Belgian Deputy Prime Minister and Minister of Finance Vincent Van Peterghem has said he will propose that relevant agencies in Belgium coordinate and support Vietnam in building and implementing policies on the upcoming global minimum tax.

Speaking at a recent meeting with visiting Minister of Finance Ho Duc Phoc in Brussels, Mr. Peterghem said Belgium is ready to share its experience and offer assistance to Vietnam in green finance, sustainable development, and the global minimum tax.

In regard to ODA loans and grants to Vietnam, the Belgian Government is making policy changes to continue the support, he said, and hopes that Vietnam’s proposals will soon be addressed.

Minister Phoc said Vietnam greatly appreciates Belgium’s support in the past and hopes to continue cooperating with the country in areas where it holds strengths.

While in Belgium, the visiting Vietnamese delegation also held a working session with Chairman of the Financial Services and Markets Authority (FSMA) and Chairman of the International Organization of Securities Commissions (IOSCO) Board, Jean-Paul Servais.

The global minimum tax is a key element of a program to combat tax base erosion and profit shifting, initiated by the Organization for Economic Cooperation and Development (OECD) and now embraced by more than 140 countries and territories.

Under the mechanism, multinational corporations with revenue of €750 million or more will be subject to a minimum tax rate of 15 per cent. Thus, when a company invests in a foreign country but pays corporate income tax of less than 15 per cent in that country, it will have to pay the balance in the country where it is headquartered.

The new tax is scheduled to take effect from January 1, 2024.