HCM City moves to ease tax hurdles for FDI firms

HCM City moves to ease tax hurdles for FDI firms

The HCM City tax agency said it will maintain regular dialogue with businesses, push ahead with administrative reform and digital transformation, and identify implementation bottlenecks to recommend policy adjustments, facilitating investment and business activities for FDI enterprises.

Representatives of HCM City's tax agency address concerns and clarify tax-related issues raised by the FDI business community. — VNA/VNS Photo

HCM City's tax authority has pledged continued support for foreign investors by addressing tax-related bottlenecks and improving the business climate, in line with the Politburo's newly-issued resolution on developing the foreign-invested sector.

At a dialogue conference with foreign direct investment (FDI) enterprises on Tuesday, Đoàn Minh Dũng, head of the HCM City tax agency, said the Party and State regard the FDI sector as a vital pillar of the economy, contributing to growth, economic restructuring and deeper global integration.

He noted that the city's tax sector has intensified support measures in recent years, particularly after the rollout of the two-tier local administration model, helping businesses navigate challenges, maintain operations and expand production.

Those efforts, combined with the contributions of the business community, have helped sustain robust budget revenue growth. The city has so far collected VNĐ332.77 trillion (US$12.65 billion), surpassing 53 per cent of the Government's annual target and marking a 13.12 per cent increase from a year earlier.

Dung said FDI firms are also confronting new challenges arising from the rapid expansion of the digital economy, e-commerce, cross-border business models and increasingly complex global supply chains. Against this backdrop, the conference focused on key concerns such as value-added tax (VAT) refunds, corporate income tax incentives and new provisions under the Law on Tax Administration that will take effect from July 1.

He underscored the tax authority's transition from a "management" approach to a "taxpayer serving" mindset, with businesses placed at the centre of service delivery. The agency aims to promptly address concerns and recommendations from the FDI community through timely guidance and practical solutions.

The city will continue streamlining administrative procedures, accelerating digitalisation and improving service quality to help businesses fulfil their tax obligations more quickly, accurately and efficiently, he added.

The message comes shortly after Resolution No. 10-NQ/TW on the development of the foreign-invested sector was signed for promulgation by Party General Secretary and State President Tô Lâm on June 8.

Vũ Thị Thu Hương, Vice Chairwoman of the Vietnam's Association of Foreign Invested Enterprises (VAFIE), commended the city's tax authority for its open engagement with FDI businesses.

She said support from tax officials extends beyond dialogue events, with specialists regularly assisting enterprises in completing procedures, clarifying regulations and resolving emerging tax issues.

According to Hương, VAT refunds, tax incentives and transfer pricing remain the top concerns among FDI businesses. Delays in VAT refunds, in particular, can directly affect cash flow, especially for firms that must report refund progress to their parent companies overseas.

She called for more flexible measures to shorten processing times while maintaining oversight and risk management.

FDI enterprises also sought clearer guidance on corporate e-identification requirements, eligibility for the 0 per cent tax rate on exported services, and deductible expenses related to land leases and housing allowances for foreign experts.

The HCM City tax agency said it will maintain regular dialogue with businesses, push ahead with administrative reform and digital transformation, and identify implementation bottlenecks to recommend policy adjustments, facilitating investment and business activities for FDI enterprises. 

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