Viet Nam to apply global minimum tax in 2024

In October 2021, the international community agreed a landmark deal on the two-pillar solution to the tax challenges arising from the digitalization and the globalization of the economy.

As part of this plan, Pillar Two establishes a global minimum effective corporate tax rate of 15% for large multinational enterprises (MNEs) which has important implications for the use of tax incentives around the world.

It is estimated that Viet Nam would earn additional VND14,600 billion (US$576 million) each year from topped-up corporate income taxes under the Global Anti-Base Erosion (GloBE)./.