Loading...
Loading...
| GOVERNMENT _______ No. 236/2025/ND-CP | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness _________________ |
|---|
Pursuant to the Law on Organization of the Government No. 63/2025/QH15;
Pursuant to the Law on Tax Administration No. 38/2019/QH14; Law amending and supplementing a number of articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Assets, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, the Law on Handling of Administrative Violations No. 56/2024/QH15;
Pursuant to Resolution No. 107/2023/QH15 of the National Assembly on the application of additional corporate income tax in accordance with regulations to combat the erosion of the global tax base;
At the request of the Minister of Finance;
The Government promulgates a Decree detailing a number of articles of the National Assembly's Resolution No. 107/2023/QH15 dated November 29, 2023 on the application of additional corporate income tax in accordance with regulations on anti-erosion of the global tax base.
This Decree details a number of articles of the National Assembly's Resolution No. 107/2023/QH15 dated November 29, 2023 on the application of additional corporate income tax in accordance with regulations on anti-erosion of the global tax base (hereinafter referred to as the Regulation on global minimum tax).
1. Taxpayers specified in Article 3 of this Decree;
2. Tax authorities; tax officials;
3. State agencies, other organizations and individuals involved in the implementation of the Global Minimum Tax Regulations.
1. Taxpayer means a constituent unit of a multinational corporation with annual turnover in the consolidated financial statements of the supreme parent company for at least 02 years in 04 years preceding the fiscal year in which the tax liability is determined to be equivalent to 750 million euros (EUR) or more; excluding the excluded cases specified in Clause 1, Article 2 of Resolution No. 107/2023/QH15 and Clause 3 of this Article. The constituent units specified in this Clause shall comply with the provisions of Clause 7, Article 3 of Resolution No. 107/2023/QH15.
In case a newly established multinational corporation has been in operation for less than 04 years before the fiscal year in which the tax liability is determined, if there are at least 02 years of annual revenue in the consolidated financial statements of the supreme parent company equivalent to EUR 750 million or more, the constituent unit of that multinational corporation is the taxpayer.
2. Revenue equivalent to EUR 750 million or more is determined according to the consolidated revenue of the supreme parent company in some specific cases as follows:
a) In case one or more financial years of a multinational corporation have a different period of 12 months, for each such fiscal year, the turnover threshold of EUR 750 million shall be determined in proportion to the number of days of that fiscal year divided by 365 days.
b) Determination of consolidated revenue of the supreme parent company in case of merger or consolidation in any fiscal year in the four fiscal years preceding the fiscal year in which tax liabilities are determined:
b.1) In case two or more corporations merge or consolidate to form a multinational corporation, the consolidated revenue threshold of each fiscal year before the merger or consolidation year is determined by the total revenue of each relevant year in the consolidated financial statements of the groups before the merger. consolidate. In case the parties apply different fiscal years, the time of starting and ending the fiscal year of each unit shall be determined according to the time of starting and ending the fiscal year of the group after the merger or consolidation. In case the unit has a different fiscal year of 12 months, Point a, Clause 2 of this Article shall be complied with.
b.2) In case two independent units are not members of any group merged or consolidated into one group and before the merger or consolidation only have separate financial statements of each unit, the consolidated revenue threshold of each fiscal year before the merger year shall be consolidation is determined by the total revenue per year in the financial statements of each unit. In case the parties apply different fiscal years, the time of starting and ending the fiscal year of each unit shall be determined according to the time of starting and ending the fiscal year of the group after the merger or consolidation. In case the unit has a different fiscal year of 12 months, Point a, Clause 2 of this Article shall be complied with.
b.3) In case a unit merges or consolidates into a corporation or a corporation merges or consolidates into a unit that is not a member of any corporation, the consolidated revenue threshold of each fiscal year preceding the merger or consolidation year is determined as the total revenue per year in the unit's financial statements plus revenue in the consolidated financial statements of the group in the same year. In case the parties apply different fiscal years, the time of starting and ending the fiscal year of each unit shall be determined according to the time of starting and ending the fiscal year of the group after the merger or consolidation. In case the unit has a different fiscal year of 12 months, Point a, Clause 2 of this Article shall be complied with.
b.4) Cases determined as merger or consolidation to determine the consolidated revenue of the supreme parent company under the provisions of this Point are:
b.4.1) An agreement that results in all or most of the member units of two or more separate corporations being placed under common control to form the member units of a multinational corporation;
b.4.2) An agreement results in a unit that is not a member of any corporation being placed under common control together with another unit or another corporation to form a multinational corporation.
c) In case of division or separation of a multinational corporation
c.1) In case a multinational corporation is subject to the Global Minimum Tax Regulation and is divided or separated into two or more corporations, the consolidated revenue threshold in the fiscal years after division or separation shall be calculated separately for each group. The consolidated revenue of each multinational corporation in 4 fiscal years after division or separation is determined as follows:
c.1.1) For the fiscal year in which the first tax liability is determined after division or separation: the turnover in the consolidated financial statements of the supreme parent company of the multinational corporation is equivalent to EUR 750 million or more. In case the first fiscal year of the group is divided or separated by 12 months, the turnover in the consolidated financial statements of the supreme parent company shall be adjusted according to the provisions of Point a, Clause 2 of this Article.
c.1.2) For fiscal years in which tax liability is determined from the second year to the fourth year after division or separation: there are at least 2 years from the year of division or separation, each year in the consolidated financial statements of the supreme parent company of the multinational corporation equivalent to EUR 750 million or more.
c.2) Cases determined as division or separation to determine the consolidated turnover of the supreme parent company under the provisions of this Point are agreements leading to the member units of a group being divided or separated into two or more independent groups whereby they are no longer consolidated into the consolidated report of the same supreme parent company.
3. Excluded cases that are not taxpayers include:
a) The cases specified from Points a to e, Clause 1, Article 2 of Resolution No. 107/2023/QH15. The determination of cases excluded at this Point shall be based on the provisions of Points 5 thru 9 of Appendix I; Points 10.1, 10.4, Section III, Appendix II; Clause 4, Article 3 of Resolution No. 107/2023/QH15 and Point 2, Appendix I.
b) The cases specified at Point g, Clause 1, Article 2 of Resolution No. 107/2023/QH15 include:
b.1) An organization with at least 95% of the value of such unit is directly owned or through one or more units excluded at Point a of this Clause (except for pension service organizations) and its operation falls into one of two cases or a combination of both of the following cases:
b.1.1) The unit operates solely or primarily for the purpose of holding assets or investing capital for the benefit of the excluded units;
b.1.2) The unit shall only carry out ancillary activities for activities carried out by the excluded units or by a third party owned by the excluded unit (at least 95% of the unit value);
b.2) An entity with at least 85% of the value of such unit is directly owned or through one or more excluded units specified at Point a of this Clause (except for pension service organizations) provided that most of its income is excluded dividends or profits or losses on equity are excluded when calculate income or loss according to the provisions of Points 4.1.2 and 4.1.3, Section II of Appendix II.
c) The determination of the excluded unit under the provisions of Point b of this Clause shall be based on the entire operation of this unit, including the activities of the permanent establishment. In case a unit is determined to be an excluded unit, all activities of these units, including activities carried out by its permanent establishment, will be excluded under the Global Minimum Tax Regulation.
d) A unit is a member of a group and is owned by an investment fund or owned by a real estate investment organization that satisfies the conditions specified at Point b of this Clause, such unit shall be determined as an excluded unit even though such investment fund or real estate investment organization is not a the supreme parent company of that group.
dd) In case a unit specified at Point b.1.2 of this Clause is wholly or indirectly owned by a non-profit organization, its operation is determined as an ancillary activity if the total turnover of members of the group (except for revenue from non-profit organizations or revenue from a unit excluded under the provisions of Points b.1.1 and b.2 of this Clause or another unit considered to be an excluded unit under the provisions of this Point) less than 25% of the turnover of the multinational corporation and less than EUR 750 million (in case of another fiscal year of 12 months, the provisions of Point a, Clause 2 of this Article shall apply).
e) Revenue of excluded units shall be included in the group's revenue when determining the consolidated revenue threshold.
g) The constituent unit responsible for declaration may choose to waive the right to apply Clause 3 of this Article to an excluded unit. The option under this Clause shall comply with the provisions on 5-year option.
1. Units forming or gathering of constituent units of multinational corporations that are taxpayers under the provisions of Article 3 of this Decree that conduct production and business activities in Vietnam and have residences in Vietnam as determined under the provisions of Section I, Appendix II shall be subject to additional regulations on corporate income tax minimum domestic standards (hereinafter referred to as QDMTT).
2. In case a multinational group has more than one constituent unit in Vietnam, the constituent unit shall be responsible for declaring and determining the obligations under the regulations on environmental management for all constituent units in Vietnam of such multinational group.
Multinational corporations with constituent units subject to the PMU shall decide by themselves on the allocation of additional tax payable under the PMU among the constituent units in Vietnam and declare information on the allocated tax amount in the supplementary corporate income tax return (Form No. 01/TNDN-QDMTT) issued together with this Decree.
3. Regulations on land management do not apply to constituent units whose country or territory cannot be identified (hereinafter collectively referred to as the country) of residence, permanent establishments where the country of residence cannot be determined and the investor.
The constituent unit cannot determine the country of residence specified at Point 1.2, Section I, Appendix II, the permanent establishment cannot determine the country of residence specified at Point 2.4, Section I, Appendix II, the investor specified at Point 10.1, Section III, Appendix II.
4. The fiscal year in which the PMU is applied is determined according to the fiscal year of the supreme parent company, except for the case specified at Point 15, Section II of Appendix II.
1. The standard domestic minimum additional corporate income tax amount is determined according to the formula specified in Clause 2, Article 4 of Resolution No. 107/2023/QH15, in which:
a) The additional tax rate is determined according to the provisions of Clause 3, Article 4 of Resolution No. 107/2023/QH15. The additional tax rate is rounded to the fourth decimal place.
In case the additional tax rate is greater than the minimum tax rate (because the actual tax rate is less than 0), the multinational corporation shall calculate the additional tax rate of 15%. In this case, the tax expenses within the scope of application that have been adjusted to be less than 0 of the fiscal year determine the tax liability to be transferred to the following years for deduction of enterprise income tax in Vietnam within the scope of application which has been adjusted when determining the actual tax rate in Vietnam and comply with the management process for expenditures tax fees less than 0 that have not been fully offset as prescribed at Point 8.6, Section II, Appendix II.
b) The actual tax rate in Vietnam is calculated for each fiscal year and determined according to the formula in Clause 5, Article 4 of Resolution No. 107/2023/QH15, in which:
b.1) Enterprise income tax in Vietnam in the scope of application includes: Taxes recorded in accounting books related to incomes or profits of a constituent unit or related to the income or profits of another constituent unit in which such unit holds ownership; other taxes similar in nature to corporate income tax, except for the following taxes: Additional taxes deducted by the parent company in advance according to the standard IIR (if any); additional tax deducted in advance by a constituent unit under the PM; tax paid by the constituent unit being an insurance company on behalf of the investment income of the insurance policy holder.
b.2) The adjusted enterprise income tax amount in Vietnam is the enterprise income tax amount in Vietnam within the scope of application specified at Point b.1 of this Clause and adjusted according to the provisions of Points 7 thru 11, Section II of Appendix II.
b.3) The actual tax rate shall be calculated separately for the following cases:
b.3.1) Constituent units with a supreme parent company as a minority owner in a subsidiary corporation with a supreme parent company as a minority owner
b.3.2) The constituent unit whose supreme parent company is the minority owner is not a member of a subsidiary group whose supreme parent company is the minority owner. The constituent unit has the supreme parent company as the minority owner and the subsidiary group with the supreme parent company as the minority owner specified at Point 12, Section II of Appendix II.
c) The additional taxable profit is determined according to the provisions of Clause 6, Article 4 of Resolution No. 107/2023/QH15, in which:
c.1) Net income under the Global Minimum Tax Regulations is determined in accordance with the provisions of Clause 7, Article 4 of Resolution No. 107/2023/QH15, ensuring the principle of income or loss according to the Global Minimum Tax Regulations of each constituent unit as net income or loss in the financial statements (made according to financial accounting standards used for preparation consolidated financial statements of the supreme parent company) of that constituent unit in the fiscal year determining the tax liability before any consolidated adjustment to eliminate internal transactions in the group when making the consolidated financial statements of the supreme parent company and adjusted according to the provisions of Points 1 thru 5 Section II Appendix II.
c.2) The value of tangible assets and wages deductible under the Global Minimum Tax Regulations shall be determined in accordance with the provisions of Clause 8, Article 4 of Resolution No. 107/2023/QH15. The value of tangible assets and wages deducted under the Global Minimum Tax Regulations in Vietnam includes the total deductions for tangible assets and the total deductions for wages of each constituent unit, except for the constituent units that are investment units. The method of determining deductions for tangible assets and deductions for salaries shall comply with the provisions of Point 6, Section II, Appendix II.
d) The additional tax amount adjusted for the current year includes:
d.1) The additional tax amount incurred in case the actual tax rate and the additional tax of the previous fiscal year must be recalculated according to the provisions of Points 9.4, 11.1, 11.4, Section II, Points 1.4 and 9, Section III, Appendix II.
d.2) The additional tax amount incurred shall be determined according to the provisions of Point 8.5, Section II, Appendix II of this Decree, except for the case where the constituent unit is responsible for declaring and selecting the application specified at Point 8.6, Section II, Appendix II.
2. The standard domestic minimum additional corporate income tax amount will be determined as 0 (zero) in the fiscal year in which the tax liability is determined as prescribed in Clause 9, Article 4 of Resolution No. 107/2023/QH15, except for the case specified in Clause 3 of this Article, in which:
a) Average turnover, average income or loss in Vietnam shall be determined according to the provisions of Clause 14, Article 3 of Resolution No. 107/2023/QH15.
In case there is no constituent unit with revenue, income or loss according to the Global Minimum Tax Regulations in Vietnam in the first fiscal year or the second fiscal year before the fiscal year in which the tax liability is determined, those years will be excluded when calculating the average revenue and average income or average loss according to the Regulations on the global minimum tax in Vietnam. In case a multinational corporation has a constituent unit whose parent company is the supreme minority owner, the average turnover and average income specified in this Clause include both the turnover or income of such constituent unit.
b) In case the constituent unit has a different fiscal year of 12 months, the turnover, income or loss of that year shall be adjusted according to the provisions of Point a, Clause 2, Article 3 of this Decree.
c) The constituent unit that is selected to apply or not to apply the provisions of this Clause is the constituent unit responsible for declaring.
3. The minimum domestic additional corporate income tax amount that meets the standard in Vietnam is not determined to be equal to 0 in case of post-declaration adjustments related to the terms of adjustment of the actual tax rate as the average income and average turnover in Vietnam exceed the threshold specified in Clause 9, Article 4 of Resolution No. 107/2023/ QH15 in previous fiscal years. Constituent units responsible for declaration must provide relevant information as prescribed in the information declaration under the Global Minimum Tax Regulations and declare and pay tax for such fiscal years and related fiscal years (if any).
4. The determination of additional corporate income tax under the PMU for cases where the constituent units have the supreme parent company as the minority owner, the constituent units participate in and leave the multinational corporation, transfer of assets and liabilities, etc joint ventures, multinational corporations with many parent companies, permanent establishments with the supreme parent company as a transshipment unit shall comply with the corresponding provisions from Points 12 to 17, Section II of Appendix II.
1. The supreme parent company, partially owned parent company, or intermediary parent company in Vietnam is a constituent unit as prescribed in Article 2 of Resolution No. 107/2023/QH15, directly or indirectly holding the ownership of a constituent unit subject to low tax rates abroad under the Global Minimum Tax Regulations at any time in the fiscal year (taxpayers) must apply the minimum taxable income aggregation regulations (hereinafter referred to as IIR); declare and pay tax under the IIR equal to the tax allocated from the additional tax under the Global Minimum Tax Regulations of the constituent units subject to low tax rates abroad in the fiscal year, unless such additional tax amounts are paid in other countries, where regulations on the aggregation of standard minimum taxable income take effect, priority shall be applied according to the Global Minimum Tax Regulations on the order of tax collection priority.
Ownership is the equity interest, whereby the owner has rights to the profits, capital or other amounts belonging to the equity of a unit, including the permanent establishment of the main company or the transshipment unit, the permanent establishment of the transshipment unit. Equity interest is an interest determined by the item of equity according to financial accounting standards used to prepare consolidated financial statements.
2. The order of priority for application of IIR under the Global Minimum Tax Regulations is as follows:
a) The parent company that is partly owned and resides in Vietnam and directly or indirectly holds the ownership of a constituent unit subject to a low tax rate abroad at any time in the fiscal year determines that the tax liability shall have to pay a tax amount equal to the tax allocated to the parent company that is partly owned from the additional tax amount of the constituent unit is subject to the low tax rate in that foreign country in that fiscal year, except for the case where the partially owned parent company residing in Vietnam is wholly owned, directly or indirectly by another part-owned parent company that has been obliged to apply the standard IIR in that fiscal year in Vietnam or in the country different.
b) The supreme parent company is a constituent unit of a multinational corporation residing in Vietnam that directly or indirectly holds the ownership of a constituent unit subject to a low tax rate abroad at any time in a fiscal year that determines the payable tax obligation, an amount equal to the tax allocated to the supreme parent company from the additional tax of the constituent unit subject to the low tax rate in that foreign country in that fiscal year.
c) The intermediate parent company of a multinational corporation in Vietnam directly or indirectly holds the ownership of a constituent unit subject to low tax rates abroad at any time in the fiscal year to determine the tax liability to be paid in an amount equal to the tax allocated to the intermediate parent company from the additional tax amount of the application the constituents are subject to the low tax rate in that foreign country in that fiscal year, except for the case where the supreme parent company of the multinational corporation has been obliged to apply the IIR in that financial year in Vietnam or in another country; another intermediary parent company with direct or indirect control of this intermediary parent company is obliged to apply a standard IIR in that fiscal year in Vietnam or in another country.
