Lawmakers endorse global minimum tax rules, starting in 2024
VOV.VN - 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.
Under the resolution, a tax rate of 15% will apply to multinational corporations with revenue exceeding EUR750 million, equivalent to approximately US$800 million, or more in two of the four consecutive years. Investors subject to the tax will have to pay the global minimum tax in Vietnam.
About 122 foreign businesses operating in Vietnam are expected to pay this tax, according to tax authorities, and the State budget is set to get more than VND14.6 trillion in its coffers.
The National Assembly requested that the Government soon develop a draft decree on the establishment, management and use of the investment support fund from global minimum tax revenue and other legal financial sources, in order to stabilize the investment environment, attract strategic investors and multinational corporations, and support domestic businesses.
In the long term, the legislature asked the Government to comprehensively evaluate current tax incentive policies and soon amend the Corporate Income Tax Law along with a plan to adjust the tax rate and tax incentive system.
The tax, which was approved by the group of seven industrialised economies (G7) in 2021, aims to reduce tax competition between countries and discourage multinational corporations from profit shifting as a means of achieving tax avoidance.
