Experts scrutinise global minimum tax implementation in Vietnam
Vietnam needs to fully and comprehensively assess the impacts of the global minimum tax on the country, said Minister of Finance Ho Duc Phoc on April 18.
Speaking at a conference “Global minimum tax: International experiences, potential effects and implications for Vietnam” held in Hanoi, Phoc noted that as many of 1,015 foreign-invested enterprises in Vietnam whose parent companies are subject to the global minimum tax and more than 70 businesses are likely to be affected by the global minimum tax when it is applied from next year.
If the countries home to the parent companies enforce the global minimum tax, they will collect additionally about over VND12 trillion (US$510.5 million) in tax in 2024.
Imposing global minimum tax means that Vietnam’s tax incentives will not have much effect in attracting foreign investors, which can pose a significant challenge to maintaining the competitiveness of Vietnam's investment environment, the minister said.
To date, most EU countries, Switzerland, the UK, the Republic of Korea (RoK), Japan, Singapore, Indonesia, Hong Kong (China), and Australia have confirmed that they will apply the minimum tax rate of 15% from 2024.
Of them, the RoK, Singapore, and Japan have large investments in Vietnam and many businesses that are subject to the global minimum tax.