Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc chairs the conference.

A conference hosted by the Ministry of Planning and Investment on Monday said nearly 140 countries have agreed to apply a minimum tax rate of 15% on multinationals by committing to a top-up tax on profits booked in countries that have lower rates. Many countries are expected to apply this tax from 2024 and Vietnam should prepare for it, participants said. 

“Vietnam will need to adjust its incentive policies in a way that they will match the global minimum tax but continue to create a competitive environment to attract investment. Enterprises which are benefiting from investment incentives but are subject to the global minimum tax should prepare for its application,” said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.     

The tax reform, initiated by the Organization for Economic Cooperation and Development (OECD) aims to update decades-old rules on cross-border tax for the digital age where tech giants can profit in low-tax countries.