3. Countries implementing IIR meet the standards according to the list published by the Joint Cooperation Forum on Tax Base Erosion and Profit Remittance.
1. The total amount of additional tax in a country is determined according to the formula specified in Clause 2, Article 5 of Resolution No. 107/2023/QH15, in which:
a) Additional tax rate: determined according to the provisions of Clause 3, Article 5 of Resolution No. 107/2023/QH15. The additional tax rate is rounded to the fourth decimal place. In case the additional tax rate is greater than the minimum tax rate (because the actual tax rate is less than 0), the multinational corporation shall calculate the additional tax rate of 15%; tax expenses within the scope of application which have been adjusted to be less than 0 of the fiscal year for determination of tax liabilities transferred to subsequent years for deduction of enterprise income tax within the scope of application which has been adjusted when determining the actual tax rate in that country and comply with the management process for tax expenses less than 0 that have not yet been compensated except as prescribed at Point 8.6, Section II, Appendix II.
b) The actual tax rate in a country is calculated for each fiscal year and determined according to the formula in Clause 5, Article 5 of Resolution No. 107/2023/QH15, in which:
b.1) Enterprise income tax applicable in a country includes: Taxes recorded in accounting books related to incomes or profits of constituent units or related to incomes or profits in another constituent unit in which such constituent units hold ownership; other taxes are similar in nature to corporate income tax; taxes on profits to be distributed, amounts considered as profit distributions or expenses not related to business activities under Tax Regulations on the distribution of standard incomes and taxes applicable to retained profits and equity of enterprises, including taxes applicable to income and equity items, except for the following: Additional taxes deducted by the parent company in advance according to the standard IIR (if any); additional tax deducted in advance by a constituent unit under the PM; tax paid by the constituent unit being the insurance company on behalf of the investment income of the insurance policy holder, the income tax attributable to the owner is refunded not meeting the standards, taxes related to the adjustment made by a constituent unit due to the application of the standard UTPR (if any).
b.2) The enterprise income tax amount within the scope of application which has been adjusted in a country is the enterprise income tax amount within the scope of application specified at Point b.1 of this Clause and adjusted according to the provisions of Points 3 and 4, Section III of Appendix II.
b.3) The actual tax rate shall be calculated separately for the following cases:
b.3.1) Constituent units with a supreme parent company as a minority owner in a subsidiary corporation with a supreme parent company as a minority owner
b.3.2) The constituent unit whose supreme parent company is the minority owner is not a member of a subsidiary group whose supreme parent company is the minority owner.
b.3.3) The constituent unit cannot determine the country of residence. Each constituent unit whose country of residence cannot be determined shall be considered an independent constituent unit residing in a separate country when determining the actual tax rate and additional tax.
b.3.4) The investor.
b.4) When determining the actual tax rate and net income under the Global Minimum Tax Regulations prescribed in this Article in a country, the adjusted applicable taxes and the income or losses under the Global Minimum Tax Regulations of the constituent units specified at Point b.3, Clause 1 of this Article must be excluded.
c) Additional taxable profits shall be determined according to the provisions of Point c, Clause 1, Article 5 of this Decree.
c.1) Net income under the Global Minimum Tax Regulations is determined according to the provisions of Point c.1, Clause 1, Article 5 of this Decree and Point 1, Section III, Appendix II.
c.2) The value of tangible assets and wages deductible under the Global Minimum Tax Regulations shall be determined according to the provisions of Point c.2, Clause 1, Article 5 of this Decree and Point 2, Section III, Appendix II.
d) The additional tax amount adjusted for the current year shall be determined according to the provisions of Point d, Clause 1, Article 5 of this Decree.
d.1) If, as prescribed at Point d.1, Clause 1, Article 5 of this Decree, the taxpayer who incurs additional tax adjusted for the current year in a country in the fiscal year in which the tax liability is determined but does not have a net income under the Global Minimum Tax Regulations in that country in this fiscal year, the income under the Minimum Tax Regulations global minimum of each constituent unit in that country to calculate the rate of allocation to the parent company for the constituent unit subject to the low tax rate equal to the additional tax amount allocated to that unit divided by the minimum tax rate. The additional tax amount allocated to the constituent unit in this case shall be calculated according to the ratio of the income under the Global Minimum Tax Regulation of such constituent unit to the total income under the Global Minimum Tax Regulation of all the constituent units in a country of the fiscal year, which shall be recalculated according to the provisions of Point d.1 Clause 1, Article 5 of this Decree shall be implemented.
d.2) In case under the provisions of Point d.2, Clause 1, Article 5 of this Decree, the taxpayer who incurs additional tax adjusted for the current year in a country in the fiscal year in which the tax liability is determined, the income according to the regulations on global minimum tax of each constituent unit in that country shall be used to calculate the allocation rate to the parent company for for a constituent unit subject to a low tax rate in a fiscal year, it is calculated by dividing the additional tax amount allocated to that unit according to the provisions of this Point by the minimum tax rate. The adjusted additional tax amount for the current year allocated to each unit under the provisions of this Point shall only be allocated to constituent units that record the adjusted tax amount within the scope of application that is less than 0 and less than the income or loss according to the Global Minimum Tax Regulations of such constituent unit multiplied by minimum tax rate. The allocation will be made proportionally based on the amount determined for each such constituent unit according to the following formula:
The amount to determine the allocation rate for each constituent unit = (Global Minimum Tax Regulation Income or Loss x Minimum Tax Rate) - Applicable taxes that have been adjusted.
d.3) If a constituent unit is allocated additional tax adjusted for the current year as prescribed at Points d.1, d.2 of this Clause and Clause 10, Article 5 of Resolution 107/2023/QH15, that constituent unit is determined to be a constituent unit subject to low tax.
dd) When determining the additional tax payable under the IIR, the additional tax amount calculated in a country in the fiscal year in which the tax liability is determined. Countries that implement PMU according to the list published by the Joint Cooperation Forum on Tax Base Erosion and Profit Transfer.
e) The tax amount allocated to the parent company from the additional tax amount of the constituent unit subject to the low tax rate is determined according to the provisions of Clause 11, Article 5 of Resolution No. 107/2023/QH15, in which:
e.1) The amount of income attributable to ownership held by other owners is the amount of income deemed to belong to such owners under the principles of financial reporting standards accepted for use in the consolidated financial statements of the supreme parent company assuming the net income of the constituent unit is subject to tax rate income under the Global Minimum Tax Regulations and at the same time ensure the following conditions:
e.1.1) The parent company is determined to have prepared consolidated financial statements according to the accounting standards of the consolidated financial statements of the supreme parent company (Hypothetical Consolidated Financial Statements);
e.1.2) The parent company has the right to control the constituent unit subject to low tax rates so that all incomes and expenses of the constituent unit subject to low tax rates are consolidated in proportion to each income and expense of the parent company in the hypothetical consolidated financial statements;
e.1.3) All income under the Global Minimum Tax Regulation of the constituent unit subject to low tax rates is determined to be from transactions with parties other than the group unit;
e.1.4) All ownership rights not held directly or indirectly by the parent company are determined to be held by parties other than units within the group.
e.2) In case the constituent unit is a transshipment unit, the income under the Global Minimum Tax Regulations of the constituent unit subject to the low tax rate used for the allocation of additional tax under the IIR shall not include the incomes already allocated to the owner of the transshipment unit who is not a member of the group and holds the right to ownership of the transshipment unit directly or indirectly through a system of units not subject to income tax.
g) A parent company holds indirect ownership of a constituent unit subject to low tax rates through an intermediary parent company or a partially owned parent company for which these companies are not eligible to be excluded from the application of the Regulation on aggregate minimum taxable income as prescribed at Point a or Point c, Clause 2. Article 6 of this Decree, the tax amount allocated to the parent company from the additional tax amount of the constituent unit subject to such low tax rate shall be deducted. The tax amount is deducted by the tax amount allocated to the parent company and this tax amount has been calculated by the intermediate parent company or the partially owned parent company according to the standard IIR.
2. The total amount of additional tax in a country will be determined as 0 (zero) according to the provisions of Clause 12, Article 5 of Resolution No. 107/2023/QH15, except for the case specified in Clause 3 of this Article, in which:
a) The average turnover, income or average loss in a country is determined according to the provisions of Clause 14, Article 3 of Resolution No. 107/2023/QH15. In the event that no constituent entities have revenues or income or losses under the Global Minimum Tax Regulations in that country in the first fiscal year or the second fiscal year preceding the fiscal year in which the tax liability is determined, those years will be excluded when calculating the average revenue and average income or average loss according to the Global minimum tax regulations in that country. In case a multinational corporation has a constituent unit whose parent company is the supreme minority owner, the average turnover and average income specified in this Clause include both the turnover or income of such constituent unit.
b) In case the constituent unit has a different fiscal year of 12 months, the turnover, income or loss of that year shall be adjusted according to the provisions of Point a, Clause 2, Article 3 of this Decree.
c) The constituent unit that is selected to apply or not to apply the provisions of this Clause is the constituent unit responsible for declaring.
d) The selection prescribed in this Clause does not apply to a constituent unit that cannot determine the country of residence or an investment unit. The revenue, income or loss of the constituent unit for which the country of residence or the investor cannot be determined is excluded when calculating the average revenue and the average income or average loss under the Global Minimum Tax Regulations in that country.
3. The total amount of additional tax in a country is not determined to be equal to 0 in case of post-declaration adjustments related to the provisions of adjustment of the actual tax rate, making the average income and average turnover in that country exceed the threshold specified in Clause 12, Article 5 of Resolution No. 107/2023/QH15 in previous fiscal years. Constituent units responsible for declaration must provide relevant information as prescribed in the information declaration under the Global Minimum Tax Regulations and declare and pay tax for such fiscal years and related fiscal years (if any).
4. The determination of additional corporate income tax under the IIR for a number of cases of transfer of assets and liabilities, joint ventures, the supreme parent company being the transshipment unit, the supreme parent company shall implement the mechanism for dividend deduction, tax regulations on the distribution of valid income, calculation of actual tax rates for investment units, selection of investment units not subject to income tax, selection of methods of application of tax regulations to the division of income, constituent units with the supreme parent company as minority owner, regulations for constituent units participating in and leaving multinational corporations, multinational corporations with many parent companies shall comply with the corresponding regulations from Points 5 to 15, Section III, Appendix II.
1. A transitional year, for a country, is the first fiscal year in which a multinational corporation falls within the scope of application of the Global Minimum Tax Regulations in that country.
2. When determining the actual tax rate in a country in a transitional year and for each subsequent year, the multinational corporation must calculate all deferred tax assets and deferred taxes payable reflected or recorded in the financial statements of all constituent entities in that country at the beginning of the transitional year. Deferred tax assets and payable deferred tax amounts shall be determined according to the provisions of Points 1 thru 6, Section IV of Appendix II.
3. In case a constituent unit is subject to IPR in Vietnam before it is subject to IIR in the parent company's country, the new transitional year is the first fiscal year in which the constituent unit is subject to IIR in the parent company's country and the actual tax rate in Vietnam is determined according to the provisions of Point 7 Section IV Appendix II.
1. Additional tax under the PMU in Vietnam is determined to be 0 (zero) in the first stage of international investment activities of multinational corporations.
2. A multinational corporation is determined to be in the early stage of conducting international investment activities if it simultaneously satisfies 2 conditions in the fiscal year for determining tax obligations as follows:
a) The multinational group has constituent units in no more than 06 countries at any time in the fiscal year in which the tax liability is determined;
b) The total book value of the tangible assets of all constituent units in all countries other than the reference country must not exceed EUR 50 million.
The reference country of a multinational corporation is the country in which the multinational corporation has the highest total tangible asset value in the first fiscal year in which it first falls under the scope of application of the Global Minimum Tax Regulation.
The total value of tangible assets in a country is the total book value of all tangible assets of all constituent units of a multinational corporation residing in that country. The book value of tangible assets is the average value at the beginning and end of the period of tangible assets recorded in the financial statements of each constituent unit (after deducting depreciation or accumulated allocation, losses due to value impairment).
3. Clause 1 of this Article shall not apply to any fiscal year that begins later than 05 years after the first day of the first fiscal year when the multinational corporation is first subject to the Global Minimum Tax Regulation. For multinational corporations covered by the Global Minimum Tax Regulation from fiscal year 2024, the period of 05 years will start from the start date of fiscal year 2024.
1. In case the PMU in a country satisfies the conditions for reduction of liabilities for the implementation of PMU according to the list announced by the Joint Cooperation Forum on Tax Base Erosion and Profit Remittance, the additional tax in that country as prescribed in Article 7 of this Decree in Vietnam shall be determined as 0 (zero).
2. In case a PMU in a country satisfies the conditions for liability reduction but the multinational corporation is not subject to the PMU in that country or the tax authority in that country fails to collect the PMU for a constituent unit in that country, the multinational corporation may not apply Clause 1 of this Article in Vietnam.
1. Transitional period means the period of fiscal years beginning on or before December 31, 2026 but excluding fiscal years ending after June 30, 2028.
2. During the transition period, the reduction of liability on the basis of inter-country profit reporting shall be as follows:
a) The additional tax amount in a country in a fiscal year will be determined to be equal to 0 (zero) when one of the following criteria is met:
a.1) In the fiscal year, the multinational corporation has a standard inter-country profit report with total revenue of less than EUR 10 million and profit before corporate income tax of less than EUR 1 million or loss in that country;
a.2) In the fiscal year, the multinational corporation has a simplified effective tax rate in that country equal to at least 15% for the fiscal years 2023 and 2024; 16% for FY 2025 and 17% for FY 2026;
a.3) The pre-income profit of the multinational corporation in that country is equal to or lower than the value of its tangible assets and the deductible wages shall be calculated in accordance with the Global Minimum Tax Regulations for constituent units residing in that country according to the standard inter-national profit report, in which, the rate for determining the value of tangible assets and deductible wages is the rate according to the Global Minimum Tax Regulations, including the rate in the transition period according to the Appendix issued together with Resolution No. 107/2023/QH15;
a.4) Losses on standard inter-country profit statements.
b) The method of determining total revenue and profit before enterprise income tax, standard inter-country profit statements, simplified actual tax rates, and standard financial statements is specified from Points 1 to 10, Section V, Appendix II.
3. The provisions of Clause 2 above shall be calculated on the basis of the database of all units and permanent establishments in a country.
The deduction of liability on the basis of inter-country profit reporting under the provisions of Clause 2 of this Article for joint ventures and their subsidiaries shall be applied as constituent units of a separate multinational corporation, excluding income or losses and total revenues under the Global Minimum Tax Regulations taken according to the financial reports meet the standards.
4. During the transition period, no penalties shall be imposed for tax-related administrative violations as prescribed at Point b, Clause 6, Article 6 of Resolution No. 107/2023/QH15, specifically for the following acts:
a) Sending notices late or failing to send notices as prescribed in Clause 1, Article 14 of this Decree;
b) Registering tax up to 90 days after the expiration of the time limit specified in Article 15 of this Decree;
c) Notifying changes in tax registration contents past the time limit specified in Article 15 of this Decree but not changing the tax registration certificate or notification of tax identification numbers;
d) Notifying changes in tax registration contents up to 90 days after the expiration of the time limit specified in Article 15 of this Decree, changing the tax registration certificate or notification of tax identification numbers;
dd) Falsely declaring or insufficiently declaring the contents of the tax dossier does not lead to a shortfall in the payable tax amount or does not lead to an increase in the exempted, reduced or refunded tax amount;
e) Submit tax declaration dossiers up to 90 days after the expiration of the time limit specified in Clause 5, Article 16 of this Decree; submitting tax declaration dossiers 91 days or more after the prescribed time limit but not incurring payable tax amounts;
g) Submitting a tax declaration dossier 91 days or more after the expiration of the time limit specified in Clause 5, Article 16 of this Decree, if the payable tax amount has been incurred but the taxpayer has fully paid the tax amount or late payment interest into the state budget before the tax authority announces the tax examination decision; other competent agencies shall announce the examination and inspection decisions or before the tax authority makes a record of the act of late submission of tax declaration dossiers.
h) Falsely declaring tax bases or deductible tax amounts or wrongly determining cases eligible for tax exemption, reduction or refund, leading to a shortage of payable tax amounts or an increase in the exempted, reduced or refunded tax amounts but the economic operations have been fully reflected in the accounting book system. lawful invoices and vouchers and taxpayers have voluntarily paid the full amount of underpaid tax and late payment interest into the state budget before the time the competent agency or person issues the decision on sanctioning administrative violations.
5. In case of failure to sanction administrative violations as prescribed in Clause 4 of this Article, the person with sanctioning competence shall not issue a sanctioning decision, but the taxpayer must still make the notification, register tax, submit tax declaration dossiers and pay tax according to the provisions of this Decree.
6. The provisions of Clause 2 of this Article do not apply to the country of the supreme parent company if the supreme parent company is an intermediary unit and the supreme parent company implements the mechanism for dividend deduction, unless all ownership rights in the supreme parent company are held by qualified owners. Some specific cases of application are as follows:
a) The supreme parent company is the intermediary unit or the subject of the mechanism for deduction of dividends, the profit or loss before corporate income tax (and any other relevant tax) of the supreme parent company is reduced by an amount equivalent to the portion divided or considered to be divided according to the ownership held by the qualified owners.
b) In case the supreme parent company is a transshipment unit, the qualified owner is the owner as prescribed at Points 7.1.1 to 7.1.3, Section III, Appendix II.
c) In case the supreme parent company implements the mechanism for dividend deduction, the qualified owner is the dividend recipient as prescribed from Points 8.4.1 to 8.4.3, Section III of Appendix II.
