#43: Impact of Global Minimum Tax on Foreign Investors in Vietnam

Over 140 countries have joined hands to implement a
groundbreaking global tax agreement, designed to ensure that
multinational corporations contribute their fair share through a
minimum tax rate. Spearheaded by the OECD, this agreement imposes
a minimum effective tax rate of 15% on corporate profits, aiming
to put an end to the practice of sheltering massive profits in
tax havens. Additionally, it aims to eliminate the allure of
countries serving as tax havens for corporate giants.


While neighboring Southeast Asian economies like Singapore and
Thailand have opted to postpone the implementation of the OECD
global minimum tax initiative until 2025, Vietnam has set its
sights on adopting the tax this year.


In a significant move, the Vietnam National Assembly passed a
Resolution on November 29, 2023, paving the way for the
implementation of additional corporate income tax aligned with
the Global Anti-Base Erosion Rules (global minimum tax),
effective from January 1, 2024.


In this episode, we're joined by distinguished guests:


Thang Vu, Tax Advisor at Luther Law Vietnam


Koen Soenens, General Sales and Marketing Director at DEEP C
Industrial Zones


Together with our host, Trang Dao, Head of Business Development
Services at AHK Vietnam, we explore the potential ramifications
of this resolution on foreign investors operating in Vietnam.


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