Workers at Safoco Foodstuff JSC process instant noodles (Photo: VNA)Hanoi (VNA) - Prime Minister NguyenXuan Phuc has asked ministries and relevant sectors to study the effects onVietnam of the tax reforms US President Donald Trump signed intolaw last month.
The Ministries of Finance and Planning andInvestment will complete the report and send it to the Prime Minister beforeMarch 1 this year.
PM Phuc also assigned the Ministry of Industryand Trade to coordinate with relevant ministries and sectors to monitor policyresponses of countries around the world as the UnitedStates implements the new tax reform law, assessing the impacts onVietnam to help it respond appropriately and in a timely manner.
It is necessary to review the products Vietnamexported to the US, especially the products with the content of raw materialsand components imported from China in order to give warnings and guideenterprises when the US imposes anti-dumping duties on these products, said thePM.
According to the PM’s economic advisory group,the US new tax reform package cut top corporate income rates to 21percent from 35 percent. At the same time, it will tax foreign investmentreceipts transferred back to the country at the rate of 10.5 percent. With thistariff, the US has become the world’s lowest taxing country.
The advisory group of the Prime Minister saidthat the US tax policy in the immediate time may not affectVietnam much, but in the long term it will impact the country, reportedthe online newspaper dantri.com.vn.
As other economies apply defensive measures suchas adjusting exchange rate policies, foreign exchange controls will affectforeign investment flows, thereby affecting Vietnam, especially the exchangerate, said the advisory group.
US President Donald Trump signed the tax reformpackage on December 22 last year. Analysts say this measure will improvecorporate profits, boosting the economy.
Under the new tax law, up to 95 percent ofAmericans will receive tax breaks, but cuts to the rich will outweigh the tax cutsfor lower income people. According to the Non-partisan Tax Policy Centrein Washington, it is estimated that households will receive an average taxcut of about 900 USD next year, but the top 1 percent will get a break of51,000 USD on average.-VNA
The Ministries of Finance and Planning andInvestment will complete the report and send it to the Prime Minister beforeMarch 1 this year.
PM Phuc also assigned the Ministry of Industryand Trade to coordinate with relevant ministries and sectors to monitor policyresponses of countries around the world as the UnitedStates implements the new tax reform law, assessing the impacts onVietnam to help it respond appropriately and in a timely manner.
It is necessary to review the products Vietnamexported to the US, especially the products with the content of raw materialsand components imported from China in order to give warnings and guideenterprises when the US imposes anti-dumping duties on these products, said thePM.
According to the PM’s economic advisory group,the US new tax reform package cut top corporate income rates to 21percent from 35 percent. At the same time, it will tax foreign investmentreceipts transferred back to the country at the rate of 10.5 percent. With thistariff, the US has become the world’s lowest taxing country.
The advisory group of the Prime Minister saidthat the US tax policy in the immediate time may not affectVietnam much, but in the long term it will impact the country, reportedthe online newspaper dantri.com.vn.
As other economies apply defensive measures suchas adjusting exchange rate policies, foreign exchange controls will affectforeign investment flows, thereby affecting Vietnam, especially the exchangerate, said the advisory group.
US President Donald Trump signed the tax reformpackage on December 22 last year. Analysts say this measure will improvecorporate profits, boosting the economy.
Under the new tax law, up to 95 percent ofAmericans will receive tax breaks, but cuts to the rich will outweigh the tax cutsfor lower income people. According to the Non-partisan Tax Policy Centrein Washington, it is estimated that households will receive an average taxcut of about 900 USD next year, but the top 1 percent will get a break of51,000 USD on average.-VNA
VNA
