Illustrartive image.— Photo taisancong.mof.gov.vn

HA NOI (VNS)— The National Assembly's Finance and Budget Committee has ratified a Government proposal to make the planned Viet Nam Asset Management Company (VAMC) exempt from value added tax (VAT) and corporate income tax (CIT).

The move was made after receiving reports on amendments and supplements to the laws on VAT and CIT, which will be presented to the Assembly for approval at its next meeting starting next Monday.

Accordingly, debt or loan security sold by VAMC would not be subject to VAT while VAMC would not have to pay corporate taxes.

However, the committee noted that the Government should clarify functions, organisation and expected incomes of VAMC as a basis of considering tax exemption for the firm.

The planned VAMC, a 100-per-cent State-owned organisation established by the Government to handle bad debts of credit institutions in Viet Nam, has been approved in principle by the Politburo.

Last month, Minister and chairman of the Government Office Vu Duc Dam said the proposed VAMC was only one of the measures to deal with bad debts.

The State Bank of Viet Nam and commercial banks had made efforts to settle their bad debts, the minister said, however each bank had to form their own hedge funds under the State Bank's instructions. — VNS