Minister Ho Duc Phoc: strengthening tax and customs reform

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Minister of Finance Ho Duc Phoc spoke at the conference. Photo: VGP

Many policies on tax incentives have been implemented

Regarding investment policy and some taxes, the Ministry of Finance has advised the Government to issue decrees and advised the Government and the National Assembly to amend tax laws in line with the development progress and trend of the times, said Minister Ho Duc Phoc.

As an example of corporate income tax, Vietnam has lowered the common tax rate from 25% to 22%, now to 20%, and in the field of investment incentives, the tax rate is lowered to 10%. Depending on the entity, the preferential tax rate can be 9% within 30 years, or tax exemption can be applied for six years, and 50% tax reduction can be applied for the next 13 years. This is a very preferential policy, according to the Ministry of Finance.

For common investment projects, the tax exemption period is four years, the tax payable is reduced by 50% for the next nine years for the income of enterprises making new investments in the field of socialization and in areas with difficult and especially difficult socio-economic conditions; the tax payable is exempted for four years or reduced by 50% for the next 5 years for the enterprises which have income from the implementation of new investment projects in the field of socialization.

Regarding import and export tax, the leader of the Ministry of Finance said that the Government has issued decrees on investment incentives, helping foreign businesses enjoy tax exemption and reduction policies in accordance with regulations. In addition, in 2019, the Ministry of Finance has also advised promulgating a decree guiding the Tax Law, giving incentives to authorized economic operators in the direction of tax refund before inspection, and tax payment according to the approved customs declaration or release of goods in a month on the 10th day of the following month. Authorized economic operators of countries that sign mutual recognition agreements with Vietnam are entitled to apply prioritized measures on customs and tax procedures in Vietnam.

According to the Finance Minister, the above regulations have also helped reduce administrative procedures for businesses.

Representatives of ministries and agencies attend the Conference. Photo: VGP

Create a transparent and efficient public investment environment

Minister Ho Duc Phoc said that the Ministry of Finance has also focused on reforming administrative procedures, especially in the field of tax and customs. The Ministry has advised the Government to issue a decision on approving the Tax System Reform Strategy to 2030, with the integration of 150 tax administrative procedures at levels 3 and 4 on the National Portal and has launched electronic tax declaration and payment.

“Accordingly, the electronic tax declaration and tax refund and tax payment system is also attended by enterprises of 96.6%, 98.9% and 97.6%, respectively. This is a very good result,” said the minister.

In the field of customs, customs-related procedures have applied the ASEAN Single Window and customs clearance has been accelerated by modern customs management methods.

The Ministry of Finance has focused on reforming administrative procedures in customs clearance and more than 99% of customs procedures are carried out electronically, through an automated system.

“We will continue to strengthen the tax and customs reform with electronic systems, AI technology and risk management and create most transparency, simplify administrative procedures for businesses,” said Minister of Finance Ho Duc Phoc.

Regarding tax support for businesses, according to the Minister, in 2022, under very difficult conditions, the Ministry of Finance has advised the Government to exempt and reduce taxes for businesses up to VND233,000 billion, for example value-added tax decreased from 10% to 8%, 37 fees were exempted, environmental tax in petrol was exempted, reduced and some other policies.

According to the Minister, these actions have significantly supported enterprises.

In addition to the above issues, the head of the Ministry of Finance said that the ministry has advised the Government to establish a vaccine fund of VND10,500 billion, together with the state budget, to provide free vaccinations for the entire population; advised the Government to offer a stimulus package of VND347,000 billion to promote economic development and recovery and job creation after the pandemic in 2022 and 2023.

Regarding the inspection to create a transparent and effective public investment environment, the Minister of Finance said that the stock market has kept stability and transparency. The Ministry has also continuously examined and handled violations, ensuring a very transparent and healthy stock market, to promote medium and long-term capital mobilization for economic development and integration with the global economy.

"We are committed to working with foreign investors to solve difficulties and problems and best serve the investment and development process," said Minister Ho Duc Phoc.

Minister Ho Duc Phoc works with delegation from IMF VCN - Minister of Finance Ho Duc Phoc held a working session with a delegation from the ...