7. Regulations on deduction of liability on the basis of inter-country profit reporting for investment units that are residents of a country under regulations on inter-country profit reporting (the investor's country) are applied as follows:
a) The investor shall apply separately as prescribed at Points 10, 11 and 12, Section III of Appendix II, except for the case specified at Point b of this Clause, in which:
a.1) The country of the investor and the country where the unit is the owner of the investor is the resident subject shall continue to apply the Regulation on liability reduction on the basis of inter-country profit reporting in the transitional period;
a.2) Profit or loss before income tax and total turnover of the investor (and any other relevant taxes) shall be recorded to the country of the direct owner of the investor at the corresponding ownership ratio.
b) The investor is not required to apply separately if it does not choose to comply with the provisions at Points 11 and 12, Section III of Appendix II and all constituent units that are owners of investment units are residents of the investor's country.
8. The provisions of Point a, Clause 2 of this Article do not apply to:
a) The constituent unit cannot determine the country of residence;
b) A multinational group has many parent companies and the standard inter-country profit report does not include information of the whole group;
c) Countries in which the constituent units have selected to apply tax regulations on the distribution of valid incomes as prescribed at Point 9, Section III, Appendix II;
d) A country in which a multinational corporation subject to the Global Minimum Tax Regulation has constituent units but does not apply the liability deduction provisions in the transitional period in the previous fiscal year, unless the previous year does not apply the deduction provisions because there has not been any which constituent units in the country.
1. The additional tax amount in a country (except for the additional tax adjusted for the current year) for a fiscal year is determined to be equal to 0 (zero) when one of the following criteria is satisfied:
a) Criteria for ordinary profits;
b) Criteria for revenue and minimum income thresholds;
c) Criteria for the actual tax rate.
2. The constituent unit shall be selected using a simple calculation method to determine the satisfaction of the criteria specified in Clause 1 of this Article.
3. For non-essential constituent units, in order to determine the right to choose to use the simple calculation method prescribed in Clause 1 of this Article in a country, the constituent units responsible for declaration may choose annually to determine their incomes or losses. revenues and taxes within the scope of application have been adjusted for non-essential constituent units by applying a simple calculation method to non-essential constituent units.
Non-material constituent units and the application of the simple calculation method to non-essential constituent units shall be determined according to the provisions of Points 11 thru 13, Section V, Appendix II.
1. A constituent unit that is obliged to pay tax is one or several constituent units residing in Vietnam that are subject to additional tax or subject to adjustment as prescribed in Article 6, Points e and g, Clause 1, Article 7 of this Decree if they are not entitled to apply the liability reduction mechanism (the additional tax amount is not determined to be 0) according to the Regulations on global minimum tax in Articles 11 and 12 of this Decree.
2. The selection of liability reduction in a country under the provisions of Articles 11 and 12 of this Decree shall not apply if all the following conditions are met:
a) Vietnam may be allocated additional tax under the Global Minimum Tax Regulation in case the actual tax rate is calculated under Articles 5 and 7 of this Decree to the country applying the deduction lower than the minimum tax rate;
b) The tax authority of Vietnam has notified the constituent unit that it is obliged to pay tax within 36 months after filing the declaration of information under the Global Minimum Tax Regulation on specific events and circumstances that may have materially affected the deduction eligibility of the constituent units residing in the country to which the in case of deduction and request for the constituent unit to pay tax to clarify within six months the effect of events and circumstances on the conditions for deduction of the constituent units;
c) The constituent units that are obliged to pay tax fail to prove that the facts and circumstances specified at Point b of this Clause do not materially affect the conditions for deduction of the constituent units during the time limit for allowing the above-mentioned feedback.
1. Multinational corporations subject to the application of Resolution No. 107/2023/QH15 or constituent units assigned by the Group shall send notices of constituent units responsible for declaration and a list of constituent units subject to the application of Resolution No. 107/2023/QH15 to the tax authorities assigned to administer additional corporate income tax according to Regulations on global minimum tax (hereinafter referred to as tax authorities) according to form No. 01/TB-DVHT issued together with this Decree within 30 days from the end of the reporting fiscal year.
2. In case a multinational corporation changes the constituent unit responsible for declaration or the list of constituent units subject to the application of Resolution No. 107/2023/QH15, the constituent unit responsible for declaration must return the notice to the tax authority according to form No. 01/TB-DVHT issued together with this Decree at the latest submit an information declaration or additional corporate income tax return according to regulations on global minimum tax of the fiscal year in which changes are reported.
3. In case a multinational group with a joint venture is not a member of a joint-venture group, a joint-venture group or a subsidiary group with the supreme parent company as the minority owner, the constituent unit has the supreme parent company as the minority owner but is not a member of the subsidiary group with the supreme parent company as the owner minorities subject to the application of the regulations on land management are not members of the joint-venture group, joint-venture group, subsidiary group with the supreme parent company as the minority owner, constituent unit with the supreme parent company as the minority owner but not a member of the subsidiary group whose supreme parent company is minority owners are responsible for sending notices of constituent units responsible for declaration and a list of constituent units subject to the application of Resolution No. 107/2023/QH15 according to the provisions of Clauses 1 and 2 of this Article.
4. The tax authority shall receive the notice of the constituent unit responsible for declaring and the list of constituent units subject to the application of Resolution No. 107/2023/QH15 through one of the following forms:
a) Receive the dossier directly at the tax authority;
b) Receive the dossier sent by post;
c) Receive e-dossiers via e-transaction portals.
1. Subjects of tax registration
a) The designated constituent unit shall be responsible for the declaration of the multinational group;
b) The joint venture is not a member of the joint-venture group and the regulations on land management are applied;
c) The designated company shall be responsible for the declaration of the joint-venture group applying the regulations on environmental protection;
d) The designated constituent unit shall be responsible for the declaration of the subsidiary group whose supreme parent company is the minority owner shall apply the PMS;
dd) The constituent unit whose supreme parent company is the minority owner and is not a member of a subsidiary group whose supreme parent company is the minority owner shall apply the regulations on environmental protection.
2. Tax registrants specified in Clause 1 of this Article shall be granted 10-digit tax identification numbers.
3. Tax registrants specified in Clause 1 of this Article shall use their tax identification numbers issued under the provisions of Clause 2 of this Article to directly declare and pay additional corporate income tax under the regulations on global minimum tax.
4. Identification of constituent units responsible for declaration
a) The determination of the constituent unit responsible for declaration shall comply with the provisions of Clause 3, Article 6 of Resolution No. 107/2023/QH15. The notification of the constituent unit responsible for declaration shall comply with the provisions of Article 14 of this Decree.
b) In case a multinational corporation changes the constituent unit responsible for declaring, the constituent unit responsible for new declaration shall continue to use the issued tax identification number and shall inherit the tax liability of the constituent unit responsible for the previous declaration. The unit responsible for new declaration shall carry out the procedures for changing tax registration information as prescribed in Clause 8 of this Article.
c) In case a multinational corporation with a joint venture is not a member of a joint-venture group, a joint-venture group or a subsidiary group with the supreme parent company as the minority owner, the constituent unit with the supreme parent company as the minority owner is not a member of the subsidiary group with the supreme parent company as the minority owner the number subject to the application of the regulations on land management is not a member of the joint-venture group, the joint-venture group, the subsidiary group has the supreme parent company as the minority owner, the constituent unit has the supreme parent company as the minority owner and is not a member of the subsidiary group with the supreme parent company as the owner minorities shall be identified as constituent units responsible for declaration according to the provisions of Points a and b of this Clause.
d) In case the tax authority designates the constituent unit to be responsible for the declaration of the multinational corporation as prescribed at Points b, c or d, Clause 3, Article 6 of Resolution No. 107/2023/QH15, the tax authority shall send a notice according to form No. 02/TB-DVHT issued together with this Decree to the constituent unit responsible for declaring. The constituent unit shall be responsible for declaring that it is designated by the tax authority to carry out tax registration procedures as prescribed in this Article. The appointment of constituent units responsible for declaration by tax authorities is prescribed as follows:
d.1) For multinational corporations subject to the application of regulations on financial management as prescribed in Article 4 of Resolution 107/2023/QH15, the tax authority shall designate the constituent unit with the largest total asset value on the latest year's financial statements in Vietnam to carry out tax registration procedures;
d.2) For multinational corporations subject to IIR regulations as prescribed in Article 5 of Resolution 107/2023/QH15, the tax authority shall appoint the supreme parent company or partially owned parent company or intermediary parent company in Vietnam to carry out tax registration procedures.
d.3) In case a multinational corporation is subject to the application of regulations on QDMMT and IIR, the tax authority shall designate a constituent unit as the unit responsible for declaration according to one of the above two criteria.
dd) In case after the tax authority designates the constituent unit responsible for declaration under Point d of this Clause, the constituent unit responsible for the designated declaration must send a notice to the tax authority according to form No. 01/TB-DVHT within 10 days from the date of receipt of the notice of appointment from the tax authority.
5. Tax registration dossiers
A tax registration dossier includes a declaration for registration/change of tax registration information according to Form No. 01-DKTD-DVHT issued together with this Decree.
6. Time limit for first-time tax registration
The constituent units shall be responsible for declaring and submitting tax registration dossiers within 90 days from the end of the reporting fiscal year.
In case a group has a fiscal year 2024 ending on or before June 30, 2025, the tax registration time limit is 90 days from the effective date of this Decree but not later than the tax declaration and payment deadline applicable to such group.
7. Notification of tax identification numbers
The tax authority shall receive and process the first-time tax registration dossier and return the result of notification of tax identification number according to Form No. 01-MST-DVHT issued together with this Decree to the constituent unit responsible for declaring in accordance with the law on tax administration.
8. Change of tax registration information
a) In case a multinational corporation changes information about the group on the tax registration declaration/change of tax registration information, the constituent unit shall be responsible for declaring and changing the tax registration information and submit the tax registration registration/change declaration according to Form No. 01-DKTD-DVHT issued together with this Decree to the tax authority within 10 working days from the date of occurrence of the change information.
b) In case a multinational corporation changes its constituent unit and is responsible for declaration in Vietnam, the new constituent unit responsible for declaration shall be responsible for changing tax registration information and returning the tax registration declaration/change of tax registration information according to Form No. 01-DKTD-DVHT issued together with this Decree to the tax authority within 10 working days from the date of occurrence of the change information.
9. Places to submit tax registration dossiers for the first time and change tax registration information
The constituent unit shall be responsible for declaring, submitting the first-time tax registration dossier and changing tax registration information with the tax authority assigned to administer additional corporate income tax in accordance with the regulations on global minimum tax.
10. The receipt and processing of tax registration dossiers in accordance with the regulations on global minimum tax shall comply with the provisions of the law on tax administration.
1. Tax declaration dossiers
a) A tax declaration dossier under the Regulation on standard domestic minimum enterprise income includes:
a.1) A declaration of information under the Global Minimum Tax Regulation (Form No. 01/TKTT-QDMTT) issued together with this Decree;
a.2) An additional enterprise income tax return (Form No. 01/TNDN-QDMTT) issued together with this Decree;
a.3) An explanation of the difference between financial accounting standards (Form No. 01/TM) issued together with this Decree;
a.4) Declaration of information under the regulations on global minimum tax of the multinational corporation for the general information of the multinational corporation, information about the structure of the group and information related to the calculation of the actual tax rate and additional tax of the constituent units in Vietnam; unless the multinational corporation is not required to file an Information Return under the Global Minimum Tax Regulation in any country (original or copy);
a.5) Report on financial data of each constituent unit used for the purpose of making the consolidated financial statements of the supreme parent company (original or copy);
b) A tax declaration dossier under the Regulation on aggregate minimum taxable income (IIR) comprises:
b.1) A declaration of information under the Global Minimum Tax Regulation (Form No. 01/TKTT-IIR) issued together with this Decree;
b.2) An additional enterprise income tax return (Form No. 01/TNDN-IIR) issued together with this Decree;
b.3) An explanation of the difference due to differences between financial accounting standards (Form No. 01/TM) issued together with this Decree;
b.4) Consolidated financial statements of the supreme parent company (original or copy);
b.5) Report on financial data of each constituent unit used for the purpose of making consolidated financial statements of the supreme parent company (original or copy);
2. The constituent unit is not required to submit the information declaration under the Global Minimum Tax Regulation of the supreme parent company to the Vietnamese tax authority if the information declaration under the Global Minimum Tax Regulation has been submitted in one of the following two cases:
a) The supreme parent company resides in a country that has an agreement between competent authorities on information exchange in accordance with the global minimum tax regulations in force with Vietnam in the fiscal year;
b) The designated unit shall declare the declaration of information under the Global Minimum Tax Regulations residing in a country with an Agreement between competent authorities on information exchange under the Global Minimum Tax Regulations effective with Vietnam in the fiscal year.
The constituent unit responsible for declaring in Vietnam shall notify the Vietnamese tax authority of the information that the unit has submitted the information declaration in accordance with the global minimum tax regulations as prescribed at Points a and b of this Clause and the country where such unit resides according to Form No. 03/TB-DVHT issued together with this Decree.
3. For a constituent unit whose country of residence cannot be determined and is subject to the Regulation on aggregate minimum taxable income (IIR), the constituent unit that is the owner of the constituent unit whose country of residence cannot be determined shall submit a declaration of information under the Global Minimum Tax Regulation to the Vietnamese tax authority as follows: other constituent units residing in Vietnam.
4. Places to submit tax declaration dossiers
Constituent units are responsible for declaring and submitting tax declaration dossiers to tax authorities assigned to administer additional corporate income tax in accordance with regulations on global minimum tax.
5. The deadline for submission of tax declaration and tax payment dossiers shall comply with Clauses 1 and 2, Article 6 of Resolution No. 107/2023/QH15. The deadline for submission of the information declaration as prescribed at Point a.4, Clause 1 of this Article and the notification as prescribed in Clause 2 of this Article is no later than 18 months after the end of the fiscal year for the first year in which any constituent unit of the multinational group is subject to the application of Resolution No. 107/2023/QH15; 15 months after the end of the fiscal year for subsequent years.
6. In case the constituent unit is responsible for declaring in the current reporting fiscal year and detects that the tax declaration dossier under the regulations on global minimum tax in the current reporting fiscal year or the previous reporting fiscal years contains errors or omissions, except for the following the deficit shall be adjusted to the income or loss in accordance with the regulations on global minimum tax, the tax within the scope of application in the current reporting fiscal year as prescribed at Point 4.1.7, Section II, Appendix II, Point 11, Section II, Appendix II of this Decree, the constituent units shall declare in the current reporting fiscal year to make additional declarations tax declaration dossiers in accordance with the law on tax administration.
7. The receipt and processing of tax declaration dossiers in accordance with the global minimum tax regulations shall comply with the provisions of the law on tax administration.
8. Tax payment, clearing and refund
a) The additional enterprise income tax amount according to the regulations on global minimum tax shall be remitted into the central budget. The constituent units shall be responsible for declaring and paying additional corporate income tax in accordance with the law on tax administration.
The constituent units shall be responsible for declaring and responsibly declaring the additional corporate income tax in accordance with the law on tax administration.
b) In case the constituent unit is responsible for declaring the payable tax, late payment interest and fines related to additional enterprise income tax under the regulations on global minimum tax which is greater than the payable tax, late payment interest and fines, it shall be entitled to offset the tax amount, late payment interest and fines related to additional corporate income tax under the Global Minimum Tax Regulations overpaid against the outstanding tax, late payment interest and fines related to additional corporate income tax under the Global Minimum Tax Regulations or deducted from the tax amount, late payment interest and fines related to additional enterprise income tax according to regulations on global minimum tax of the next tax payment or refund of the overpaid tax, late payment interest and fines when the taxpayer no longer owes tax or late payment interest, fines related to additional corporate income tax under the Global Minimum Tax Regulations.
c) In case the taxpayer requests the clearing of additional tax, late payment interest and fines related to corporate income tax under the regulations on global minimum tax overpaid with the outstanding amount of tax, late payment interest and fines related to additional corporate income tax under the regulations on global minimum tax, the corresponding late payment interest shall not be calculated corresponding to the clearing amount during the period from the date of incurring the overpayment to the date the tax administration agency clears it.
d) The order and procedures for tax clearing and refund shall comply with the law on tax administration.
dd) For the purpose of monitoring budget revenues and remittances to the tax authority, the tax authority may allocate the budget budget to the constituent units based on income criteria.
9. Forming units shall be responsible for tax registration, tax declaration and payment via e-transaction portals.
1. The constituent unit shall be responsible for declaring the declaration of information and the explanation of the difference due to the difference in financial accounting standards according to the Regulation on global minimum tax in the currency used to make the consolidated financial statements of the supreme parent company.
2. The constituent unit shall be responsible for declaring the additional enterprise income tax declaration and paying the additional enterprise income tax in Vietnam Dong, except for the case of opting to apply the provisions of Clause 3 of this Article.
3. In case the additional tax amount payable on the information declaration under the regulations on global minimum tax is presented in the currency used to make the consolidated financial statements of the supreme parent company (other than Vietnam), the forming unit responsible for declaration may choose to declare the additional enterprise income tax return. pay additional corporate income tax in this currency. In case the constituent unit is responsible for declaring, selecting, declaring and paying tax in Vietnam Dong, the conversion rate is the average exchange rate of the commercial bank where the constituent unit is responsible for declaring regular transactions on the date of submission of tax declaration dossiers.
1. Tax inspection activities for the fulfillment of additional corporate income tax obligations under the Global Minimum Tax Regulations shall comply with the provisions of the law on tax administration.
2. The Department of Taxation shall conduct tax examination of the constituent units responsible for declaration and other constituent units in Vietnam in the same multinational group.
1. Upon the expiration of the prescribed time limit for payment of additional enterprise income tax, if the forming unit is responsible for declaring the unpaid or insufficient tax amount, the forming unit shall be responsible for declaring and paying the additional enterprise income tax amount and late payment interest calculated on the late payment tax amount.
2. Handling of late payment of additional corporate income tax amounts under the Global Minimum Tax Regulations and enforcement of administrative decisions on tax administration shall comply with the provisions of the law on tax administration applicable to constituent units responsible for declaration and other constituent units in Vietnam in and multinational corporations (if any).
