Continuing to implement tax administration reform for individual business households in Vietnam

Continuing to implement tax administration reform for individual business households in Vietnam (Internet image)

The Government of Vietnam issued Resolution 58/NQ-CP dated April 21, 2023, on a number of key policies and solutions to support businesses to proactively adapt, recover quickly, and develop sustainably by 2025.

Continuing to implement tax administration reform for individual business households in Vietnam

For tasks that need to be implemented in the short term, the Government requested the Ministry of Finance to continue implementing tax administration reform for individual business households in order to gradually reduce the difference between tax policies of enterprises and business households and report to the Prime Minister in the second quarter of 2023.

At the same time, directing the General Department of Customs to assume the prime responsibility for, and coordinate with ministries, branches, and localities in, researching and simplifying the current administrative processes or consider applying priority import and export processes to help businesses optimize time and costs at domestic stages in order to speed up the import process and procedures for essential commodities and accelerate the export of agricultural products and key export commodity groups.

In addition, it also monitors and evaluates the operation of the corporate bond market in accordance with the provisions of Decree 08/2023/ND-CP amending, supplementing, and suspending a number of articles of the Decrees on the private offering and trading of corporate bonds in the domestic market and the offering for sale of corporate bonds in the international market.

Continuing to implement tax, fee, charge, and land rent support solutions in Vietnam

For support to reduce costs for businesses, enhance access to concessional capital sources, and provide state support resources, the Prime Minister requested the Ministry of Finance assume the prime responsibility for, and coordinate with relevant agencies in, performing the following tasks:

- Continue to promote forecasting and effective coordination between monetary and fiscal policies with other macropolicies and balance the central budget to support a number of subjects that are heavily affected by petroleum prices, such as supporting fishermen to stick to the sea, supporting transport enterprises, and supporting low-income people according to regulations.

- Continue to drastically and effectively implement support solutions on taxes, fees, and land rent issued by competent authorities to implement the socio-economic recovery and development program.

- Focus on researching, perfecting, and submitting to competent authorities a decision to soon implement solutions to reduce land rent for enterprises and organizations; continue to coordinate with ministries, branches, and associations in reviewing and submitting to the Government an adjustment of import and export tax rates on input materials for production in order to support domestic production and business.

- Expeditiously promulgate a Circular guiding the mechanism of using state budget funds for recurrent expenditure to support small and medium-sized enterprises under Decree 80/2021/ND-CP, to be completed in April 2023.

- Review and evaluate difficulties and obstacles in the implementation of Decree 34/2018/ND-CP on the establishment, organization and operation of the credit guarantee fund for small and medium-sized enterprises and make recommendations for solutions; report to the Prime Minister in the second quarter of 2023.

- Coordinate with the Ministry of Agriculture and Rural Development to find solutions to reduce the cost of raw materials and inputs for agricultural and aquatic production, especially animal feed.

Striving to reach 1.5 million enterprises by 2025 in Vietnam

According to Resolution 58/NQ-CP dated April 21, 2023, the Government has set out specific targets for 2025 as follows;

- Reaching 1.5 million enterprises; 8,000–10,000 business households converted into enterprises.

- The business sector contributes about 65-70% of the country's GDP, about 30–35% of the total employment in the economy, and 98–99% of the total import-export turnover.

- About 35–40% of the total number of enterprises engaged in science and technology application and innovation activities.

- 100% of business establishments, including enterprises, cooperatives, and business households, have raised awareness of digital transformation; at least 30,000 business establishments are supported to carry out digital transformation.

- Every year, the number of businesses listed in the list of businesses with the highest brand value of prestigious ranking organizations in the world increases by 10%.

- 100% of administrative procedures related to businesses are eligible to provide online public services.

- 80% of enterprises use trained workers.

More details can be found in Resolution 58/NQ-CP which takes effect from the date of signing and promulgates and replaces Resolution 35/NQ-CP dated June 15, 2016 on supporting and developing businesses until 2020.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE