The global minimum tax and additional corporate income tax based on Resolution No. 107/2023/QH15

The Global Minimum Tax (GMT) sets a minimum effective tax rate of 15% for multinational corporations. This means that if a company's effective tax rate is lower than 15%, the country where the company is headquartered must impose a top-up tax to bring the effective tax rate up to 15%. The GMT is intended to prevent companies from shifting their profits to countries with low corporate tax rates. However, the impact of the GMT on tax competition is relatively complex and it requires further theoretical analysis when Vietnam applies the GMT. This paper clarifies the provisions on GMT and additional corporate income tax based on Resolution No. 107/2023/QH15 issued by the 15th National Assembly, which took effect on January 1, 2024.