1. A constituent unit responsible for declaring additional corporate income tax in Vietnam commits administrative violations of obligations for additional corporate income tax under the Global Minimum Tax Regulations, including: violations of tax registration deadlines; violations of the time limit for notification of changes in information in tax registration; violations of the time limit for notifying the constituent units responsible for declaration and the list of constituent units subject to the application of Resolution No. 107/2023/QH15; making false declarations or incomplete declarations of contents in tax dossiers does not lead to a shortage of payable tax amounts or does not lead to an increase in the exempted, reduced or refunded tax amounts; violations on the deadline for submission of tax declaration dossiers; violations on the provision of information related to the determination of tax obligations; violations against regulations on compliance with decisions on tax examination and inspection, enforcement of tax administrative decisions; making incorrect declarations leading to a shortage of payable tax amounts or an increase in the exempted, reduced or refunded tax amounts; tax evasion specified in legal documents on sanctioning of administrative violations shall be sanctioned accordingly according to such legal provisions, except for the cases specified in Clause 4, Article 11 of this Decree.
Penalties for tax-related administrative violations do not include cases where the constituent units are responsible for declaring and making additional declarations according to the provisions on adjustment of actual tax rates specified at Points 9.4, 11.1, 11.4, Section II, Points 1.4 and 9, Section III, Appendix II.
2. Contents of sanctioning competence, sanctioning fines, sanctioning order and procedures and other contents related to sanctioning of tax-related administrative violations for tax-related administrative violations under Clause 1 of this Article shall comply with the provisions of law on sanctioning of tax-related administrative violations. bill.
1. In case the currency used in the consolidated financial statements of the supreme parent company is Vietnam Dong, the foreign currency exchange rate for determining the turnover and income thresholds specified in Articles 2, 4, 5 and 6 of Resolution 107/2023/QH15 and the currency thresholds in this Decree is the central exchange rate average or the cross-exchange rate average of the 12th month of the year preceding the year in which the revenue and income are referred to be announced by the State Bank of Vietnam.
2. In case the currency used in the consolidated financial statements of the supreme parent company is not Vietnam Dong, the foreign currency exchange rate for determining the threshold specified in Clause 1 of this Article is the average exchange rate of the 12th month of the year immediately preceding the year in which the turnover is generated. European Central Bank referenced income.
3. In case the European Central Bank does not announce the exchange rate in the currency used in the consolidated financial statements of the supreme parent company, the average exchange rate of the 12th month of the year preceding the year in which the central bank's revenue and income are referenced shall be used in the country of the supreme parent company.
Tax authorities shall exchange information automatically in accordance with the provisions of the multilateral agreement of the competent authority on information exchange to prevent erosion of the global tax base in order to serve the tax administration of additional corporate income tax in accordance with regulations on anti-erosion of the global tax base.
1. This Decree takes effect from October 15, 2025 and applies from the fiscal year 2024. Fiscal year 2024 is a fiscal year with a date starting on or after January 1, 2024. In case the constituent unit applies the PMU to determine the fiscal year 2024 according to the supreme parent company and has the start date of the fiscal year in December 2023, it shall be determined as the fiscal year 2024 according to the provisions of this Decree.
2. The provisions of this Decree shall not be applied to determine the payable tax amount under the Law on Enterprise Income Tax.
This Decree promulgates together with Appendix I on a number of terms under the global minimum tax regulation of the Joint Cooperation Forum on Tax Base Erosion and Profit Remittance, Appendix II on the method of determining factors for calculating additional corporate income tax in accordance with the Global Tax Base Erosion Prevention Regulations, and Appendix III on tax declaration and payment forms.
Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of People's Committees of provinces and centrally-run cities shall be responsible for the implementation of this Decree.
| ON BEHALF OF THE GOVERNMENT PP. PRIME MINISTER DEPUTY PRIME MINISTER Ho Duc Phoc |
|---|
1. Parent company includes the supreme parent company (other than the excluded units specified in Clause 1, Article 2 of Resolution No. 107/2023/QH15), an intermediate parent company or a partially owned parent company.
2. Parent company means a company with a permanent establishment and the net income or loss in the financial statements of the permanent establishment is consolidated in the financial statements of that parent company. In case the main company satisfies the conditions of being a corporation specified at Point b, Clause 2, Article 3 of Resolution No. 107/2023/QH15, the main company (in relation to the permanent establishment) is the supreme parent company.
3. Permanent residence establishments:
3.1. Permanent establishment means a business location (including establishments considered to be business locations) located in a country and is considered a permanent establishment under an effective applicable tax agreement provided that that country applies income tax on income allocated to such permanent establishment according to the same provisions as Article 7 of the Form Tax Agreement on Income and Property of the Organisation for Economic Co-operation and Development or of the United Nations;
3.2. In case no effective tax agreement is applied, a permanent establishment is a place of business (including establishments deemed to be place of business) which, under the law of a country, shall have to pay tax on the net income belonging to that place of business by the same method as the method applied by that country for their tax residents;
3.3. In case a country does not have enterprise income tax regulations, the business location (including the establishment considered to be the business location) located in that country shall be considered as a permanent residence establishment according to the form of tax agreement on income and assets of the Organization for Economic Co-operation and Development provided that that country has the right to impose tax on with incomes allocated to such permanent establishments under Article 7 of this Model Agreement;
3.4. A business location (or an establishment considered to be a business location) other than the cases specified at Points 3.1, 3.2 and 3.3 of this Appendix shall be a permanent establishment if, through this business location, a unit conducts business activities outside the country where it resides and that country is exempt from tax on from the above activities.
3.5. In case a permanent establishment is a constituent unit, such permanent establishment shall be determined as a unit independent of the parent company and independent of any other permanent establishment of such parent company.
3.6. According to the provisions of Points 3.1, 3.2, 3.3 and 3.4 above, permanent establishments shall not include subjects who pay enterprise income tax in Vietnam according to the method of determining enterprise income tax as a percentage of total turnover.
4. Unit being a legal person or organization formed on the basis of an agreement on which the financial statements are made separately, for example, a partnership or a trust fund. The unit does not include authorities at all levels, management agencies or representative offices performing the functions of the government.
5. An organization of the Government means an organization that satisfies all the following criteria:
5.1. The organization is a part of the Government or wholly owned by the Government (including administrations at all levels);
5.2. Having the primary purpose of performing the functions of the Government or managing or investing in the assets of that Government or of that State through the making and holding of investments, management of assets and investment activities related to the assets of the Government or the assets of that country and not carrying out activities for the purpose of commercial or business;
5.3. To take responsibility before the Government for all activities of such organizations and report annually to the Government;
5.4. If the assets of such organization belong to the Government upon dissolution and when distributing net incomes, such net incomes shall only be distributed to the Government and shall not be divided among any other private entities or individuals.
A national investment fund that satisfies the conditions of being a Government-affiliated organization under the provisions of this Point shall not be determined as the supreme parent company and shall not be identified as a part of a multinational corporation.
6. International organization means an intergovernmental organization (including an inter-country organization) or an agency or organization (institution) wholly owned by the above organizations that satisfies all the following criteria:
6.1. This organization is composed mainly of Governments;
6.2. Having a valid agreement with the country where this organization is established to allow its head office or basically similar to its head office (regional, national or regional agency) to enjoy privileges and immunities;
6.3. Laws or documents governing international organizations do not permit the distribution of incomes of such organizations to private entities.
7. Non-profit organization means an organization that operates in accordance with the principles and purposes for which it was established, not for profit purposes, and must meet all the following criteria:
7.1. Being established and operating in the country of residence exclusively for religious, charitable, scientific, artistic, cultural, sports, educational or other similar purposes; or a professional organization, business federation, chamber of commerce, labor organization, agricultural or crop cultivation organization, civil organization or an organization operating solely for the purpose of developing social welfare;
7.2. Incomes from activities specified at Point 7.1 shall be exempt from income tax in their country of residence;
7.3. No shareholder or member has ownership or beneficial rights to the income or assets of the organization;
7.4. The organization's income or assets may not be divided or used for the benefit of an individual, private organization or other non-charitable organization, except for such division or use:
7.4.1. Conformity with the organization's charitable activities;
7.4.2. is a payment for reasonable expenses for services provided or for the use of assets or capital;
7.4.3. It is a payment according to the market value of the assets purchased by the organization.
7.5. Upon termination of operation, sale or dissolution of this organization, all assets of this organization must be divided or transferred to another non-profit organization or to the Government (including any government agency or administration at all levels) of the country in which this organization resides.
8. Pension fund means:
8.1. A unit established and operating in a country in accordance with the pension law of that country or the authorities at all levels in that country for the sole or principal purpose of managing or providing retirement benefits and ancillary or irregular benefits to individuals;
8.2. A unit established and operating in a country for the sole or principal purpose of managing or providing pension benefits and ancillary or irregular benefits to individuals whose benefits are guaranteed or protected under state regulations and paid from a portfolio assets held through trust agreements or trustees to ensure the performance of corresponding pension payment obligations in the event of insolvency of the multinational corporation;
8.3. Organization of pension services.
9. Pension service organization means a unit established and operating for the sole or principal purpose of:
9.1. Investing in the fund for the benefit of the units specified at Points 8.1 and 8.2 of this Appendix.
9.2. To carry out ancillary activities for activities as prescribed by law carried out by the units specified at Points 8.1 and 8.2 of this Appendix provided that such units are members of the same group.
10. The constituent unit responsible for declaration is the unit obliged to register tax, submit tax declaration dossiers and pay additional corporate income tax according to the regulations on global minimum tax.
11. Tax agreement means an agreement on the avoidance of double taxation and the prevention of tax evasion with respect to taxes levied on income or property, including any amendment to such agreement by a protocol or multilateral agreement for the implementation of measures related to the tax agreement to combat the erosion of the basis and transfer of profits or other agreements that have provisions to avoid double taxation on income taxes if those provisions are relevant to the purposes of the Global Tax Base Erosion Regulations.
12. Material difference is a difference resulting from the application of a particular principle or procedure under a set of generally accepted accounting principles that results in a total difference of EUR 75 million in a financial year from the value determined when applying the principle or procedure in accordance with international financial reporting standards ( IFRS) respectively. In case the application of specific principles or procedures to items or transactions that result in material differences, it must be adjusted in a manner consistent with IFRS and uniform administrative guidelines.
13. Annual selection means the selection declared by the constituent unit and only applies to the fiscal year in which the selection is made.
14. 5-year selection means the selection declared by the constituent unit in the fiscal year (selection year), which must apply to the selection year and the next 04 fiscal years. After the end of the five-year selection period, if the constituent unit terminates the five-year selection, such termination must be made from the fiscal year in which the selection is terminated and the next four fiscal years.
15. Fiscal year means the annual accounting period in which the supreme parent company of a multinational corporation prepares consolidated financial statements. For consolidated financial statements made under the provisions of Point d, Clause 10, Article 3 of Resolution No. 107/2023/QH15, the fiscal year is the calendar year.
16. Reporting fiscal year means the fiscal year declared on the information declaration under the Global Minimum Tax Regulations.
17. The form of tax agreement on income and assets of the Organization for Economic Co-operation and Development is the 2017 Consolidated Version, OECD Publishing House, Paris, https://doi.org/10.1787/mtc_cond-2017-en.
18. An agreement between competent authorities on the exchange of information under the Global Minimum Tax Regulation is a multilateral agreement between competent agencies regulating the automatic exchange of information under the Annual Information Declarations under the Global Minimum Tax Regulations.
19. Transshipment unit means a unit in which the incomes, expenses, profits or losses of this unit, according to the law of the country where this unit is established, are defined as incomes, expenses, profits or losses of the direct owner of this unit corresponding to the ownership ratio in this unit, except for cases where this unit is a tax resident and subject to tax within the scope of application to the income or profits of this unit in another country. Feeder units include units that are not subject to income tax and inverse bisexual units. In which:
19.1. Non-income tax-liable unit means a transshipment unit in which the incomes, expenses, profits or losses of such units according to the law of the country where such owners reside are defined as incomes, expenses, profits or losses of the direct owners of such units corresponding to the ownership ratio in such units.
19.2. An inversely bisexual unit means a transshipment unit whose incomes, expenses, profits or losses under the laws of the country where the owner resides are not the incomes, expenses, profits or losses of the direct owner of this unit corresponding to the ownership ratio in this unit until this unit is divided into profit distribution or considered profit distribution to the owner.
20. Bisexual unit means a unit that is determined to be subject to separate income tax for its income in the country where it resides, and at the same time, its income, expenses, profits or losses are determined as incomes, expenses, the profit or loss of the direct owner of this unit corresponds to the percentage of ownership in this unit in the country where the owner resides.
21. A constituent unit that is determined not to be a tax resident and not subject to tax within the scope of application or domestic minimum additional tax that meets the standards according to the place of management, establishment or similar criteria shall be considered as a transshipment unit and a unit not subject to income tax on incomes, costs, profits or losses when the following conditions are met at the same time:
21.1. The owner of this unit resides in a country that stipulates that the income, expenses, profits or losses of this unit are the incomes, expenses, profits or losses of the direct owner of this unit corresponding to the percentage of ownership in this unit;
21.2. This unit does not have a place of business in the country where it is established;
21.3. Incomes, expenses, interest, or losses do not belong to any permanent establishment.
22. Ownership in a unit or a permanent establishment means a constituent unit determined to be held through a system not subject to income tax when such ownership is held indirectly through a set of units not subject to income tax.
23. Right of control means the right of ownership in a unit, whereby the party holding this right:
23.1. To consolidate the items of assets, liabilities, incomes, expenses and cash flows of the controlled units according to each index of the financial statements according to the accepted financial reporting standards into their financial statements;
23.2. In case there are no mandatory provisions but if the consolidated financial statements are prepared, the items of assets, liabilities, incomes, expenses and cash flows of the controlled unit must be consolidated according to each indicator of the financial statements.
A principal company will be determined to have control over its permanent establishments.
The investor has no control over the units if the investment unit is not required to consolidate investments in the units in accordance with accepted financial accounting standards or permitted financial accounting standards.
The residence of a constituent unit is determined according to the provisions of Clause 17, Article 3 of Resolution No. 107/2023/QH15. In some cases, the place of residence of the constituent unit is determined as follows:
1. Residence of a transit unit
1.1. In case the transshipment unit is the supreme parent company of a multinational corporation or is subject to the application of the regulations on aggregate minimum taxable income (hereinafter referred to as IIR) under Article 6 of this Decree, the place of residence of such transshipment unit is the country where such company is established;
1.2. In other cases, such unit shall be deemed to be an entity whose country of residence cannot be determined.
2. The place of residence of a permanent establishment is determined as follows:
2.1. For permanent establishments specified at Point 3.1 of Appendix I, the place of residence of the permanent establishment is the country that is determined to be a permanent establishment and has the right to impose tax under the applicable tax agreement which takes effect;
2.2. For permanent establishments specified at Point 3.2 of Appendix I, the place of residence of such permanent establishments is the country where such permanent establishments are subject to tax on the basis of net profits based on the presence of business activities of such permanent establishments;
2.3. For permanent establishments specified in Clause 3.3 of Appendix I, the place of residence of such permanent establishments shall be the country where such permanent establishments are located;
2.4. For a permanent residence establishment specified at Point 3.4 of Appendix I, such permanent residence establishment shall be considered a permanent residence establishment whose country of residence cannot be determined.
3. In case pursuant to the provisions of Clause 17, Article 3 of Resolution No. 107/2023/QH15, a constituent unit is considered a resident of many countries, the place of residence of that constituent unit is determined as follows:
3.1. In case of an effective tax agreement, the following:
3.1.1. The place of residence of the constituent unit is the country in which the tax agreement determines that the constituent unit is the resident;
3.1.2. In case a tax agreement requires a competent authority to reach a bilateral agreement to determine the residence of a constituent unit but no agreement is reached, the residence of the constituent unit shall be determined according to the provisions of Point 3.2 of this Section;
3.1.3. In case the tax agreement does not provide for tax exemption or reduction because the constituent unit is the tax resident of both signatories, the residence place of the constituent unit shall be determined according to the provisions of Point 3.2 of this Section.
3.2. In case there is no effective tax agreement, the place of residence of the constituent unit shall be determined as follows:
3.2.1. The place of residence of the constituent unit is the country where the constituent unit has a tax amount within the scope of application already paid in a larger fiscal year, excluding the tax amounts paid under the Regulations on taxation for controlled foreign companies (abbreviated as CFC Regulations);
3.2.2. If the amount of applicable tax paid in both countries is equal or zero (0), the place of residence of the constituent unit shall be determined to be the country where the constituent unit has a tangible asset value and wages are deducted under the Greater Global Minimum Tax Regulation calculated on the basis of each constituent unit under the specified at Point 6, Section II of this Appendix;
3.2.3. If the value of tangible assets and wages under the Global Minimum Tax Regulations are deducted in both countries equally or zero (0), the constituent unit is determined to be a constituent unit whose country of residence cannot be determined, unless such constituent unit is the supreme parent company of the multinational corporation, then such constituent unit shall be determined to reside in the country where such constituent unit is established.
The provisions at Point 3 of this Section apply to each fiscal year and cases when there are more than two countries involved.
4. If, after applying the provisions of Point 3 of this Section, the parent company is determined to reside in a specific country but that country does not require the implementation of the IIR to meet the standards, the other country of residence may request the parent company to apply the IIR that meets the standards of that country. unless such request is limited by the applicable tax agreement in force.
5. In case the unit has changed its place of residence in the fiscal year, the place of residence of such unit is the country in which the unit resides at the beginning of that fiscal year.
1. Regulations on adjustment, allocation and currency used for preparation of consolidated financial statements of the supreme parent company
1.1. Adjustments to incomes or expenses related to the accounting of the purchase price of the acquisition of an enterprise reflected in the consolidated accounts of the multinational group instead of in the separate accounts of the constituent units shall not be calculated when determining the net income or loss according to the financial statements of the constituent units. Income and expenses (other than those related to the accounting of the purchase price of the acquisition) reflected in the consolidated accounts rather than reflected in the constituent entity's separate accounts, may be calculated when determining the constituent unit's net income or loss and the constituent unit's income or loss Regulations on global minimum taxes provided that they are reliably and consistently determined with the relevant entities.
