Thirty-two per cent of the 2,542 registered businesses surveyed by the Vietnam Chamber of Commerce and Industry say they have to pay “unofficial fees” to tax officials.
HANOI: Nearly a third of businesses in Vietnam have to bribe officials when paying tax, according to a survey by the Vietnam Chamber of Commerce and Industry (VCCI).
The first survey of its kind by VCCI on the country’s tax practices surveyed 2,542 registered businesses in the country, which include state-owned enterprises, private businesses and foreign companies.
Thirty-two per cent of them say they have to pay “unofficial fees” to tax officials, and another 40 per cent believe they would face discrimination if they did not – they could be asked to submit additional documents or have their tax procedures extended.
The VCCI said the findings point to the reality of doing business in Vietnam. Because the survey only covers registered businesses, the prevalence of corruption in the economy as a whole could possibly be higher.
“Paying unofficial fees isn’t rare in Vietnam,” said Au Anh Tuan, general director of VCCI’s legal department. “It’s common in many areas, like when applying for land or construction permits. Vietnam has 1.6 million household businesses and millions of individuals paying taxes, but they are not covered in this survey.”
The survey comes as Vietnam is working to reform its tax administration in a bid to boost its economic competitiveness by removing obstacles to doing business.
Earlier this year, the Finance Ministry introduced a raft of measures this year to radically cut the amount of time businesses spend on taxes.
It is doing this by moving tax procedures online. The target is to get 95 per cent of businesses to file and pay their taxes electronically.
An e-tax system would also reduce the number of face-to-face interactions with tax officials, where under-the-table money could be exchanged.
Thirty-two per cent of the 2,542 registered businesses surveyed by the Vietnam Chamber of Commerce and Industry say they have to pay “unofficial fees” to tax officials.HANOI: Nearly a third of businesses in Vietnam have to bribe officials when paying tax, according to a survey by the Vietnam Chamber of Commerce and Industry (VCCI).The first survey of its kind by VCCI on the country’s tax practices surveyed 2,542 registered businesses in the country, which include state-owned enterprises, private businesses and foreign companies.Thirty-two per cent of them say they have to pay “unofficial fees” to tax officials, and another 40 per cent believe they would face discrimination if they did not – they could be asked to submit additional documents or have their tax procedures extended.The VCCI said the findings point to the reality of doing business in Vietnam. Because the survey only covers registered businesses, the prevalence of corruption in the economy as a whole could possibly be higher.“Paying unofficial fees isn’t rare in Vietnam,” said Au Anh Tuan, general director of VCCI’s legal department. “It’s common in many areas, like when applying for land or construction permits. Vietnam has 1.6 million household businesses and millions of individuals paying taxes, but they are not covered in this survey.”The survey comes as Vietnam is working to reform its tax administration in a bid to boost its economic competitiveness by removing obstacles to doing business.Earlier this year, the Finance Ministry introduced a raft of measures this year to radically cut the amount of time businesses spend on taxes.It is doing this by moving tax procedures online. The target is to get 95 per cent of businesses to file and pay their taxes electronically.An e-tax system would also reduce the number of face-to-face interactions with tax officials, where under-the-table money could be exchanged.
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