Global minimum tax workshop to help lure new foreign investors

The Investor will host a workshop Tuesday on the "Global Minimum Tax" rule in the OECD’s Base Erosion and Profit Shifting (BEPS) actions, which remain quite new to countries attractive among foreign investors.

BEPS actions are underway across the world as a new two-pillar plan to reform international taxation rules and ensure that multinational companies pay a fair share of tax wherever they operate.

The second pillar is the “Global Minimum Tax” rule, expected to come into force in 2023. Implementation of the rule will directly influence Vietnam’s policy of luring foreign investment and developing its business environment.

Almost 50 representatives from the Party, legislative body, ministries, and other government agencies as well as the business community and consulting firms would take part in the workshop in Hanoi.

Among the topics for discussion will be suggested solutions for Vietnam to implement the new tax rule and continue as an attractive destination for international investors.

The rule involves a coordinated tax system that makes sure major multinationals will pay a minimum tax rate on income generated in each of the jurisdictions where they operate. It goes against tax havens, and fights against competitions in international investment by racing to lower tax rates to 0%.