GDT keeps big firms in order

Isn’t it true that big businesses are being hurt by current economic uncertainties?

Big businesses under the GDT’s direct management have basically retained fair growth rates, except some operating in above-said fields.

Particularly, budget collection from domestic sources hiked 0.7 per cent on-year in the year ending September, but that from businesses directly governed by GDT surged over 10 per cent on-year. Businesses operating in petroleum, beverage and telecom sector were the main drivers of such growth.

What about businesses active in finance and banking?

We are assigned to oversee tax management of 35 groups and corporations with 415 member businesses operating in key fields of the economy and positioned in localities across the country.

Among our direct management in respect to tax contribution obligations parallel to state corporations and groups there are joint stock corporations and foreign-invested enterprises including Toyota Vietnam, Honda Vietnam, GM Vietnam, Mercedes-Benz Vietnam, Yamaha Motor Vietnam and Unilever Vietnam and commercial banks like Agribank, Vietcombank, VietinBank, BIDV, ANZ and ACB.

Finance and banking operations are in a fix on the back of narrowing gap between mobilising and lending rates and spiraling bad debts. However, such difficulties largely hit smaller players with limited finance and tiny market shares. Six banks under our direct management have reported fairly stable operations with active contributions to state coffers.

Will businesses performances become better later in 2012 and 2013?

General Statistics Office figures showed that the gross domestic product (GDP) expanded 5.35 per cent in the third quarter versus 4 per cent in the first quarter and 4.66 per cent in the second quarter. The Ministry of Planning and Investment forecast fourth quarter GDP would be more positive, paving the way for full-year GDP growth to hover around 5.2 per cent against 4.73 per cent average growth in the first three quarters. In this context, firms’ businesses will become better.

Around 471,500 businesses are operating in the economy, of them 415 big ones contributed one-third of total budget revenue as well as of the GDP.

Should enterprises under GDT direct management be expanded in the coming period?

Tax management not only covers inspecting and checking tax contribution obligations of businesses, but also assisting firms to help them properly handle  their obligations, including helping firms disentangle in a timely manner.

Hence, the Ministry of Finance has set a trajectory to further extend the list of firms under GDT direct management in tax handling obligations.

The Big Corporate Taxation Management Department was trusted to develop criteria for big businesses under GDT direct management. In the coming period, businesses with big contributions and those having potential for big payment to state budget plus those operating in important fields like insurance, power, shipbuilding will be taken as big players to be susceptible for GDT direct tax management.

By contrast, those dropping of set criteria will be excluded from the list of big businesses. Around 800-1,200 big enterprises are currently under GDT direct management which contribute 70-80 per cent to total budget revenue each year.