Tax Sector to Maintain Dialogues with Businesses Affected by Global Minimum Tax

10:38:24 AM | 4/5/2023

On March 28, Deputy General Director of the General Department of Taxation Dang Ngoc Minh chaired a meeting to exchange experiences and listen to foreign firms in Vietnam that are subject to the OECD Global Minimum Tax (Pillar 2). Attending the conference included large firms from South Korea, Japan, Europe and the United States.

Pillar 2 is a new and difficult matter for all countries to implement, Minh said at the meeting. Therefore, in August 2022, the Prime Minister established the Prime Minister's Special Working Group to study and propose solutions regarding OECD Global Minimum Tax. Then, in February 2023, the Ministry of Finance established a working group to assist the Prime Minister's Special Working Group. The ministry’s working group is led by a Deputy Finance Minister.

The Prime Minister's Special Working Group is comprised of officials from the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Justice, the Ministry of Science and Technology, the Ministry of Foreign Affairs, the Ministry of Industry and Trade, the Government Office, the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Association of Foreign-invested Enterprises (VAFIE), the Vietnam Business Forum (VBF), some tax consultants (EY and Deloitte) and companies. The Ministry of Finance assigned the General Department of Taxation to study and propose application of the Global Minimum Tax in Vietnam. Therefore, the General Department of Taxation held a meeting with representatives of companies affected by Pillar 2 to listen to their objective opinions and difficulties.

Immediately after this meeting, GDT will integrate opinions from companies and report them, together with recommendations, to the Ministry of Finance. The agency will regularly hold a dialogue mechanism, closely coordinate with businesses to carry out tax policies according to international practices, thus creating a favorable investment and business environment for foreign firms in Vietnam.

By Le Hien, Vietnam Business Forum