EU Supports Vietnam to Combat Cross-border Tax Avoidance

At a three-day workshop from February 27-March 1 jointly organised by the EU Delegation to Vietnam, the OECD and IFC, over 60 Vietnamese tax officers and business representatives discussed practical aspects of transfer pricing in Vietnam.

 

Recently, the issue of tax avoidance through transfer pricing has been receiving more attention from authorities and the media, not only in Vietnam, but worldwide. The EU-supported workshop aimed at giving participants a better understanding of typical business practices within specific economic sectors, such as the textiles and automotive industries, and thereby reducing the scope for tax avoidance and evasion within these sectors The workshop also allowed at improving the understanding of transfer pricing rules and regulations applied in Vietnam, thereby improving business certainty and encouraging inward investment.

 

In order to assist the Government of Vietnam to adopt and implement appropriate transfer pricing policy, the EU Delegation in Vietnam has joined forces with the World Bank and the OECD, the leading global authority on transfer pricing, to design and deliver tailored training courses for the Transfer Pricing Task Force at General Department of Taxation and for officials at provincial tax offices. As a result of this initiative, a series of capacity building events has taken place in Vietnam and elsewhere in the region over the past 12 months.