Vietnam takes step towards global minimum tax adoption

On 10 November 2023, the Vietnam Government declared that the National Assembly is currently deliberating a proposed resolution aimed at enacting the regulations related to Global Minimum Tax. The Global Minimum Tax, also known as Pillar Two, is an international agreement to set a minimum tax rate of 15% on the profits of multinational corporations (MNCs). This agreement was reached in October 2021 by 136 countries and jurisdictions, including all OECD and G20 members.

The Pillar 2 Global Minimum Tax is expected to come into effect in Vietnam on 1 January 2024. This means that multinational corporations with annual consolidated revenue of EUR 750 million or more will be subject to a minimum tax rate of 15% on their global profits, regardless of where those profits are earned.

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