Vietnam association of foreign firms, Hai Phong authorities hold tax dialogue for companies

The Vietnam's Association of Foreign Invested Enterprises (VAFIE) and Hai Phong's tax authorities co-hosted a conference in the northern city on Wednesday to answer businesses' tax-related enquiries.

Dinh Van Thanh, vice head of Hai Phong's Tax Department, said the municipal tax authorities have deployed various solutions, including further dissemination of information, to encourage taxpayers to calculate, file, and pay their own taxes.

"The authorities also help taxpayers by answering queries and giving assistance related to administrative procedures amid global political and economic changes," he told the event.

Through the dialogue, Hai Phong tax authorities said they expect taxpayers to grasp an insight of their role and minimize mistakes in tax payments with the support of the association and tax authorities, he added.

Huong Vu, general director of EY Vietnam, highlighted upcoming changes in the tax legal framework in the country and offered recommendations to firms.

For example, corporate income tax will feature reductions related to income/loss from real estate transfers. Regarding value added tax (VAT), refunds will be available related to investment expansion, non-cash transactions of VND5 million ($207) instead of VND20 million, transfers of investment projects, and others, she noted

Speaking at the event, Nguyen Anh Tuan, vice chairman of the VAFIE and editor-in-chief of The Investor, said tax policy is always a key concern of both foreign and domestic businesses.

"The VAFIE will work with firms on these tasks and make its best efforts to aid authorities in improving the business environment, solving concerns of companies and protecting their legitimate rights," he added.

VPBank, the sponsor of the event, said it is determined to provide optimal financial solutions to foreign-invested companies in the country.

VPBank's strength for such a commitment is its pacey growth, with chartered capital increasing from $0.87 million in 1993 to the current $2.8 billion, the highest figure in Vietnam, said Mochizuki Masashi, head of the FDI centre, financial markets, and transaction banking division at VPBank, a major private lender in Vietnam

Another strength is the bank's progress in digital banking transformation, Masashi added. "The cooperation between VPBank and Japanese bank SMBC, with an investment of $1.5 billion, also provides a foundation for VPBank to reach its targets."

With a focus on FDI firms, VPBank offers several financial solutions. One is the automatic tax payment via inter-connected gateways between businesses, banks, and tax/customs departments, which is optimal for firms with high volumes of imports and exports. Other support provided by VPBank includes preferential loan interest rates, smart cash flow management solution NEOBiz, consultations related to reducing exchange rate risks, preferential packages for employees, and others.