THÔNG TIN TÀI LIỆU
INTRODUCTION Urgency of the topic For every country, tax is the most basic source of revenue for the state budget, the most important financial source to implement investment policies for socio-economic development In general tax policy, income tax is an important part of each country's tax system In Vietnam, income tax accounts for an average proportion of more than 18% of total state budget revenue in the period 2016-2021 Income tax policy including corporate income tax (CIT) and personal income tax (PIT) are adjusted through different periods to better suit the fluctuations of the macro economy, providing a source of income basic revenue for the state budget and above all, ensuring adaptation to challenges in the process of international economic integration Up to now, Vietnam has signed free trade agreements Besides positive impacts, the process of international economic integration also brings certain challenges to Vietnam First, there are challenges in building and perfecting tax policies in accordance with the international commitments Vietnam has signed The first requirements for tax commitments in the integration process are the gradual reduction of tariffs, including: export taxes and import taxes That creates equality for the import and export of goods in a common playing field for the countries in the agreement However, from the perspective of short-term national interests, the tariff reduction has had a significant impact on state budget revenue That creates pressure to balance revenue sources on income tax Besides, in the context of international economic integration, income tax has a significant impact on attracting international investment capital and labor flows, and is also a tax that is largely influenced by commitments Bilateral and multilateral in international economic integration Especially in the coming time, when Vietnam implements its commitments within the framework of signed bilateral and multilateral trade agreements, the situation of export, import, production and business will certainly increase fluctuations in trends, such as: (i) Welcoming foreign investment capital flows and diverse participation of businesses and multinational companies That contributes to promoting Vietnam's economic growth and development, but also raises issues of linkages and tax evasion transfer pricing; (ii) Tax competition issue through reducing income tax rates, especially corporate income tax to attract investments Vietnam's 20% corporate income tax rate can be considered quite attractive to FDI enterprises when it is lower than Indonesia, Malaysia, Myanmar and the Philippines, but if we also include the tax exemption and reduction incentives that these countries are implementing, the Vietnam's 20% tax rate is not necessarily attractive In addition, the trend of applying global minimum taxes forces Vietnam to make adjustments to its income tax policy in accordance with international practices while still ensuring the retention of large investors as well as competitiveness and competitiveness attractiveness of the investment environment; (iii) Set requirements for tax cooperation between countries around the world and Vietnam through cooperation in signing bilateral or multilateral agreements on avoiding double taxation; (iv) The emergence of new business forms such as electronic commerce (e-commerce) has created many challenges for tax administration agencies in perfecting tax collection policies and processes to detect the nature of tax revenue of transactions, grasp taxpayer information, tax basis, etc in order to promptly collect income tax from this activity Thus, the process of international economic integration also raises many emerging problems, requiring Vietnam's income tax policy to harmoniously resolve conflicts such as: (i) balancing revenue sources for the state budget but still must ensure the competitiveness of income tax; (ii) ensure to create all conditions to attract foreign investment flows but still ensure to resolve issues in linkages and transfer pricing; (iii) ensure that income tax policy complies with international commitments but does not affect domestic economic relations Meanwhile, Vietnam's income tax policy after reforms has achieved important progress, is relatively consistent with the country's economic development conditions and level, and is gradually approaching international practices However, to resolve conflicts in the process of international economic integration, the current income tax policy still has many limitations such as: (1) Not covering all subjects and business fields in the current conditions new; Regulations on determining deductible revenue and expenses are unclear and difficult to determine; Tax incentives are still scattered and ineffective; (2) Legal gaps in association and transfer pricing activities have not been clearly regulated; (3) Vietnam's personal income tax regulation level is still quite high and the gap between tax levels is currently too thick The above issues show that the current income tax policy still needs to continue to be reformed to improve, change appropriately, and be able to effectively respond to changes in new conditions; even with the presence and strong, rapid and far-reaching impact of international integration and the 4.0 Industrial Revolution In particular, income tax policy must be proactive in capturing fluctuations and have appropriate responses to harmoniously resolve inevitable conflicts that occur in the context of globalization and international economic integration Stemming from the above practice, I chose the topic: "Improving income tax policy in Vietnam during the process of international economic integration" as the research topic of the thesis specialized in development economics Research objectives and tasks General objective: The objective of the thesis is to propose solutions to improve income tax policy in accordance with the context of international economic integration in order to contribute to promoting the country's socio-economic development The specific task of the thesis include: (i) Systematize and clarify the theoretical basis of income tax policy to economic development; (ii) Analyze and evaluate the impact of integration on income tax policy and the current status of Vietnam's income tax policy; (iii) Analyze and identify factors affecting income tax compliance behavior of taxpayers in Vietnam; (iv) Propose feasible solutions with scientific basis to improve Vietnam's income tax policy in the context of international economic integration Research question The thesis focuses on solving the following research questions: (1) How does international economic integration impact income tax policy?; (2) Has the current status of Vietnam's income tax policy met the requirements of the international economic integration process? What are the successes and limitations of Vietnam's income tax policy?; (3) What factors affect taxpayers' compliance with income tax obligations? What