Legislation that would see a number of multinationals in Vietnam pay at least 15 percent tax in Vietnam under the OECD’s Global Minimum Tax (GMT) initiative, has been delayed, Reuters is reporting.
State-controlled media is saying that the legislation has not been submitted to the National Assembly, which starts sitting next week, because legislation that would provide firms impacted by the tax with alternative benefits, has not been completed.
Reuters is speculating that this makes it ‘unlikely’ that Vietnam will begin taxing multinationals under the regime from January 1, 2024.
Why it matters: This means that firms currently paying less than 15 percent tax in Vietnam will need to pay the difference in their home jurisdiction if their home jurisdiction is among the countries implementing the GMT from January 1 next year. South Korea and the EU, for example.