Global minimum tax application under consideration

Illustrative image (Source: VNA)

Hanoi (VNA) – The General Department ofTaxation under the Ministry of Finance has said it will keep a close watch onthe implementation of the global minimum tax in other countries, listen toopinions of firms impacted by the tax and study guidelines of the Organisation forEconomic Cooperation and Development (OECD) to propose its application inVietnam. 

The application of the global minimum tax should not create adverse impacts on Vietnam’s foreign investment attraction, and shouldensure the country’s tax collection right, said deputy head of the general departmentDang Ngoc Minh at a press conference held by the Finance Ministry inHanoi on March 30.

The OECD’s Pillar Two establishes a global minimumeffective corporate tax rate of 15% for large multinational enterprises (MNEs), which has important implications for the use of tax incentives around theworld.

Deputy head of the General Department of Taxation Dang Ngoc Minh speaks at the press conference. (Photo: VNA)

In Vietnam, a task force in charge of studying theglobal minimum tax and proposing relevant solutions was established in August2022 with Deputy Prime Minister Le Minh Khai as the head.

The Finance Ministry set up a working group inFebruary 2023, led by a deputy minister, to assist the task force.

The general department, which is assigned by theministry to study and propose the implementation of the global minimum tax,held a meeting with businesses on March 28 to acquire opinions raised byenterprises that may be impacted by the tax, according to Minh.

At the press conference, the official also clearedup queries regarding the roll-out of the electronic invoice system and value-addedtax refund./.

VNA