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The dialogue conference

Speaking at the opening of the dialogue, Mr. Ha Duy Tung, Director of the Department of International Cooperation (Ministry of Finance) said that following the success of two previous conferences on policy dialogue and financial cooperation, this conference will be an opportunity for Vietnam and Australia to exchange and share Australia's experience in financial management.

At the same time, the conference will bring a lot of useful experiences and will continue to connect, promote smooth exchanges, and contribute to concretizing financial cooperation results between the two countries.

According to a representative of the Department of International Cooperation, the conference focuses on discussing contents such as the application of the global minimum tax in the domestic legal and regulatory system; experience in capital markets and climate modeling.

These are two contents that Vietnam is particularly interested in, especially in the context that the world economy has faced many fluctuations and potential risks of global growth; it is necessary to create engine for the growth by sustainable, equitable financial policies and proactive responses to natural disaster risks and implementation of solutions to support green growth, that requires the efforts of each country's self-reliance and the joint cooperation of the international community.

Expressing his appreciation for the financial cooperation relationship between the Ministry of Finance of Vietnam and the Ministry of Treasury of Australia, Mr. Andrew Goledzinowski, Australian Ambassador to Vietnam, said that recently, many Senior Australian delegations visited and worked in Vietnam.

The message of the business trips is that Vietnam and Australia are always reliable partners of each other. Accordingly, the two sides will continue to strengthen cooperation in many fields in the coming time, especially in economics and finance.

At the conference, the delegates focused on sharing practical experiences and good practices on corporate income tax management policies and investment incentives of Australia; solutions to employ global minimum tax; Australia's management and supervision mechanism for the corporate bond market, credit rating services; Australia's financial regulatory regime for carbon market operations, climate finance, energy transition finance; challenges of implementing the global minimum tax, and updating information on the legal framework and difficulties to develop the corporate bond market in Vietnam.

Speaking about the foreign investment situation; Australia's corporate income tax and investment incentives, Andrew Geoffrey Deitz, Director General of the Department of International Economics and Security for the Indo-Pacific (Australian Treasury) said, Australia has always focused on attracting foreign investment to complement the domestic savings and enhance the economic welfares of Australians.

With the content of global minimum tax, the representative of Vietnam, Deputy General Director of the General Department of Taxation Dang Ngoc Minh said that, like Australia, Vietnam has also issued a corporate income tax policy that applies generally to domestic and foreign investments. According to Dang Ngoc Minh, currently the common corporate income tax rate applied by Vietnam is 20%, however, Vietnam is also using many measures to attract foreign investment, including tax incentives. Currently, the average corporate income rate in Vietnam applied to foreign enterprises is about 8-10%

According to OECD regulations, enterprises with a turnover of more than 750 million EUR/year will pay the global minimum tax, of the 36,500 foreign enterprises operating in Vietnam, about 1,017 legal entities are affected. Mr. Dang Ngoc Minh emphasized that the global minimum tax has a great impact on attracting foreign investment as well as budget revenue of Vietnam.

According to Mr. Minh, the Government of Vietnam has studied and submitted to the Standing Committee of the National Assembly a draft resolution on the plan to apply the global minimum tax with two important rules: Income Inclusion Rule (IIR) and “Qualified Domestic Minimum Top-up Tax” (QDMTT), which will begin from fiscal year 2024. Current incentives apply to businesses that are not subject to the global minimum tax will remain the same.

Vietnam wishes to share and exchange with Australia its experience in dealing with the global minimum tax in order to maintain the investment environment, as well as handle issues related to the interests of foreign investors in Vietnam in the context of the application of the global minimum tax.

Speaking the impact of the global minimum tax, Australian representative Andrew Geoffrey Deitz said that in the Australian budget for 2023-2024, the Government has announced a plan to implement the global minimum tax and apply it from year 2024; and stipulate taxable profits are below the minimum level from 2025.

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It is estimated that the global minimum tax will help Australia raise about AUD370 million in the five years from 2022-2023. However, the main challenge for Australia's implementation of the global minimum tax and the domestic minimum tax is to design a legal framework within a certain period of time to be compatible with the domestic legal system; and the application of global minimum tax must be recognized by other organizations that implement the global minimum tax.