Relevant ministries and agencies will report to the government on proactively introducing policies in response to the impact from the global minimum corporate income tax and on supporting businesses, according to the Ministry of Finance (MoF).

This will help Vietnam secure its finances while ensuring it has an attractive environment for foreign investors, especially major investors that will bring advanced technology to the country, said Deputy Minister of Finance Nguyen Duc Chi.

He added that the Prime Minister will set up a task force to study the issue, led by Deputy Prime Minister Le Minh Khai.

The MoF recently held a workshop to discuss the global minimum corporate income tax, the experience of other countries, and the predicted effects of the mechanism and recommendations for Vietnam.

Participants discussed two main issues: whether Vietnam should proactively gain the right to tax, or maintain the incentives for FDI enterprises on offer previously.

Recommendations from independent consultants as well as FDI enterprises subject to the tax are for Vietnam to soon issue legal regulations to gain the right to impose the tax, according to Mr. Chi.

This means Vietnam needs to build a legal system to adjust the domestic minimum tax following the global minimum tax, with changes made in incentives.

“The measures will continue to help attract businesses to invest in Vietnam with incentives, while being appropriate for Vietnam to implement the global minimum tax as well as other mechanisms that Vietnam has committed to,” he said.

The government and the Prime Minister have asked MoF to coordinate with the Ministry of Planning and Investment to introduce solutions, both direct and indirect, to support businesses after incentives for businesses are changed.

Some support policies may be implemented, such as increasing investment in infrastructure at industrial parks and helping with human resources training and research and development, as well as other support policies in line with Vietnam’s commitments.