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Press release
29 Oct 2024
|
Hanoi, VN
Tax Symposium 2024: What should businesses do to seize opportunities and manage risks from a series of important tax changes?
With the aim of empowering businesses to adapt to these substantial changes and mitigate associated risks, the annual Tax Symposium 2024 was jointly organized by EY Consulting Vietnam and the CFO Vietnam in Hanoi on 25 October 2024. The symposium covered four key areas: tax policy, customs regulations, transfer pricing, and labor policy.
Ms. Huong Vu, General Director, EY Consulting Vietnam Join Stock Company, emphasized that: "The evolution of the global and domestic economic and tax environments demands that finance executives and businesses be perpetually prepared to adapt promptly, capitalize on emerging opportunities, mitigate risks, and expeditiously devise optimal strategies for their organizations.”.
According to Ms. Trang Pham, Senior Partner, Tax, Enrst & Young Vietnam Limited, the recent amendments to tax laws generally aim to address the practical challenges faced by businesses in recent times, thereby facilitating compliance for both businesses and tax authorities. For instance, the amended Value Added Tax Law proposes to clarify the responsibilities of tax officials in handling tax refund applications and the obligations of taxpayers, thereby reducing risks for processing officials and is expected to alleviate the issue of delayed tax refunds for businesses. Moreover, changes in tax incentive policies are increasingly selective, focusing on encouraged industries and sectors.
Regarding social insurance regulations, Ms. Huyen Nguyen, Partner, EY Consulting Vietnam Join Stock Company, shared: “The 2024 Social Insurance Law introduces significant changes to the subjects of social insurance participation and penalties for late or unpaid mandatory social insurance contributions. Staying updated on these changes will help businesses ensure compliance and mitigate related risks.”
Mr. Long Ngoc Pham, Partner, Transfer Pricing, EY Consulting Vietnam Join Stock Company, highlighted that increased tax audits on transfer pricing are a key focus for tax authorities in the 2024-2025 period. Furthermore, the revised regulations on transfer pricing related to the determination of whether a bank is a related party and the impact of these revisions on interest expenses, as stipulated in Decree 132/2020/ND-CP, are expected to be approved by the Government in December 2024 and applied to the 2024 fiscal year. Consequently, it is crucial for businesses to proactively review and manage transfer pricing risks to avoid potential risks such as transfer pricing adjustments or being deemed as transfer pricing, which can impact tax liabilities and the company's reputation. Such reviews should involve a thorough comparison and verification of local, global documentation, and related compliance obligations.
“Our goal is to empower businesses to minimize their tax burdens while maintaining strict adherence to Vietnam's transfer pricing regulations," Mr. Long stated. "Should businesses encounter transfer pricing disputes, they can utilize the Mutual Agreement Procedure to mitigate double taxation risks.”
Given the frequent changes in the economic environment and tax laws, businesses must be prepared to adapt to the evolving landscape. As Mr. Phong Hai Le, Vice President, CFO Vietnam, and co-organizer of the event, pointed out, 'These changes have far-reaching implications for both financial decisions and overall business strategy. It is imperative for enterprises to understand these changes, plan accordingly, and be ready to seize opportunities while mitigating risks.
Tax Symposium 2024 serves as a platform for businesses to gain insights from leading tax and finance experts, sharing their experiences and providing updates on the latest regulations. This event is particularly significant for businesses in light of the constantly evolving domestic and international tax, customs, transfer pricing, and labor regulations.
In addition, this annual event provided a valuable opportunity for businesses to interact directly with Vietnamese tax policymakers and EY experts. This facilitated the development of tailored tax plans to address the changing policy landscape.
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This news release has been issued by EY Consulting Vietnam Joint Stock Company, a member of the global EY organization that also does not provide any services to clients.