Business

Samsung Electronics receives tax refund of over U$22,596,281

SGGPO 06/12/2023 16:08

In today’s talk with a reporter from SGGP Newspaper, Deputy Director of the Ho Chi Minh City Tax Department Nguyen Tien Dung said that Samsung Electronics Company has got a tax refund of more than VND 550 billion (US$22,596,281).

Samsung Electronics receives tax refund of over U$22,596,281 ảnh 1 — Samsung Electronics receives tax refund of over U$22,596,281

Specifically, in the period before May 1, 2021, South Korean conglomerate Samsung Electronics operated as a domestic enterprise, declaring and paying value-added tax at the Ho Chi Minh City Tax Department.

Following the instruction of the Ministry of Finance and the General Department of Taxation, the Ho Chi Minh City Tax Department has refunded more than VND 550.768 billion to the company. The tax refund decision was signed on November 29, 2023, and the company received the tax refund on the next day.

For tax refunds from May 1, 2021, onwards, the company operates and applies tax and customs policies according to the type of export processing enterprise, and it needs not to declare taxes at the Ho Chi Minh City Tax Department.

The Ho Chi Minh City Tax Department will send its official dispatch to the General Department of Taxation for instruction about the company's tax refund settlement related to the amount of value-added tax paid at the import stage in case of re-exporting unprocessed raw materials and supplies. Currently, the company is continuing to work with the Ministry of Finance, the General Department of Taxation, and the General Department of Customs to resolve this problem.

Previously, at a dialogue conference between Ho Chi Minh City leaders and Korean businesses on August 16, Mr. Youn Chel Woon, General Director of Samsung Electronics Company said that the factory in the Hi-Tech Park Ho Chi Minh City has an export proportion of up to 90 percent. From May 1, 2021, the company will convert from a normal enterprise to an export processing enterprise.

However, the company has not received a value-added tax refund of US$ 24 million before converting the business type and US$ 20 million since converting the business type. The total amount the company is waiting for a refund is up to US$ 44 million, equivalent to about VND 1,000 billion. Company leaders at that time said there had been many meetings with the city governments but no decisions had been made.