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Update news vietnam's tax policies
Vice chairman of the Vietnam Association of Financial Investors (VAFI) Nguyen Hoang Hai said that paying additional tax will erode Vietnamese beverage makers’ competitive advantages.
Under the current PIT law, wageworkers have to pay PIT if they have monthly income of VND11 million or more. But freelancers with incomes of tens of millions of dong do not pay this tax because their incomes are not identified by taxation agencies.
These business owners are owing hundreds of billions of Vietnamese Dong in taxes, the Tax Department of Binh Phuoc Province said.
Vietnam has one of the highest smoking rates in the world, with 38.9% of males over the age of 15 being smokers.
The booming development along with many new forms of e-commerce in recent years has posed new challenges for tax management authorities.
Tax authorities in Vietnam are considering stringent measures against vendors on e-commerce platforms who have not fulfilled their tax obligations, including the possibility of prohibiting them from leaving the country.
The Ministry of Finance in Vietnam has proposed a 5% value-added tax (VAT) for fertilizers, a departure from the current tax-exempt status outlined in the Value-Added Tax Law.
The value-added tax (VAT) for most of goods and services will be cut by 2% from January 1, 2024.
The General Department of Taxation reported this year’s tax revenue at VNĐ1,396 quadrillion (US$57 trillion), exceeding the target by 1.7 per cent as 29 out of 63 localities across the country have completed their 2023 tax estimates.
The General Department of Taxation (GDT) has said that it guaranteed to reduce and simplify at least 20% of regulations and cut at least 20% of compliance costs related to business activities and eliminate unnecessary regulations by 2025.
As of the end of July, the tax sector collected a total of 25.608 trillion VND (1.06 billion USD) in tax arrears, reported the General Department of Taxation.
Vietnam’s tax authorities are working to make e-invoicing a common practice among business establishments nationwide as e-invoices generated from cash registers (ECR) make tax collection more efficient and manageable.
The Vietnam Confederation of Commerce and Industry (VCCI) says that domestically manufactured products bear a higher VAT (value added tax) higher than imports, and are thus placed at a disadvantage.
The gaming industry, unable to buy foreign games to distribute domestically because foreign partners are allowed to distribute games in Vietnam, does not expect a bright future.
Vietnam supports the global minimum tax and plans to begin the tax application in 2024, creating a favorable mechanism to encourage enterprises to pay additional tax in Vietnam.
The tax authority estimated that about 112 MNEs in Việt Nam would be affected by the global minimum tax if it was applied from 2024.
In late June, the Ministry of Finance (MOF) submitted to the government a proposal on amending the luxury tax law.
The Standing Committee of the Government has just released a conclusion that online video game services (online game) are not subject to special consumption tax.
Vietnamese game firms have sighed with relief as the Standing Government has rejected a luxury tax on online games as proposed by the Ministry of Finance (MOF).
The General Department of Taxation has reported that prominent foreign tech companies, including Google, Apple, Facebook, Netflix, TikTok, made substantial tax contributions, amounting to around $166 million during the first half of 2023.