Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung met with Mr. Gen Nakatani, Assistant to the Prime Minister of Japan, on September 20 regarding issues of mutual concern between Vietnam and Japan, including the technical trainee program. Minister Dung proposed that Japan exempt residence taxes and income taxes for Vietnamese workers and interns. Of the nearly 500,000 Vietnamese now living and working in Japan, 370,000 are interns.
Vietnam is one of the first countries in Southeast Asia to successfully implement national tax rights for foreign enterprises conducting cross-border e-commerce. After more than five months of operating a portal for foreign suppliers, 30 companies voluntarily declared and paid taxes of more than VND520 billion ($22 million). To continue to strictly control taxes in this area, the General Department of Taxation is building a portal to receive information from e-commerce platforms.
Despite freight rates having been adjusted, it remains difficult to cope with escalating gasoline prices. To remove difficulties facing businesses and to implement solutions to stabilize prices and control inflation, the Directorate for Roads has proposed cutting VAT rates for transportation services as well as corporate income tax rates.
In the tax structure for calculating gasoline prices, the Ministry of Finance (MoF) has proposed reducing rates on four types of taxes, including most favored nation (MFN), environmental protection, excise, and VAT. Although the reductions to excise taxes and VAT have not been announced, these are expected to stop the record increase in gasoline prices.
Contributing to a draft resolution on environmental protection tax rates for gasoline, oil, and grease from the Ministry of Finance, the Vietnam Chamber of Commerce and Industry (VCCI) has proposed the Ministry continue to study and evaluate the impact of an abolition of excise taxes on gasoline and to report in writing to the National Assembly. At the same time, the Ministry should carefully consider a plan to cut import taxes on gasoline.