Prime Minister Pham Minh Chinh speaks at a seminar with UK businesses - Photo: VNA
UK businesses propose personal income tax exemption in financial center
Mr. Warrick A. Cleine MBE, Chairman of BCAC, Chairman and CEO of KPMG Vietnam and Cambodia - Photo: VGP
On June 28, Prime Minister Pham Minh Chinh chaired a discussion with representatives of British businesses investing in Vietnam.
Mr. Warrick A. Cleine MBE - Chairman of BCAC, Chairman and CEO of KPMG Vietnam and Cambodia - commented that the Government 's resolution on establishing an international financial center is considered a strategic push, capable of elevating the financial sector, including green finance in Vietnam.
Mr. Cleine believes that this will be a driving force to support the Vietnamese economy, from exports, capital markets, energy transition to pensions and capital savings, areas that need much attention. Vietnam can continue to learn from London's experience as a global international financial center.
In addition, he also proposed that Vietnam continue to build, apply and share international experiences and practices in law, and at the same time apply international financial reporting standards.
Mr. Cleine hopes that Vietnam will create favorable conditions for existing financial institutions to participate.
In addition to attracting new players, the international financial centre needs to capitalise on the strong foundation of Vietnamese financial institutions and British businesses operating here.
Finally, KPMG representative said that international financial center needs to be inclusive.
At the same time, reforms should be spread across the entire economy to boost GDP growth.
Mr. Cleine recommended that the Government review proposed reforms to the international financial center, especially in the areas of approving work permits, exempting personal income tax and facilitating domestic and foreign investors to participate in the financial market.
At the seminar, Deputy Minister of Finance Nguyen Thi Bich Ngoc affirmed that Vietnam will develop a financial center to mobilize international resources for three important pillars: green economy, digital economy and innovation.
The National Assembly has issued a resolution on developing an international financial center in Vietnam. In the coming time, implementing the direction of the Politburo and the Government, relevant ministries and branches will develop 8 decrees to guide implementation.
Regarding long-term incentives, Ms. Ngoc said the draft resolution has provisions on corporate income tax and personal income tax incentives to develop voluntary pension funds and other funds.
In the process of developing upcoming decrees, the Ministry of Finance continues to review and recommend competent authorities to amend tax policies in accordance with the tax reform strategy until 2030 and international practices.
In particular, in the context of developing a financial center, the Ministry of Finance will develop a tax policy to ensure competitiveness in the region.
"However, we also do not want to become a 'tax haven' to attract financial institutions. This is difficult and we look forward to your cooperation," Ms. Ngoc emphasized.
"All international financial centers avoid becoming 'tax havens' to attract financial institutions to their countries. We do the same," Ms. Ngoc added.
Proposed financial center policy should not be limited to Ho Chi Minh City or Da Nang
Regarding the proposal that the financial center policy should not be limited to Ho Chi Minh City or Da Nang but should be applied nationwide, Ms. Ngoc said: In fact, a clear legal framework is a prerequisite.
For an emerging market and financial center like Vietnam, it is necessary to identify specific locations to apply a transparent legal framework in accordance with international practices.
Deputy Minister of Finance Nguyen Thi Bich Ngoc - Photo: VGP
According to Ms. Ngoc, it would be very difficult to implement this nationwide at the present time. However, the Ministry of Finance understands that it is necessary to establish a mechanism so that capital flows into the financial center can spread to other areas in the country. The Ministry acknowledges this content.
Deputy Governor of the State Bank of Vietnam Nguyen Ngoc Canh said that regarding the UK's recommendations related to the development of financial centers, the State Bank has recently worked actively with HSBC.
Regarding orientation, banking policies and foreign exchange activities in Vietnam's financial center are built in the direction of absorbing international experiences and considering to ensure a suitable roadmap for Vietnam.
The State Bank representative completely agreed with the proposal to increase the presence of British banks contributing to the process of building a Vietnamese financial center in the draft resolution and draft decree on licensing foreign investors' foreign exchange management banking activities.
"I also suggest that, through the British Business Council, British businesses participate more actively in the process of developing Vietnam's financial center. We always believe that the experience of British financial institutions will be of practical significance in Vietnam's economic development," said the deputy governor.
Source: https://tuoitre.vn/xay-trung-tam-tai-chinh-quoc-te-viet-nam-khong-muon-tro-thanh-thien-duong-ve-thue-20250628151102697.htm
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