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Vietnam plans support for FDI firms as global minimum tax comes into force

The Saigon Times

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HCMC – The Ministry of Finance is weighing policy measures for assist foreign direct investment (FDI) businesses in Vietnam to cope with the global minimum tax which took effect early this year.

Mai Xuan Thanh, director general of the General Department of Taxation under the Ministry of Finance, spoke about this move at a conference with nearly 300 Vietnamese and South Korean businesses held in South Korea on March 7.

The global minimum tax of 15% is levied on multinational corporations with revenues above 750 million euros.

According to tax authorities, around 122 FDI corporations in Vietnam are affected by this tax.

Foreign investors said the global minimum tax would have impact on FDI activity in Vietnam, as the tax incentives offered to them by Vietnam are rendered ineffective.

Thanh said that under the Government’s directives, relevant ministries are reviewing policies to support FDI businesses affected by the tax.

Authorities are also considering amending the current tax incentive policies to make them align them with the new global tax rule. These revisions aim to attract more foreign investments in the future while safeguarding the rights and interests of existing FDI enterprises in Vietnam, added Thanh.

Minister of Finance Ho Duc Phoc affirmed the Government’s commitment to offering preferential policies on taxes, fees, charges, and land rents to FDI companies, including those from South Korea.

South Korean investors have 9,863 projects in Vietnam, with total pledged capital of US$90 billion. Vietnam ranks second globally in terms of investments from South Korean businesses.

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