Urgently complete Decree on application of Global Minimum Tax inline with roadmap

	Issuing resolution on global minimum tax to proactive international integration
	122 foreign corporations investing in Vietnam have to pay Global minimum tax

The draft Decree on the application of Global Minimum Tax is in the process of consulting with member units to urgently complete and submit to the Ministry of Finance.

On November 29, 2023, the National Assembly approved Resolution No. 107/2023/QH15 on the application of additional corporate income tax under Global Anti-Base Erosion Rules. The Resolution takes effect from January 1, 2024, and is applied from fiscal year 2024.

On January 8, 2024, in Decision No. 19/QD-TTg, the Prime Minister issued a list and assigned agencies to preside over drafting documents regulating the implementation of Laws and Resolutions approved by the 15th National Assembly at its 6th session.

Accordingly, the Ministry of Finance (MoF) is assigned to preside over the development of a Decree detailing a number of articles of the National Assembly's Resolution on the application of additional corporate income tax under Global Anti-Base Erosion Rules.

Following the MoF’s direction, the General Department of Taxation has drafted a Decree regulating Resolution 107 to get feeback from members participating in developing the Decree. Accordingly, the Draft Decree is in the process of asking for comments from member units participating in its development to urgently complete and submit to the Ministry of Finance for comments from ministries, sectors, and relevant organizations and individuals.

At the meeting to develop a draft Decree detailing Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly on the application of additional corporate income tax under Global Anti-Base Erosion Rules held by the General Department of Taxation, Deputy Director General of the General Department of Taxation Dang Ngoc Minh requested that members participating in the development of the Draft Decree to closely coordiante and give effective opinions inline with operations of corporations that are affected by Resolution 107/2023/QH15 to create maximum convenience for taxpayers in implementing the Decree.

Deputy Director General Dang Ngoc Minh asked the Policy Department (under the General Department of Taxtion) to conduct surveys and hold meetings and workshops to develop the draft Decree.

First of all, the presiding unit needs to agree on completing the outline framework of the Draft Decree, and recieve and analyze feedback to complete the Draft and submit it to the General Department's leaders for approval and submitted to the Ministry of Finance.

On November 29, 2023, Chairman of the National Assembly Vuong Dinh Hue signed and promulgated Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly on the application of additional corporate income tax under Global Anti-Base Erosion Rules.

According to Resolution No. 107/2023/QH15, the Resolution stipulates that a constituent unit or collection of constituent units of a multinational corporation as prescribed in Article 2 of this resolution that operate production and business activities in Vietnam during the fiscal year must comply with regulations on Qualified Domestic Minimum Top-up Tax.

The Resolution takes effect from January 1, 2024 and be applicable from fiscal year 2024. The National Assembly requests the Government to urgently complete the revised Law on Corporate Income Tax in accordance with the provisions of the Law on promulgation of legal documents and submission to the National Assembly Standing Committee and the National Assembly for consideration and supplementation to the 2024 Law and Ordinance Building Program.

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