The Government of Vietnam to give opinions on the Draft Law on Corporate Income Tax (Amended)

The Government of Vietnam to give opinions on the Draft Law on Corporate Income Tax (Amended) (Image from the internet)

The Government of Vietnam to give opinions on the Draft Law on Corporate Income Tax (Amended)

On September 1, 2024, the Government of Vietnam issued Resolution 126/NQ-CP regarding the special session on law-making for August 2024.

The Government of Vietnam appreciates the serious and active preparation by the Ministry of Finance in building and completing the dossier of the Draft Law on Corporate Income Tax (revised) in accordance with the Law on Promulgation of Legal Documents.

The necessity of enacting and the scope of revision of this Law was unanimously agreed upon to institutionalize the directives and policies of the Communist Party, and State policies on perfecting tax laws; meet the requirements of international economic integration and enhance international tax cooperation; create a unified, consistent legal environment, addressing the limitations and inadequacies of the current Law on Corporate Income Tax.

The Ministry of Finance of Vietnam is to study and maximally absorb the opinions of Government Members, complete the dossier of the Draft Law, ensuring the following requirements:

- Continue to research and review to ensure the feasibility of the Draft Law; address tax collection challenges; have clear sanctions; ensure balanced interests, shared risks;

- Ensure proper, sufficient, and prompt tax collection; design modern tools for tax collection, effective control, and inspection, compliant with international practices; use electronic invoices, apply information technology, and digitalization in tax management to promote production, business, and socio-economic development;

- Reduce administrative procedures to facilitate tax collection and payment, enhance taxpayer responsibility and obligations, combat tax evasion, especially in e-commerce, catering services, retail..., ensure fairness and equality among businesses and economic sectors, and comply with Decision 06/QD-TTg dated January 6, 2022, by the Prime Minister approving the Scheme on Development of Data Application on Population, Identification, and Electronic Authentication for National Digital Transformation for the period 2022-2025, with a vision to 2030;

- Regarding the application of supplementary corporate income tax under global base erosion regulations, a comprehensive evaluation of the implementation of policies and regulations in Resolution 107/2023/QH15 by the National Assembly dated November 29, 2023, is needed, and these regulations are to be proposed for legalization at an appropriate time.

- Continue to research, review the content of the Draft Law, and consult with the Ministries of Justice, Planning and Investment, Science and Technology, Industry and Trade, and other relevant ministries and agencies to revise the Draft Law ensuring consistency and synchronization within the legal system (particularly the regulations on: taxpayers; principles, subjects of tax incentives; tax exemptions and reductions...).

The Ministry of Finance is to lead, in cooperation with the Ministry of Justice, the Office of the Government, and related ministries and agencies, to urgently complete the dossier of the Draft Law following the provisions of the Law on Promulgation of Legal Documents; authorize the Minister of Finance to sign, on behalf of the Government, the submission to the National Assembly for consideration and feedback on the Law at the 8th Session, 15th National Assembly.

More details can be found in Resolution 126/NQ-CP issued on September 1, 2024.

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