The government will soon submit to the National Assembly (NA) a draft resolution on applying the global minimum tax (GMT) and non-tax incentives for investors, according to Prime Minister Pham Minh Chinh.
Chairing a government session on law-building on July 26, Prime Minister Chinh said the application of the GMT is necessary to ensure Vietnam’s legitimate rights and interests, the Government News reported.
The study and supplementation of incentives for investors during the application of the GMT is needed to ensure the competitiveness and attractiveness of the country’s investment environment.
The GMT rate is a key element of the program to combat tax base erosion and profit shifting, initiated by the Organization for Economic Cooperation and Development (OECD) and embraced by more than 140 countries and territories.
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 difference in the country where it is headquartered.
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