A representative of the General Department of Taxation said that about 90 FDI enterprises will be affected by the Global Minimum Tax if it is applied in 2024.
Specifically, according to Mr. Dang Ngoc Minh - Deputy General Director of the General Department of Taxation, there are currently about 1,017 FDI enterprises in Vietnam whose parent companies are subject to the application of the Global Minimum Tax (CIT).
It is estimated that about 90 corporations are likely to be affected by this tax if it is applied from 2024; If other countries apply taxes starting from 2024, countries with parent companies will receive an additional tax difference in 2024 estimated at 10,000 - 20,000 billion VND.
Photo: General Department of Taxation
Not only is the country receiving investment, but Vietnam also has foreign investors such as Military Industry and Telecommunications Group (Viettel), Vietnam Oil and Gas Group (PVN), Vingroup, Corporation Vietnam Rubber, Vietnam National Petroleum Group, and Commercial Banks.
Accumulated to March 20, Vietnam has over 1,620 valid overseas investment projects with a total investment capital of nearly 21.9 billion USD.
Thus, financial income tax also creates tax opportunities when Vietnam applies the general provisions on financial income tax.
Accordingly, Vietnam has the right to impose an additional tax on Vietnamese enterprises if they are subject to application and are enjoying the actual tax rate lower than the minimum 15% in other countries.
Proposing Vietnam's response, Deputy Director General Dang Ngoc Minh said that Vietnam needs to proactively issue policies on corporate income tax so that these businesses can pay the difference between income tax and income tax. actual business compared to financial income tax in Vietnam.
At the same time, in order to limit the negative impact on investment attraction, the Deputy Director General noted that Vietnam needs to have direct or indirect financial support solutions, but must ensure that there are no violations of the rules on investment attraction. Financial income tax, in line with commitments, international practices, publicity, and transparency.
“Supporting solutions that need to be researched and issued can include supporting businesses in the process of investing in basic infrastructure for production, investing in the formation of fixed assets for industrial production. , environmental protection, housing support for workers, social insurance support, health care for workers, support for research and development, high technology application, and environmentally friendly technology.
In order to implement the state support program, it is also necessary to arrange financial resources, land, and train human resources to maintain the attractiveness and stability of the investment environment” - Deputy Director General Dang Ngoc Minh share.
Meanwhile, according to the World Bank (WB) Country Director for Vietnam Carolyn Turk, harmful tax competition has increased in the Asia-Pacific region in recent years.
While developed economies in the Asia-Pacific region apply few incentives, developing economies apply many forms of tax incentives that have an impact on government revenue.
"Research and survey results show that businesses do not consider tax incentives as the main reason to choose investment locations. Instead, the political environment, macroeconomic stability, and legal environment. Law, quality of infrastructure, the resilience of infrastructure, and quality of human resources are the decisive factors to attract FDI," emphasized Ms. Carolyn Turk.
Therefore, the World Bank Country Director in Vietnam said that taking the opportunity to implement Financial Income Tax, Vietnam needs to adopt a more holistic view of attracting investment capital with domestic and foreign investment, to achieve effective results. results as desired.