Vietnam Finance Ministry Denies Charging 10 per cent VAT on Remittances
The Vietnamese Ministry of Finance has issued an official statement to reject charging 10 per cent VAT on remittances and trading activities of foreign currencies.
The MOF’s move followed complaints by a number of banks about the tax in mid-January.
The ministry has issued several circulars to urge local tax and customs authorities to abide by the regulation.
Overseas remittances, ODA, FDI and exports are forecast to be hurt by the global economic slowdown this year.
Communist Vietnam expects to attract US$20 billion FDI this year, much lower than US$64 billion FDI in 2008, receive US$5.014 billion ODA pledged by donors. Its exports are expected to grow 13 per cent to US$72 billion.
Last year, Vietnam expected US$8 billion remittances, up 45 per cent on year. (Vietnam Financial Times)
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