Anti-corruption Tax in Vietnam Allows Money Laundering

March 13, 2018 Taxation in Vietnam

Vietnamese DongHANOI – Vietnam’s crackdown on corruption could prove itself to be effective, or it could be a handy tool to facilitate money laundering.

Over the weekend a delegate of the National Assembly of Vietnam Truong Trong Nghia said that the newly proposed tax to be paid by civil servants with undeclared incomes and assets could lead to money laundering.

The government of Vietnam recently proposed that civil servants with undeclared or under-declared incomes and assets will be liable to pay a 45 percent tax on the true value of the assets unless the individual can provide adequate explanations of how the assets were acquired.

However, Truong Trong Nghia believes that a simple tax of 45 percent will lead to money laundering, as the offending civil servant will simply pay the fee and keep the rest.
Instead, Truong Trong Nghia proposes that the assets and funds be confiscated if discovered.

The proposed tax comes as part of the government’s crackdown on corruption, which includes other measures such as monitoring of all assets and incomes of high ranking officials and requiring officials to conduct all major payments electronically.