OCB Completes Supplementary Tax Submission

Recently, Orient Commercial Bank (HOSE: OCB) announced that it has successfully completed the additional tax payment upon receiving a letter from the General Department of Taxation.

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According to the information from the General Department of Taxation, OCB is required to pay additional taxes on certain items, including value-added tax (VAT) related to Letter of Credit (L/C) activities from 2020 to 2022.

Regarding this issue, OCB representative stated: “Throughout our operations and development, we have always been committed to fully complying with tax obligations. Especially in recent years, OCB has consistently been among the top 30 largest tax-paying enterprises in Vietnam. Regarding the need for the bank to pay additional taxes related to tax notifications with changes, OCB has completed the additional payment immediately upon receiving information on this issue.”

Regarding the declaration and payment of L/C taxes, the Banking Association has also announced that from 2011 to now, Credit Institutions (CI) have been deficient in paying VAT on L/C fees for credit loans, and this is not the fault of the CIs. The CIs have not intentionally violated or evaded tax obligations. Because the nature of L/C services has not changed before and after January 1, 2011 (the effective date of the 2010 Law on Credit Institutions). In addition, CIs often have the characteristics of a system with many branches and transaction offices spread across the country, with many units undergoing changes, divisions, mergers, and a large number of transactions occurring over a long period of time. Therefore, it would take a lot of time, effort, and resources to review and reconcile.

According to the recently published financial report of OCB, as of December 31, 2023, the bank’s total assets reached VND 239,454 billion, an increase of 23.4% compared to 2022. Total market deposits reached VND 168,112 billion, an increase of 22.4% compared to the same period. Market loan balance increased by 20.5% compared to 2022, reaching VND 148,005 billion. 2023 is also the year that OCB successfully increases its charter capital to VND 20,548 billion, with pre-tax profit reaching VND 5,227 billion, an increase of 19.1% compared to 2022.

In addition, OCB has been actively reducing costs and creating conditions to lower interest rates for customers, with the cost-to-income ratio (CIR) decreasing to only 33.3% compared to 36.3% in 2022. This is considered as one of the few banks that have performed well and effectively controlled costs in 2023, when the overall business environment of banks across the system is still facing many difficulties.

SOURCEvietstock
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