is the level of impact of those factors?; (4) What solutions are needed to improve income tax policy in Vietnam? Propose solutions to improve income tax policy until 2030, vision to 2045 (according to the 10-year Socio-Economic Development Strategy 2021-2030, vision to 2045) Object and scope of research The research object of the thesis is income tax policy in the process of international economic integration Research scope: - Scope of content: The thesis studies income tax policy from the perspective of state management - Scope of objects: The thesis focuses on researching and perfecting income tax policy with two subjects: businesses and industries - Time scope: The thesis studies the current state of income tax policy in the period from 2016-2021; Propose solutions to improve income tax policy for the period 2022-2030, with a vision to 2050 - Spatial scope: research the current status of income tax policy across the country Survey data focuses on two large cities with a high proportion of corporate income tax and personal income tax contributions: Ho Chi Minh City and the Hanoi capital city Propose solutions to improve income tax policy until 2030, vision to 2045 (according to the 10-year Socio-Economic Development Strategy 2021-2030, vision to 2045) Research approach and methods 5.1 Approach - Dynamic approach following the trend of development and integration - Approach according to institutional perfection - Approach based on the characteristics of developing countries - Access as required to ensure state budget revenue From there, the thesis proposes an analytical and research framework as follows: Notes for figure 1: Vietnamese/ English - Cơ sở lý luận hồn thiện sách thuế TN hội nhập kinh tế quốc tế/ Theoretical basis for perfecting income tax policy in international - Thực trạng sách thuế TN q trình hội nhập kinh tế quốc tế Tác động trình hội nhập KT đến sách thuế TN/ Current status of income tax policy in the process of international economic integration The impact of the economic integration process on income tax policy - Mục tiêu, định hướng hồn thiện sách thuế thu nhập VN/ Objectives and orientations to improve income tax policy in Vietnam - Giải pháp Hoàn thiện sách thuế TN q trình hội nhập kinh tế quốc tế/ Solutions to improve income tax policy in the process of international economic integration - Thành tựu sách thuế thu nhập/ - Bất cập sách thuế thu nhập nguyên nhân/ Achievements of income tax policy/ - Inadequacies in income tax policy and causes - Nhân tố ảnh hưởng đến sách thuế thu nhập/ Factors affecting income tax policy - Yêu cầu đặt cho xây dựng sách thuế thu nhập điều kiện hội nhập/ Requirements for developing income tax policy in integration conditions Figure 1: Analytical framework of the thesis Source: Author's recommendation Concepts related to the research topic Secondary data Theoretical basis for perfecting income tax policy to economic development integration Current status of income tax policy in the process of international economic integration The impact of the economic integration process on income tax policy Overview of research situation at Primary data Assess the current status of income tax policy in the process of international economic integration Improve income tax policy in the process of international economic integration Figure 2: Research framework of the thesis Source: Author's recommendation 5.2 Research Methods The thesis uses two groups of research methods, including: (i) Methods of collecting documents and data; (ii) Document and data analysis methods New contributions of the thesis 6.1 Theoretically Firstly, the thesis points out that the trend of world economic integration forces income tax policy to reform in the direction of: (i) Reasonable; (ii) Science Second, the thesis shows that the integration trend forces countries to reduce income tax rates (both corporate income tax (CIT) and personal income tax (PIT)) and the reduction in tax rates will continue over a long period of time, its manifestation in the present day is the policy of Global Minimum Tax Third, propose a model of factors affecting income tax compliance behavior to analyze and explore factors affecting income tax policy 6.2 In terms of practice Firstly, Analysis of the current situation of Vietnam's income tax policy in the period 20162021 shows that Vietnam's income tax policy has approached international standards; Commitments from trade agreements have a major influence on improving income tax policy and lowering Vietnam's income tax collection level in the near future At the same time, the current situation of Vietnam's income tax policy also shows that there are still loopholes that cause tax fraud to exist, causing loss of revenue for the state budget from transfer pricing activities of FDI enterprises, economic linkages and e-commerce transactions of businesses (an inevitable trend in the integration process) Second, verifying the income tax compliance behavior of taxpayers shows that the factors Mandatory Standards, Personal Standards, and Sense of Fairness have an impact on income tax compliance behavior and affect efficiency Implement income tax policy, which has a pervasive impact on investment in socio-economic development At the same time, it points out that taxpayers' awareness has a great influence on ensuring the implementation of income tax policy Third, the thesis shows that the contribution of FDI enterprises to the State Budget is less than the contribution of domestic enterprises, while incentives in income tax policy are for this group of enterprises higher, so it is necessary to ensure fairness in implementing tax obligations between these two groups of businesses On that basis, the thesis has proposed solutions to improve incentives in corporate income tax policy, especially incentives for small and medium-sized enterprises Fourth, the trend of reducing income tax rates is objectively inevitable in the context of extensive international integration, which can reduce state budget revenue Therefore, the binding mechanism to improve the social responsibility of businesses will be a source of social reconstruction, reducing spending pressure on the state budget (offsetting the reduction in state budget revenue due to reduction of income tax rates) - in line with the trend of development of civilization in the world Fifth, base on the viewpoint and goal of developing and perfecting income tax policy in the coming time and on the basis of forecasting the integration context, combined with remaining issues and model analysis results regression, the thesis proposes 07 groups of solutions to ensure state budget revenue from Vietnam's income tax until 2030, with a vision to 2045 (according to the 10-year Socio-Economic Development Strategy 2021-2030, vision looking to 2045) Structure of the thesis In addition to the introduction and conclusion, a list of the author's published research works, a list of references, and a list of appendices The thesis is structured in chapters