1.2. In case the business consolidation has a redemption date before December 1, 2021, if the multinational corporation does not have sufficient documents to determine income or net loss according to its financial statements with reasonable accuracy based on the unadjusted book value of purchased assets and liabilities, the constituent unit shall be merged the book value on the separate report may be used after applying the accounting method of "recording assets and liabilities at the purchase price at the purchased party" (if allowed) or the book value of assets and liabilities determined according to the financial accounting standards of the supreme parent company may be used.
In this case, the consolidating constituent entity must account for deferred income tax assets and deferred income tax payable arising in connection with the consolidation when determining the net income or loss according to the adjusted applicable tax and financial statements.
The constituent unit may not apply the accounting method of "recognizing assets and liabilities at the purchase price at the acquiree" to adjust the book value of assets and liabilities related to the acquisition, if the acquisition date is on or after December 1, 2021.
1.3. In case the supreme parent company has just acquired a constituent unit and this constituent unit has used financial accounting standards other than the financial accounting standards of the supreme parent company or similar cases without information to reasonably determine the income or net loss in the unit's financial statements. The constituent is based on the financial accounting standards used while preparing the consolidated financial statements of the supreme parent, the net income or loss at the financial statements of the constituent entity for the financial year may be determined using an accepted financial accounting standard or an allowable financial accounting standard apply. In case of using financial accounting standards permitted to be applied, material differences must be adjusted. The application of accepted financial accounting standards or financial accounting standards permitted to be applied at this Point must satisfy the following conditions:
1.3.1. The accounting books of the constituent units shall be made according to the above-mentioned accounting standards;
1.3.2. Information recorded in reliable accounting books;
1.3.3. The total perpetual differences in excess of EUR 1 million arising from the application of a specific principle or standard to income or expenses or transactions other than the financial accounting standards used in the preparation of the consolidated financial statements of the supreme parent company shall be adjusted in accordance with the provisions of the financial accounting standards used in the consolidated financial statements of the supreme parent company.
1.4. The allocation of income or loss between a parent company and a permanent establishment, the allocation of income or loss of the transshipment unit, adjustment to determine the income or loss under the regulations on global minimum tax and the excluded international transport income under the provisions of Points 2 thru 5 of this Section.
1.5. Income or loss under the Global Minimum Tax Regulations in this section shall be determined in the currency used to prepare the consolidated financial statements of the supreme parent company. Multinational corporations shall apply the standards on the effect of changes in the exchange rate of the supreme parent company's financial accounting standards to perform conversions into currencies used in the preparation of the supreme parent company's consolidated financial statements.
2. Allocation of income or loss between a parent company and a permanent establishment
2.1. Net income or loss according to the financial statements of a constituent unit being a permanent establishment as prescribed at Points 3.1, 3.2 and 3.3 of Appendix I is the net income or loss recorded in the separate financial statements of the permanent establishment. If the resident establishment is not required to make separate accounting statements as prescribed, the income or net loss according to the financial statements shall be determined on the basis of considering the resident establishment as an independent unit according to financial accounting standards used when making the consolidated financial statements of the supreme parent company.
2.2. The adjustment of income or net loss according to the financial statements of a permanent establishment shall be made as follows:
2.2.1. For permanent establishments specified at Points 3.1 and 3.2 of Appendix I, the values and items of incomes and expenses allocated to permanent establishments under applicable tax treaties or the internal laws of the countries where such permanent establishments reside shall be recorded. independent of recorded taxable income and actual deductible expenses in that country;
2.2.2. For permanent establishments specified at Point 3.3 of Appendix I, the value and items of incomes and expenses allocated to permanent establishments shall be recorded according to Article 7 of the OECD tax agreement form.
2.3. In case a constituent unit is a permanent establishment under the provisions of Point 3.4 of Appendix I, the income for calculation of income or net loss in the financial statements of such unit is the income allocated to activities conducted outside the country where the parent company resides and is exempt from tax in the country where the parent company resides. Expenses for calculating net income or loss at the financial statements are expenses allocated to activities conducted outside the country in which the parent company resides and are not deducted when calculating taxes in the country in which the parent company resides.
2.4. Net income or loss in the financial statements of the resident establishment shall not be included in the income or loss according to the regulations on global minimum tax of the parent company, except for the case specified at Point 2.5 of this Section.
2.5. Losses under the Global Minimum Tax Regulations of a permanent establishment shall be determined as the expenses of the parent company (not of the resident establishment) to calculate the income or loss under the Global Minimum Tax Regulations of the parent company when the loss of the permanent establishment meets the following conditions:
2.5.1. Being determined as a deductible expense when calculating income subject to enterprise income tax according to the domestic tax law of the parent company;
2.5.2. Not to be offset against a taxable income under the laws of the whole country of the parent company and the country of the permanent establishment.
The subsequent income under the Global Minimum Tax Regulation of the permanent establishment will be determined as income under the Global Minimum Tax Regulation of the parent company (not of the permanent establishment) corresponding to the loss under the Global Minimum Tax Regulation of the permanent establishment that has been determined as an expense fees for calculating income or loss under the Global Minimum Tax Regulations of the parent company as prescribed at this Point. In case the income under the Global Minimum Tax Regulations incurred in a fiscal year of the permanent establishment is insufficient to cover the losses already included in the expenses of the parent company, it shall continue to be offset for subsequent years until the losses already included in the expenses of the main company are fully compensated.
3. Allocation of income or loss of the feeder unit
3.1. The net income or loss at the financial statements of the intermediary unit shall be deducted from the allocation to the owners of the intermediary unit, who are not units of the group and directly hold ownership in the intermediary unit or through a system of units not subject to income tax.
3.2. Point 3.1 of this Section does not apply to a supreme parent company which is an intermediary unit or any intermediary unit owned by the above-mentioned supreme parent company (directly or through a system of units not subject to income tax). These units shall apply the provisions at Point 17 of this Section.
3.3. After applying the provisions of Point 3.1 of this Section, the net income or loss in the financial statements of a constituent unit being a transshipment unit shall be allocated as follows:
3.3.1. In case the transshipment unit conducts all or part of its business activities through a permanent establishment, the income or net loss in the financial statements of such transshipment unit shall be allocated to such permanent establishment according to the provisions of Point 2 of this Section;
3.3.2. In case the transshipment unit is a unit not subject to income tax and is not the supreme parent company, any net income or loss in the company's remaining financial statements after the application of the provisions of Point 3.3.1 of this Section shall be allocated to the owners of the constituent units according to the respective ownership of each owner constituent units.
The owner of a constituent unit is a constituent unit that directly or indirectly holds ownership of another constituent unit in the same multinational corporation.
3.3.3. In case the transshipment unit is a unit not subject to income tax and is the supreme parent company or an inverse bisexual unit, any net income or loss in the company's remaining financial statements after the application of the provisions of Point 3.3.1 of this Section shall be allocated to that unit.
3.4. The provisions at Point 3.3 of this Section shall be applied separately according to the ownership rights of each owner in the transshipment unit.
3.5. The net income or loss in the financial statements of the transshipment unit shall be deducted from the allocated portion as prescribed at Point 3 of this Section.
4. Adjustments to determine income or loss in accordance with the Global Minimum Tax Regulations
4.1. The net income or loss in the financial statements of the constituent unit shall be adjusted to determine the income or loss in accordance with the Global Minimum Tax Regulations. The adjustments include:
4.1.1. Net tax expenses;
Net tax expense is an adjustment added to the net income or loss at the financial statements and is the result of clearing the following:
4.1.1.1. Applicable taxes are deducted in advance as expenses and applicable taxes and deferred taxes are calculated as income tax expenses, including taxes applicable to income excluded when calculating income or losses under the Global Minimum Tax Regulations;
4.1.1.2. The tax amount corresponding to the tax assets deferred due to losses of the fiscal year;
4.1.1.3. Taxes arising under the Global Minimum Tax Regulations under Resolution No. 107/2023/QH15 and taxes in accordance with the set of global minimum tax regulations of the Joint Cooperation Forum on Tax Base Erosion and Global Profit Remittance to which Vietnam is a member are deducted in advance as an expense;
4.1.1.4. Taxes collected by the insurance company on interest paid to the insurance policy owner under the provisions of Point 4.7 of this Section
4.1.2. Excluded dividends;
4.1.2.1. Excluded dividends are dividends or other income distributions received or deducted in advance related to ownership, excluding ownership of short-term indirect investments and ownership of an investment unit selected under the provisions of Point 12, Section III of this Appendix.
4.1.2.2. Indirect investment ownership means the ownership of a multinational corporation in a unit, whereby the group has rights to less than 10% of profits, capital and other amounts belonging to the equity of such unit or the group has less than 10% voting rights to such unit on the date of income distribution or transfer.
4.1.2.3. Short-term indirect investment ownership means indirect investment ownership held by a constituent unit for less than one year up to the date of distribution, whereby this unit receives or deducts dividends or other benefit distributions in advance.
4.1.2.4. The constituent unit shall be responsible for declaring the implementation of the 5-year option for each constituent unit to calculate all dividends related to indirect investment ownership when determining income or loss in accordance with the Global Minimum Tax Regulations, does not depend on whether the indirect investment ownership is short-term. All dividends related to indirect investment ownership of the selected constituent units are included in the income or loss in accordance with the Global Minimum Tax Regulations.
4.1.3. Profit or loss on equity is excluded;
Profit or loss on equity excluded is the income or loss included in the net income or loss according to the financial accounting of the constituent unit arising from:
4.1.3.1. Revaluation according to the fair value of ownership, except for indirect investment ownership;
4.1.3.2. Profits or losses on ownership shall be accounted according to the equity accounting method;
4.1.3.3. Profits or losses from the transfer of ownership, except for the transfer of indirect investment ownership.
4.1.3.4. The constituent unit shall declare the implementation of a 5-year option to adjust the profit or loss of the exchange rate difference related to the risk provision financial instrument for the net investment recorded in the income or net loss of the financial statements of the constituent unit according to the same principle of adjusting the profit or loss on equity are excluded at this Point on the following conditions:
4.1.3.4.1. Gains or losses on exchange rate differences related to risk-backed financial instruments for ownership other than indirect investment ownership;
4.1.3.4.2. Such exchange rate gains or losses shall be recorded in other comprehensive incomes in the consolidated financial statements;
4.1.3.4.3. Risk provision financial instruments are assessed as effective according to financial accounting standards that are permitted to be applied and used for preparation of consolidated financial statements.
When making the choice under this Point, the taxes related to the exchange rate difference as prescribed at this Point will be adjusted down when determining the tax within the scope of application.
4.1.3.5. The constituent unit shall declare the option so as not to apply the adjustment of profit or loss on equity as prescribed at Points 4.1.3.1 thru 4.1.3.4 of this section to all ownership rights, except for indirect investment ownership, held by member units in the same country. The option at this point is a 5-year option and may be terminated except for ownership in which a loss has been incurred during the option period and this loss has been calculated when determining income or loss under the Global Minimum Tax Regulations during the period the option is in effect. During the effective period of the selection at this Point, the owner holding the ownership interest, except for the qualified ownership right, shall determine the income or loss according to the Global Minimum Tax Regulation in accordance with the provisions of Point 4 of this Section, except for the adjustments specified in Point 4.1.3.1. to point 4.1.3.4. Accordingly, income or losses under the global minimum tax regulations will include:
4.1.3.5.1. The fair value of profits and losses and the impairment value of ownership if the owner holds the right to declare tax on the principle of mark-to-market price or the owner who holds the right to declare tax on the principle of actual incurring but at the same time recognizes the deferred tax in the income tax expense due to the difference between reasonable value and actual arising value;
4.1.3.5.2. Profits and losses related to the ownership of a unit not subject to income tax and the owner holding the ownership rights shall account such ownership rights according to the equity method;
4.1.3.5.3. Profits or losses from the transfer of ownership shall be included in the owner's taxable income according to the provisions of the law, excluding profits or part of tax-exempt profits;
When making the choice under this point, the applicable and deferred taxes related to the provisions from Points 4.1.3.5.1 to 4.1.3.5.3 shall be included in the applicable taxes.
4.1.4. Profits or losses due to revaluation;
4.1.4.1. Profit or loss due to revaluation is net profit or loss incurred plus or minus taxes within the scope of relevant application when revaluation of real estate, factories and equipment according to accounting methods or practices, which:
4.1.4.1.1. To periodically adjust the residual value of such property according to its fair value;
4.1.4.1.2. Recording changes in value in other comprehensive incomes;
4.1.4.1.3. Failing to report profits or losses recorded in other comprehensive incomes on the statement of results of business operations.
4.1.4.2. Other comprehensive incomes are incomes and expenses which are not recorded in the statement of business results as required or permitted by financial accounting standards permitted for use in the consolidated financial statements. Other comprehensive income is typically reported as an adjustment to the equity portion of the balance sheet.
4.1.5. Gains or losses on exchange rate differences due to the use of different accounting currencies and taxable currencies;
In which:
4.1.5.1. Gains or losses on exchange rate differences due to the use of different accounting currencies and taxable currencies are profits or losses from foreign currency accounting of an organization using different accounting currencies and taxable currencies, and these profits or losses include:
4.1.5.1.1. Arising when calculating the taxable income or loss of the constituent unit due to the exchange rate difference between the accounting currency and the taxable currency of such unit;
4.1.5.1.2. Arising when calculating net income or loss in the financial statements of the constituent unit due to the exchange rate difference between the taxable currency and the accounting currency of such unit;
4.1.5.1.3. Arising when calculating net income or loss in the financial statements of the constituent unit due to the exchange rate difference between the third foreign currency and the accounting currency of such unit;
4.1.5.1.4. Arising from the exchange rate difference between the third foreign currency and the taxable currency, whether such foreign currency gains or losses are included in the taxable income or not.
4.1.5.2. Taxable currency means the currency used to determine the taxable income or loss of a constituent unit in order to determine a tax amount within the scope of application in the country where such unit resides. Accounting currency is the currency used to determine the net income or loss at the financial statements of the constituent unit. The third foreign currency is a type of currency that is not the taxable currency or accounting currency of the constituent unit.
4.1.5.3. Results of adjustments related to gains or losses on exchange rate differences due to the use of different accounting currencies and taxable currencies converted into currencies used in the consolidated financial statements for determination of income or loss in accordance with the Global Minimum Tax Regulations.
4.1.6. Expenses not eligible for deduction as prescribed, including:
4.1.6.1. Expenses accounted by the constituent units for illegal payments;
4.1.6.2. The fine for violation imposed by a competent state agency is equal to or over EUR 50,000 (or equivalent value calculated in the accounting currency used in the financial statements of the constituent unit). For fines calculated by the duration of the violation until the end of the violation, the total amount for a financial year is equal to or over EUR 50,000.
4.1.7. Errors in previous periods and changes in accounting principles;
Errors of prior periods and changes in accounting principles are all changes in the opening balance of equity at the beginning of the financial year of a unit consisting of:
4.1.7.1. The adjustment of errors in the determination of accounting income in the previous fiscal year has affected the income or loss under the Global Minimum Tax Regulations in that fiscal year; in case the adjustment leads to a decrease of EUR 1 million or more in the applicable tax amounts of the previous fiscal year, the provisions of Point 11 of this Section shall apply;
4.1.7.2. Changes in accounting methods (policies) and principles affecting income or expenses included in income or loss under the Global Minimum Tax Regulations.
4.1.8. Pension expenses deducted in advance of pension plans provided by pension funds.
4.1.8.1. In case the unit has income or retirement expenses deducted in advance, the adjustment for determining income or loss under the Global Minimum Tax Regulations shall be determined by the total income or retirement expense deducted in advance and the contribution to the pension fund (if any) in the fiscal year. The adjustment is determined according to the following formula:
Adjustment = (Retirement income or expense withdrawn in advance during the fiscal year + contribution to the retirement fund) x (-1)
In which: Pre-deducted retirement income is recorded as a positive number, pre-deducted retirement expenses are recorded as negative numbers, and contributions to the pension fund are recorded as positive numbers.
This adjustment will also apply when the pension fund has a surplus or deficit or has liabilities.
4.1.8.2. In case the surplus of the pension fund is distributed to the constituent unit, this surplus shall be included in the income or loss according to the regulations on global minimum tax in the fiscal year.
4.1.8.3. Salary expenses deducted in advance to be paid directly to employees who have quit their jobs do not fall within the scope of application of this Point.
4.2. The constituent unit shall be responsible for declaring the right to choose to exclude incomes related to debt cancellation when determining incomes or losses under the Global Minimum Tax Regulations in the following cases:
4.2.1. The debt to be written off arises during the period of bankruptcy proceedings or is subject to special supervision due to insolvency. In this case, when the debt of the independent party and the associated party in the same debt cancellation agreement is excluded when determining income or loss under the Global Minimum Tax Regulations;
[Translation failed]
4.2.3. In case the debt to be written off does not fall under Points 4.2.1 and 4.2.2 of this Section, the debt to be written off by an independent party when the total payable exceeds the fair value of the assets of the constituent unit immediately before the time of debt cancellation, such debt to be written off shall be excluded when determining income or loss under the Global Minimum Tax Regulations. provided that the exclusion does not exceed the lesser of the following two values:
4.2.3.1. The difference between the total liabilities and the fair value of the assets.
4.2.3.2. Tax benefits, e.g. losses due to operations carried forward to the next period, in accordance with the tax laws of the debtor's country.
4.3. The constituent unit shall be responsible for declaring the right to choose to substitute the expenses incurred and paid to the employees on the basis of stocks recorded in the accounting books with the expenses deducted according to the regulations on income tax calculation in that country. In which:
4.3.1. If a share-based employee payment arises in connection with an expired option without exercising the right, the constituent unit must adjust to add back the total previously deducted expenses to the income or loss in accordance with the Global Minimum Tax Regulation for the fiscal year in which the option has expired.
