Grasping tax and legal regulations to prepare for challenges and create growth

Hanoi, 14 October 2022. EY Consulting Vietnam Joint Stock Company (EY Consulting VN) and Vietnam Chief Financial Officer Club (CFO Vietnam) collaboratively held the Tax, Legal and Customs Symposium themed “Overcome challenges to grow”. This is an annual event to update businesses with tax trends and the latest changes of the local and global tax landscape, together with an in-depth analysis of the potential impacts and opportunities available to business from these changes.

After two years navigating from unprecedented challenges induced by the COVID-19, Vietnam economy has made positive recovery. Vietnam is predicted to lead the region with annual growth of 7.2% in 2022, according to the latest World Bank’s report[1]. However, with significant economic openness, negative impacts from the world economy such as high inflation, supply chain disruptions, geopolitical tensions, and the potential risk of a post COVID-19 global economic recession, may impact Vietnam economy faster and stronger than other countries.  

Recently, the Government of Vietnam has implemented numerous tax and financial incentives to support businesses to recover from the pandemic, but it is expected that many of these preferential policies will expire at the end of 2022. Tax policies in the coming period may be affected by pressure to ensure state budget revenues when policymakers have to balance between tax policies that contribute to promoting economic growth and tax policies or measures that might support state budget revenues effectively. Understanding the trends and focus of global and Vietnam tax policies’ changes plays a critical role in helping businesses reduce risks, avoid losses, as well as create opportunities for future growth.

Ms. Huong Vu, General Director, EY Consulting VN said: "Global and regional tax policies are changing drastically, especially in the context of globalization and digitization. These major trends will have a significant impact on business activities and their tax obligations. To avoid unnecessary losses and penalties, as well as obtain opportunities generated from the tax trends, businesses need to increase resources to understand and comply with their tax obligations."

At the event, EY Consulting VN professionals shared the latest information about:

►    Tax context in Vietnam

►    Update on new tax regulations in Vietnam and changes in key international tax policies affecting investors in Vietnam including: The Action Plan on Base Erosion and Profit Shifting (BEPS 2.0) and Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) to which Vietnam recently participated

►    In-depth discussion when dealing with practical situations.  

Particularly, the event had the participation of Mr. Luu Duc Huy, Director General of Policy Department and Ms. Ta Thi Phuong Lan, Deputy Director General of Tax Administration Department on small and medium enterprises and business households, individuals, under the General Department of Taxation. Along with the tax professionals from EY Consulting VN, the two representatives from Department of Taxation addressed tax issues of participating businesses.  

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice.

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