1. FDI (Foreign Direct Investment) in Vietnam
In recent years, the Vietnamese economy has become more open and has actively attracted FDI due to its favorable geographical location, political stability, and abundant labor resources at competitive wages. Vietnam has emerged as a potential destination for foreign investors. In 2022, the disbursement of FDI reached USD 22.4 billion, with registered capital totaling USD 27.72 billion, indicating an increasing attractiveness of FDI to Vietnam.
2. Global Minimum Corporate Tax
The Global Minimum Corporate Tax is a tax initiated by the OECD and currently endorsed by 140 countries. This tax applies to large corporations with revenues exceeding 750 million EUR (equivalent to 19.500 billion VND). The minimum tax rate imposed on these corporations is 15%. This mechanism allows countries to impose a global minimum tax domestically. Consequently, if large corporations invest capital in countries with tax rates below 15%, these corporations must pay the difference in their home country.
3. Challenges for FDI in Vietnam in the Context of Global Minimum Corporate Taxation.
This mechanism has created a global and tightly regulated playing field, marking significant progress in tax policy fairness. It has put an end to “tax havens.” However, the Global Minimum Corporate Tax may reduce the effectiveness of some tax incentive policies designed to attract foreign investment.
Vietnam has also been applying various tax incentives to create FDI attractiveness. However, with the enforcement of the Global Minimum Corporate Tax, these tax incentive policies may lose their significance. Indirectly, this could diminish the attractiveness of the Vietnamese investment market for foreign investors.
About our company
HMLF is a Law Firm licensed to provide legal services to Enterprises. With over 70 years of experience in:
– Finance, Accounting, Tax.
– Industry: Manufacturing, Service, Aviation, Transport, Technology, Finance.
– Helping Customers control transactions from internal legal to international trade. Become the best legal defender for Businesses.
– Try to offer optimal solutions to bring customers satisfaction.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
