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Jun 21, 2016 / 18:45

Tax reforms to improve Vietnam's business environment

On June 21, Ministry of Finance’s General Department of Taxation in cooperation with the USAID Governance for Inclusive Growth Program held a workshop themed “Improving the Business Environment through Tax Reforms” in Hanoi.

 
 
Overview of the workshop
Overview of the workshop
 
The target of the workshop is to facilitate discussions on tax policy and administration in Vietnam, and to identify tax reforms that will improve Vietnam’s business environment.

Specific targets include:  90% of businesses use an online tax service; 65% of businesses register and make their tax payments online; and 80% of tax payers are satisfied with the services provided by their tax authorities.

Government Resolution 19 (19/2016/NQ-CP), dated  April 28, 2016, sets key measures for improving the business environment and enhancing national competitiveness. Resolution 19 aims to put Vietnam on par with the average performance of ASEAN’s top four countries in the implementation of tax procedures and tax compliance by 2020.  

Many laws and regulations have already been enacted to simplify tax policies and administration, including:  Law 71/2014/QH13, which amends and supplementsfive tax laws; Decree 91/2014/ND-CP, which revises four earlier decrees; and Circular 119/2014/TT-BTC, which revises seven earlier circulars.

However, the Ministry of Finance’s General Department of Taxation is seeking solutions to further simplify tax procedures and reduce obstacles to compliance. This workshop on “Improving the Business Environment through Tax Reforms” is exploring remaining impediments, specifically issues relating to invoice, filing, payments, refunds, audit, and appeal in order to fully comply with Resolution 19.

Following this workshop, the Ministry of Finance’s General Department of Taxation and the USAID Governance for Inclusive Growth Program will jointly coordinate visits to the field to validate information collected from this workshop, and assess specific difficulties in complying with rules on value added tax, corporate income tax, and personal income tax.

In addition to tax reform, the Government of Vietnam and the USAID Governance for Inclusive Growth Program are cooperating on a number of other reforms to improve Vietnam’s regulatory environment, its governance structures and systems of accountability, and opportunities to increase inclusive economic growth for all citizens in Vietnam.