Towards a fair and sustainable tax policy

The development and implementation of tax policies, especially tax policies related to attracting foreign investment in Vietnam, is always one of the important tasks, not only for state management agencies but also for domestic and foreign enterprises and organizations.

In particular, the consultation on the draft Decree on applying additional corporate income tax received public attention.

According to Deputy General Director General Department of Taxation Dang Ngoc Minh, Resolution No. 107/2023/QH15 of The National Assembly's proposal on the application of additional corporate income tax under the regulations on preventing global tax base erosion has set out a new direction and a legal basis for synchronous implementation of state budget collection. At the same time, it creates conditions for Vietnam to integrate more deeply with the international community in the context of strong fluctuations in global taxes. Regarding the application of additional corporate income tax under the regulations on preventing global tax base erosion, Deputy General Director Dang Ngoc Minh said that this is part of Vietnam's commitment to international organizations, especially the Organization for Economic Cooperation and Development (OECD). Thereby, it aims to ensure fairness in the international tax system, prevent profit shifting and avoid tax reduction through the transfer of interest or profits between multinational companies.

Professional activities at the one-stop department of the Tax Department of Bac Tu Liem district, Hanoi city.

Dr. Peter Wenzel, tax policy consultant, representative of the Project on Strengthening Public Finance Management in Vietnam, assessed: “Immediately after Resolution No. 107/2023/QH15 was passed by the National Assembly in November 2023, Vietnam's research on developing detailed regulations on global minimum tax is a very proactive step, demonstrating the desire for deeper international integration in the world economic environment. It can be seen that Vietnam is one of the leading countries in developing detailed regulations on global minimum tax. With a serious approach to the issue to coordinate with international organizations and countries that have implemented this tax system to research and develop regulations in accordance with international practices, it will contribute to the success of applying the resolution in practice”.

International expert Carlos Gutierrez, IBFD Research Institute (Netherlands) also highly appreciated Vietnam's efforts in taking the lead in implementing the global minimum tax. At the same time, he said that Vietnam has followed international guidelines when building regulations on the global minimum tax.

Deputy Director of the Finance and Monetary Department (Ministry of Planning and Investment) Hoang Thi Hong commented that implementing a global minimum tax requires close cooperation between countries and may face legal and technical challenges during implementation. However, this is an important step towards building a fairer and more sustainable tax system on a global scale, limiting countries from competing with each other by lowering tax rates to attract investment from international corporations. At the same time, ensuring that large corporations contribute fairly to the national budget, supporting public services and infrastructure.

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