Resolution on imposition of top-up enterprise income tax under the Global Anti-Base Erosion Rules
On November 29, 2023, the National Assembly adopts Resolution No. 107/2023/QH15 on imposition of top-up enterprise income tax under the Global Anti-Base Erosion Rules. Bellows are a number of remarkable contents of this Resolution.
1. To apply the tax rate of 15% for taxpayers who are constituent entities of multinational enterprise (MNE) Groups which earn an annual revenue of EUR 750 million or more as stated in the consolidated financial statements of the ultimate parent companies in at least two out of the four fiscal years preceding the fiscal year, except for the following cases:
- Governmental organizations;
- International organizations;
- Non-profit organizations;
- Pension funds;
- Investment funds that are ultimate parent companies, etc
2. Regarding tax declaration, payment and administration
– Regarding regulations on qualified domestic minimum top-up, the deadline for submission of the information return under the global minimum tax (the GloBE rules), top-up tax declaration along with an attached explanation of any discrepancies due to differences in financial accounting standards; and the deadline for payment of the top-up tax is no later than 12 months after the end of the fiscal year.
– Regarding regulations on income inclusion rules, the deadline for submission of the information return under the GloBE rules, top-up tax declaration along with an attached explanation of any discrepancies due to differences in financial accounting standards; and the deadline for payment of the top-up tax is no later than 18 months after the end of the fiscal year (for the first year in which the MNE group is subject to tax), or 15 months after the end of the fiscal year (for subsequent years).
3. Top-up tax under the GloBE rules shall be paid to the central budget.
The top-up tax amount paid under regualtions shall be offset when determining the payable enterprise income tax amount in Vietnam corresponding to the income received from offshore investment.
This Resolution takes effect from January 1, 2024.