Global minimum tax application under consideration

Illustrative image (Source: VNA)

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

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

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

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 the global minimum tax and proposing relevant solutions was established in August 2022 with Deputy Prime Minister Le Minh Khai as the head.

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

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

At the press conference, the official also cleared up queries regarding the roll-out of the electronic invoice system and value-added tax refund./.

VNA