Application of global minimum tax necessary: officials

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.

Application of global minimum tax necessary: officials hinh anh 1

Authorised by the Prime Minister, Minister of Finance Ho Duc Phoc submits the draft resolution on the imposition of top-up corporate income tax under the GloBE rules on November 10. (Photo: VNA)

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.

Submitting the draft resolution on behalf of the Government, Minister of Finance Ho Duc Phoc said the global minimum tax (GMT) is not an international treaty or international commitment, and also not compulsory for countries.

However, even if Vietnam does not apply this tax, other countries that impose the GMT have the right to collect this tax from businesses in Vietnam (if the firms are subject to the tax) that pay a tax rate lower than the global minimum tax of 15%, especially foreign invested ones, he noted.

In that context, to ensure its rights and legitimate interests, Vietnam should apply the global minimum tax, Phoc said, citing the guidance by the Organisation for Economic Cooperation and Development (OECD) as saying that the nature of this tax is top-up corporate income tax and countries should properly include it in their legal systems.

Delivering the verification report, Chairman of the NA Committee for Financial and Budgetary Affairs Le Quang Manh said most members of the committee shared the view on the need to issue a legal document to create a legal basis for the foreign invested companies subject to the GMT to make top-up corporate income tax declarations in Vietnam, instead of letting them pay the top-ups in their parent countries.

Besides, the early issuance of the resolution will clearly reflect Vietnam’s determination to apply the global minimum tax, thus enhancing investors’ trust in the country’s legal environment, he went on.

Application of global minimum tax necessary: officials hinh anh 2

Illustrative image (Photo: VNA)

Manh said that as the Government hasn’t moved to include regulations on this tax in the Law on Corporate Income Tax, most committee members agreed on the necessity for the NA to temporarily issue a pilot resolution on the imposition of top-up corporate income tax under the GloBE rules before amending this law in order to guarantee Vietnam’s tax collection right in accordance with the international trend and norms.

The NA Committee for Financial and Budgetary Affairs asked the Government to report its plan to revise the Law on Corporate Income Tax to ensure consistency among regulations of the law, the official continued.

He also cited experts as perceiving that the GMT application will open up opportunities for Vietnam to review and assess its current tax incentives.

Manh said that according to the Government’s impact assessment report based on the 2022 statistics, 122 foreign businesses in the country will be subject to the resolution, with the top-ups totalling 14.6 trillion VND (600.3 million USD).

Meanwhile, six Vietnamese firms will be covered by the resolution, and they will have to pay about 73 billion VND in top-up corporate income tax on their overseas investments if host countries do not impose the global minimum tax, the Government estimated in its report.

The GMT, agreed to by G7 countries in June 2021 as a measure to prevent tax base erosion and profit shifting by multinational corporations, will become effective on January 1, 2024 in many OECD countries. The GMT under OECD Pillar Two is a once-in-a-lifetime global tax reform that will apply to multinational companies with revenues of 750 million EUR (800 million USD) or more./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday

VCN- On February 3, the first working day after the Tet holiday, Minister of Finance Nguyen Van Thang and the delegation visited and worked with the General Department of Vietnam Customs (GDVC).
The stock market after Tết 2025 presents both challenges and opportunities

The stock market after Tết 2025 presents both challenges and opportunities

Việt Nam’s stock market following the 2025 Lunar New Year (Tết Nguyên Đán) presents a complex landscape of risks and potential gains, driven by foreign capital inflows, economic resilience, and looming corporate bond maturity pressures, according to one securities expert.
Opportunities and challenges in Việt Nam

Opportunities and challenges in Việt Nam's crypto boom

Việt Nam boasts one of the most active investment communities in the cryptocurrency sector. However, protecting investors and promoting sustainable growth requires a robust legal framework.

More News

Đà Nẵng aiming to become a regional financial centre before 2050

Đà Nẵng aiming to become a regional financial centre before 2050

The city is setting out goals to promote the development of the financial system in the 2021-30 period, striving for Đà Nẵng to become a regional financial centre in just 25 years.
Which investments to make in 2025?

Which investments to make in 2025?

Financial reports indicate a large amount of cash in the banking system at the end of 2024. Investors in 2025 will have plenty of choices of where to put their money, according to economists and financial analysts.
5 strategies for reallocating houses and land

5 strategies for reallocating houses and land

VCN - The rearrangement and disposal of public-owned houses and land have been officially regulated in Decree No. 03/2025/ND-CP (Decree No. 03), which has just been issued by the Government. According to Decree No. 03, there are five forms of rearrangement and disposal of houses and land.
Stock market expected to rebound positively after Tết holiday: expert

Stock market expected to rebound positively after Tết holiday: expert

Currently, the VN-Index is fluctuating within a wide range of 1,200 to 1,300 points. Without a decisive breakout in either direction, this level of liquidity remains typical.
Ministry of Planning and Investment proposes piloting a cryptocurrency exchange at financial centres

Ministry of Planning and Investment proposes piloting a cryptocurrency exchange at financial centres

The Ministry of Planning and Investment (MPI) has proposed a controlled pilot programme for fintech activities, including digital asset and cryptocurrency trades at financial centres.
Banks selling mortgaged assets to recover bad debts

Banks selling mortgaged assets to recover bad debts

Many banks are rushing to sell mortgaged assets to recover bad debts, as these types of debts are forecast to increase slightly this year.
Keeping inflation in check a priority for 2025

Keeping inflation in check a priority for 2025

Economists have identified a range of factors that may exert inflationary pressure in 2025, including geopolitical risks, global trade disruptions and domestic challenges such as exchange rate fluctuations, rising import costs and natural disasters.
Debt repayment pressure continues to weigh on corporate bond market

Debt repayment pressure continues to weigh on corporate bond market

An alarming 22 per cent of corporate bonds maturing in January 2025 are at risk of defaulting on principal payments, according to a report from VIS Rating.
2025 a new era for financial institutions

2025 a new era for financial institutions

Recent adjustments to Việt Nam’s economic growth forecasts from major financial institutions highlight growing confidence in the country’s economic trajectory.
Read More

Your care

Latest Most read
Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday

VCN - On the occasion of the Spring of At Ty 2025, on behalf of the Party Committee and the leaders of the Ministry of Finance, Minister Nguyen Van Thang respectfully sent his best wishes to all the GDVC's officials, civil servants and employees.
The stock market after Tết 2025 presents both challenges and opportunities

The stock market after Tết 2025 presents both challenges and opportunities

Việt Nam’s stock market following the 2025 Lunar New Year (Tết Nguyên Đán) presents a complex landscape of risks and potential gains, driven by foreign capital inflows, economic resilience, and looming corporate bond maturity pressures, according to one securities expert.
Opportunities and challenges in Việt Nam

Opportunities and challenges in Việt Nam's crypto boom

Việt Nam boasts one of the most active investment communities in the cryptocurrency sector. However, protecting investors and promoting sustainable growth requires a robust legal framework.
Đà Nẵng aiming to become a regional financial centre before 2050

Đà Nẵng aiming to become a regional financial centre before 2050

The city is setting out goals to promote the development of the financial system in the 2021-30 period, striving for Đà Nẵng to become a regional financial centre in just 25 years.
Mobile Version