While the decrease in crude oil prices in 2015 adversely affected Vietnam’s state budget, information from the Ministry of Finance reveals that revenue collection increased by almost 8%, with this increase in revenue being attributed to aggressive and expanded tax audits (in particular, audits involving transfer pricing issues), increased recovery of tax debts, and newly crafted tax policies designed to increase tax revenue.
The government in 2016 has introduced or is expected to introduce measures to strengthen the tax laws and policies and to increase tax revenue collection. Already, the Ministry of Finance has submitted to the National Assembly amendments relating to the value added tax (VAT) law, the special consumption tax, and the tax administration law. The National Assembly is expected to consider these measures during its 20 March 2016 session. If approved, it is expected that this would be followed by the issuance of new sets of tax decrees and circulars to implement the legislative changes.
Read a 2016 report prepared by the KPMG member firm in Vietnam: Vietnam State Budget and tax actions in 2016
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.