Global tax competition and Vietnam's policy

Abstract

When Vietnam get deeply  involved in the global economy, new economic problems will arise accordingly thats riquires Vietnam to pursue appropriate policies, one of which is global tax policies.

The writer gives an overview of the global tax competition and present both positive and negative impact on the economy as well as its tebdebcy. And he also presents proposed policies in a context of Vietnam's situuation. The main contents of his article include

1. Positive and negative impact on an economy from global tax competition.

2. The tendency of global tax competition in for the last couple of decades.

3. Review of Vietnam's tax policy:

a- Corporate income tax

b- Personal income tax

The continous cut down of corporate income tax and personal income tax has become normal in the world and Vietnam is no exception.

In Vietnam through two times of amendments the corporate income tax and personal income tax have gradually conformed to the global tax competition. However in order to ensure an effective competition limit the negative sides of global tax competition, the article in focused on the following contents:

- Strengthen the comperation among the countries in the region through signing agreements on the double tax avoidance.

- Coordinating and supporting each other among the taxation agencies in the region in terms of the management of tax colletion.

- Coperation is needed among the nations is the region with the mommon economic interest within the framework of deneral agremennts in order to limit an unhealthy tax competition.

- In the future a unified tax system among the nations in the region and in the world may become a reality, however, this will depend on the determination of the governments, as result each nation should prepare necessary conditions so as to reach a comprehensive agreements on cooperation on tax inssues./.