On 29 November 2023, the National Assembly of Vietnam passed Resolution No. 107/2023/QH15 to pave way for the future implementation of tax regulations to impose a top-up tax in line with the Global Anti-Base Erosion ("GloBE") model rules, i.e. to implement global minimum tax rules. As a result, from 1 January 2024, companies that pay less than 15% in tax may be subject to a top-up tax.
The GloBE model rules are designed to ensure large multinational enterprise groups pay a minimum level of tax on their income in respect of every jurisdiction in which they operate.
On 8 January 2024, the Prime Minister issued Decision 19/QD-TTG to direct the Ministry of Finance to collaborate with the state authorities to draft a decree to further guide the implementation of the global minimum tax rules.
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