4.3.2. The option under Point 4.3 of this Section shall apply in accordance with the provisions on 5-year option and shall be applied consistently to the payments to employees based on the shares of all constituent units in the same country in the option year and in all subsequent fiscal years.
4.3.3. If the selection is made in a fiscal year after a payment to an employee based on the shares of a transaction has been recorded in the accounting books prior to the date of exercise of the right, the constituent unit must include in the income or loss in accordance with the Global Minimum Tax Regulations of the fiscal year the positive difference between the the accrual of expenses is deducted when calculating income or losses under the Global Minimum Tax Regulations of prior fiscal years, and the accrued amount may be included in expenses if the choice was made in those fiscal years.
4.3.4. If the selection is terminated, the constituent unit must add to the income or loss in accordance with the Global Minimum Tax Regulations the amount deducted under the option which exceeds the accounting advance deduction expense for the payment to the unpaid fair shareholder.
4.4. Adjustment according to the market price principle:
4.4.1. Any transaction between constituent units in different countries where the value recorded in the accounting books of both constituent units is not the same or inconsistent with the market price principle, such value must be adjusted equally and in accordance with the market price principle. The constituent unit shall not be subject to adjustment under the provisions of this Point if the implementation of the adjustment leads to double taxation or no taxation under the Global Minimum Tax Regulations.
The market price principle is the principle by which transactions between constituent units must be recorded on the basis of similar conditions between independent parties in similar transactions and in similar circumstances.
4.4.2. Losses from the sale or transfer of assets in other forms between two constituent entities in the same country which are recorded inconsistent with the market price principle shall be recalculated based on the market price principle if such losses are included in income or losses under the Global Minimum Tax Regulations. Regulations on the distribution of income or loss between the parent company and its permanent establishment are specified at Point 2 of this Section.
4.5. For assets and liabilities that are being accounted at fair value or impairment value in the consolidated financial statements, the constituent unit responsible for declaration may choose the principle of actuality incurred to determine income or loss when calculating income under the Global Minimum Tax Regulations. The selection under Point 4.5 of this Section shall comply with the regulations on 5-year selection and apply to all constituent units in the selected country. The selection applies to all assets and liabilities of such constituent units, unless the constituent unit is responsible for declaring the choice only applies to the tangible assets of such constituent units or only applies to the constituent units that are investment units. When making this choice:
4.5.1. All gains or losses accounted for at fair value or impairment in relation to an asset or liabilities shall be excluded when calculating income or losses in accordance with the Global Minimum Tax Regulations;
4.5.2. The residual value recorded in the book of an asset or liability for the purpose of determining profit or loss will be the residual value after the adjustment of accumulated depreciation at whichever of the following two times: the first day of the selection year or the date on which the asset is purchased or the debt arises;
4.5.3. In case of termination of the selection under the provisions of Point 4.5 of this Section, the income or loss under the regulations on global minimum tax of the constituent units shall be adjusted according to the difference between the fair value of the assets or liabilities payable at the beginning of the year of termination of the selection and the remaining value of the assets or liabilities to be paid later when adjusting the accumulated depreciation determined according to the option at Point 4.5 of this Section.
4.6. Adjustments to financial agreements within the group
When calculating income or loss under the Global Minimum Tax Regulation of the unit subject to the low tax rate, expenses arising from the group's internal financial agreement which have reasonable grounds to determine that such agreement is intended to increase the cost of calculating income or loss under the Global Minimum Tax Regulation of the unit subject to low tax rates but do not increase the corresponding taxable income of units in countries with high tax rates during the expected period of the agreement.
4.6.1. A low-rate taxable unit is a constituent unit in a low-taxing country or in a country determined to be a low-taxable country if the actual tax rate in that country is determined excluding any income or expenses incurred at that unit in connection with the group's internal financial agreements.
4.6.2. A unit in a country with a high tax rate is a constituent unit located in a country other than a low-tax country or in a country that is determined not to be a low-tax country if the actual tax rate is determined without taking into account any income or expenses incurred at such unit in connection with the group's internal financial agreements.
4.6.3. Group internal financial agreement means any agreement concluded between two or more members of a multinational corporation in which the unit located in a country with a high tax rate directly or indirectly grants credit or invests in a unit subject to a low tax rate.
4.7. When calculating income or loss under the Global Minimum Tax Regulations, the insurance company must exclude the income or loss corresponding to the tax paid on behalf of the insurance policy holder related to the income of the insurance policy holder. When calculating income or loss under the Global Minimum Tax Regulation, the insurer must add the investment income of the policyholders that is not recognized in the net income or loss in the financial statements in proportion to the increase or decrease in the policyholder's obligations recorded in the net income or loss at the report financial statements.
4.8. The amount recorded as a decrease in the equity of a constituent unit in relation to the distribution paid or payable by the constituent unit for the additional tier-1 capital and the restricted tier-1 capital portion issued by the constituent unit shall be considered as expenses when calculating income or loss under the Regulations on Maximum Taxation global minimum. The amount recorded as an increase in the equity of a constituent unit received or will be received by the constituent unit for the additional tier-one capital portion held by the constituent unit shall be added to the income when calculating income or loss under the Global Minimum Tax Regulations.
4.8.1. Supplementary first-tier capital means a financial instrument issued by a constituent unit under prudential rules applicable in the banking sector, which can be converted into equity or recorded as a depreciation if a predetermined event takes place and this financial instrument has the characteristics of supporting the clearing of losses in the event of a financial crisis.
4.8.2. Restricted tier-one capital is a financial instrument issued by a constituent unit under prudential rules applicable in the field of insurance, which can be converted into equity or recorded as a decrease in value if a predetermined event takes place and this financial instrument has the characteristics of supporting the clearing of losses in the event of liquidity risks.
4.9. Income tax deductions that can be refunded that do not meet the criteria will not be determined as income when calculating income or losses under the Global Minimum Tax Regulations of a constituent entity.
4.10. In addition to the adjustments under the above points, the net income or loss in the financial statements of the constituent units shall be further adjusted according to the provisions of Points 13 thru 17 of this Section.
5. Exclusion of international transport income
5.1. For multinational corporations with international transport incomes, international transport incomes and ancillary international transport incomes meeting the standards of all constituent units shall be excluded when calculating incomes or losses under the Global Minimum Tax Regulations specified at Point 4 of this Section in the countries where the constituent units reside. In case the result of calculation of international transport income or standard ancillary international transport income of the constituent unit suffers a loss, the loss amount shall be excluded when calculating the income or loss according to the regulations on global minimum tax of such constituent unit.
5.2. International transport income means the net income earned by a constituent unit from the following activities:
5.2.1. The carriage of passengers or goods by ships which the constituent unit operates in international transport, whether the ship is owned, chartered or otherwise determined by the constituent unit;
5.2.2. The transportation of passengers and cargoes by ships operating in international transport under space lease agreements;
5.2.3. Ship charter used for the transportation of passengers or goods in international transport where the chartered ship is fully equipped with supplies, crew and equipment;
5.2.4. Chartering a ship to another constituent unit in the form of barefoot ship chartering for the transportation of passengers or goods in international transportation;
5.2.5. Participating in a consortium, a joint venture or an international operating organization for the transportation of passengers or goods by ship in international transport;
5.2.6. Sale of ships that have been used for the transportation of passengers or goods in international transport provided that the ships have been used by the constituent units for at least one year.
International transport income does not include net income derived from the transportation of passengers or goods by ship via inland waterways within the same country.
5.3. Qualified ancillary international transport income is the net income earned by a constituent unit from activities carried out mainly related to the transportation of passengers or goods by ship in international transport, including:
5.3.1. Lease a ship in the form of bare ship charter to another shipping enterprise other than a constituent unit on the condition that the lease contract does not exceed three years;
5.3.2. Selling tickets issued by other sea-carrying enterprises for the domestic leg of an international transport trip;
5.3.3. Short-term lease or storage of containers or custody charges for the return of overdue containers;
5.3.4. Providing services to other transport enterprises by engineers, maintenance personnel, cargo handlers, service personnel and customer service personnel;
5.3.5. Investment income in which the investment generates income is made as an indispensable part of the business of operating ships in international transportation.
5.4. The total incomes of international transport ancillaries meeting the standards of all constituent units in a country must not exceed 50% of the international transport incomes of such constituent units. In case the actual standard ancillary international transport income of all constituent units in a country exceeds 50% of the international transport income of such constituent units, the standard ancillary international transport income in excess of 50% shall not be excluded.
5.5. Expenses incurred by a constituent unit directly related to international transport activities specified at Point 5.2 of this Section and expenses directly related to ancillary activities that meet the standards specified at Point 5.3, Section II of this Appendix shall be deducted from the revenue from such activities of the constituent unit to calculate international transport income and standard auxiliary international transport income. Other expenses incurred by a constituent unit that are indirectly related to the international transport activities of the constituent unit and standard ancillary activities shall be allocated on the basis of the constituent unit's revenue from such activities divided by the total revenue of that unit. All direct and indirect costs allocated to the constituent entity's international transport income and qualified ancillary international transport income shall be excluded when calculating income or losses in accordance with the Global Minimum Tax Regulations of that entity.
5.6. The international transport income and the standard ancillary international transport income of the constituent unit shall be determined to be eligible for exclusion from the income or loss under the Global Minimum Tax Regulations under the provisions of Point 5 of this Section when the constituent unit can prove by the strategic or commercial management of all The actual related ship is carried out in the country where the constituent unit resides.
6. The value of tangible assets and wages are deducted under the Global Minimum Tax Regulations
6.1. Multinational corporations may choose to use only a portion of the total value of their tangible assets and wages that are deducted under the Global Minimum Tax Regulations. The constituent unit responsible for the declaration of a multinational corporation may choose according to the regulations on annual selection not to apply this deduction in Vietnam when calculating additional tax by choosing not to apply this regulation or not to deduct the deductions on the information declaration under the regulations on national minimum tax in that fiscal year.
6.2. The deduction on salary of a constituent unit in Vietnam is determined according to the proportion of valid salary expenditure paid to the total number of eligible employees performing activities of multinational corporations in Vietnam, in which:
6.2.1. Valid salary expenses are payments to valid employees, including salaries; wages; taxes related to salaries and wages shall be paid by the employer; allowances; social security contributions of employers; other benefits in the form of direct and separate benefits for individual employees such as health insurance, bonuses and allowances payable to eligible employees, pension contributions, and expenses paid to employees based on shares.
In case a constituent unit in Vietnam employs an employee and the employee performs more than 50% of his/her working time for a multinational corporation in the relevant period in Vietnam, the constituent unit has the right to deduct on the entire salary of such employee. In case a constituent unit in Vietnam employs an employee and the employee performs 50% or less of his/her working time for a multinational corporation in the relevant period in Vietnam, the constituent unit shall only have the right to calculate a deduction on the percentage of salary of such employee corresponding to the working time of the workers in Vietnam.
Valid salary expenses include all salary expenses recorded as expenses on the accounting books in the period, salary expenses capitalized on tangible assets that are not considered valid tangible assets, including inventory. The following salary expenses are not determined as valid salary expenses:
- Capitalized and included in the book value of valid tangible assets;
- Allocated in proportion to the international transport income and the standard auxiliary international transport income of the constituent unit as prescribed at Point 4.5 of this Section, which has been excluded when calculating the income or loss under the Global Minimum Tax Regulations in the fiscal year.
6.2.2. Eligible employees are employees, including part-time employees of a constituent unit of a multinational corporation and individuals under independent contracts engaged in business activities of the multinational corporation under the administration and control of the multinational corporation. Independent contractual individuals include individuals, individuals hired or provided through human resource service companies, employment whose day-to-day operations are placed under the management and control of a multinational corporation. Individuals under independent contracts do not include employees of contractors who are enterprises providing goods and services to constituent units.
6.2.3. The salary deduction of a constituent unit in Vietnam shall be calculated at the rate of 5% of the valid salary expenditure paid to the total number of eligible employees performing activities of the multinational corporation in Vietnam. In the transition period from 2024, the deduction rate for each year shall comply with the provisions of the Appendix issued together with Resolution No. 107/2023/QH15.
6.3. The deduction for tangible assets of a constituent unit in Vietnam shall be determined according to the ratio of the remaining book value of valid tangible assets in Vietnam and the remaining book value determined at Points 6.3.2 and 6.3.3. Point 6.3.4 of this Section, in which:
6.3.1. Valid tangible assets include:
6.3.1.1. Assets, factories and equipment located in Vietnam, including expenses for unfinished capital construction;
6.3.1.2. Types of natural resources in Vietnam;
6.3.1.3. The right to use tangible assets of the lessee in Vietnam shall be accounted in the accounting books of the lessee in accordance with financial accounting standards used when preparing the consolidated financial statements of the supreme parent company;
In case the leased tangible asset operates, the lessor in Vietnam is allowed to calculate the remaining book value of the leased asset to determine the valid tangible asset if such asset is located in Vietnam. This value is determined by the positive difference, if any, between the average book value of the asset at the beginning and end of the fiscal year on the lessor's book and the average book value of the right to use tangible assets at the beginning and end of the fiscal year on the lessee's book. In case the lessee is not in the same group, this value is determined by the positive difference, if any, between the average book value of the asset at the beginning and end of the fiscal year on the lessor's book and the remaining rent payment under the lease contract. In case of renewal of the lease contract, the remaining rent payment must be redetermined according to the extension period.
In case of operation lease or financial lease between two constituent units of the same group in Vietnam, after excluding the internal asset leasing transaction, only the lessee may calculate the valid tangible asset value for the leased asset and the valid tangible asset value is the remaining value recorded in the book of the donor's property hire.
In case the operating leased assets are common-use assets such as leasing a part of a factory, office or parking lot, the lessor must allocate the remaining book value of the leased property according to a reasonable allocation criterion and include it in a valid tangible asset for the allocation used by the lessor for the operation of their own. For the allocation used by the lessee, the lessor may apply the guidance on how to dispose of assets under the operating lease contract specified at this Point to determine the value of valid tangible assets.
6.3.1.4. Licenses or similar agreements with competent state agencies for the use of real estate or exploitation of natural resources that require significant investment in such tangible assets.
Licenses granted or similar agreements with competent state agencies, including lease contracts or written agreements between contract-signing agencies and investors or project enterprises on the State's concession to investors or project enterprises to use real estate, For example, agreements in which investors and project enterprises are franchised to build, operate, transfer works, infrastructure systems such as roads, bridges, hospitals, airports, power plants, water distribution facilities, telecommunications networks, or exploitation of natural resources, etc. Provided that the use of the asset requires a significant investment in the tangible asset, it will be considered a valid tangible asset regardless of whether it is recognized or treated as an intangible asset or a financial asset in the financial statements of the enterprise or according to the financial accounting standards used to prepare the consolidated financial statements. However, if the constituent unit records the right to collect fees or charges related to the operation of the property under the license or the same right as an asset separate from the right to use the real estate, for example for a separate service contract, such property is not considered a valid tangible asset.
6.3.2. Determination of the residual value recorded in the book of valid tangible assets
The calculation of the remaining book value of valid tangible assets under the provisions of this Point shall be based on the average remaining book value of tangible assets (after deducting accumulated depreciation or allocation, losses due to value impairment and including salary expenses capitalized in the value of tangible assets) at the time of the beginning and end of the reporting fiscal year, which are recorded when making the consolidated financial statements of the Supreme Parent Company (after making accounting adjustments according to the purchase price and excluding adjustments related to the purchase and sale between units of the Group).
The provisions at this Point do not apply to the increase in asset value and the increase in depreciation value due to revaluation when applying the revaluation model, except for cases where the increase in asset value corresponds to the reversal of the previously recorded decrease in asset value.
6.3.3. The remaining value recorded in the book of tangible assets corresponding to the excess income of the constituent unit is higher than the standard ancillary international transport income as prescribed at Point 5.4 of this Section shall be included in the calculation of the deduction for tangible assets.
6.3.4. The remaining book value of the assets specified at Point 6.3.5.2 of this Section which are directly or indirectly involved in the process of production and trading of goods or provision of services of the property owner shall be included in the calculation of the deduction for tangible assets.
6.3.5. When calculating the deduction for tangible assets, it shall not include:
6.3.5.1. The remaining value recorded in the books of tangible assets used to generate international transport incomes and ancillary international transport incomes meeting the standards of the constituent units (including ships, other maritime equipment and infrastructure).
6.3.5.2. Valid tangible assets do not include the residual book value of assets (including land or works) held for sale, lease or investment.
6.3.5.3. In case the constituent unit in Vietnam is the owner of the property or leases the property (if any) and the tangible property is located in Vietnam for a period greater than 50% of the total duration of the relevant year, the constituent unit shall be deducted from the entire value of the deductible portion related to such tangible property. In case the constituent unit in Vietnam is the owner of the property or leases the property (if any) and the tangible assets are located in Vietnam for a period of 50% or less of the total period of the relevant year, the constituent unit shall only be deducted from the percentage of time the tangible assets are located in the country of the constituent unit become the owner of the property or lease the property (if any).
6.4. Expenditures on valid salaries and value of tangible assets under the provisions of Points 6.2 and 6.3 of this Section of a constituent unit being a permanent establishment are the values accounted in separate accounting books, determined under the provisions of Point 2.1 of this Section and adjusted according to the provisions of Point 2.2 of this Section; provided that the employee is validly present in the country where the permanent establishment is located; Valid tangible assets located in the country where the permanent establishment is located. Expenses for valid salaries and tangible assets of a permanent establishment shall not be included in the expenditure on valid salaries and tangible assets of the main company.
In case the income of a permanent residence establishment has been partially or wholly deducted under the provisions of Points 3.1, 3.3.1 and 17 of this Section, the expenditure on valid wages and tangible assets calculated at the same rate when deducting the income of such permanent establishment shall not be included in the value of tangible assets and deductible salaries according to the Global Minimum Tax Regulations of multinational corporations.
6.5. The deduction for tangible assets of a constituent unit in Vietnam shall be calculated at the rate of 5% of the value of valid tangible assets under Points 6.3 and 6.4 of this Section. In the transition period from 2024, the deduction rate for each year shall comply with the provisions of the Appendix issued together with Resolution No. 107/2023/QH15.
