Overview

• Vietnam's parliament has approved a global minimum corporate tax of 15%, effective from January 1, 2024.
• The new tax rate will significantly increase the tax costs for 122 foreign companies operating in Vietnam, including Samsung, which is expected to shoulder a large portion of the additional tax bill.
• Despite the corporate income tax in Vietnam already being set at 20%, the country has for years offered much lower effective rates to large foreign investors.
• Measures to offset the higher tax levy, including new incentives for high-tech investors, have been delayed, raising concerns about future foreign investments in the country.
• The Vietnamese government estimates that the new tax rate will increase state revenue by 14.6 trillion dong ($601 million) a year.