08/11/2017 06:49 GMT+7 Email Print Like 0

WB: Vietnam climbs 81 places in ease of paying taxes

Hanoi, November 7 (VNA) – Vietnam climbed 81 places to rank 86th among 190 economies on the ease of paying taxes in the Doing Business 2018 (DB2018) report recently released by the World Bank (WB). 

It is the fourth year in a row Vietnam’s progress in tax reforms has been recognised by the WB in the annual report. The country ranked fourth in ASEAN, after Singapore (7th), Thailand (67th), and Malaysia (73th). 

The ranking was measured by the four component indicators - number of tax payments, time, total tax rate and post-filing index (VAT refunds and corporate income tax audits). 

According to the DB2018, the time it takes to prepare, file and pay the taxes, including social contributions, in Vietnam was estimated at 498 hours per year. While the time for paying taxes like corporate income tax, value added or labour taxes in the country unchanged from last year, the time for paying social contributions fell by 42 hours from last year to 147 hours. 

However, the General Department of Taxation said in fact, the time for paying taxes was reduced to only 117 hours per year thanks to the department’s and Ministry of Finance’s joint effort in tax reforms between 2015 and 2016. 

The report also showed the country’s number of tax payments declined by 17 to 14 this year while the total tax and contribution rate accounted for 38.1 percent of profit, down 1.3 percent from last year.