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Securities companies want CIT tax incentives
Securities companies which were established after October 25, 2006 complain that they have been treated unfairly as they cannot enjoy corporate income tax (CIT) incentives like the ones established before that time.
“The state should not balance debts by trying to collect CIT from securities companies in the current difficult period, in order to create favourable conditions for the companies to develop,” said Le Dac Son, Chairman of the Management Board of VP Bank’s Securities Company.
On November 23, 2007, the Ministry of Finance released Circular No 134, guiding the implementation of Decree 24, dated February 14, 2007 on the implementation of the CIT law. The circular stipulates that securities companies established after October 25, 2006 would not enjoy CIT incentives.
The problem lies in the fact that no securities company which was established between October 25, 2007 and November 23, 2007 was informed that they would not enjoy tax incentives.
“The information that listed companies cannot enjoy tax preferences was made public five months in advance, while the information that securities companies would not receive tax incentives was only made public one year after the decisions became valid,” Son said.
He went on to say that securities companies feel that they have been unfairly treated as decisions should not be retroactive.
Son said that most securities companies are now facing big difficulties as the stock market has been falling for a long period. The Vietnam Association of Securities Business (VASB) recently released a report which said that 70-80% of securities companies have been incurring losses and only operating perfunctorily.
The State Securities Commission (SSC) and VASB six months ago sent a document to the Ministry of Finance, asking for the tax incentives for the securities companies established after October 25, 2006 in order to help the companies survive the difficulties. However, no reply from the ministry has been given so far.
Analysts have said that even if the state tries to collect taxes at this moment, the tax volume it would get would be small as companies are facing difficulties.
VNN
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