Tax tips for cooperatives: challenges and solutions in focus!

Tax tips for cooperatives: challenges and solutions in focus!

On May 29, 2025, an important Cooperative Union workshop was held in Dong Thap Province, Vietnam. The focus of the event was the implementation of new guidelines for collective farming and the elimination of tax hurdles for cooperatives. Numerous representatives of cooperatives, particularly those that had difficulties in implementing tax regulations, were present to raise their concerns and develop solutions.

Representatives of the Tax Authority of Region XIX clarified questions on basic issues such as registration, declaration and tax payment during the workshop. They provided detailed information and specific instructions on the administrative procedures relevant to cooperatives.

Challenges for cooperatives

A key discussion during the workshop concerned the difficulties faced by cooperatives in relation to current policies and tax obligations. The most common challenges include determining specific income and expenditure in the agricultural sector, complex tax exemptions and reductions, and difficult declaration and reporting. It was found that despite policy measures to support collective farming, there are still bottlenecks in practical implementation, especially for small cooperatives, which often have limited accounting and financial capacity.

Mr. Le Quang Cuong, Chairman of the Cooperative Union, stressed the need for regular updating of knowledge and improving the management capacity of cooperatives. In addition, the cooperative association undertakes to collect the recommendations of the cooperatives and present them to the relevant authorities in order to adapt the measures and promote the development of the collective economy.

History and importance of cooperatives

The concept of cooperative has its roots in history, which goes back to the Middle Ages. During this time, people formed associations known as “unions” to pursue common purposes, for example in the form of funeral cooperatives or dike maintenance. The modern cooperative movement began with industrialization, with Robert Owen being a pioneer who introduced new standards for working conditions in New Lanark in 1799.

An outstanding example of the cooperative movement is the Rochdale Pioneers, who founded the Rochdale Society of Equitable Pioneers in 1844. This cooperative became a model for many subsequent cooperatives and applied democratic decision-making and the reimbursement principle. Friedrich Wilhelm Raiffeisen and Hermann Schulze-Delitzsch also made a significant contribution to the establishment and promotion of cooperative structures that have become an integral part of the economy today.

Cooperatives are now recognized in many countries and have legal frameworks that support their establishment and development. In Germany, cooperatives must consist of at least three members and must not aim to maximize profits. Instead, they provide benefits to their members and encourage resource sharing.

The importance of cooperatives is also highlighted by International Cooperative Day, which has been celebrated since 1923. Such initiatives promote awareness of the benefits of cooperatives and their role in society.

The developments and challenges discussed during the workshop in Dong Thap show how important it is to continually strengthen the cooperative idea and adapt it to modern circumstances. Efforts to eliminate tax barriers and promote collective farming are crucial to the future of cooperatives in Vietnam.

| Wikipedia.de provides information about the history of the cooperative