Overcoming transfer pricing, preventing tax evasion and tax loss

The ultimate goal of amending the Law on Corporate Income Tax is to ensure stable budget revenue, increase the rate of domestic revenue mobilization, overcome transfer pricing, prevent tax evasion and tax losses, and limit acts that erode the tax base.

The above is the content emphasized by National Assembly Chairman Tran Thanh Man at the meeting of Standing Committee of the National Assembly give opinions on the draft Law on Corporate Income Tax (amended) on the morning of September 23.

Ensuring Vietnam's tax system is consistent with international practices

The National Assembly Chairman agreed with the need to amend the Law on Corporate Income Tax to promptly overcome the shortcomings of the current law related to tax-exempt income, taxable income, deductible and non-deductible expenses.

National Assembly Chairman Tran Thanh Man speaks at the meeting. (Photo: DUY LINH)

However, through the Submission and the Review Report, the National Assembly Chairman noted that the scope of the amendment must be more comprehensive; at the same time, it is necessary to explain carefully and convince the National Assembly why it is necessary to amend, what to amend, and how to amend. The viewpoint is that if there is any problem, it must be amended immediately based on the content that is mature and clear, and if there is any content that is not mature and unclear, it must be studied.

"The new thing must be better than the old thing. Avoid the situation of changing the new thing but when implementing it, it is better to leave the old thing as it is," the National Assembly Chairman emphasized and once again required that the law-making work must be very elaborate and methodical.

Regarding the draft Law on Corporate Income Tax (amended), the Finance and Budget Committee must work in parallel with the Ministry of Finance and the Ministry of Justice because this is a very important law, related to both domestic and foreign issues.

“The ultimate goal of the law is to ensure a stable source of budget revenue, increase the rate of domestic revenue mobilization, overcome transfer pricing, prevent tax evasion and tax losses, limit acts that erode the tax base; ensure fairness in the Vietnamese tax system in accordance with practical requirements, trends and international practices,” the National Assembly Chairman pointed out.

On that basis, the National Assembly Chairman said that if we do it actively and with quality, we can submit it to the National Assembly at the 8th Session, otherwise we can submit it at the next Session. "The spirit is to innovate the way of making laws with new thinking and new perspectives. Whatever is within the scope of the National Assembly, the National Assembly will regulate, whatever is within the Government (decrees, circulars) will be issued and implemented by the Government. At the level of decrees and circulars, when amended, they will be faster than laws."

Proposing tax incentives for printed and electronic newspapers

Concerned about tax exemptions and reductions for press agencies, Chairman of the Committee for Culture and Education Nguyen Dac Vinh said that our country's press agencies are currently all state agencies and units, relying largely on advertising.

Chairman of the Committee for Culture and Education Nguyen Dac Vinh speaks. (Photo: DUY LINH)

In the context of advertising revenue still facing many difficulties, there should be a common tax incentive for both print and electronic newspapers.

At the meeting, members of the National Assembly Standing Committee also gave their opinions on the following contents: the scope of regulation of the draft Law; clearly defining the authority of the National Assembly and the Government in directing, implementing and implementing the law; tax rates for small and micro enterprises...

In his concluding remarks, Vice Chairman of the National Assembly Nguyen Khac Dinh requested the Government to direct the drafting agency and relevant agencies to study and absorb the opinions of the National Assembly Standing Committee and the opinions of the examining agency to complete the draft Law dossier.

At the same time, there will be an official written opinion from the Ministry of Justice on the new draft law and a request for the Finance and Budget Committee to participate in the research process. Once completed, the Government will send it to the Finance and Budget Committee for official review and submit it to the National Assembly Standing Committee for reconsideration at the regular session in October.

The Vice Chairman of the National Assembly also requested the Finance and Budget Committee to preside over and coordinate with the Ministry of Finance, the Ministry of Justice, the Law Committee, and the Institute for Legislative Studies to arrange time and organize research, possibly through conferences, seminars, and scientific discussions, to propose new approaches and methods in synchronously and comprehensively amending and supplementing laws in the fields of taxes and fees and laws in the fields of finance and budget in general, to meet practical requirements and innovate thinking in law-making in the new development stage of the country.

Deputy Minister of Finance Cao Anh Tuan presented the Proposal on the draft Law. (Photo: DUY LINH)

Previously, presenting the Draft Law, Deputy Minister of Finance Cao Anh Tuan said that the draft Law has added specific regulations on determining taxable income and taxable income to legalize the regulations that are being stably implemented in sub-law documents.

At the same time, amend and supplement regulations on taxable income to allow enterprises to offset profits from real estate transfers, investment project transfers, and transfers of rights to participate in investment projects with losses from production and business activities, except for production and business activities that are enjoying tax incentives.

According to the Standing Committee of the Finance and Budget Committee, the proposed amendments and supplements related to allowing the offset of income from real estate transfer activities with income from production and business are unclear in terms of policy objectives, and require a more thorough assessment of beneficiaries and impacts on the state budget. There are opinions suggesting keeping the current regulations.

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