as follows: Chapter 1: Overview of research works on income tax policy Chapter 2: Theoretical and practical basis of income tax policy for economic development in the context of international economic integration Chapter 3: Current status of Vietnam's income tax policy in the process of international economic integration Chapter 4: Solutions to perfect Vietnam's income tax policy in the process of international economic integration CHAPTER OVERVIEW OF RESEARCH 1.1 Overview of research works related to the topic Income tax policy in general and corporate income tax and personal income tax in particular in the context of economic integration and globalization always receive the attention of researchers, policy makers, managers and population and businesses in different aspects, including: Firstly, Research on perfecting corporate income tax policy and preventing corporate income tax loss, typically research by Lars P Feld and colleagues (2002); Hans JarleKind et al (2005); Yuchen Shao et al (2019); Shengqiang Zuo et al (2022); Andrejovská Alena et al (2017); Francisco J Delgado et al (2019); A.Athira et al (2023); Nguyen Thi Lan (2009; Nguyen Thi Le Thuy (2009; Luu Ngoc Tho (2013); Duong Ngoc Quang (2015), etc Second, Research on perfecting personal income tax policy Typical studies in this direction include: Irena Szarowská (2014); Roger H.Gordon et al (2014); Doris Prammer (2019); Ly Phuong Duyen (2010); Huynh Van Dien (2016); Phan Thi Hang Nga (2017), etc… Third, Research on tax policy in general and income tax in particular in the context of international economic integration, typically studies: David A Nugent (2013); Catalina Cozmei (2015); Mr Pham (2020); Philipp Heimberger (2021); Martin Zagler (2023); Dang Thi Bach Van (2015); Ngo Van Khuong (2016); Tran Thi Van Anh (2020); etc… 1.2 Values achieved and gaps need to be researched 1.2.1 Values achieved from research projects related to the thesis topic Domestic and foreign research works have mentioned a number of different aspects of income tax policy in the context of integration on both theoretical and practical levels * Theoretically: Some research projects discuss the implications of perfecting corporate income tax and personal income tax policies or approach them based on behavioral theory to show the level of compliance with tax obligations of taxpayers and management agencies These studies provide a theoretical foundation for the thesis as well as help the thesis build a model of factors affecting tax compliance behavior of taxpayers * Practically: - Domestic and foreign research projects have mentioned the relationship between corporate income tax rates and the ability to compete and attract foreign investment capital Reducing the corporate income tax rate helps increase competition for foreign investment capital flows, but it brings with it problems in generating revenue for the state budget and especially challenges in solving transfer pricing and tax avoidance activities of foreign companies Enterprises with foreign investment and multinational companies This is the practical problem posed for the thesis to continue researching income tax policy in the context of international integration in Vietnam - Some research approaches management, policy development or improvement of tax laws in accordance with the process of economic restructuring and sustainable development There are also a number of studies looking at the impact of the integration process on tax policy in general These studies provide a basis to help the thesis propose solutions to perfect income tax in the context of integration Although the above research projects are not directly related to the thesis, they are basic issues and are a valuable source of documents and experience The author approaches and researches the issue comprehensively and completely Moreover, we can inherit and deepen our concept of perfecting income tax policy in Vietnam during the process of deep integration with the world economy 1.2.2 The gap needs further research International economic integration at different stages requires different adaptation and adjustment of tax policies in general and income tax in particular Therefore, there is no research on income tax policy at this time However, domestic and foreign research partly helps the thesis inherit theoretical issues related to income tax policy, perfect income tax policy From there, it helps the thesis complete the theoretical research framework rescue Within the scope of research, the thesis will continue to clarify some of the following issues: Firstly, continue to improve and systematize the theoretical basis related to income tax and income tax policy to economic development, especially research will clarify the impacts and requirements for income tax policy under current conditions international economic integration This is a gap that previous studies have not mentioned and exploited in the current context Second, the thesis will analyze and evaluate the current state of income tax policy through corporate income tax and personal income tax to see the successes of the policy and the points that need to be adjusted and improved to adapt to the conditions new The current situation of income tax policy is approached by the thesis from the perspective of considering the effectiveness, efficiency, and suitability of income tax policy in the context of integration and the level of compliance with tax obligations of taxpayers as well as their actions causing tax revenue loss for FDI enterprises in the context of integration Third, in the context of integration, cutting income tax, especially corporate income tax, is an inevitable trend to attract foreign investment capital That leads to a decrease in state budget revenue, so the thesis mentioned the aspect of increasing social responsibility of enterprises to partially offset the loss of state budget revenue from corporate income tax Fourth, in the context of international economic integration, it is necessary to strengthen tax compliance behavior of taxpayers In addition, the nature of income tax is a direct tax, levied on the income of taxpayers Therefore, to see the effectiveness and efficiency of income tax policy, the thesis researches the factors affecting taxpayers' income tax compliance behavior, on that basis to see the level of impact of these factors Propose and propose solutions to improve tax compliance and ensure revenue for the state budget CHAPTER THEORETICAL AND PRACTICAL BASIS OF INCOME TAX POLICY FOR ECONOMIC DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL ECONOMIC INTEGRATION 2.1 Overview of income tax and some related theories 2.1.1 Concept and characteristics of income tax 2.1.1.1 Income tax concept Income tax is a type of tax in which taxpayers deduct part of their own income to pay to the state Income tax is not based on the level of consumption but on income achieved 2.1.1.2 Income tax features Income tax has the following characteristics, including: Income tax is a