A recently-released World Bank report showed that Vietnam’s effectivecorporate income tax rate (CIT) stands at 15.7 percent, proving to bemore attractive than Singapore (17 percent), Indonesia (16.7 percent),Thailand (17.9 percent) and Malaysia (21 percent).
“This reflectsthat Vietnam is giving tax incentives to businesses,” said theDoing Business 2015 report as quoted by Vietnam Investment Review.
“Vietnam ’s low CIT is contributing to making Vietnam ’s businessclimate more competitive. Firms from France , Hong Kong and Malaysiathat we are advising to invest in Vietnam give a warm welcome to thecountry’s tax reforms,” said Tran Trong Binh, senior associate ofFrench-backed law firm Audier & Partners.
“However, such alow CIT itself is not strong enough for the country to attract moreforeign investors,” he said, adding many foreign investors said thatVietnam’s investment cost is 1.5-2 times higher than in other nations inthe region, while tax-related time remains very high.
Accordingto the report, in terms of tax payment, Vietnam has the highestcompliance time in the region, with 32 payments for 872 hours annuallyfor each enterprise. Meanwhile, the ASEAN-6 group (Indonesia,Malaysia, Philippines, Singapore, Thailand and Brunei) boastan average of 22 payments in 171 hours a year.
Further hindranceto drawing in foreign investment is Vietnam ’s total tax rate of 40.8percent which is higher than the ASEAN average of 31 percent.
However,Hoang Thi Lan Anh, vice head of the General Department of TaxationReform and Modernisation, stated that the tax sector has successfullyreduced payment times by 290 hours each year through compliance with thegovernment’s Resolution 19 issued in March 2014 on key solutions onimproving Vietnam’s business climate and national competitiveness.
Meanwhile, the government required the time to be trimmed to 171 hours, equivalent to that of the ASEAN-6 group.
Anhclaimed that in 2015 the tax sector will continue truncating the annualtime by another 415.5 hours down to 121.5 hours, while the socialinsurance sector will speed up the payment of insurance packages by285.5 hours, taking it down to 49.5 hours.
“This will mean the 171 hours target is feasible, creating a more favourable atmosphere for enterprises to perform” Anh said.
Areport published by the Ministry of Planning and Investment onVietnam’s economic institutional reform to improve competitiveness for2015-2016 also stated that upon the coming into effect of the Law onAmending Some Articles of Excise Laws in January 1, 2015, total taxpayment will be reduced to 167 hours per year.
“ Vietnam is making appropriate strides in tax administrative procedure reform,” said Joanna Nasr, a World Bank expert.
TheWorld Bank suggested that in order to further reduce the time for taxpayments, Vietnam will need to simplify regulations imposed on declaringand submitting value added taxes, obligatory insurance and corporateincome tax as well as designing a new tax software linking financial andaccounting software to automatise tax reporting requirements./.Enterprises relish low corporate income tax
Hanoi,January 26 (VNA) – A recently-released World Bank report showed thatVietnam’s effective corporate income tax rate (CIT) stands at 15.7percent, proving to be more attractive than Singapore (17 percent),Indonesia (16.7 percent), Thailand (17.9 percent) and Malaysia (21percent).
“This reflects that Vietnam is giving taxincentives to businesses,” said the Doing Business 2015 report as quotedby Vietnam Investment Review.
“ Vietnam ’s low CIT iscontributing to making Vietnam ’s business climate more competitive.Firms from France , Hong Kong and Malaysia that we are advising toinvest in Vietnam give a warm welcome to the country’s tax reforms,”said Tran Trong Binh, senior associate of French-backed law firm Audier& Partners.
“However, such a low CIT itself is not strongenough for the country to attract more foreign investors,” he said,adding many foreign investors said that Vietnam’s investment cost is1.5-2 times higher than in other nations in the region, whiletax-related time remains very high.
According to the report, interms of tax payment, Vietnam has the highest compliance time in theregion, with 32 payments for 872 hours annually for each enterprise.Meanwhile, the ASEAN-6 group (Indonesia, Malaysia, Philippines,Singapore, Thailand and Brunei) boast an average of 22 paymentsin 171 hours a year.
Further hindrance to drawing in foreigninvestment is Vietnam ’s total tax rate of 40.8 percent which ishigher than the ASEAN average of 31 percent.
However, HoangThi Lan Anh, vice head of the General Department of Taxation Reform andModernisation, stated that the tax sector has successfully reducedpayment times by 290 hours each year through compliance with thegovernment’s Resolution 19 issued in March 2014 on key solutions onimproving Vietnam’s business climate and national competitiveness.
Meanwhile, the government required the time to be trimmed to 171 hours, equivalent to that of the ASEAN-6 group.
Anhclaimed that in 2015 the tax sector will continue truncating the annualtime by another 415.5 hours down to 121.5 hours, while the socialinsurance sector will speed up the payment of insurance packages by285.5 hours, taking it down to 49.5 hours.
“This will mean the 171 hours target is feasible, creating a more favourable atmosphere for enterprises to perform” Anh said.
Areport published by the Ministry of Planning and Investment onVietnam’s economic institutional reform to improve competitiveness for2015-2016 also stated that upon the coming into effect of the Law onAmending Some Articles of Excise Laws in January 1, 2015, total taxpayment will be reduced to 167 hours per year.
“Vietnam is making appropriate strides in tax administrative procedure reform,” said Joanna Nasr, a World Bank expert.
