Seminar spotlights VAT, corporate income tax reform

An international seminar on Vietnam’s reform of the value-added tax (VAT) and corporate income tax, was held in Hanoi on August 8.

The seminar, jointly organised by the Finance Ministry and the European Union delegation, aims to devise an effective, equal and synchronous tax policy system to match the socialist oriented market economic institution and ensure a transparent and simplified tax policy, on par with international regulations. 

Deputy Head of the Finance Ministry’s Tax Policy Department Nguyen Van Phung, put forth existing problems in VAT and corporate income tax policies of Vietnam. 

Vietnam’s tax reform strategy for the 2011-2020 period is designed to stimulate production and the competitiveness of domestic goods and services, encourage exports, improve investment in difficult areas and promote economic restructuring, he said. 

Meanwhile, international tax expert of the EU delegation Ved P. Gandhi suggested Vietnam lower corporate income tax to 22 percent from 25 percent, remove the 5-percent level in VAT and limit the scope of goods and services exempt from VAT. 

Resident representative of the International Monetary Fund (IMF) in Vietnam Sanjay Kalra, recommended Vietnam put forth the turnover level subject to VAT in accordance with the international regulations and reduce the number of goods and services subject to the 5 percent tax level. 

Chairman of the Tax Committee of the European Chamber of Commerce (Eurocham) Tom McCleliand said Eurocham supports Vietnam’s further reduction of corporate income tax, as it is considered an important index for attracting foreign investment capital.

VNA/VOV online