direct tax; Tax on income generated by labor and also on income not created by labor; Impact on economic development investment activities; Income tax does not affect the price of goods on the market 2.1.2 Some related theories Some theories related to the thesis topic include: (i) Theory of economic development; (ii) Theory of taxation and economic development; (iii) Theory of corporate social responsibility; (iv) Theory of tax compliance behavior and model of factors affecting income tax compliance behavior of taxpayers Based on the overview of studies in chapter 1, the author proposes the following research model: Notes for figure 3: Vietnamese/ English - Đặc điểm người nộp thuế/ Characteristics of taxpayers Hành vi người nộp thuế/ Taxpayer behavior Cảm nhận tham nhũng/ cảm nhận tham nhũng vặt/ Perception of corruption/perception of petty corruption Chuẩn mực bắt buộc/ Mandatory standards Chuẩn mực mô tả/ Descriptive standards Chuẩn mực chủ quan/ Subjective standards Chuẩn mực cá nhân/ Personal standards Cảm nhận công bằng/ Feeling of fairness Dự định tuân thủ thuế/ Intended tax compliance Figure 3: Author's proposed research model 10 3.2.3.1 Current status of personal income a Income of resident individuals According to data from the General Statistics Office (2021), the average income per person per month in 2021 at current prices reached 4,205 thousand VND, down 1.1% compared to 2020 Average income per person per month in May 2021 in urban areas will reach 5,388 thousand VND, nearly 1.5 times higher than in rural areas (3,486 thousand VND) (Chart 3.6) 16000 14000 12000 4295 3874 10000 8000 2000 4205 Cả nước 3098 Thành thị 6000 4000 4250 5624 6022 5590 5388 3399 3482 3486 Nông thôn 4551 2423 2986 Năm 2016 Năm 2018 Năm 2019 Năm 2020 Năm 2021 Notes for chart e 3.6 (Vietnamese/ English) - Năm/ Year, Cả nước/ Country, Thành thị/ Urban area, Nông thôn/ Rural area Figure 3.6: Average income per person per month divided by urban and rural areas 2016-2021 (thousand VND) Source: General Statistics Office (2021) The income structure is shifting in an increasingly progressive direction The proportion of revenues from wages and salaries tends to increase gradually from 2016 to present, from 48% in 2016 to 56.7% in 2021 In contrast, the proportion of revenues from self-employment in agriculture and forestry Industry and fisheries tend to decrease, from 16.5% in 2016 to 10.8% in 2021 b Income of non-resident individuals Along with the development of globalization, the number of foreign workers coming to Vietnam to work is increasing rapidly (table 3.6) Table 3.6: Number of foreigners with TN in Vietnam Unit: Person 29 Year Number of foreigners Number of foreigners have to Vietnam income in Vietnam 2016 10.012.700 500.635 2017 12.922.200 844.800 2018 15.497.800 783.100 2019 18.008.600 1.023.600 2020 17.234.145 1.346.165 2021 13.787.316 620.429 Source: General Statistics Office - Report on socio-economic situation 2016-2021 It can be seen that when Vietnam participated in opening up economic integration with the world, the number of foreign workers coming to Vietnam to work also increased in both the number of people and the level of salary they received in Vietnam 3.2.3.2 Contribution level of personal income tax to the state budget In the period 2016-2021, personal income tax has increased over the years In 2016, revenue from personal income tax reached 65 trillion VND, by 2021 this tax amount has reached 113 trillion VND, an increase of 73.8% compared to 2016 (Chart 3.8) 140 120 100 80 60 40 65 79 94 109 115 113 20 Năm 2016 Năm 2017 Năm 2018 Năm 2019 Năm 2020 Năm 2021 Figure 3.8: Personal income tax amount for the period 2016-2021 (trillion VND) Source: General Department of Taxation (2021) In addition, through tax policy reform and tax management, it has made an important contribution to improving personal income tax revenue into the state budget in the period 2016 - 2021 The proportion of personal income tax in total state budget revenue has increased from 89% in 2016 to 8.03% in 2021 In addition, the contribution proportion of personal income tax in GDP will also increase significantly, from 1.45% in 2016 to 2.21% in 2021 at an increasing rate The average growth of the whole period reached 1.76%, higher than the average growth rate of 2011-2015 (average growth rate of 1.33%) 30 5,89 1,45 Năm 2016 6,09 6,59 7,04 7,64 8,03 Tỷ trọng so với tổng thu NSNN 1,57 Năm 2017 1,7 Năm 2018 1,81 Năm 2019 1,83 Năm 2020 2,21 Tỷ trọng so với GDP Năm 2021 Figure 3.9: Proportion of personal income tax in state budget revenue and GDP Notes for chart 3.9 (Vietnamese/ English) Năm/ Year, Tỉ trọng so với tổng thu NSNN/ Proportion of personal income tax in state budget revenue , Tỉ trọng so với GDP/ Proportion of personal income tax in GDP Source: General Department of Taxation and author's calculations (2016-2021) Especially for individuals who are foreigners In general, the PIT law has created conditions for all citizens and foreigners with personal income in Vietnam to understand and become familiar with personal income declaration, and have a correct awareness of the responsibilities and obligations of personal income tax registration A type of tax commonly applied around the world However, personal income tax revenue from non-residents accounts for a very low proportion of total personal income tax revenue, with an annual average of only about 6.5% of the total personal income tax collected (Table 3.7) Table 3.7: Personal income tax amount of non-resident individuals coming to Vietnam and the amount of personal income tax collected across the industry Year Personal income tax amount (thousand trilion dong) 65 79 94 Personal income tax amount of non-resident individuals thousand trilion dong) 3.835 5.056 6.956 Rate of personal income tax amount of non-resident individuals / amount of personal income tax collected 5,9% 6,4% 7,4% 2016 2017 2018 2019 109 8.393 7,7% 2020 115 9.085 7,9% 2021 113 8.814 7,8% Source: General Department of Taxation - Revenue reports for the years 2016 - 2021 31 3.3 Results of a survey of factors affecting tax compliance behavior of taxpayers and assessment of Vietnam's income tax situation by tax officials 3.3.1 Survey results of factors affecting tax compliance behavior of taxpayers 3.3.1.1 Results a Test the reliability of the scale The results showed that there were 10 observed variables of the scales with low variable-total correlation coefficients (< 0.30) Furthermore, if these variables are eliminated, the content validity of the measurement concepts is not violated Therefore, these 10 variables were eliminated The final results show that all scales meet the reliability coefficient requirements, Cronbach's alpha: The lowest is 0.472 (descriptive standards) and the highest is 0.895 (perceived fairness) b EFA exploratory factor analysis The results of exploratory factor analysis showed that all factors met the requirements for factor extraction, the extracted variance reached 72.81% and the smallest factor