1,000 enterprises combine to make largest CIT payment in 2020

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The Viettel Military Industry and Telecoms Group topped the 2020 Rankings of V1000. Photo: Internet.

A clear and specific criteria

The General Department of Taxation said, based on tax payment data on the management information system, the tax man has reviewed data of the following enterprises, based on specific, clear and transparent criteria.

Topping the Rankings is the Viettel Military Industry and Telecoms Group, followed by the Joint Stock Commercial Bank for Foreign Trade of Vietnam. Honda Vietnam, the CP Vietnam Livestock Joint Stock Company, the Vietnam Joint Stock Commercial Bank For Industry And Trade; Samsung Electronics Vietnam Hai Nguyen Co., Ltd, the Bank for Agriculture and Rural Development of Vietnam and Vietnam Technological and Commercial Joint Stock Bank also feature.

Enterprises in the list are enterprises established under Vietnamese law, foreign enterprises, and other organizations engaging in production and business activities that make an income. If an enterprise has branches or affiliated units, the payment amount calculated for the enterprise includes the payment of the head office as well as the payment of branches and affiliated units.

Groups and corporations, parent companies, subsidiaries and member companies in groups are all independent enterprises in the ranking list. The General Department of Taxation determines the list of V1000 based on the annual CIT payment to the State budget., As a result, the Rankings 2020 list is used to honor enterprises who comply well with tax laws.

However, if the enterprises commit any violations, they are treated in accordance with laws. In the Rankings 2020, 300 businesses from the Rankings 2019 have been excluded. These are businesses that have been merged or transformed (from independent to dependent accounting). In some other cases, even though enterprises have a large CIT payment applicable for the 2020 final settlement, the enterprises pay it in 2021, preventing their chances of making the list.

The 2020 V1000 list also adds 300 new enterprises. Most of them are enterprises whose payments to the State budget arise from real estate transfers, capital transfers, or tax arrears under decisions by competent authorities. Some enterprises expired tax incentives, exemptions and reductions, and have resumed CIT payments.

In particular, some enterprises have adapted the pandemic situation and managed to expand capital, developing production and business. These enterprises increased their revenue and contributed tax payments to the State budget.

423 enterprises selected in for five consecutive years

According to the General Department of Taxation, the total CIT amount paid by enterprises in the list of V1,000 enterprises is VND145,934 billion, accounting for 62 .4% of the total State budget revenue on corporate income tax. This is up by 3.74% compared with businesses on the V1000 list in 2019.

This is the 5th year in a row that the General Department of Taxation has built a list of the 1000 largest corporate income tax payers. After 5 years of announcements, between 2016 to 2020, 423 enterprises have been selected repeatedly. 180 businesses of these were in the manufacturing trade.

The financial, banking and insurance industry celebrated inclusion of 60 enterprises and the information and communication industry had eight enterprises. The real estate business industry; wholesale and retail, repair of automobiles, motorcycles, motorbikes and other motor vehicles industry made up the other 101 enterprises.

If the ranking were done by location, Hanoi and Ho Chi Minh City would lead. Hanoi with 109 enterprises and 43.26% of tax payments, and Ho Chi Minh City with 134 enterprises, with tax payments of 29.81%.

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Provinces of Dong Nai (29 enterprises), Vinh Phuc (9 enterprises), Binh Duong (39 enterprises) and others followed with 103 inclusions. Out of 423 enterprises in the V1000 list, non-State enterprises account for the highest proportion, with 267. This is followed by State-owned enterprises, with 71, foreign investment enterprises with 77 and 8 from other sectors.