses spend on declaring and paying social and health insurance for employees.

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