The measure was approved by the National Assembly on November 29, with 93.52% of deputies voting in favour.

National Assembly deputies vote to impose the global minimum tax from 2024.

Investors subject to the tax must pay the global minimum tax in Vietnam.

The rules do not apply to government organisations, international organisations, non-profit organisations, pension funds, investment funds and real estate investment organisations that are ultimate parent entities.

The additional corporate income tax in accordance with the global minimum tax regulations will be paid to the central budget.

PM pledges support if global minimum tax applied

The government will provide solutions and support to help investors and new projects if the proposed global minimum tax is applied.

Vietnam adapts to global minimum tax

The Vietnamese Government has been closely following the reality and consulting the experiences from other countries on the implementation of the global minimum tax to soon make appropriate policies, towards creating opportunities for foreign enterprises to operate smoothly and make greater contributions to Vietnam without affecting the interests of investors.

Global minimum tax application under consideration

The General Department of Taxation under the Ministry of Finance has said it will keep a close watch on the implementation of the global minimum tax in other countries, listen to opinions of firms impacted by the tax and study guidelines of the Organisation for Economic Cooperation and Development (OECD) to propose its application in Vietnam.

Vietnam should proactively participate in global minimum tax mechanism

The implementation of the global minimum corporate tax will directly affect Vietnam’s efforts to attract foreign direct investment (FDI). With a minimum tax rate of 15% imposed on multinational companies, measures to attract foreign capital through tax incentives will no longer be effective.

Source: NDO