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Vietnam refunds $22.6mn in tax windfall to Samsung

Vietnam refunds $22.6mn in tax windfall to Samsung

Friday, December 08, 2023, 16:03 GMT+7
Vietnam refunds $22.6mn in tax windfall to Samsung
Samsung Electronics HCMC CE Complex, a subsidiary of South Korean conglomerate Samsung Electronics in Ho Chi Minh City, has received over VND550 billion (US$22.6 million) in VAT refunds. Photo: Nguyen Khanh / Tuoi Tre

Samsung Electronics HCMC CE Complex, a subsidiary of South Korean conglomerate Samsung Electronics in Ho Chi Minh City, has received a value-added tax (VAT) refund of over VND550 billion (US$22.6 million).  

Nguyen Tien Dung, deputy director of the Ho Chi Minh City Tax Department, told Tuoi Tre (Youth) newspaper that the amount was the refund for the period from May 1, 2021 backward, when the company had yet to convert into an export processing enterprise and already declared taxes at the department.

The refund followed a request by Vietnam's Ministry of Finance and the General Department of Taxation.

Dung said the company did not make tax declarations at the Ho Chi Minh City Tax Department after May 1, 2021.

The taxman will ask for the General Department of Taxation’s instructions on tax refunds for Samsung Electronics HCMC CE Complex from May 1, 2021 onward.

The company itself is actively working with the Ministry of Finance, the General Department of Taxation, and the General Department of Vietnam Customs on resolving the issue, the tax official added.

At a conference between Ho Chi Minh City leaders and South Korean enterprises in the city in mid-August, Youn Chel Woon, CEO of Samsung Electronics HCMC CE Complex, said the company exported 90 percent of its products and became an export processing company on May 1, 2021.

However, it did not receive $24 million in VAT refunds for the period before the conversion and $20 million for the 18 months after that conversion. The total VAT refunds that the company was supposed to receive totaled $44 million.

The tardy VAT refunding has drawn public attention following many enterprises’ complaints. 

The General Department of Taxation on Wednesday held a teleconference on the VAT refund with the participation of leaders of the taxmen in Hanoi, Ho Chi Minh City, and southern Binh Duong and Dong Nai Provinces. 

During the event, Mai Son, deputy head of the General Department of Taxation, required relevant agencies to remove obstacles to the tax refund and take advantage of technology to automatically receive and classify tax refund applications, as well as devise post-tax-refund inspection plans.

Son asked directors of tax departments in provinces and cities to expedite VAT refunds and report tax refund applications encountering bottlenecks to the general department before Friday next week.

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Thanh Ha - Anh Hong / Tuoi Tre News

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