Most Korean businesses comply with tax policies and laws

	HCM City Customs guided and answered many questions from Korean enterprises
	RoK"s banks entering Vietnam in wake of FDI surge
	Most of businesses satisfied with the Customs’ support in handling obstacles

The dialogue conference. Photo: T.L

Comply with the law

According to Luu Duc Huy, Director of the Policy Department under the General Department of Taxation, there are about 7,000 Korean businesses investing in Vietnam. Two-way trade turnover is expected to reach US$100 billion by 2020, accounting for 50% of Korea's total trade in ASEAN. Korean businesses play an important role of Vietnam's economy, employing over 700,000 employees and accounting for about 30% of Vietnam's total export value which partly contributesto the Vietnamese State budget.

Regarding tax policies, Korean businesses investing in industrial parks, economic zones and preferential sectors have enjoyedVietnam’s tax incentives (tax exemptions, reductions and preferential rates).

According to Mr. Luu Duc Huy, Korean businesses are leading units in the registration and implementation of online tax declaration, e-tax payment, tax refund, and using e-invoices,contributing to the transparent and effective tax administration of Vietnam Tax agencies.

“Most Korean businesses strictly abide by tax policies and laws. However, there are still limitations in understanding and updating tax regulations, so through tax inspection and examination, the Vietnamese tax authorities still detect false declarations and insufficient tax declaration. In addition, some enterprises which still owe workers' salaries, social insurance or evade taxes, are discovered and handled in accordance with Vietnamese law,”Huy said.

At the conference, Korean businesses sent the organizers many questions. The content related to the policy of tax incentives for businesses in industrial parks, tax incentives for cases of investment expansion and the time of determining the proportion of the original price of fixed assets.

In the Customs field, the problems of enterprises relate to the import tax exemption for cases of partial outsourcing; limits and settlement units for sales in the domestic market of export processing enterprises; procedures for selling tax-free machinery and equipment; licenses, inspections and quarantine of imported goods; extending the time of submission of certificates of origin for imported goods. Exemption and refund of taxes on exported goods produced by outsourcing.

Specific processesfor e-invoices

At theconference, many business’ questions were related to e-invoices.

Deputy General Director of General Department of Taxation, Nguyen The Manh, said that e-invoicesareimplemented under the Government's Decree No. 119/2018/ND-CP,dated September 12, 2019. The Decree took effect from November 1, 2018. Accordingly, e-invoices include e-invoices with codes of tax authorities and e-invoices without codes of tax authorities.For the principle for using e-invoices, when selling goods or providing services, sellers must make e-invoices with codes of tax authorities or e-invoices without codes of tax agencies to deliver to buyers in accordance with the provisions of the Tax authority and must declare sufficient contents,regardless of the value of each sale of goods or services.

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Answering the fact that until now there has beenno circular guiding the implementation of Decree 119, Mr. Nguyen The Manh said that the implementation ofe-invoices will continue to comply with Circular 32/2011 / TT-BTC.

“Currently, the Ministry of Finance has completed and will soon issue a circular guiding e-invoices. Accompanying e-invoices is the process related to steps to make e-invoices. Information technology processes have been available so that when the circular is issued, these processes will also be issued,” Manh said.