weight was 0.486 This proves that appropriate factors ensure reliability, accuracy, and science to be included in the regression model c CFA confirmatory factor analysis Chi-square = 564,015; df = 294; P = 0,000; Chi-square/df =1,918 GFI = 0,873; TLI = 0,906; CFI=0,921 RMSEA = 0,058 Figure 3.1: CFA results (normalization) of the critical model Source: Author compiled from AMOS software CFA results show that the model achieves compatibility with market data: χ2[294] = 564.015 (p=0.000); GFI=0.873; TLI=0.906; CFI=0.921; and RMSEA=0.058 The results also show that the CFA weights of all observed variables are greater than 0.50, which 32 confirms the unidimensionality and convergent validity of the scales used in the research model d Test composite reliability and extracted variance All scales measuring concepts in this study met the requirements for reliability and validity: composite reliability, extracted variance, unidimensionality, convergent validity and discriminant validity Therefore, these scales continue to be used to test the research model e SEM linear structural model analysis Chi-square=654,995; df=305; P=0,000 Chi-square/df=2,148 GFI=0,854; TLI=0,883;CFI=0,898 RMSEA=0,065 Figure 3.2: SEM analysis results Source: Author compiled from AMOS software The results of linear structure analysis show that the critical model fits the survey data very well, the values meet the required level χ2[305] = 654.995 (p=0.000); GFI=0.854; TLI=0.883; CFI=0.898; and RMSEA=0.065 The coefficients in the model are consistent with actual data The results shown in the SEM analysis model show that all factors have a statistically significant influence f Testing research hypotheses Thus, of the 17 hypotheses the model tested, hypotheses were accepted (Figure 3.3) 33 Notes for figure 3.3: Vietnamese/ English - Đặc điểm người nộp thuế/ Characteristics of taxpayers Hành vi người nộp thuế/ Taxpayer behavior Cảm nhận tham nhũng/ cảm nhận tham nhũng vặt/ Perception of corruption/perception of petty corruption Chuẩn mực bắt buộc/ Mandatory standards Chuẩn mực mô tả/ Descriptive standards Chuẩn mực chủ quan/ Subjective standards Chuẩn mực cá nhân/ Personal standards Cảm nhận công bằng/ Feeling of fairness Dự định tuân thủ thuế/ Intended tax compliance Figure 3.3: Model after testing Source: Survey results 3.3.1.2 Discuss results First, research shows that mandatory standards will promote taxpayers' intention to comply with income tax Second, the research results confirm that perceived fairness of the tax system will promote income tax compliance intentions To this, the income tax policy needs to have specific plans as follows: Adding new tax payers; Strengthen the signing of double taxation avoidance agreements This Agreement is truly a tool to protect the legitimate interests of foreign investors and is also a measure to limit multinational companies from evading and avoiding double taxation under international treaties with other countries international trade organizations; Expand the taxable area and clearly define taxable income; Complete personal income tax policy for foreigners 34 Third, the research results also show that in general, perceived corruption is not a factor that reduces social standards on tax compliance However, perceived corruption negatively impacts personal norms of compliance This result also shows the importance of promoting anti-corruption, strengthening inspection work in the tax sector and from there, it is expected that income tax compliance will increase Fourth, in addition, the research results also suggest that social norms impact personal standards of compliance This means that policymakers and tax authorities can research extensive and in-depth propaganda programs to support taxpayers in addition to inspection and examination measures 3.3.2 Surveying the current status of Vietnam's income tax policy in the context of integration from the perspective of tax officials To evaluate the current state of income tax policy, the advantages and challenges facing Vietnam's current income tax policy as well as some solutions to improve income tax policy in the context of integration By convenient non-probability sampling method (sample units are selected at a certain location and at a certain time) Specifically, as follows: (1) Survey subjects: tax industry civil servants; (2) Survey location: Tax authorities at all levels in two major cities, Hanoi and Ho Chi Minh City Due to time constraints and the survey subjects in this study being tax officials, access was difficult Therefore, the author sent 180 surveys via email and online questionnaire via link using Google Forms tool The result was 154 valid votes The survey focuses on a number of contents, including: (i) Assessment of the level of success of income tax policy in adapting to the integration context The greatest success of income tax policy in the context of integration is its improvement in the direction of encouraging and attracting foreign direct investment capital flows (highest average value reached 4.12); (ii) Comment on the challenges that Vietnam's income tax policy faces in the process of international economic integration The challenge of the inconsistency of income tax policy and not covering all taxable subjects, especially for e-commerce activities, reached the highest average value of 4.21 In addition, the inadequacies in income tax policy (4.14) and the low awareness of compliance with tax obligations, especially among FDI enterprises, are also identified (4.16) as a relatively big challenge for businesses Vietnam's income tax policy in the context of integration; (iii) Comments on solutions to improve income tax policy in the context of international economic integration The solution highly appreciated by tax officials to improve income tax policy is that income tax policy needs to cover all new subjects and forms (highest average score 4.14) Next are solutions to diversify forms of propaganda and support for taxpayers, raise their awareness of compliance with tax obligations and improve the professional qualifications and capacity of tax officials 3.4 General assessment of the current status of income tax policy in the process of international economic integration 3.4.1 These achievements 35 Achievements of income tax policy in the context of integration include: Firstly, tax policy in general, including corporate income tax and personal income tax, has had many major adjustments through different periods to suit economic realities and the process of international economic integration; Second, the corporate income tax policy has had changes over certain periods, especially changes in tax rate adjustments to create favorable conditions for businesses in terms of capital and retained profits to serve restructuring investment, expanding production and business scale Third, income tax management for e-commerce activities and tax fraud in joint transactions and transfer pricing has initially achieved certain positive results; Fourth, regarding