TheWorld Bank suggested that in order to further reduce the time for taxpayments, Vietnam will need to simplify regulations imposed on declaringand submitting value added taxes, obligatory insurance and corporateincome tax as well as designing a new tax software linking financial andaccounting software to automatise tax reporting requirements.-VNA
“This reflectsthat Vietnam is giving tax incentives to businesses,” said theDoing Business 2015 report as quoted by Vietnam Investment Review.
“Vietnam ’s low CIT is contributing to making Vietnam ’s businessclimate more competitive. Firms from France , Hong Kong and Malaysiathat we are advising to invest in Vietnam give a warm welcome to thecountry’s tax reforms,” said Tran Trong Binh, senior associate ofFrench-backed law firm Audier & Partners.
“However, such alow CIT itself is not strong enough for the country to attract moreforeign investors,” he said, adding many foreign investors said thatVietnam’s investment cost is 1.5-2 times higher than in other nations inthe region, while tax-related time remains very high.
Accordingto the report, in terms of tax payment, Vietnam has the highestcompliance time in the region, with 32 payments for 872 hours annuallyfor each enterprise. Meanwhile, the ASEAN-6 group (Indonesia,Malaysia, Philippines, Singapore, Thailand and Brunei) boastan average of 22 payments in 171 hours a year.
Further hindranceto drawing in foreign investment is Vietnam ’s total tax rate of 40.8percent which is higher than the ASEAN average of 31 percent.
However,Hoang Thi Lan Anh, vice head of the General Department of TaxationReform and Modernisation, stated that the tax sector has successfullyreduced payment times by 290 hours each year through compliance with thegovernment’s Resolution 19 issued in March 2014 on key solutions onimproving Vietnam’s business climate and national competitiveness.
Meanwhile, the government required the time to be trimmed to 171 hours, equivalent to that of the ASEAN-6 group.
Anhclaimed that in 2015 the tax sector will continue truncating the annualtime by another 415.5 hours down to 121.5 hours, while the socialinsurance sector will speed up the payment of insurance packages by285.5 hours, taking it down to 49.5 hours.
“This will mean the 171 hours target is feasible, creating a more favourable atmosphere for enterprises to perform” Anh said.
Areport published by the Ministry of Planning and Investment onVietnam’s economic institutional reform to improve competitiveness for2015-2016 also stated that upon the coming into effect of the Law onAmending Some Articles of Excise Laws in January 1, 2015, total taxpayment will be reduced to 167 hours per year.
“ Vietnam is making appropriate strides in tax administrative procedure reform,” said Joanna Nasr, a World Bank expert.
TheWorld Bank suggested that in order to further reduce the time for taxpayments, Vietnam will need to simplify regulations imposed on declaringand submitting value added taxes, obligatory insurance and corporateincome tax as well as designing a new tax software linking financial andaccounting software to automatise tax reporting requirements./.Enterprises relish low corporate income tax
Hanoi,January 26 (VNA) – A recently-released World Bank report showed thatVietnam’s effective corporate income tax rate (CIT) stands at 15.7percent, proving to be more attractive than Singapore (17 percent),Indonesia (16.7 percent), Thailand (17.9 percent) and Malaysia (21percent).
“This reflects that Vietnam is giving taxincentives to businesses,” said the Doing Business 2015 report as quotedby Vietnam Investment Review.
“ Vietnam ’s low CIT iscontributing to making Vietnam ’s business climate more competitive.Firms from France , Hong Kong and Malaysia that we are advising toinvest in Vietnam give a warm welcome to the country’s tax reforms,”said Tran Trong Binh, senior associate of French-backed law firm Audier& Partners.
“However, such a low CIT itself is not strongenough for the country to attract more foreign investors,” he said,adding many foreign investors said that Vietnam’s investment cost is1.5-2 times higher than in other nations in the region, whiletax-related time remains very high.
According to the report, interms of tax payment, Vietnam has the highest compliance time in theregion, with 32 payments for 872 hours annually for each enterprise.Meanwhile, the ASEAN-6 group (Indonesia, Malaysia, Philippines,Singapore, Thailand and Brunei) boast an average of 22 paymentsin 171 hours a year.
Further hindrance to drawing in foreigninvestment is Vietnam ’s total tax rate of 40.8 percent which ishigher than the ASEAN average of 31 percent.
However, HoangThi Lan Anh, vice head of the General Department of Taxation Reform andModernisation, stated that the tax sector has successfully reducedpayment times by 290 hours each year through compliance with thegovernment’s Resolution 19 issued in March 2014 on key solutions onimproving Vietnam’s business climate and national competitiveness.
Meanwhile, the government required the time to be trimmed to 171 hours, equivalent to that of the ASEAN-6 group.
Anhclaimed that in 2015 the tax sector will continue truncating the annualtime by another 415.5 hours down to 121.5 hours, while the socialinsurance sector will speed up the payment of insurance packages by285.5 hours, taking it down to 49.5 hours.
“This will mean the 171 hours target is feasible, creating a more favourable atmosphere for enterprises to perform” Anh said.
Areport published by the Ministry of Planning and Investment onVietnam’s economic institutional reform to improve competitiveness for2015-2016 also stated that upon the coming into effect of the Law onAmending Some Articles of Excise Laws in January 1, 2015, total taxpayment will be reduced to 167 hours per year.
“Vietnam is making appropriate strides in tax administrative procedure reform,” said Joanna Nasr, a World Bank expert.
TheWorld Bank suggested that in order to further reduce the time for taxpayments, Vietnam will need to simplify regulations imposed on declaringand submitting value added taxes, obligatory insurance and corporateincome tax as well as designing a new tax software linking financial andaccounting software to automatise tax reporting requirements.-VNA