7. Allocation of tax within the scope of application from one constituent unit to another constituent unit
7.1. The allocation of tax within the scope of application to permanent establishments, units not subject to income tax, bisexual units and taxes levied on incomes divided from one constituent unit to another shall comply with the provisions of Points 7.2 and 7.4 of this Section.
7.2. Taxes within the scope of application shall be allocated from one constituent unit to another as follows:
7.2.1. The applicable tax amount recorded in the accounting books of a constituent unit related to the income or loss under the regulations on global minimum tax of the permanent resident establishment allocated to such permanent establishment;
7.2.2. The applicable tax amount recorded in the accounting books of a unit not subject to income tax related to income or loss under the Global Minimum Tax Regulations shall be allocated to the owner of the constituent unit under the provisions of Point 3.3.2 of this Section;
7.2.3. In case the constituent unit is a bisexual unit, any applicable tax levied on the income of the bisexual unit shall be recorded in the accounting books of the owner of the constituent unit allocated to such bisexual unit;
7.2.4. The applicable tax amount shall be recorded in the accounting books of the direct owners of the constituent units on the profits distributed from the constituent units in the fiscal year allocated to the constituent units with divided profits.
The provisions at Point 7.2.4 apply to taxes within the scope of application of the owner of the constituent unit for the portion of income determined to be distributed from the constituent unit when the benefit to receive the distributed income is determined as the owner's equity right according to the tax regulations of the country of the owner of the constituent unit, and according to regulations on financial accounting.
7.3. The tax amount within the scope of application allocated to a constituent unit under the provisions of Point 7.2.3 of this Section, for indirect incomes included in the adjusted scope of application of such constituent unit, shall be equal to the lesser of the following amounts:
7.3.1. The tax amount within the scope of application shall be allocated to such indirect income;
7.3.2. The results of indirect incomes of the constituent units shall be taxed under the tax regulations for affiliated foreign companies or under the regulations on non-taxable subjects multiplied by the additional tax rate in the country of the constituent unit, which shall be determined without taking into account the tax amount transferred to the subsidiary under the tax regulations on foreign companies under control or regulations on non-taxable subjects.
The tax amount within the scope of application of the owner of the constituent unit arising from the indirect income remaining after the application of this point shall not be allocated according to Point 7.2.3 of this Section, in which:
Indirect income is income included in income under the Global Minimum Tax Regulations, including: Dividends or similar amounts such as dividends, loan interest or similar amounts of loan interest, rent, royalties, annuities, net profits from an asset that generates the above-mentioned income but only within the scope of the owner the constituent unit is taxable on such income under the CFC Regulations or by having ownership in a bisexual unit.
7.4. Taxes within the scope of application which have been adjusted when calculating the actual tax rate according to the PMU do not include:
7.4.1. The tax amount is subject to the tax liability of the owner of the constituent unit under the CFC Regulation allocated to the constituent unit in Vietnam;
7.4.2. The tax amount under the tax obligation of the parent company to be allocated to permanent establishments in Vietnam under the provisions of Point 7.2.1 of this Section;
7.4.3. The tax amount falling under the tax liability of the owner of the bisexual unit shall be allocated to the bisexual unit under the provisions of Point 7.2.3 of this Section;
7.4.4. The tax amount falling under the tax liability of the direct owner of the constituent unit shall be allocated to the constituent unit with profits divided under the provisions of Point 7.2.4 of this Section.
7.5. In case the income under the Global Minimum Tax Regulations of the permanent establishment is determined to be the income under the Global Minimum Tax Regulations of the parent company under the provisions of Point 2.5 of this Section, any applicable tax arising at the residence place of the permanent establishment and related to such income shall be is determined as a tax within the scope of application of the parent company within the limit not exceeding the result from such income multiplied by the highest corporate income tax rate for ordinary income in the country where the parent company resides.
8. Taxes within the scope of application have been adjusted
8.1. The adjusted tax in the scope of application of a constituent unit in a fiscal year shall be equal to the current tax expense recorded in the income or net loss in the financial statements of such constituent unit in relation to the tax in the scope of application in the fiscal year adjusted by the following clauses:
8.1.1. The difference between the plus adjustments as prescribed at Point 8.2 of this Section and the minus adjustments as prescribed at Point 8.3 of this Section;
8.1.2. The total amount of deferred tax adjustments as prescribed at Point 9 of this Section;
8.1.3. Any increase or decrease in applicable taxes that have not yet been recorded in the prevailing tax expense or deferred tax expense, but are recognized in the equity portion or other comprehensive income in respect of the amounts included in the calculation of income or losses under the Global Minimum Tax Regulation These amounts will be subject to tax in accordance with the provisions of domestic taxes.
8.2. The plus adjustments to be included in tax within the scope of application of a constituent unit in a fiscal year include the following amounts:
8.2.1. Tax amounts within the scope of application shall be accounted as expenses when calculating pre-tax profits in accounting books;
8.2.2. The deferred tax assets due to losses under the Global Minimum Tax Regulations shall be used in accordance with the provisions of Point 10.5 of this Section;
8.2.3. The applicable tax amount paid in the fiscal year and related to uncertain tax operations (pending adjustment) which is included in the adjustment except for the applicable tax in the previous fiscal year as prescribed at Point 8.3.4 of this Section;
8.3. Tax deduction adjustments within the scope of application of a constituent unit in a fiscal year include the following amounts:
8.3.1. The current tax expense related to income is not included in the calculation of income or loss under the Global Minimum Tax Regulation as prescribed at Point c.1, Clause 1, Article 5 of this Decree;
8.3.2. Tax deductions or refunds that are considered as income tax deductions that may be refunded in a non-standard manner and have not yet been recognized as a reduction in current tax expenses;
8.3.3. The tax amount within the scope of application to be refunded or deducted by a constituent unit which has not been recorded as an adjustment of current tax expenses in the accounting books;
8.3.4. The current tax expense related to an uncertain tax transaction (pending adjustment);
8.3.5. The current tax expense is not expected to be paid within three years from the last day of the fiscal year.
8.4. The applicable tax shall be calculated only once.
8.5. In a fiscal year in which the tax liability is determined without net income under the Global Minimum Tax Regulations in a country, and the tax in the scope of application that has been adjusted in that country is less than 0 and lower than the tax in the scope of application that has been adjusted as expected, the constituent units in that country shall be considered is the additional tax adjusted for the current year in that country according to the provisions of Point d.2, Clause 1, Article 5 of this Decree. The additional tax amount adjusted for the current year is equal to the difference between the adjusted applicable tax amount and the expected adjusted applicable tax amount. The applicable tax amount that has been adjusted as expected is equal to the income or loss under the Global Minimum Tax Regulations in one country multiplied by the minimum tax rate.
The constituent units responsible for declaration may choose to apply the provisions of this Point or the additional tax adjusted for the current year calculated according to this Point shall be determined as tax expenses less than 0 that have not been fully cleared and shall be managed according to the provisions of Point 8.6 of this Section.
8.6. The management process for tax expenses less than 0 that have not yet been fully cleared shall be carried out as follows: tax expenses less than 0 that have not yet been fully cleared shall be carried forward to subsequent years and deducted from the tax amount within the scope of application which has been adjusted in the year corresponding to the condition that the tax amount within the scope of application has been adjusted after the reduction minus not less than 0.
9. Mechanism for handling temporary differences
9.1. The total amount of deferred tax adjustments of a constituent unit in a fiscal year is the deferred tax expense deducted in advance in the accounting books of that unit (which is the refundable tax expense recorded in the income or loss on the financial statements of the constituent unit as prescribed at Point 8.1 of this Section and Point c.1, Clause 1, Article 5) This Decree) if the applicable tax rate is lower than the minimum tax rate or in any other case, such deferred tax expense shall be recalculated at the minimum tax rate. Deferred tax expenses at this Point are related to taxes applicable in a fiscal year under the adjustments specified at Points 9.2 and 9.3 of this Section and do not include the following amounts:
9.1.1. Deferred tax expenses for amounts not included in the calculation of income or loss under the Global Minimum Tax Regulations;
9.1.2. Deferred tax expenses for pre-deductions that are not accepted and pre-deductions that have not yet been calculated;
9.1.3. Results from adjustments to the method of valuation or adjustments to accounting recognition related to deferred tax assets;
9.1.4. Deferred tax expenses arising from the recalculation due to changes in the applicable tax rates in a country;
9.1.5. Deferred tax expenses from the creation and use of tax liability deductions. This point does not apply to replacement losses from deferred tax assets carried forward later. In which, a replacement loss from deferred tax assets shall be carried forward to the following period when the following conditions are met:
9.1.5.1. A country that requests foreign income to offset against domestic losses before using the deduction of foreign tax obligations to offset tax liabilities incurred in connection with foreign incomes.
9.1.5.2. The constituent unit has a domestic loss that is partially or wholly offset by foreign income.
9.1.5.3. Domestic tax laws allow the deduction of foreign tax liability to be used to offset the tax liability of the following year arising from income included in income or loss under the Global Minimum Tax Regulations.
9.2. The total amount of deferred tax adjustment shall be adjusted as follows:
9.2.1. Adding uncalculated advance deductions that have been paid in the fiscal year;
9.2.2. Add the recovered deferred taxes determined in the previous fiscal year and already paid in the current fiscal year;
9.2.3. A reduction of an amount equivalent to a deferred tax asset due to a loss of the current fiscal year incurred, but a deferred tax asset due to such loss not being recorded in the financial statements because it does not meet the criteria recognized by the accountant as a deferred tax asset.
9.3. A deferred tax asset that has been recorded at a tax rate lower than the minimum tax rate may be recalculated at the minimum tax rate in a fiscal year where the loss related to such deferred tax asset becomes a loss under the Global Minimum Tax Regulation, if the taxpayer can prove that the refundable tax asset was incurred as a result of losses under the Global Minimum Tax Regulations. The total amount of refundable tax adjustment shall be reduced in proportion to the additional increase of refundable tax assets due to recalculation according to the provisions of this Point.
9.4. In case the deferred tax payable is not an advance withholding tax on an exception that is not recoverable and this tax is not paid within the next five fiscal years, such tax must be recovered. The recovered refundable tax determined for the current fiscal year shall be determined as the amount excluded from tax applicable in the previous fifth fiscal year and the actual tax rate, whereby the additional tax of that fiscal year shall be recalculated according to the provisions of Point d.1, Clause 1, Article 5 of this Decree. Withholding tax payable recovered in the current fiscal year is an increase in an item of withholding tax payable that was included in the total refund tax adjustments in the preceding fifth fiscal year that was not refunded by the end of the last day of the current fiscal year, unless such amount is related to the pre-withheld tax that falls under the non-recoverable exception specified at Point 9.5 of this Section.
9.5. Advance deduction on non-recoverable exception means a tax expense deducted in advance due to changes in the relevant deferred tax payables, applicable to:
9.5.1. Differences in recovery of investment expenses in tangible assets;
The difference in recovery of investment expenses in tangible assets arises in the following cases:
9.5.1.1. Factories, machinery, equipment, other tangible assets and natural resources are eligible for expedited depreciation, or otherwise treated for related expenses, leading to the difference in the time for recovery of asset value between tax regulations and accounting regulations.
9.5.1.2. Tangible assets are natural resources with differences in capitalization costs. If the relevant financial accounting regulations require a wider range of capitalization of expenses than the relevant tax regulations, the relevant refundable income taxes payable are considered to be advance deductions under the non-recoverable exception. Similarly, if expenses such as field or oil and gas exploration and development expenses are deducted as incurred or depreciated over a short period of time for tax purposes and capitalized into natural resource assets for accounting purposes, the relevant refundable income taxes payable are considered as advance deductions under the non-collection exception time.
9.5.1.3. Leased tangible assets shall be accounted as asset use rights and depreciation while domestic tax regulations determine deductible expenses on the basis of rent payments.
9.5.2. Expenses for applying for licenses or similar agreements from state agencies for the use of real estate assets or exploitation of natural resources with large investments in tangible assets;
9.5.3. Research and development expenses;
9.5.4. Expenses for clean-up and restoration;
9.5.5. Recording a fair value on unrealized net profit;
9.5.6. Net interest on foreign exchange rate differences;
9.5.7. Insurance provisions and deferred repurchase insurance contracts;
9.5.8. Profits from the sale of tangible assets in the same country as the constituent units may be reinvested in tangible assets;
9.5.9. Additional advance deductions are the result of changes in accounting principles to the provisions of Points 9.5.1 thru 9.5.8 of this Section.
9.6. Advance deductions that are not accepted are:
9.6.1. Changes in deferred tax expenses deducted in advance from the accounting books of a constituent unit related to an uncertain tax operation (pending adjustment);
9.6.2. Changes in deferred tax expenses deducted in advance in the accounting books of the constituent units related to the distribution of incomes from the constituent units.
9.7. The uncalculated advance deduction includes the additional amount incurred in the refundable tax payable recorded in the accounting books of a constituent unit for a fiscal year which is not expected to be paid within the period specified at Point 9.4 of this Section and the constituent unit shall be responsible for declaring the option not to be included in the total amounts deferred tax adjustment in that fiscal year. The selection according to this point shall apply according to the regulations on annual selection.
10. Selecting Losses under the Global Minimum Tax Regulations
10.1. The net loss under the Global Minimum Tax Regulations in a country is zero (0) or negative income (if any), calculated according to the following formula:
Global Minimum Tax Regulation Net Loss = Global Minimum Tax Regulation Income of all constituent units - Global Minimum Tax Regulation loss of all constituent units.
In which:
10.1.1. Income under the Global Minimum Tax Regulations of all constituent units is the total income under the Global Minimum Tax Regulations of all constituent units in a country determined under the provisions of Point c.1, Clause 1, Article 5 of this Decree for the fiscal year;
10.1.2. Loss under the Global Minimum Tax Regulations of all constituent units is the total loss under the Global Minimum Tax Regulations of all constituent units in a country determined under the provisions of Point c.1, Clause 1, Article 5 of this Decree for the fiscal year.
10.2. In case of incurring a net loss under the regulations on global minimum tax in a country, the constituent unit responsible for declaring may choose to apply Point 10 of this Section in case the provisions of Point 9 of this Section are not applied to that country.
10.3. When opting to apply Point 10.2 of this Section, the deferred tax assets due to losses under the Global Minimum Tax Regulations shall be calculated as the net loss under the Global Minimum Tax Regulations in the fiscal year in that country multiplied by the minimum tax rate.
10.4. The balance of the value of refundable tax assets due to losses under the Global Minimum Tax Regulations shall be carried forward to subsequent fiscal years after the reduction in the value of deferred tax assets due to losses under the Global Minimum Tax Regulations has been used in the fiscal year.
10.5. In any subsequent fiscal year with net income under the Global Minimum Tax Regulation in a country, the refundable tax assets due to losses under the Global Minimum Tax Regulation must be used equal to the smaller amount of the result of the net income under the Global Minimum Tax Regulation multiplied by the minimum tax rate and the value of deferred tax assets due to losses under the Global Minimum Tax Regulations that have not been used up.
10.6. If the loss option under the Global Minimum Tax Regulation is not applied as prescribed in Point 10 of this Section, the remaining deferred tax assets due to losses under the Global Minimum Tax Regulation will be reduced to 0 from the first day of the fiscal year in which the loss option under the Global Minimum Tax Regulation is no longer applied. Thereafter, the deferred tax assets and refundable tax payable (if any) of a country shall be re-determined according to the provisions of Point 9 of this Section and Article 8 of this Decree for the previous fiscal year.
10.7. Selection of losses under the Global Minimum Tax Regulations must be declared in the Declaration of Information under the First Global Minimum Tax Regulations of the multinational corporation of the first fiscal year in which the multinational corporation has a constituent unit in that country.
11. Adjustments arising after declaration and change of tax rates
11.1. An adjustment of tax payable by a constituent unit in the preceding fiscal year recorded in the accounting books is determined as an adjustment to the tax subject to the scope of application in the fiscal year in which the adjustment is made, except for the adjustment related to the previous fiscal year resulting in a reduction in the tax subject to the scope of application of the that country. In case there is a tax reduction within the scope of application that has been adjusted by the constituent unit in the previous fiscal year, the actual tax rate and additional tax in that fiscal year must be recalculated according to the provisions of Point d.1, Clause 1, Article 5 of this Decree. When recalculated according to Point d.1, Clause 1, Article 5 of this Decree, the adjusted applicable tax determined in the fiscal year will be reduced in proportion to the reduction in the applicable tax and the income under the Global Minimum Tax Regulation determined in the fiscal year and any relevant fiscal year will be recalculated adjust accordingly.
The constituent unit responsible for the declaration may make a selection according to the regulations on annual selection to determine the non-material reduction of taxes within the scope of application as an adjustment for the tax amounts within the scope of application in the fiscal year in which the adjustment is made. The non-material reduction of applicable taxes is the total value of adjusted applicable taxes of less than EUR 1 million determined for a country in a financial year.
11.2. Deferred tax expenses due to a decrease in the tax rate prescribed by domestic tax regulations shall be determined as an adjustment to the liabilities of the constituent units under the provisions of Point 11.1 above for taxes falling within the scope of application calculated under the provisions of Point 8 of this Section in the previous fiscal year when the reduction of such tax rate leads to the application of the tax rate is lower than the minimum tax rate.
11.3. Deferred tax expenses paid due to an increase in the tax rate prescribed by domestic tax regulations shall be considered as an adjustment of liabilities of the constituent unit under the provisions of Point 11.1 of this Section for taxes falling within the scope of application calculated under the provisions of Point 8 of this Section in the previous fiscal year when such expenses were initially recorded at a tax rate lower than the minimum tax rate. This adjustment does not exceed the increase in the deferred tax expense and is up to the deferred tax expense recalculated at the minimum tax rate.
