Monday, 28/10/2019 12:43 (GMT+7)
(CPV) - Vietnam ranked 109th out of 190 countries and territories on ease of paying taxes in the World Bank’s Doing Business 2020 report (DB2020), up 22 places from the previous report.
Photo for illustration. (Source: CPV)
The WB bases on criteria such as: tax payment hour, number of tax payments, total tax rates on profits, indicators after declaring VAT refunds and checks over corporate income tax (CIT).
According to the study, most indicators saw improvement compared to the previous year thanks to Vietnam’s efforts.
Specifically, tax payment time hours decreased by 114 hours (from 498 hours to 384 hours), including 94 hours due to reform and simplification of procedures for VAT declaration and 20 hours due to reform and simplification of procedures for CIT payment and finalization.
Payment numbers were cut by 4 times, from 10 in 2019 to 6 in 2020. Total taxes and contribution rate decreased by 0.2%, from 37.8% in 2019 to 37.6% in 2020.
With Vietnam’s tax payment indicator rise, the tax industry has exceeded the Government’s target set in Resolution 02/NQ-CP continuing to perform key tasks and solutions to improve business climate and heighten national competitive capacity in 2019 with orientations to 2021.
Accordingly, tax payment indicators in 2019 will increase by 7-10 levels, approaching the target by 2020 by 30-40 levels.
Doing Business 2020 measures regulations across 190 economies in 12 business regulatory areas to assess the business environment in each economy. Ten of these indicators were used to estimate an ease of doing business score this year, over the 12 months ending April 30th, 2019.
This is the 17th edition of a study that has motivated governments worldwide to undertake business reforms with the goal of bolstering sustainable economic growth./.
BTA