Some solutions to combat tax base erosion in Vietnam

Diep Bui Hong ()
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Diep Bui Hong: Ho Chi Minh City University of Industry and Trade, Faculty of Finance – Accounting 140 Le Trong Tan St., Tay Thanh Ward, Tan Phu Dist., Ho Chi Minh City, Vietnam

WSB Journal of Business and Finance, 2024, vol. 58, issue 1, 235-246

Abstract: Tax base erosion poses a significant challenge to tax collection and financial stability in Vietnam. This study explores potential solutions to address tax base erosion in Vietnam today. The study employs analytical and comparative methodologies to evaluate the current state of tax base erosion in Vietnam and propose viable solutions. Firstly, it is imperative to enhance the effectiveness of tax management by adopting advanced technology and comprehensive workforce training. Furthermore, implementing stringent regulations on transfer pricing and deploying measures to deter tax avoidance can mitigate profit shifting and tax evasion perpetrated by multinational corporations. International collaboration also holds a pivotal role, involving the ratification of tax treaties and active engagement in global initiatives such as the OECD’s BEPS framework. Lastly, fostering a competitive business environment and promoting economic diversification can reduce dependence on industries susceptible to tax erosion. The Vietnamese government can effectively counter tax base erosion by integrating these measures, safeguarding fiscal stability, and fostering socio-economic progress.

Keywords: Tax base erosion; transfer pricing prevention; BEPS; tax management; tax base (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:wsbjbf:v:58:y:2024:i:1:p:235-246:n:1019

DOI: 10.2478/wsbjbf-2024-0020

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