Saturday, April 5, 2008

Singers and income tax


Many famous singers have not declared their incomes for 2007 to pay personal income taxes. A senior official of the HCM City Taxation Bureau said those who hand in income declarations late will be fined.

Trinh Thi Thu Thuy, Head of the Personal Income Tax Division under the HCM City Taxation Bureau, said as of 2008, there will be some changes in fining those who hand in income declarations late (deadline is March 31 annually).

Specifically, the fine will be VND5 million for those who do this task 5-90 days after the deadline; after 90 days the fine will be 1-3 times more than the income tax that they would have paid had they paid on time.

By March 31, the deadline for income declaration for 2007, only 75 artists had fulfilled this task at the HCM City Taxation Bureau, compared to 115 last year. The total income tax that they have to pay is around 10% lower than 2006. This is an amazing fact.

Among artists, singer Ho Ngoc Ha will pay the highest tax, VND486 million. In 2007, Ha didn’t appear frequently in music shows but only in advertising clips. This singer also took the lead among artists in HCM City in paying income tax last year.

However, it is absurd that many stars who have higher incomes than Ha have declared much lower incomes for 2007.

Dam Vinh Hung, who took part in many music programmes and had successful live shows last year, pays only VND84 million in income tax, less than Thanh Loc, who pays VND100 million, and only took part in plays at IDECAF stage.

Singer Lam Truong will pay VND97 million for 2007 though he didn’t take part in many shows.

Singer Thu Minh also pays little tax, VND20 million, though 2007 was a good year for this pop star. Her payment is even less than young singers who are not as famous, for example Dinh Toan (VND30 million), Dai Nghia (VND23 million).

Another pop star, Thanh Thao, also pays only VND21 million in income tax.

Among artists who haven’t declared their incomes for 2007 are famous singers like Quang Dung, Phuong Thanh, Nguyen Vu, Hien Thuc and especially overseas Vietnamese comedic artist Hoai Linh, who had many shows last year.

A show organiser said artists are very skillful in declaring low incomes to avoid paying taxes. If taxation agencies can’t devise effective supervisory methods, many artists will not have to pay much income tax though they will get richer.

The HCM City Taxation Bureau has for several years complained of the fact that singers are declaring incomes much lower than their actual earnings, but the bureau can’t find any evidence.

No comments: