Close tax loopholes to prevent tax evasion

	Application of new tax refund, tax exemption and tax reduction procedures
	Deducting VAT on agricultural machinery
	Determined to successfully complete financial tasks - State Budget 2016

Deputy Minister of Finance, Mr. Do Hoang Anh Tuan addressed at the conference.

The OECD says the tax revenue lost due to BEPS was at least 100-240 billion USD each year, equivalent to 4-10% of the corporate income tax annually.

For developing countries like Vietnam being more dependent on revenues from corporate income tax, the impact of BEPS is particularly strong. So, the focus of most developed countries and developing countries like Vietnam is on the control of erosion and profit shifting.

As Mr. Dang Ngoc Minh, Deputy General Director of the General Department of Taxation said, through reviewing the practices and the acts of base erosion and profit shifting occurred because multi-national companies. These companies used various methods to avoid taxes by exploiting the gaps and inconsistencies in policies and tax regulations to reduce taxable profits or transferring profits to other countries and territories with little or no substantial economic activities or with a low tax rate or tax exemption to reduce the corporate income tax which must be paid by the corporation.

The Deputy Minister of Finance, Mr. Do Hoang Anh Tuan said that, for many years, Vietnam has made important progress in finalizing the policies and tax laws to attract foreign investment in the context of integration as well as to ensure steady revenue for national development. In particular, the tax system of Vietnam has been gradually reforming and modernizing to meet the requirements of the economy, the enterprises and increasingly complying with international practices.

"In order to prepare for the implementation of the Agreement on the Trans-Pacific partnership - TPP and the new trade agreements such as Vietnam – EU Free Trade Agreement, Vietnam will be receiving new investments from foreign enterprises. In the context of industrialization and modernization of the country, Vietnam should accelerate the process of economic restructuring, while conducting a review and supplement or amend legislation and management, step by step putting standards and international management practices in place to apply in Vietnam. In particular, tax policies and legislation is a critical content to utilize and promote the economic advantages of Vietnam in the new context, continuing to maintain Vietnam as an ideal investment destination in the region for multinational companies", Mr. Do Hoang Anh Tuan said.

The participation in important OECD conferences about BEPS also shows Vietnam's great effort in the fight against base erosion and profit shifting. The action programs launched by BEPS are solutions to help countries narrow the current loopholes in regulations on international administration tax, which lead to the profit shifting of companies or "disappearing" or transferring money automatically to countries, territories to apply tax-exemption, with little or no economic activities in practice.

In future, G20/OECD will focus on BEPS activities to establish and develop a framework of measures for monitoring implementation and enforcement of BEPS, in which all countries like Vietnam will become a destination for international investors participating on an equal basis. The rapid implementation in these countries will ensure an ideal and sustainable international tax environment for the interests of all countries.

In order to access, evaluate and implement action programs of BEPS, the General Department of Taxation has established a steering committee and three working groups focusing on domestic policy mechanisms according to standard management and practices of BEPS, the transfer pricing regulations and the provisions of tax agreements and tax administrative cooperation under the Agreement on the new generation of the OECD/ UN.

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The General Department of Taxation and the Ministry of Finance will coordinate with relevant ministries and agencies to determine the priorities, direction and roadmap for implementation of the action plans of BEPS in Vietnam.