According to the adopted Resolution, the taxpayer is a constituent unit of a multinational corporation with revenue in the consolidated financial statements of the ultimate parent company for at least 2 years in the 4 consecutive years preceding the fiscal year equivalent to 750 million Euro (EUR) or more.
Except for the following cases: Government organizations; international organizations; non-profit organizations; pension funds; investment funds as the ultimate parent company; real estate investment organizations as the ultimate parent company; organizations with at least 85% of the value of assets owned directly or indirectly through organizations specified from point a to point e of this clause.
Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh reported on the explanation, acceptance, and revision of the draft Resolution on the application of additional corporate income tax according to regulations against global tax base erosion.
Explaining the scope of regulation and accepting delegates' opinions, the National Assembly Standing Committee said that it is necessary to study and include this content in the Law on Corporate Income Tax when amended.
Accordingly, the Government is assigned to urgently develop the draft Law on Corporate Income Tax (amended) and supplement it to the 2024 Law and Ordinance Development Program so that it can be applied from fiscal year 2025. This will ensure that the right to tax payments subject to tax below the minimum level of Vietnam is maintained according to the global minimum tax regulations.
Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh (Photo: Quochoi.vn).
There are suggestions to add content assigning the Government to direct relevant agencies to urgently prepare necessary conditions to ensure the implementation of the resolution.
At the same time, develop an official implementation plan and roadmap with specific contents, including multilateral international cooperation activities with other countries and domestic apparatus organizations to ensure implementation capacity for tax authorities and taxpayers.
There are suggestions that after issuing the Resolution, the Government should urgently study and amend the Law on Corporate Income Tax in a synchronous manner to ensure legal validity.
Regarding the investment environment, some opinions suggested that the Government should make a comprehensive assessment of the investment environment when implementing the global minimum tax in order to have appropriate investment incentive solutions, resolve problems for current investors as well as clarify the tax incentive regime for new investors entering Vietnam.
Some opinions suggested clarifying whether enterprises investing in Vietnam after the resolution takes effect will be subject to tax investment incentives according to the provisions of the Law on Corporate Income Tax or tax rates according to the provisions of the resolution.
In response to the opinions of National Assembly deputies, the National Assembly Standing Committee proposed that the Government carry out a comprehensive assessment of the current system of tax incentives and promptly develop a project to amend and supplement the Law on Corporate Income Tax along with a plan to adjust the system of tax rates and tax incentives appropriately.
The resolution on applying additional corporate income tax according to regulations against global tax base erosion was passed by the National Assembly on the morning of November 29 with a rate of 93.52% (Photo: Quochoi.vn).
Many opinions are concerned about the issue of ensuring the investment environment and request the Government to urgently have other suitable preferential policy solutions to continue maintaining the investment environment when implementing the global minimum tax.
Some opinions suggest that this revenue can be used to implement other support activities besides taxes and that this revenue source should be used reasonably and for the right purpose, which is to attract and improve the investment environment, as experienced by Thailand, and should be included for domestic enterprises.
Mr. Manh affirmed that the opinions of the delegates were very valid. Along with the implementation of the global minimum tax, it is necessary to have new investment support policies to replace tax incentives that will no longer be effective in practice.
This is so that investors can feel secure about the investment environment in Vietnam and attract large, strategic investors, while supporting domestic enterprises.
This Resolution comes into force from January 1, 2024 .
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