Decree on the implementation of global minimum tax: Ensuring a clear and transparent legal framework

VCN - The decree detailing the implementation of the global minimum tax must align with practical management requirements, ensuring a clear and transparent legal framework that enables businesses to comply with new tax regulations while safeguarding national interests, emphasized Dang Ngoc Minh, Deputy Director General of the General Department of Taxation.
Dang Ngoc Minh, Deputy Director General of the General Department of Taxation made an openning speech.
Dang Ngoc Minh, Deputy Director General of the General Department of Taxation made an openning speech.

Tax policies linked to FDI attraction: A critical task

This point was highlighted by Deputy Director General Dang Ngoc Minh during the workshop “Consultation on the draft Decree detailing the implementation of certain articles of resolution No. 107/2023/QH15”, organized by the General Department of Taxation in collaboration with the German International Cooperation Society (GIZ) on November 28.

The workshop brought together representatives from related agencies, six provincial tax departments with enterprises affected by the global minimum tax, and businesses subject to the global minimum tax regulations, including both domestic and foreign-invested enterprises (FDIs) operating in northern provinces and cities.

In his opening remarks, Dang Ngoc Minh emphasized that formulating and implementing tax policies, especially those related to attracting foreign investment, is a critical responsibility not only for state management agencies but also for businesses and international organizations.

view of the workshop
View of the workshop

He noted that Resolution No. 107/2023/QH15 of the National Assembly, which governs the application of additional corporate income tax under global tax base erosion rules, provides a new direction and a legal foundation for synchronized state budget revenue collection. It also facilitates Vietnam's deeper integration into the international community amidst significant shifts in global taxation.

Deputy Director General Minh further explained that the implementation of additional corporate income tax under global anti-base erosion rules is part of Vietnam’s commitment to international organizations, particularly the Organisation for Economic Co-operation and Development (OECD). These measures aim to ensure fairness in the international tax system, prevent profit-shifting practices, and eliminate tax rate reductions achieved through interest or profit transfers between multinational corporations.

The workshop sought feedback from experts, leading consultancy firms, and large businesses, alongside input from state management agencies, to finalize the decree. The goal is to move towards a fair, efficient, and transparent international tax system.

“The finalized decree must align with practical management needs, establish a clear and transparent legal framework, facilitate compliance with new tax regulations, and protect national interests,” emphasized Dang Ngoc Minh.

He further highlighted that the issue not only affects the fiscal policies of nations but also directly impacts businesses, especially multinational corporations operating in Vietnam.

Vietnam takes proactive steps

During the workshop, a representative from the Department of Tax Declaration and Accounting (under the General Department of Taxation) provided an overview of tax management, declaration, and payment requirements outlined in the draft decree. The decree proposes new forms and templates for corporate income tax registration, declaration, and payment under the global minimum tax framework.

The draft decree, detailing certain provisions of Resolution No. 107/2023/QH15, was structured in accordance with the resolution and OECD guidelines on global minimum tax rules.

It comprises 24 articles divided into three sections: General Provisions (detailing Article 2 of the resolution); Specific Provisions (detailing Articles 4, 5, and 6 of the resolution); Implementation Clauses.

These regulations are built on existing tax management laws and align with the administrative guidance outlined in Section 8 of the OECD's Model Rules on global minimum tax.

At the workshop, Wonsik Son, a tax expert from the Korean Business Association in Vietnam, expressed his hope that the Vietnamese Government would continue to support the association in implementing global minimum tax policies.

Meanwhile, Dr. Peter Wenzel, a tax policy advisor representing the Public Financial Management Reform Project in Vietnam, commended Vietnam for its proactive approach. Following the adoption of Resolution No. 107/2023/QH15 by the National Assembly in November 2023, Vietnam began drafting detailed regulations for the global minimum tax, demonstrating its commitment to deeper international integration.

“Vietnam is one of the pioneering countries in developing detailed regulations for the global minimum tax,” said Dr. Wenzel. He added that Vietnam’s deliberate approach, in collaboration with international organizations and countries that have already implemented the system, ensures that the decree adheres to international practices and contributes to the successful implementation of the resolution.

By Hoài Anh/Thanh Thuy

Related News

Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Propose many solutions to shorten tax refund time

Propose many solutions to shorten tax refund time

VCN - Fully defining the duties and responsibilities of tax officials and having a mechanism to protect tax officials in tax refunds are breakthrough solutions being proposed to remove bottlenecks and barriers, speeding up the tax refund process in the coming time.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.
Drastically handle tax debts in the last months of the year

Drastically handle tax debts in the last months of the year

VCN – The General Department of Taxation has directed tax branches to closely supervise and control the implementation of enforcement measures to ensure the debt collection targets and limit new debts.