the personal income tax policy, certain results have been achieved in the following aspects: Personal income tax payers are classified according to resident and non-resident criteria; The regulations on taxable income, family deductions, taxable income, and tax schedules have shown to be relatively appropriate and compatible with the tax policy systems of countries currently applying; The highest progressive tax rate compared to the law on income tax for people with high income has been reduced from 40% to 35% 3.4.2 Inadequacies in income tax policy In addition to the results achieved above, in the process of socio-economic development and international economic integration, due to the rapid fluctuations of the world economy and politics in general and the Vietnamese economy in general, In particular, the current income tax policy has created a number of shortcomings, including: Regarding corporate income tax policy: Firstly, the current corporate income tax policy does not cover all subjects and business fields in the new conditions; Regulations on determining deductible revenue and expenses are unclear and difficult to determine; Tax incentives are still scattered and ineffective; Second, the regulations for determining deductible expenses when determining taxable income are still general, causing confusion or arbitrary application by businesses; Third, corporate income tax incentives mainly bring benefits to FDI enterprises, Vietnamese enterprises rarely benefit from tax incentives; Fourth, the use of corporate income tax incentives to ensure the allocation of resources and attract foreign investment in selected fields, encouraging investment associated with the process of restructuring the economy towards development sustainability has not been effective; Fifth, in the context of international economic integration, new tax issues will arise when Vietnam strengthens international cooperation and handles international tax issues Regarding personal income tax policy: Firstly, currently, personal income tax in Vietnam stipulates that taxable income includes 10 items, there are still some income items that are not currently subject to tax; Second, currently, the basis for providing family deductions is not reasonable because this deduction is not based on the minimum living standard, average income per capita, nor is it based on the general minimum wage and Minimum wage by region; Third, compared to many other countries, Vietnam's personal 36 income tax regulation level is still quite high; Fourth, some income items subject to personal income tax not have a tax rate consistent with the tax rate of income from the same type of activity or similar activities of enterprises 3.4.3 Causes of inadequacies Objective reasons: Firstly, due to the low starting point of the economy, the level of production, management and efficiency of allocation and use of resources is still weak; Second, the requirements for international economic integration in recent times have placed certain requirements on tax policy in general and Vietnam's income tax policy; Third, the level of knowledge and awareness of compliance with the law of taxpayers is not high Subjective reasons: First, although income tax policy has been adjusted through different stages to better suit the new economic context and the process of international economic integration, there are still many shortcomings related to tax-exempt income and taxable income; principles for determining deductible and non-deductible expenses and regulations on corporate income tax incentives; Second, because the legal system and tax management mechanism are not complete and synchronous; Third, with the goal of gradually becoming a middle-income country, more open, and faster decentralization also brings new challenges in Vietnam's state budget revenue and expenditure structure; Fourth, the tax administration apparatus is still cumbersome and cannot meet the management needs in the new context; Fifth, the qualifications of tax officials not meet the requirements in income tax administration in the context of integration due to the emergence of many business forms and sophisticated transfer pricing activities; Sixth, the tax industry's facilities have not met the speed of development and change of new business forms in the context of integration; Seventh, the coordination between ministries, departments and branches in income tax management is not really tight CHAPTER SOLUTIONS TO COMPLETE INCOME TAX POLICY IN VIETNAM DURING THE PROCESS OF INTERNATIONAL ECONOMIC INTEGRATION 4.1 Forecasting the socio-economic context in the process of international economic integration, income tax policy reform trends of countries around the world and suggestions for Vietnam 4.1.1 Socio-economic context 4.1.1.1 International context The world economic situation is increasingly complicated and unpredictable, the impacts of economic crises and wars between countries have revealed inadequacies in the process of developing the economy in general and politics Income tax policy in particular, which are: (1) The political conflict between Russia and Ukraine has caused many significant consequences for the global economy, this is considered the cause of the increase 37 in global energy prices ; (2) Tightening monetary policies of countries around the world; (3) Global trade in goods declines; (4) Global investment capital flows fluctuate strongly; (5) Solve challenges of environmental sustainable development 4.1.1.2 Domestic context The domestic economy has recently suffered many challenges from the global economic recession and most recently the unpredictable impact of the Covid 19 pandemic That has posed many requirements that need to be resolved Decisions such as: Firstly, restructuring the economy in a sustainable direction; Second, promote digitalization in all activities; Third, develop a circular economy model 4.1.2 Income tax reform trends of countries around the world Income tax reform of countries around the world is carried out according to the following trends: Firstly, the ratio of tax mobilization to GDP continues to increase; Second, the marginal income tax rate for personal income tax continues to be reduced; Third, corporate income tax was also reformed according to the trend of tax rate reduction; Fourth, the income tax base is expanded to offset the decrease in budget revenue due to tax rate cuts; Fifth, the trend of gradually reducing direct taxes and increasing indirect taxes in developed countries and vice versa in developing countries; Sixth, the trend of implementing global minimum tax commitments 4.1.3 Requirements for Vietnam in completing income tax policy in the context of international economic integration Although Vietnam's income tax policy has made adjustments to adapt to the requirements of the integration trend, compared to reality, there still needs to be more reasonable adjustments Research on the trend of reforming income tax policy in the world has given some implications