Tax & Spend
Vietnam Adopts Rule on Global Minimum Tax for Foreign Firms
This article is for subscribers only.
Vietnam passed a resolution to align the tax on corporate earnings to meet the 15% global minimum levy on multinational companies aimed at stopping a race-to-the-bottom competition among countries to lure investors.
About 94% of delegates in the National Assembly voted for the resolution, according to the legislature. While Vietnam currently taxes corporate income at 20%, a finance ministry report Nov. 2 showed the effective rate can be as low as 10% for large international firms when factoring in tax holidays and rebates.