Official Letter No. 372/TCT-CS 2025 Regarding Corporate Income Tax Policy.

MINISTRY OF FINANCE GENERAL DEPARTMENT OF TAXATION _____________ No. 372/TCT-CS Regarding Corporate Income Tax Policy

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ________________________ Hanoi, January 22, 2025

 

 

To: JINYU (VIETNAM) TIRE Co., Ltd.
(Address: Lot 09-2, N8 Road, Phuoc Dong Industrial Zone, Don Thuan Commune, Trang Bang Town, Tay Ninh)

 

The General Department of Taxation has received Official Letter No. 20/JY-CV dated December 16, 2024, from JINYU (VIETNAM) TIRE Co., Ltd. regarding the implementation of the global minimum tax policy. The General Department of Taxation has the following opinion on this issue:

Article 1 and Article 4, Clause 1 of Resolution No. 107/2023/QH15 dated November 29, 2023, regarding the application of supplementary corporate income tax in line with global tax base erosion provisions, state:

“Article 2. Taxpayer

1. The constituent units of a multinational group with consolidated financial report revenue of the ultimate parent company of at least EUR 750 million or more in at least 02 years in the last 04 years preceding the fiscal year, except for the following cases: ...”

“Article 4. Regulations on Supplementary Minimum Domestic Corporate Income Tax (QDMTT)

1. The constituent unit or group of constituent units of a multinational group under the provisions of Article 2 of this Resolution, having business activities in Vietnam during the fiscal year, must apply the regulations on supplementary minimum domestic corporate income tax.
   If the constituent unit or group of constituent units in Vietnam has income in accordance with the global minimum tax provisions and the actual tax rate in Vietnam is below the minimum tax rate, the supplementary minimum domestic corporate income tax in Vietnam will be determined according to the provisions of Clause 2 and Clause 9 of this Article.”**

For multinational group constituent units in Vietnam subject to the global minimum tax provisions, if they meet the corporate income tax incentive conditions, they will continue to enjoy corporate income tax incentives under current tax laws. However, according to Articles 2 and 4 of Resolution No. 107/2023/QH15, after applying the incentives, if the effective tax rate of the group in Vietnam is below the minimum rate of 15%, they must pay the supplementary corporate income tax in accordance with the global minimum tax provisions.

On December 31, 2024, the Government issued Decree No. 182/2024/ND-CP regarding the establishment, management, and use of the Investment Support Fund to assist enterprises meeting the criteria and conditions for support from the Fund. The company is advised to review the provisions of the Decree and consult with the relevant state management authorities on investment for further guidance.

The General Department of Taxation responds so that JINYU (VIETNAM) TIRE Co., Ltd. can be informed.

 

Recipient: As above; Deputy General Director Dang Ngoc Minh (for report); Tay Ninh Tax Department; PC Department - GDT; GDT Website; Archives: VT, CS (3b).

On behalf of the General Director For the Director of the Policy Department Deputy Director         Manh Thi Tuyet Mai

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