Vietnam’s Ministry of Planning and Investment has released a draft decree outlining the establishment of a support fund to compensate foreign firms subjected to the Global Minimum Tax initiative, The Investor is reporting.
Key points
- The fund will support businesses making high-tech goods or applying advanced technology in their operations that have:
- Invested at least VND 12 trillion ($492.3 million), or
- that have revenues above VND 20 trillion (US$821 million) a year, but
- they need to have disbursed at least VND 12 trillion (US$492) in the first three years of their Vietnam operations.
- It suggests: support for research and development for firms that have disbursed at least VND1.5 trillion ($61.5 million) of their investment capital within three years;
- Providing reimbursements for training of up to 50 percent; and
- Providing reimbursements for research and development of between 20 and 50 percent when firms spend more than VND 120 billion (US$4.9 million);
- Firms employing more than 10,000 people and adding about 30 percent of their product value in Vietnam may also receive ‘special support’.
This draft decree is currently open for public comment.