The National Assembly met in the hall on the afternoon of November 28.

It is expected that in the morning , the National Assembly will vote to pass a Resolution on applying additional corporate income tax according to regulations against erosion of the global tax base.

Voting to pass the Resolution on the results of thematic supervision of "the implementation of the National Assembly's Resolutions on the National Target Programs on new rural construction for the 2021-2025 period, sustainable poverty reduction for the 2021-2025 period, and socio-economic development in ethnic minority and mountainous areas for the 2021-2030 period".

After that, the National Assembly will hold its closing session, in which National Assembly deputies will vote to pass the Resolution on questions and answers; Voting to pass the Resolution of the 6th Session, 15th National Assembly.

National Assembly Chairman Vuong Dinh Hue delivered a closing speech at the session.

Global minimum tax could be introduced from early 2024

On the morning of November 10, the National Assembly held a plenary session in the hall, listening to the Presentation and the Report on the examination of the draft Resolution on the application of additional corporate income tax according to regulations against global tax base erosion.

Authorized by the Prime Minister to present the Report, Minister of Finance Ho Duc Phoc said that on October 8, 2021, the Organization for Economic Cooperation and Development (OECD) issued a statement on the Two-Pillar Solution Framework to address challenges arising from the digital economy.

The global minimum tax is not an international treaty, not an international commitment, and does not require countries to apply it. However, if Vietnam does not apply it, it must still accept that other countries apply the global minimum tax, and have the right to collect additional taxes on enterprises in Vietnam (if applicable) that enjoy an actual tax rate in Vietnam lower than the global minimum of 15%, especially enterprises with foreign investment capital.

In the above context, Minister Ho Duc Phoc emphasized that to ensure its legitimate rights and interests, Vietnam needs to affirm the application of global minimum tax.

According to the OECD guidelines on global base erosion regulations, the global minimum tax is essentially an additional corporate income tax and countries need to regulate it in their legal systems accordingly...

Presenting the Report on the Examination of the National Assembly's draft Resolution on the application of additional corporate income tax according to regulations on preventing global tax base erosion, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh emphasized the necessity of issuing the resolution.

Accordingly, the OECD's regulations on the application of the global minimum tax, also known as the regulations on anti-global tax base erosion, are proposed by the OECD and will begin to be applied from the 2024 corporate income tax period.

The content of implementing this global minimum tax has reached an agreement of participation from more than 100 countries in the world, including Vietnam. Currently, many countries have internalized these regulations to apply to the 2024 corporate income tax period.

If Vietnam does not internalize the global minimum tax regulations, investment exporting countries will be able to collect additional corporate income tax (up to the full level of 15%) from multinational companies with foreign investment projects in Vietnam and are paying actual corporate income tax below 15%.

Therefore, in order to maintain Vietnam's taxing rights in the context that countries exporting investment to Vietnam will implement the global minimum tax from the 2024 corporate income tax period, the majority of opinions in the Finance and Budget Committee believe that it is necessary to issue a legal document to create a legal basis for foreign-invested enterprises subject to the global minimum tax to declare additional corporate income tax in Vietnam instead of having foreign investors pay this additional tax in the parent country.

On the other hand, the early issuance of the Resolution will clearly demonstrate Vietnam's determination to implement the global minimum tax from January 1, 2024, creating confidence for investors in the legal environment in Vietnam.