Vietnam faces increasing tax evasion and avoidance

Update: 08:55 | 08/05/2020
Vietnam faces increasing tax evasion and avoidance as policies have not kept up with reality, according to a report by the Vietnam Institute for Economic and Policy Research (VEPR) and Oxfam.
TIN LIÊN QUAN
vietnam faces increasing tax evasion and avoidance 16,000 businesses still need support to overcome COVID-19 impact
vietnam faces increasing tax evasion and avoidance Payment deadline extension proposed for over 3 billion USD in taxes
vietnam faces increasing tax evasion and avoidance
Illustrative image.

Tens of thousands of businesses have been detected violating enterprise income tax rules worth up to trillions of VND per year from 2010 – 2018.

Tax violations not only occur among multinational corporations but also in State-owned enterprises as well as domestic private enterprises; not only in large-scale enterprises but also in small and medium-sized enterprises.

VEPR said although Vietnam had tried to consolidate the legal framework for tax administration, laws were still inadequate, inconsistent and had not kept pace with the reality of rapid and complex developments.

In the period, revenue loss in both value and proportion of corporate income tax has been on an upward trend since 2014.

Tax evasion and avoidance caused a revenue loss estimated at between 15.6-20.7 trillion VND each year, equivalent to 7.5 - 9.9 percent of corporate income tax revenue.

Professor Nguyen Hoang Oanh from the National Economics University said tax evasion was a common phenomenon in the economy.

In Vietnam, multinational enterprises have the best opportunity to evade taxes as they set up many branches abroad, shifting profits in high tax rates places to low tax rates places, Oanh said.

Nguyen Duc Thanh, a senior advisor of VEPR, said that to combat tax evasion the country was trying to cut corporate income tax to compete with other countries in the region.

The reduction of corporate income tax might cause the country to enter into competition with other countries, and there might be a race for tax incentives for businesses among ASEAN countries, Thanh said.

vietnam faces increasing tax evasion and avoidance Vietnam ranks fourth in ASEAN in access-to-electricity index with 82.2 points

Vietnam takes the fourth position in the access-to-electricity index in 2019 in the Association of Southeast Asian Nations (ASEAN), with 82.2 points, according to the ...

vietnam faces increasing tax evasion and avoidance Airlines allowed to operate at full capacity, end seat distancing from 00:00 on May 7

The Civil Aviation Administration of Vietnam (CAAV) has notified Vietnamese airlines that seat distancing and restrictions on passenger numbers are to be abolished from 00:00 ...

vietnam faces increasing tax evasion and avoidance Vietnam records trade surplus of 343 million USD with India in Q1

Vietnam ran a trade surplus of 343 million USD with India in the first quarter of this year, according to statistics released by the General ...

(Source: VNA)