in building Vietnam's income tax policy as follows: First, consider carefully the feasibility of the goal of increasing the income tax rate Direct taxes are based on expanding income tax rates; Second, the need to simplify the tax system and collection and payment procedures has become an urgent issue to minimize tax administrative costs and improve revenue management efficiency; Third, ensure the inherent fairness of income tax policy; Fourth, proactively implement good cooperation in the tax field for national and international interests; Sixth, facing the trend of participating in reform of income tax policy according to the global minimum tax, Vietnam also needs to proactively have solutions to effectively participate in Pillar 4.2 Some solutions to improve Vietnam's income tax policy during the process of international economic integration 4.2.1 Objectives and orientations for completing income tax policy in Vietnam by 2030 and vision to 2045 4.2.1.1 The goal of perfecting income tax policy in Vietnam 38 Implementing the socio-economic development strategy for the period 2021-2030 and the Financial Strategy for the period 2021-2030, the Ministry of Finance develops a Tax System Reform Strategy for the period 2021-2030 towards amendments and supplements Supplementing taxes combined with expanding the tax base aims to perfect the tax policy system towards synchronization, unity, fairness, efficiency, simplicity, and in accordance with the socially oriented market economy institution socialist, promoting production and business development, covering revenues arising in the economy Especially in the context of deep international economic integration, tax policy reform in general and income tax in particular has set specific goals, including: (i) Income tax policy must fulfill its role well role as an effective macroeconomic management and regulation tool of the State for the economy; (ii) Income tax policy must create an equal and fair environment, applied uniformly to all taxpayers; (iii) Income tax policy must be consistent with international practices and proactively integrate to encourage foreign investment in Vietnam; (iv) Ensure income tax policy is fair, transparent, effective and efficient according to international standards; (v) Regarding corporate income tax policy, it is necessary to review to eliminate tax exemptions and reductions that are no longer consistent with development requirements and international integration requirements; (vi) For personal income tax policy, additional taxable subjects need to be reviewed; Research amendments and supplements in the direction of adjusting the number of tax rates and tax rates in accordance with taxable income; … 4.2.1.2 Orientation for perfecting income tax policy in the context of international economic integration, vision to 2030, vision to 2050 The orientations include: Firstly, the income tax policy is amended and supplemented in accordance with the orientation of developing a market economy under the management of the State; Second, keep the current common corporate income tax rate of 20% stable until the end of 2025; From 2026 onwards, based on the specific conditions of the economy and the context of international tax competition, make appropriate adjustments; Third, expand the personal income tax collection base in accordance with international practices; Fourth, review forms of tax incentives; Fifth, strengthen management measures of tax authorities 4.2.2 Solutions to improve income tax policy in Vietnam during the process of international economic integration 4.2.2.1 Solution group to improve income tax policy in general These solutions include: Firstly, perfecting the existing income tax law; Second, the Tax Administration Law should allow tax procedure service business organizations to be conditional service business organizations established and operating in accordance with the provisions of the Enterprise Law and other relevant laws mandarin; Third, perfect the tax management apparatus in general and income tax in particular to be modern, effective and efficient; Fourth, train and improve the quality of tax industry human resources to meet income tax management requirements; Fifth, modernize tax industry facilities to meet 39 income tax management requirements; Sixth, improve and diversify forms of propaganda and dissemination of income tax laws and create favorable conditions for taxpayers; Seventh, Strengthen the coordination of units and organizations related to income tax management 4.2.2.2 Group of solutions on corporate income tax policy In the context of international economic integration, it is necessary to complete the corporate income tax policy according to the following contents, including: (1) Adding new tax payers; (2) Supplementing regulations on bases for calculating corporate income tax; (3) Improve the method of calculating corporate income tax; (4) Adjustment of corporate income tax rate; (5) Incentives in corporate income tax policy; (6) Complete regulations governing transfer pricing activities; (7) Strengthen the signing of double taxation avoidance agreements and international treaties with countries and international trade organizations; (8) Increase corporate social responsibility 4.2.2.3 Complete personal income tax policy in the process of international economic integration Complete the personal income tax policy according to the following contents, including: (1) Expanding the taxable area and clearly defining taxable income; (2) Develop a more reasonable family deduction level, taking into account changes in socio-economic conditions in different periods; (3) Completing the tax schedule for income subject to personal income tax; (4) Complete the tax calculation and tax collection method for each income item in a simple manner, in accordance with international practices to improve taxpayers' compliance with the law and facilitate tax collection; (5) Complete personal income tax policy for foreigners CONCLUDE International economic integration is a step in the development process and a premise for the sustainable development of the world economy in the current period This trend not only brings benefits but also places national economies facing challenges, due to negative fluctuations in the global market, finance and economy Researching income tax policy in the context of integration has answered the research questions posed in the thesis as follows: Firstly, the thesis has clarified theoretical issues related to income tax and income tax policy; Analyze a number of related theories, especially supply-side theory and corporate social responsibility theory In addition, the thesis has clarified the connotation of international economic integration and its impacts on income tax policy The most obvious impact is the change in tax structure; increase tax cooperation; tax administration, etc Second, the thesis analyzed experiences in building and perfecting income tax policies during the integration process from