Vietnam Tax Summit 2022 covers up-to-date tax legislation

Vietnam Tax Summit 2022, the largest annual tax summit in the country that took place last week, featured thought-provoking guest speakers, industry experts, and tax specialists.

The event, which is the largest annual tax summit in the country, is held by the Vietnam CFO Club on the occasion of the 15^th anniversary of the Vietnam Association of Business Administrators.

The forum also saw the participation of more than 2,000 representatives from Vietnamese and foreign businesses. At the forum, high-profile consultants from top consultancies, such as RSM, Indochine Counsel, PwC, EY, Deloitte, Grant Thornton, and Mazars discussed the gap between tax policy changes and the actual implementation.

Throughout the years, the tax industry has undergone management reforms and modernisation, beginning with the progressive improvement of the legal side and culminating in the completion of the digital infrastructure.

On April 23, the Prime Minister issued Decision No. 508/QD-TTg authorising the Tax System Reform Strategy until 2030 to synchronise the domestic landscape with international practices. This decision was also in response to the outcomes that were obtained as a consequence of the tax system reform strategy for the period of 2011-2020.

Vu Xuan Bach, deputy general director of the General Department of Taxation, made his assessment during the Vietnam Tax Summit 2022, “The Decision No.508/QD-TTg is a crucial legislative instrument for implementing changes and contributing to the development of a modern, simplified, and taxpayer-centric tax system in Vietnam.”

According to Le Khanh Lam, tax partner of RSM Vietnam, tax rivalry to attract international funds and the trend of worldwide tax reform are two of the significant elements influencing the trajectory of corporate income tax innovation.

“Previously, one of the most important aspects to entice foreign investment has been the provision of corporate income tax incentives, in which some particular businesses could be eligible for lower corporate income tax rates and/or tax breaks,” Lam explained.

“Now, with the introduction of a global minimum tax rate of 15 per cent, these tax incentives, such as preferential tax rates and tax exemptions, might no longer be beneficial to these foreign businesses. Therefore, Vietnam needs to prepare for a new, updated, and comprehensive tax legislation which could contribute to the sustainable development of the domestic economy.”

Annett Perschmann-Taubert, tax partner at PwC Vietnam, highlighted that as Vietnam signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) earlier this year, the country become the 99^th jurisdiction to join the convention.

“Approximately 75 double tax agreements (DTA) between Vietnam and other countries might be amended as a result of the MLI going into force. In light of these possible modifications to DTAs, taxpayers should be aware of the impact this may have on their strategic plans for structuring investments and transactions to gain more advantages,” she noted.

Many firms also took part in the Q&A session, which was followed by thorough comments from top tax and finance professionals.

The Tax Summit 2022 has also offered a wide range of viewpoints on macroeconomic, geopolitical, and regulatory issues affecting both local and international organisations and the current tax landscape.

By Celine Luu -VIR