Facing adverse impacts of the COVID-19 pandemic and the world’s economic and political issues, the Ministry of Finance (MoF) has suggested authorities promulgate and issued many unprecedented solutions in terms of taxes, fees, and charges to assist people and businesses, including those from the Republic of Korea (RoK), an official has said.

Deputy Minister of Finance Cao Anh Tuan made the remarks while addressing a dialogue on taxation and customs policies with Korean businesses in Hanoi on February 29.

He noted that each year, the MoF handles hundreds of petitions from Korean firms about problems during their operations in Vietnam. In response, it has sought consultancy and proposed policy amendments and supplements to maximise assistance for foreign direct investment (FDI) companies.

The issuance and implementation of tax, fee, and charge-related solutions have received support and high evaluation from businesses, including Koreans entities, he said, adding that such solutions have helped firms weather difficulties and stabilise production and business activities.

To respond to the implementation of Pillar 2 on global minimum tax of the Organisation for Economic Cooperation and Development (OECD)’s Base Erosion and Profit Shifting initiative. The MoF has worked with other ministries and sectors to consult with FDI companies, including Korean businesses, to propose the National Assembly issue a resolution on the imposition of top-up corporate income tax under the Global Anti-Base Erosion (GloBE) rules from January 1, 2024, the official added.

Tuan went on to say that the MoF will continue perfecting mechanisms and policies, step up administrative procedure reform, and boost comprehensive digitalisation in the fields of taxation and customs to create a more equal, transparent, and optimal environment for both domestic and FDI businesses to further develop, create jobs, and contribute to local socio-economic development.

He also expressed his hope that Korean businesses will also actively seize opportunities to promote their competitiveness and grow while complying with taxation and customs regulations to help with Vietnam’s development.

At the event, representatives of the MoF, the General Department of Taxation, and the General Department of Customs presented recent taxation and customs results. They also fielded questions from Korean firms about related issues.

As of January 2024, there were 8,058 businesses with over 50% of their charter capital invested by the RoK, accounting for 28% of all FDI firms in Vietnam. This makes the East Asian nation the biggest among the 144 countries and territories investing in Vietnam at present, data from the Foreign Investment Agency under the Ministry of Planning and Investment showed.

Over the last five years, despite challenges caused by the COVID-19 pandemic and adverse impacts of the global economy, Korean businesses' contributions to the state budget has continually increased, approximating 175 trillion VND (7 billion USD), according to the Deputy Minister./.