Tax reforms carve the path for growth and confidence
Closer collaboration between tax authorities and businesses greater alignment with international standards and digitalised administration are set to ease business burdens in Vietnam
At the Tax & Legal Institute 2026 conference held by KPMG in Vietnam on October 27, Mai Xuan Thanh, director general of the Vietnam Tax Authority, reported a 50% increase in tax refunds from 2025, reaching 94% of the annual target. Thanh emphasized that economic growth and fiscal discipline are crucial for state budget revenues, with businesses' expansion leading to increased tax revenue.
He highlighted that Vietnam had been removed from the EU's list of non-cooperative jurisdictions for tax purposes, achieved through strong government direction and coordination between the Ministry of Finance and relevant agencies. Mechanisms such as spontaneous information exchange, upon-request exchange, and country-by-country reporting are currently being implemented to facilitate cooperation between businesses and authorities in declaring beneficial ownership information.
This will enhance transparency in Vietnam's business environment and build confidence among investment funds, governments, and international financial institutions. KPMG partner and head of Tax for Vietnam & Cambodia, Hoang Thuy Duong, stated that achieving growth targets requires Vietnam to adopt a realistic approach to the global economic environment while maintaining fiscal discipline and allocating resources for infrastructure development.
Duong pointed out that tax administration will become stricter, with broader tax coverage and measures to ensure fairness among businesses and individuals. KPMG partner and head of Tax Dispute Resolution & Controversy, Nguyen Thu Huong, emphasized that tax authorities aim to improve compliance rather than focusing on specific audits.
She advised businesses to proactively engage with tax authorities and conduct regular tax health checks to identify and correct errors promptly. KPMG partner and head of Tax Advisory, Le Thi Kieu Nga, reported that around 200 businesses and projects in Vietnam face top-up tax liabilities due to the global minimum tax (GMT) policy.
Nga explained that if a business fails to pay the top-up tax in Vietnam, it may be collected in the jurisdiction of its parent or intermediate parent company, reducing the effectiveness of traditional tax incentives. Lastly, Tran Thi Thuy Ha, partner and Global Transfer Pricing Services at KPMG in Vietnam, stressed that businesses must comply with the arm's-length principle in related-party transactions, as transfer pricing documentation alone may not withstand tax scrutiny.
She highlighted the need for robust pricing analysis supported by reliable data to ensure compliance.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