Latest News

Drastic measures needed to accelerate disbursement of foreign-funded public investment

Drastic measures needed to accelerate disbursement of foreign-funded public investment

Drastic measures are needed to remove roadblocks and accelerate the disbursement of foreign-funded public investment in the remaining months of this year, as the disbursement rate remains far below the target of 95 per cent, according to the Ministry of Finance.
Urging collection of land-related revenues in the last month of the year

Urging collection of land-related revenues in the last month of the year

VCN – In order to achieve the highest revenue target in the last month of 2024, creating momentum for the good implementation of socio-economic development tasks in 2025 and the period 2026 - 2030, the Prime Minister assigned the Ministry of Finance to promote revenue management solutions, strictly control tax assessment, tax declaration, tax payment, and collect arising revenues, especially revenues related to land.
Innovation and restructuring of state-owned enterprises: Start from institutions

Innovation and restructuring of state-owned enterprises: Start from institutions

VCN - The work of restructuring and innovating state-owned enterprises (SOEs) has had remarkable results in reducing quantity and improving quality, but is still behind schedule and the effectiveness is not commensurate with the resources.
Tax policies facilitate business development

Tax policies facilitate business development

VCN - Sharing with Customs News on the sidelines of the Tax and Legal Forum 2024 recently held, Deputy General Director, General Department of Taxation Dang Ngoc Minh (photo) said that the Government is researching and implementing new tax policies to support and facilitate business development in the time to come.

More News

Tax sector exceeds revenue target 2024

Tax sector exceeds revenue target 2024

VCN – Currently, the revenue managed by the Tax sector has reached VND1,538,000 billion, exceeding the 2024 estimate. This positive result was said by the leader of the General Department of Taxation at the Finance Forum “Financial policies to promote aggregate demand for economic development”.
Stimulate production and business, submit to the National Assembly to continue reducing 2% VAT

Stimulate production and business, submit to the National Assembly to continue reducing 2% VAT

VCN - Reducing value added tax (VAT) has an impact on the decrease of state budget revenue but also stimulates production and promotes business activities, thereby contributing to creating more revenue for the state budget.
M&A in Vietnam expected to be bustling in 2025

M&A in Vietnam expected to be bustling in 2025

Merger and acquisition (M&A) activity in Vietnam is expected to be bustling again, thanks to the domestic economic recovery and higher foreign investment.
Major reforms in the management of state capital in enterprises

Major reforms in the management of state capital in enterprises

VCN - The draft Law on Management and Investment of State Capital in Enterprises is set to be presented and discussed at the National Assembly, featuring numerous new provisions after multiple rounds of public consultation. The draft law is expected to bring significant reforms to the operational framework for managing state capital and state-owned enterprises (SOEs).
Vietnam makes comprehensive strides in public financial management reform

Vietnam makes comprehensive strides in public financial management reform

VCN - Vietnam has achieved significant milestones in its public financial management (PFM) reforms, earning praise for its comprehensive progress across multiple areas, according to the latest Public Expenditure and Financial Accountability (PEFA) Report.
Central bank increases credit growth limit for banks for second time this year

Central bank increases credit growth limit for banks for second time this year

The State Bank of Vietnam (SBV) on November 28 announced it would increase credit growth target for credit institutions, for the second time this year.
Agree to continue reducing VAT by 2%

Agree to continue reducing VAT by 2%

VCN - National Assembly deputies all expressed their agreement with the policy of continuing reducing value-added tax (VAT) by 2% in the first half of 2025, but there needs to be an effective support policy for sustainable development of businesses.
Four challenges that put pressure on monetary policy management

Four challenges that put pressure on monetary policy management

VCN - According to the State Bank of Vietnam (SBV), monetary policy in the coming time will face many pressures, including the impacts of the international context and the continued implementation of the policy of reducing interest rates.
Legal basis to improve quality of price appraisal

Legal basis to improve quality of price appraisal

VCN - According to the representative of the Price Management Department, the regulations related to the activities of appraisers, adjusting the conditions for valuation practicing are new contents of the 2023 Price Law, contributing to improving the quality of valuation activities.
Read More

Your care

Latest Most read
Drastic measures needed to accelerate disbursement of foreign-funded public investment

Drastic measures needed to accelerate disbursement of foreign-funded public investment

Drastic measures are needed to remove roadblocks and accelerate the disbursement of foreign-funded public investment in the remaining months of this year, as the disbursement rate remains far below the target of 95 per cent, according to the Ministry of Finance.
Urging collection of land-related revenues in the last month of the year

Urging collection of land-related revenues in the last month of the year

VCN - Since the beginning of 2024, the macro-economic situation has been stable, growth has been promoted, major balances of the economy have been ensured, and the state revenue in the first 11 months of the year has reached 106.3% of the estimate.
Innovation and restructuring of state-owned enterprises: Start from institutions

Innovation and restructuring of state-owned enterprises: Start from institutions

The work of restructuring and innovating state-owned enterprises (SOEs) has had remarkable results in reducing quantity and improving quality, but is still behind schedule
Tax policies facilitate business development

Tax policies facilitate business development

VCN - Sharing with Customs News on the sidelines of the Tax and Legal Forum 2024 recently held, Deputy General Director, General Department of Taxation Dang Ngoc Minh (photo) said that the Government is researching and implementing new tax policies to sup
Tax sector exceeds revenue target 2024

Tax sector exceeds revenue target 2024

VCN - “These tax support policies have directly impacted the financial resources of enterprises, contributing to maintaining production and business and promoting consumption, thereby creating momentum for economic recovery and development,” said Minh.
Mobile Version