Nearly 200 foreign invested enterprises in Vietnam to pay global minimum tax

Nearly 200 foreign invested enterprises in Vietnam must pay the global minimum tax, according to the vice director of the Department of Taxation under the Ministry of Finance, Dang Ngoc Minh. This announcement was made at a specialized seminar on tax policy for foreign invested enterprises held on September 28. Out of approximately 45,000 foreign invested projects in Vietnam, only about 1,500 with revenue exceeding €750 million ($852.9 million) are liable to declare the global minimum tax (GMT).

These are primarily large corporations and multinational companies. Of these 1,500 projects, only around 200 foreign invested enterprises will actually incur tax obligations.

Vietnam will collect approximately $624 million from the GMT in 2025, which will serve the country's development and help recover incentives already provided. The total amount of tax collected from GMT will not negatively impact foreign investment flows, as Vietnam's choice as an investment destination will no longer rely heavily on preferential policies.

For businesses previously enjoying preferential tax rates of 5% and 10%, or tax deductions, the GMT rate of 15% applies. The government aims to ensure transparency and predictability in tax management for foreign invested enterprises. A draft decree for a new investment support fund has been proposed, but the scale of projects and investors under the draft is a subject of intense debate.

Multinational enterprises are awaiting the early implementation of this fund to boost investment in Vietnam amid the entry into force of the global minimum tax.