Global Minimum Tax: A New Era for Taxation in Vietnam

On 29 November 2023, the National Assembly of Vietnam passed the Resolution on the Global Minimum Tax (GMT Resolution) with a near-unanimous approval (462/463). The GMT Resolution will take effect from 1 January 2024. This resolution officially ushers in a new era of corporate taxation in Vietnam, particularly with respect to the country's economic trajectory and its growing role in global trade. 

As a jurisdiction known for its competitive corporate tax rates, the global minimum tax is expected to bring challenges and opportunities for businesses in Vietnam, particularly in tax compliance. While changes to corporate tax rates are on the horizon, alternative investment incentives may also be expected to maintain Vietnam's attractiveness for foreign investment. 

We present you our legal update about the key highlights of the GMT Resolution and what companies can further expect with respect to its implementation. 

Legal Update - Global Minimum Tax - A New Era for Taxation in Vietnam - December 2023