President Lee Jae-myung announced on October 19 that the Vietnamese government has established retroactive guidelines to address delays in value-added tax (VAT) refunds for South Korean companies, stating, "Diplomatic efforts are yielding tangible results in alleviating our companies' difficulties."
In a post on X (formerly Twitter) titled "News from Vietnam," President Lee shared this development.
According to President Lee, the Vietnamese government issued instructions to its national tax authorities on September 15, allowing for retroactive application of VAT refund regulations if certain conditions are met, even for transactions prior to the legislative amendment.
South Korean companies operating in Vietnam have faced challenges due to delays in receiving VAT refunds. President Lee noted that a survey conducted last December revealed that the total amount of delayed refunds reached at least 40 billion won.
During his state visit to Vietnam in April, President Lee requested a resolution to this issue. Im Kwang-hyun, the Chief of Staff to the President, also urged the Vietnamese side for active cooperation during a meeting of the tax authorities from both countries in June while he was serving as the Commissioner of the National Tax Service.
President Lee expressed hope that this measure would ease the financial burden on South Korean companies and thanked the Vietnamese government for listening to their concerns and taking action. He emphasized, "I will ensure that the benefits of our diplomatic achievements are felt by our citizens and businesses."
* This article has been translated by AI.
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