HCM CITY — HCM City authorities underlined their commitment to creating a more transparent and business-friendly investment environment by addressing tax concerns raised by foreign enterprises at a dialogue with them on Monday.

At the meeting between tax authorities and foreign investors on Monday, among the key issues discussed were tax refunds, incentives and new regulations.

Đoàn Minh Dũng, head of the HCM City Tax Department, promised his agency’s support to foreign investors in line with Politburo Resolution No. 10-NQ/TW, which sets out policies to promote FDI as a key driver of growth.

FDI has for long been recognised as an important component of the economy, contributing to growth, restructuring and international integration, he pointed out.

Following the implementation of the two-tier local government model, the city's tax authority has expanded programmes to help businesses overcome difficulties and maintain stable operations, he said.

These efforts, together with contributions from the business community, have helped sustain revenue growth, he said.

The rapid growth of the digital economy, e-commerce, cross-border business models and global supply chains have created new challenges for foreign enterprises, he said.

He said the dialogue focused on practical issues including VAT refunds, corporate income tax incentives, and amendments to the Law on Tax Administration to take effect on July 1.

The tax authority is shifting from a “management” mindset to a more service-oriented approach, placing taxpayers at the centre of its operations, he said.

“We want to listen carefully to businesses’ concerns and provide timely guidance and support so they can fulfil their tax obligations efficiently and correctly.”

The department pledged to further streamline administrative procedures, accelerate digital transformation, and improve service quality to facilitate tax compliance.

Resolution No 10-NQ/TW aims to establish a stable, transparent, and conducive policy environment for foreign investors and enable double-digit economic growth.

Vũ Thị Thu Hương, vice chairwoman of the Association of Foreign Invested Enterprises, welcomed the tax authorities’ constructive approach.

The department’s support extended beyond formal dialogue sessions, with tax officials regularly providing direct guidance to enterprises on documentation, tax procedures and regulatory compliance, she revealed.

VAT refunds, tax incentives, and transfer pricing remain the three most pressing issues for foreign-invested enterprises, she said.

The refunds have the most immediate impact on companies’ cash flows, particularly for firms required to report refund progress to overseas parent companies, she pointed out.

She said tax authorities should consider ways to reduce processing times while maintaining effective risk management and regulatory oversight.

“The shift from management to partnership and service is fully consistent with the Government’s direction. When businesses view tax authorities as partners, they are more willing to discuss difficulties openly and comply with regulations more effectively.”

The business executives in attendance sought clarifications on regulations governing corporate digital identification, eligibility for the zero per cent VAT rate on services exports, deductible land rental expenses, and housing allowances for foreign experts.

Tax officials provided explanations and promised to maintain regular dialogue with them and enhance the investment environment. — VNS