In October 2023, the Government will submit the application of the Global Minimum Tax to the National Assembly for consideration and approval. The leader of the General Department of Taxation has stated that this measure will be effective starting next year.

1. In brief

As a result of reviewing the corporate income tax finalization data in 2022, the General Department of Taxation said that there are about 120 FDI foreign corporations investing in Vietnam (with more than 1,000 enterprises) affected by the GIT, if applicable from 2024, after excluding cases where the global minimum tax is not applicable.

2. Advice for foreign investors when willing to invest into Vietnam

If you are a foreign investor concerned about the Vietnam Government’s proposal to implement the GIT, here are a few pieces of advice to consider: 
– Understand the implications
– Seek professional advice: 
– Assess the potential impact on profitability:
– Review existing tax structures:
– Consider long-term investment strategies: 

3. Conclusion

As a result of reviewing the corporate income tax finalization data in 2022, the General Department of Taxation said that there are about 120 FDI foreign corporations investing in Vietnam (with more than 1,000 enterprises) affected by the the global minimum tax, if applicable from 2024, after excluding cases where the global minimum tax is not applicable. Accordingly, if other countries all apply the global minimum tax starting from 2024, countries with parent companies will receive an additional tax difference in 2024 estimated at over VND 14,000 billion, equivalent to money, causing Vietnam’s budget to lose revenue if it is slow to respond.
#git #globalminimumtax

For the full detail of this post, please reference on this link: http://hmlf.vn/vietnam-government-proposes-to-implement-global-minimum-tax-git/

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