Vietnam Tax Authority Warns Firms Over Prolonged Losses and Thin Profits

The General Department of Taxation (Cục Thuế) sent an open letter to the Vietnam Association of Accounting and Auditing and to accounting and auditing firms, urging them to cooperate in raising tax‑law compliance among enterprises. The letter notes that a segment of companies continue to declare losses for many years, engage in transfer‑pricing practices and report profit margins far below industry averages, creating fiscal risk for the state budget.

The tax authority is tightening comprehensive tax‑management measures, promoting transparent financial reporting and discouraging dual‑bookkeeping. It calls on accounting and auditing firms to actively inform and guide their clients on proper tax filing, to help build a fair and transparent tax system and to prevent tax‑related risks for businesses.