The international community is speeding towards the implementation of a global minimum tax, and Vietnam is no exception.

Vietnam, which has been integrating deeply into the world economy, has no other choice than to apply the global minimum tax.

With more than 93% of votes in favour, the National Assembly approved a resolution on applying additional corporate income tax in line with the Global Anti-Base Erosion Rules (global minimum tax), due to take effect as of January 1, 2024.

More than 100 countries and jurisdictions joined the framework, including VN, many of which start to adopt the global minimum tax from the...

One of two resolutions added to the National Assembly's 2023 law-building program aims to give a push in attracting new foreign investment and retaining existing investors.

The National Assembly (NA) on November 10 listened to the proposal on a draft resolution on the imposition of top-up corporate income tax under the Global Anti-Base Erosion (GloBE) rules, and a verification report on this draft.

The Ministry of Finance drafted a resolution for the adaptation of the global minimum tax, paving the way for the adoption of the global minimum tax in Vietnam from next year.

Vietnam will internalize additional tax and incentive policies to support the enforcement of the global minimum tax in early 2024, in order to prevent tax evasion and encourage foreign businesses to operate in the long term in the country.

The Ministry of Planning and Investment (MPI) has proposed measures to support investment in hi-tech fields amid the global minimum tax regime.

The Ministry of Planning and Investment (MPI) has proposed a pilot investment support policy when applying the global minimum tax: either deducting from enterprises’ tax obligations, or paying directly with money from the state budget.

Vietnam supports the global minimum tax and plans to begin the tax application in 2024, creating a favorable mechanism to encourage enterprises to pay additional tax in Vietnam.

The tax authority estimated that about 112 MNEs in Việt Nam would be affected by the global minimum tax if it was applied from 2024.

The Government plans to send the global minimum tax policy to the National Assembly for discussion.

The Government is likely to submit to the National Assembly this October a draft policy relating to the global minimum tax which is scheduled to take effect on January 1, 2024 globally.

Concerns among multinational corporations about new global tax impacts are expected to be eased by Vietnam’s efforts to facilitate the foreign business community.

The market opening and tariff removals under the framework of free trade agreements have paved the way for foreign products to flood the domestic market. But Vietnam has no technical barriers to protect domestic production.

Vietnamese tax officials are looking at customised support mechanisms to alleviate the consequences of the global minimum tax (GMT) on foreign enterprises.

What will Vietnam lose and gain when attracting FDI if it applies the global minimum tax proposed by the Organization for Economic Co-operation and Development (OECD)?

Minister of Finance Ho Duc Phoc has expressed concern that tax incentives offered by Vietnam to foreign investors will become less important once the global minimum tax scheme takes effect.