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Sunday, May 9, 2021

Corporate income taxes spike after processed seafood is identified as semi-processed

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CAN THO – Many local seafood processing firms have been subject to corporate income tax hikes from 10% to 15-20% after their processed seafood products were identified as semi-processed ones.

A director of a seafood export firm in the Mekong Delta region told The Saigon Times that under the prevailing regulations, firms have to pay duties of 10-15% on their processed products, while a 20% tariff is imposed on semi-processed items.

Several of the firm’s processed products were classified as semi-processed, the director said, adding that as a result, the firm has to pay an increased amount of corporate income tax.

The Vietnam Association of Seafood Exporters and Producers (VASEP) had received multiple complaints about obstacles over the corporate income taxes regulated in the Ministry of Finance Circular 96 from its members, according to VASEP.

Their products were identified as semi-processed items, making them not subject to tax incentives, noted VASEP.

In response to the problem, the Ministry of Agriculture and Rural Development had asked the Ministry of Finance to remove the bottlenecks related to taxes on processed and semi-processed products.

By Trung Chanh

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