Hanoi (VNA) – The Ministry of Finance has proposed and issued a multitude of unprecedented measures regarding taxes, fees and charges to support local residents and enterprises, including those from the Republic of Korea (RoK), to overcome global economic headwinds, Deputy Minister Cao Anh Tuan said on February 29.
At the dialogue with Korean enterprises, Tuan stressed that the ministry proposed competent authorities to promulgate and issued 60 legal documents with total financial support of 200 trillion VND (over 8.1 billion USD)
The support measures focus on the extension of the payment deadline of value added tax, individual and corporate income taxes, special consumption tax and land rental fees, he said, adding there are measures to exempt and reduce taxes together with many fees.
They have an important role to play in helping businesses to overcome difficulties, stabilise business and production activities as well as tighten the sound friendship and cooperation between Vietnam and the RoK, Tuan underlined.
Additionally, the ministry also joined hands with other ministries and sectors to consult the FDI business community in Vietnam to propose the National Assembly issue a resolution on the application of additional corporate tax in accordance with the global anti-base erosion rules.
Statistics from the Ministry of Planning and Investment’s Foreign Trade Agency showed that as of January, Vietnam attracted 9,891 projects from the RoK, accounting for 25% of the total FDI projects in the country.
The East Asian nation is leading 144 countries and territories in terms of investment in Vietnam.
According to Tuan, Korean enterprises have contributed nearly 175 trillion VND to the state budget over the past five years despite challenges brought by the COVID-19 pandemic as well as economic turbulence.
In the spirit of accompanying and supporting local people and enterprises, Tuan said his ministry received and handled hundreds of documents from Korean investors who raised questions on issues arising while they run business in Vietnam.
Tuan said the ministry discussed and submitted to competent quarters for policy adjustments to support the expansion of FDI enterprises.
In the coming time, the ministry will complete mechanisms and policies, enhance administrative procedure reform, and digitalise the tax and customs sectors so as to create an equal, transparent and favourable business climate for both domestic and FDI enterprises, he added.
At the event, RoK Ambassador to Vietnam Choi Youngsam said that countries across the globe strive to build a tax system with a broad base and low rate approach to minimise economic distortion and ensure a stable tax base.
Choi said creating a stable economic ecosystem with many active economic stakeholders is the most important key to ensure a broad tax base, or in the other words to ensure stable tax revenue source.
In recent years, rapid change in the tax environment has necessitated a constant revision of regulations on tax and related administrative procedures, he said, adding dialogues on tax and customs are significant to Korean firms./.
