7 entities exempted from global minimum tax from January 1, 2024 in Vietnam

7 entities exempted from global minimum tax from January 1, 2024 in Vietnam 

Regulations on global minimum tax (or global anti-base erosion) are rules prescribed in Resolution No. 107/2023/QH15 and regulations of the Government in conformity with the global minimum tax regulations of Inclusive Framework on Base Erosion and Profit Shifting (IF on BEPS) of which Vietnam is a member.

Global minimum taxpayers are any constituent entity of a Multinational Enterprise (MNE) Group that generates a revenue of at least 750 million euros (EUR) for at least 02 years out of 04 years preceding the fiscal year according to the consolidated financial statement of its ultimate parent entity, except for the following cases:

 (1) Governmental entities;

 (2) International organizations;

 (3) Non-profit organizations;

 (4) Pension funds;

 (5) Any investment fund that is an ultimate parent entity;

 (6) Any real estate investment vehicle that is an ultimate parent entity;

 (7) Any entity where at least 85% of its asset value is owned directly or through a chain of excluded entities mentioned in (1) through (7).

See more details in Resolution No. 107/2023/QH15, effective as of January 1, 2024 and applicable as of the fiscal year 2024. 

The Government of Vietnam shall promptly complete and submit the Corporate Income Tax Bill (amended) in accordance with the Law on Promulgation of Legislative Documents to the Standing Committee of the National Assembly of Vietnam and the National Assembly of Vietnam for inclusion in the 2024's Law/Ordinance Formulation Program.

In case of discrepancies between regulations of Resolution No. 107/2023/QH15 and those of another Law or Resolution of the National Assembly of Vietnam on the same issue, Resolution No. 107/2023/QH15 shall prevail.

In case of new instructions on or amendments to the global anti-base erosion rules of IF on BEPS after January 1, 2024, the Government of Vietnam shall promulgate specific regulations for implementation;

Any content that contradicts Resolution No. 107/2023/QH15 shall be reported to the National Assembly of Vietnam for consideration and decision. In case of urgency while the National Assembly meetings are not being held, the matter shall be reported to the Standing Committee of the National Assembly of Vietnam, which will decide and report to the National Assembly at the earliest meeting.

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