countries around the world in terms of adjusting taxable income; adjust income tax rate and tax threshold; Adjusting incentives other than 40 income tax has helped Vietnam learn lessons in perfecting its income tax policy Accordingly, Vietnam needs to reform and build a synchronous tax system in accordance with international practices in addition to gradually adjusting and reducing corporate income tax rates to nurture revenue sources and proceed to exempt and reduce personal income tax for the right subjects and public Third, the thesis analyzed the current situation of Vietnam's income tax policy in general as well as the current situation of corporate income tax and personal income tax In general, in recent times, in addition to the increase in contributions to the state budget by various entities, there are also acts of tax fraud causing loss of revenue for the state budget from transfer pricing activities of FDI enterprises and related activities good connection in e-commerce transactions of domestic enterprises In addition, there is a loss of personal income tax for individuals who not reside in Vietnam International economic integration also leads to many new business trends such as e-commerce The period 2016-2021 has witnessed a boom in e-commerce sales in Vietnam, but general tax revenue and income tax from businesses and individuals, business households that generate e-commerce revenue are obliged to pay income tax not high yet In addition, the number of foreigners coming to Vietnam and generating income with the obligation to pay personal income tax in Vietnam has increased in the past period, but the personal income tax amount from non-residents only contributed an average of over 5% in the past period total personal income tax nationwide This is a rather modest number The picture of income tax policy and business situation, implementation of income tax obligations in Vietnam is relatively diverse, interwoven between policy changes and reforms to suit the context as well as the implementation of taxpayers with tax liability fraud But above all, we still see bright spots in Vietnam's income tax policy in the context of integration such as the adjustment of corporate income tax rates closer to world trends, changes in management methods towards the application more technology… Besides, there are still dark areas of policy, such as the current corporate income tax policy that does not cover all subjects and business fields in the new conditions; New tax issues will arise as Vietnam strengthens international cooperation and handles international tax issues; The basis for providing family deductions is not reasonable; Vietnam's personal income tax regulation level is still quite high; Inadequacies in current tax policy have many causes, such as the legal system and mechanism being incomplete and synchronous; The level of knowledge and awareness of compliance with the law of taxpayers is not high; The qualifications of tax officials not meet the requirements in income tax management in the context of associations; The tax industry's facilities have not met the speed of development and change of new business forms; The coordination between ministries, departments and branches in income tax management is not really tight; Fourth, the thesis conducted a survey of factors affecting taxpayers' compliance with personal tax obligations and showed the level of impact of factors on tax compliance behavior, in which the standard factor is: Mandatory norms on tax compliance have the strongest impact (0.336), followed by personal norms on tax compliance (0.334) and finally 41 perceived fairness (0.280) This implies a number of policies to improve taxpayers' compliance with tax obligations, such as improving income tax regulations to ensure sufficient deterrence; ensure fairness in tax obligations through adding new taxpayers in corporate income tax and expanding taxable areas and clearly defining taxable income in personal income tax; Raise taxpayers' tax law awareness In addition, the survey results for tax civil servants also show the level of achievement as well as the challenges tax policy faces during the integration process Fifth, the thesis points out that in the face of loss of income tax revenue from tax fraud by enterprises, especially FDI enterprises, it is necessary to compensate for this loss of revenue by enhancing the social responsibility of enterprises This enterprise Thereby reducing the pressure on state spending, allowing the state to invest its resources in economic development programs, thereby promoting economic growth and development Sixth, the thesis shows that in order to perfect income tax policy in the context of international economic integration, it is necessary to synchronize solutions and coordination of state management agencies, not just the tax industry, to complete the tax policy Improve policies on the basis of creating an open business and investment environment to attract domestic and foreign businesses, but also ensure the function of state budget revenue management Especially in the global minimum tax reduction trend that Vietnam is committed to participating in, reducing tax rates is inevitable In the short term, this may affect state budget revenue Therefore, it is necessary to have support measures such as enhancing social responsibility of enterprises, especially FDI enterprises, to reduce pressure on state budget spending in the coming period Besides the results achieved, the thesis currently does not deeply analyze the level of impact of the parties involved in the development and implementation of income tax policy, as well as the conduct of surveys on a national level These are issues that are considered suggestions for research on income tax policy in the next process of international economic integration in Vietnam./ 42 LIST OF PUBLISHED RESEARCH WORKS OF THE AUTHOR RELATED TO THE THESIS TOPIC Nguyen Ngoc Minh (2022), Proposing a model of factors of international economic integration affecting the improvement of income tax policy in Vietnam today, Journal of Economics and Forecasting, No 9, March 2022, p.125 Nguyen Ngoc Minh (2022), Vietnam's income tax policy in international economic integration: Current situation and solutions, Journal of Economics and Forecasting, No 10, April 2022, p.3 Nguyen Ngoc Minh (2023), Completing Income Tax Policy to Increase Tax Compliance Behaviors of Tax Payers in the Context of International Economy Integration - Completing income tax policy to improve tax compliance behavior of taxpayers in context of international economic integration, Proceedings of the Workshop on Socio-Economic and Environmental Issues in Development, National Economics University and KHON KAEN UNIVERSITY, p.1693 Nguyen Ngoc Minh (2022), Complete Company Income Tax Policy: A Point of View from Social Responsibilities of Businesses in the Context of Integration, Proceedings of the IAFICO Annual Conference, p.295
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