Update news global minimum tax
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.
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 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.
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.
Vietnam is looking for solutions to retain foreign investment firms, especially giants such as Samsung, Apple, and Foxconn, in the event that the global minimum tax is applied in the country.
Vietnam needs to fully and comprehensively assess the impacts of the global minimum tax on the country, said Minister of Finance Ho Duc Phoc on April 18.
Deputy Prime Minister Le Minh Khai has been assigned to be head of a special working team on global minimum corporate tax.
A 15 percent global minimum corporate income tax (CIT) will put Vietnam in a difficult position.
The Government has requested the Ministry of Finance to evaluate the impact of a global minimum effective corporate tax on the nation’s budget revenue and foreign investment attraction, and on foreign investors.
Vietnam is studying and adjusting its investment policies to adapt to the global minimum corporate income tax which is scheduled to be applied from 2024, said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.
Vietnam will adjust investment policies to adapt to the global minimum tax rate and remain an attractive destination for investment.