Global Minimum Tax: Implications for FDI in Vietnam

In 2013, the Organisation for Economic Co-operation and Development (OECD) introduced the Global Minimum Tax (GMT) rate, which has been agreed upon by 142 countries and is to be officially implemented from 1 January 2024. The GMT is a measure to tackle domestic tax base erosion and profit shifting (BEPS), which is essentially the act of tax avoidance by exploiting the benefits of tax advantages under developing jurisdictions. The GMT rate is set at 15%, which implies that once it is in force, the businesses that currently benefit from advantageous tax rates in Vietnam may have to pay additional tax. Over the years, Vietnam has utilised its low tax rates to entice international investment. Nevertheless, the GMT will have an impact on many significant multinational enterprises (MNEs). Read our Legal Update which provides an overview of the potential implications for FDI in Vietnam and what can be expected from Vietnam tax authorities in the coming months. 

File: Legal-Update-Global-Minimum-Tax-Implications-for-FDI-in-Vietnam-August-2023.pdf