11.4. In case the current tax expense deducted by the constituent unit in advance has an amount greater than EUR 1 million and this amount has been included in the applicable tax which has been adjusted in the fiscal year and is not paid within three years from the last day of that year, the actual tax rate and additional tax in the fiscal year shall be unpaid amounts determined to be tax within the scope of application must be recalculated according to the provisions of Point d.1, Clause 1, Article 5 of this Decree by excluding such unpaid amounts from the adjusted amounts of tax within the scope of application.
12. In case the constituent units have the supreme parent company being the minority owner
12.1. A constituent unit with a supreme parent company as a minority owner is a constituent unit in which the supreme parent company has direct or indirect ownership of 30% or less in that unit.
12.2. A subsidiary group with a supreme parent company as a minority owner is a group consisting of a minority-owned parent company and a minority-owned subsidiary of this parent company.
12.3 A minority-owned parent company is a constituent unit in which the supreme parent company is the minority owner who directly or indirectly holds control over a constituent unit in which the supreme parent company is the other minority owner, Except where the control of the first mentioned company above is held directly or indirectly by a constituent entity whose sovereign parent company is another minority owner.
12.4. Minority-owned subsidiary means a constituent unit whose sovereign parent company is the minority owner under direct or indirect control by a minority-owned parent company.
12.5. The calculation of the actual tax rate and additional tax in Vietnam under the provisions of Articles 5, 9, 10, 11, 12 and 13 of this Decree for constituent units of a subsidiary corporation whose supreme parent company is the minority owner shall be applied as a separate multinational corporation.
12.6. Taxes within the scope of application have been adjusted and incomes or losses under the Regulations on global minimum tax of constituent units of subsidiaries whose supreme parent company is a minority owner shall be excluded when determining the actual tax rate as prescribed at Point b, Clause 1, Article 5 of this Decree and net income according to the provisions of Regulations on the global minimum tax at Point c.1, Clause 1, Article 5 of this Decree for the remaining constituent units of the multinational corporation.
12.7. The actual tax rate and additional tax of a constituent unit whose supreme parent company is the minority owner other than a member of a subsidiary group in which the supreme parent company is the minority owner shall be calculated separately under the provisions of Article 5. Articles 9, 10, 11, 12 and 13 of this Decree. Taxes within the scope of application have been adjusted and income or losses under the Global Minimum Tax Regulations of a constituent unit whose supreme parent company is the minority owner are excluded when determining the actual tax rate as prescribed at Point b, Clause 1, Article 5 of this Decree and net income under the Minimum Tax Regulations as prescribed at Point c.1, Clause 1, Article 5 of this Decree for the remaining constituent units of multinational corporations. This provision does not apply if the constituent unit has a supreme parent company as a minority owner as an investor.
13. Regulations on constituent units participating in and leaving multinational corporations
13.1. In case a unit becomes or ceases to be a constituent unit of a multinational corporation as a result of the transfer (purchase or sale) of direct or indirect ownership in that unit in the fiscal year (year of transfer), except for the case specified at Point 13.2 of this Section, period:
13.1.1. When a unit enters into or leaves a multinational corporation or a unit becomes the supreme parent company of a new multinational corporation, that entity (collectively referred to as the transferee) shall be identified as a constituent unit of a multinational corporation under the Global Minimum Tax Regulations if any any assets, liabilities, incomes, expenses or cash flows of that unit shall be added to each item in the consolidated financial statements of the supreme parent company of a multinational corporation in the year of transfer;
13.1.2. In the year of transfer, a multinational corporation shall include only the adjusted income or loss in the financial statements and applicable taxes of the transferee in the consolidated financial statements of the supreme parent company for the application of the Global Minimum Tax Regulations;
13.1.3. In the year of assignment and each subsequent year, the transferred entity shall determine its income or loss in accordance with the Global Minimum Tax Regulations and applicable taxes that have been adjusted based on the book balance of its assets and liabilities;
13.1.4. When calculating valid salary expenses of the transferred unit, only those expenses reflected in the consolidated financial statements of the supreme parent company shall be counted;
13.1.5. When calculating the remaining book value of valid tangible assets of the transferred company, this value shall be adjusted in proportion to the period in the relevant fiscal year in which the transferred unit is a member of the multinational group;
13.1.6. Except for the deferred tax assets due to losses under the Global Minimum Tax Regulations selected to apply under the provisions of Point 10 of this Section, the deferred tax assets and deferred tax payable of a constituent unit which are transferred between multinational corporations shall be transferred between multinational corporations, is the purchaser of the calculation under the Global Minimum Tax Regulations in the same manner and to the same extent as the calculation of the multinational corporation having control over such constituent unit at the time these assets and liabilities arise;
13.1.7. In case the deferred tax payable of the transferred unit has been included in the total deferred tax adjustment of such unit, this deferred tax payable shall be refunded by the multinational corporation being the seller according to the provisions of Point 9.4 of this Section. The multinational corporation is the buyer recorded as arising in the year of transfer as prescribed at Point 9.4 of this Section, unless there is any tax reduction adjustment within the scope of application under the provisions of Point 9.4 of this Section in the year in which this tax amount is recovered.
13.2. The transfer of control in a constituent unit shall be determined as a transfer of assets and liabilities if the country where the constituent unit is transferred control resides or the country where the property is located in the case of a unit not subject to income tax provides that the transfer of control is similar to the transfer of assets, liabilities and tax performance are within the scope applicable to the seller on the basis of the difference between the book value as the basis for tax calculation of the assets, liabilities and the total amount actually paid for the purchase of control or the difference between the book value as the basis for tax calculation and the fair value of the assets and liabilities.
14. Transfer of assets and liabilities
14.1. In case of transfer of assets and liabilities, a transferring constituent unit (the seller) shall record a profit or loss due to the transfer when calculating the income or loss in accordance with the Global Minimum Tax Regulation, and the transferee constituent unit (the buyer) shall determine the income or loss in accordance with the Global Minimum Tax Regulation based on the remaining value record the books of the assets and liabilities of the transferee constituent unit (the buyer) which have been determined according to the accounting standards used to prepare the consolidated financial statements of the supreme parent company. In case of transfer of assets and liabilities between two constituent units in the same multinational corporation, the income or loss under the Global Minimum Tax Regulations shall be determined according to the provisions of this Point, and at the same time, adjustments must be made according to the provisions of Point 4.4 of this Section.
14.2. In case a constituent unit of a multinational corporation has to adjust or is permitted to adjust the book value of assets and liabilities payable at a reasonable value for tax calculation in the country where such constituent unit resides, it shall, at its option, declare and constituent units of such multinational corporations shall perform as follows:
14.2.1. Calculate the profit or loss related to the assets and liabilities of such constituent unit when calculating the income or loss under the Global Minimum Tax Regulations equal to the difference between the remaining value recorded in the accounting books for the assets or liabilities immediately paid and the fair value of the assets or liabilities payable immediately after the date of occurrence of the tax adjustment event (the event that arises from the adjustment) and subtract (or add) the profit (or loss) that does not meet the standards (if any) arising in connection with such adjustment event;
Non-standard profit or loss is the smaller value between the value of the profits or losses of the constituent unit that is the transferor arising in connection with the restructuring under the Regulations on the Global Minimum Tax, which is taxable at the place where the constituent unit resides, and the value of financial accounting profits or losses arising in connection with the restructuring structure according to the Global Minimum Tax Regulations.
14.2.2. Using the fair value of assets or amounts payable in the accounting books immediately after the adjusted event to determine income or loss in accordance with the Global Minimum Tax Regulations of the fiscal years ending after the adjusted event;
14.2.3. Calculate the sum of the amounts determined at Point 14.2.1 of this Section into the income or loss under the regulations on global minimum tax of the constituent unit in the fiscal year in which the adjustment event arises or the total allocation of such amounts in 05 years, including the fiscal year in which the adjustment event arises and the following 04 fiscal years; Unless the constituent unit leaves the multinational corporation during this period, the unallocated portion shall be counted in its entirety in the fiscal year in which the constituent unit leaves the multinational corporation.
15. Venture
15.1. Joint venture means a unit whose financial results are presented by the equity method in the consolidated financial statements of the supreme parent company provided that the supreme parent company directly or indirectly holds at least 50% of the ownership of such unit. The Joint Venture does not include:
15.1.1. The supreme parent company of a multinational corporation is subject to the Global Minimum Tax Regulation;
15.1.2. Excluded units as prescribed in Clause 1, Article 2 of Resolution No. 107/2023/QH15;
15.1.3. A unit with ownership rights directly held by a multinational corporation through an excluded organization specified in Clause 1, Article 2 of Resolution No. 107/2023/QH15 and such unit operates only or mainly for the purpose of holding assets or investing capital for the benefit of investors, to carry out ancillary activities for activities carried out by the excluded unit; or most of the income of this entity is excluded from the income or loss under the Global Minimum Tax Regulations specified at Points 4.1.2 and 4.1.3 of this Section.
15.1.4. A unit held by a multinational corporation which consists only of excluded units;
15.1.5. Subsidiaries of joint ventures.
15.2. Joint venture group means a group consisting of a joint venture and its subsidiaries.
15.3. Subsidiary of a joint venture means a company whose assets, liabilities, income, expenses and cash flows are consolidated by a joint venture in accordance with accepted financial accounting standards (or if there is a provision to consolidate these items in accordance with accepted financial accounting standards). A permanent establishment whose main company is a joint venture or a subsidiary of a joint venture is identified as a separate subsidiary of the joint venture.
15.4. Additional tax of a joint-venture group means an additional tax of all members of a joint-venture group.
15.5. The joint venture and its subsidiaries are identified as constituent units of a separate multinational corporation and the joint venture is determined to be the supreme parent company of that multinational corporation when calculating the additional tax of the joint venture and its subsidiaries under the provisions of Article 5, Articles 9, 10, 11, 12 and 13 of this Decree. The basis for calculating and applying the financial management for the joint venture group is the financial accounting standards, the currency of declaration and calculation and the fiscal year of the joint venture.
16. Multinational corporations with many parent companies
16.1. A multinational corporation with more than one parent company is a case where there are two or more corporations, in which the supreme parent companies of such corporations enter into an agreement which is a binding contract or a double listing agreement and at least one unit or permanent establishment of the consolidated corporation resides in a country other than that of the where other units of the consolidated group reside.
16.2. A binding contract is an agreement between two or more supreme parent companies of separate corporations that simultaneously meet the following conditions:
16.2.1. At least 50% of the ownership of the supreme parent companies in separate corporations is incorporated together through a form of ownership, transfer restriction or under other terms or conditions where the ownership after the combination is not transferred or traded independently. If the ownership of the combined companies is listed on the stock market, it will be listed at the same price;
16.2.2. One of the supreme parent companies in the agreement shall prepare a consolidated financial statement according to which the assets, liabilities, income, expenses and cash flows of all constituent units of the corporations are presented jointly under the same items as those of an economic unit and are independently audited as prescribed.
16.3. A dual listing agreement is an agreement between two or more supreme parent companies of separate corporations, which simultaneously meets the following conditions:
16.3.1. The supreme parent companies agree to combine their business activities under the contract;
16.3.2. According to the contractual agreement, the supreme parent company shall make the distribution of dividends and liquidated assets to the shareholders of the supreme parent company on a fixed basis;
16.3.3. The activities of managed companies such as those that manage activities within the same economic organization under contractual agreements, while maintaining the separate legal status of each company;
16.3.4. The ownership of the supreme parent companies participating in this agreement is listed, traded or transferred independently in different capital markets;
16.3.5. The supreme parent companies prepare consolidated financial statements, in which the items of assets, liabilities, income, expenses and cash flows of all members of the group are presented jointly according to the items of a single economic unit and are independently audited in accordance with regulations.
16.4. Regulations on global minimum tax applicable to multinational corporations with many parent companies are as follows:
16.4.1. Constituent units and non-constituent units of each group shall be identified as members of a multinational group with many parent companies;
16.4.2. A unit (other than an excluded unit) is defined as a constituent unit if it is incorporated into the financial statements of a multinational corporation with multiple parent companies on each respective item or the control of such unit is held by units in a multinational corporation with multiple parent companies;
16.4.3. The consolidated financial statements of a multinational corporation with multiple parent companies shall be the consolidated financial statements, as the case may be, specified in the provisions on binding contracts at Point 16.2 of this Section or in the provisions on dual listing agreements at Point 16.3 of this Section; made according to accepted financial accounting standards and determined as the supreme financial accounting standards of the parent company;
16.4.4. The supreme parent companies of separate corporations combined into a multinational corporation with multiple parent companies shall be the supreme parent companies of a multinational corporation with multiple parent companies;
16.4.5. Constituent units must submit information declarations in accordance with the regulations on global minimum tax as prescribed in Article 15 of this Decree, unless the constituent units agree to appoint a constituent unit to carry out the declaration. The declaration of information under the Global Minimum Tax Regulation made by the constituent unit must include information related to each corporation that has been incorporated into a multinational corporation with multiple parent companies.
17. A permanent establishment with a supreme parent company is a transshipment unit
17.1. Permanent residence establishments shall apply the provisions of this Point if they fall into one of the following two cases:
17.1.1. The transshipment unit is the supreme parent company of a multinational corporation that conducts all or part of its business activities through such permanent establishment;
17.1.2. A non-income taxable entity conducts part or all of its business activities through such permanent establishment and such non-income taxable unit is directly owned by the supreme parent company or through a system of non-income taxable units.
17.2. Incomes under the Global Minimum Tax Regulations in a fiscal year of a permanent establishment shall be reduced by an amount equal to the income under the Global Minimum Tax Regulations allocated to the ownership in the supreme parent company of such permanent establishment if it falls into one of the following three cases:
17.2.1. The holder of such ownership shall have to calculate tax on this income in a tax period ending not later than 12 months after the end of the fiscal year of the multinational corporation and satisfying one of the following two conditions:
17.2.1.1. The holder of such ownership rights shall be taxed on the whole of this income at a nominal tax rate equal to or higher than the minimum tax rate. The nominal tax rate is the tax rate prescribed by law for the subject who holds the ownership on the income allocated by the supreme parent company to this subject;
17.2.1.2. There are reasonable grounds for determining the applicable tax paid by the supreme parent company and other units of a system of units not subject to income tax and the tax payable by the owner on this income equal to or higher than the value of this income multiplied by the minimum tax rate;
17.2.2. Entities holding ownership of the supreme parent company are resident individuals who must pay tax in the country of the supreme parent company (the country where the supreme parent company resides) and directly hold 5% or less of the total ownership of profits and assets of the supreme parent company;
17.2.3. The holder of ownership of the supreme parent company is a government organization, an international organization, a non-profit organization or a pension fund and a resident of the country of residence of the supreme parent company that holds a total ownership of 5% or less of the profits and assets of the supreme parent company.
17.3. When calculating losses under the Global Minimum Tax Regulations for a fiscal year, the permanent establishments specified at Point 17.1 of this Section shall be entitled to reduce the losses under the Global Minimum Tax Regulations in that fiscal year by the losses under the Global Minimum Tax Regulations corresponding to the ownership portion, except for cases where the owner is not allowed to use such losses when calculating his/her own taxable income.
17.4. Resident establishments that reduce their incomes under the regulations on global minimum tax under the provisions of Point 17.1 of this Section shall have their tax reduced within the corresponding scope of application.
1. Adjustments to income or net loss in the financial statements of constituent units
1.1. Income tax amounts attributable to owners that are refunded not meeting the standards deducted in advance are an expense that is determined to be adjusted net tax expenses.
1.1.1. Income tax attributable to owners who are refunded not meeting the standards are taxes, except for income taxes attributable to owners who are refunded to meet the standards, which have been paid or deducted in advance by the constituent units in the following cases:
- To be refunded to the owner the dividends divided by the constituent units in connection with such dividends or deducted by the owners from the tax liability but not the tax liability of such dividends;
- To be refunded to the company to pay dividends when dividends are distributed.
The tax applied to the dividend recipient and deducted by the dividend payer when paying such dividends is not an income tax attributable to the owner that is refunded to the owner even in case part or all of the deducted tax is refunded by the tax authority to the dividend recipient (shareholder).
1.1.2. Income tax attributable to qualified owners is the applicable tax calculated or paid by a constituent unit and refunded or deducted to the owner receiving dividends distributed by such constituent unit (including the case where the applicable tax is calculated or paid by a permanent resident establishment for with dividends distributed by the parent company) to the extent that the tax refund can be paid or the deductions are regulated:
1.1.2.1. Because a country is not a country applying taxes within the scope of application under the regime of tax deduction paid abroad;
1.1.2.2. Applicable to owners who benefit from dividends subject to tax at nominal tax rates equal to or exceeding the minimum tax rates for dividends on the basis of current regulations under the laws of the countries applying taxes falling within the scope applicable to constituent units;
1.1.2.3. Applicable to an individual who is an owner enjoying benefits from dividends who is a tax resident of the country of application of taxes applicable to the constituent unit and such individual is subject to tax on dividends as ordinary incomes;
1.1.2.4. Applicable to government organizations, international organizations, resident non-profit organizations, a resident pension fund, a resident investment unit other than an organization in a group or resident life insurance company within the scope of dividends received in connection with the business activities of the pension fund and subject to corresponding tax as dividends received by the pension fund.
A non-profit organization or pension fund specified in this point is determined to reside in a country if such organizations are incorporated and managed in that country. An investment unit specified at this Point is determined to reside in a country if such unit is established and operates in accordance with regulations in that country. The life insurance company specified at this Point is determined to reside in a country if according to the provisions of Section I of this Appendix, the life insurance company is determined to reside in that country.
1.2. Profits or losses from the transfer of assets and liabilities shall be excluded as prescribed at Point 5 of this Section.
1.3. The income tax deduction that can be refunded to the standard and the income tax deduction that can be transferred in the market shall be determined as income when calculating income or loss according to the Global Minimum Tax Regulations of a constituent entity. An income tax deduction that can be refunded that does not qualify will not be determined as income when calculating income or losses under the Global Minimum Tax Regulations of a constituent entity.
1.3.1. Eligible refundable income tax deduction means a refundable income tax deduction provided that such deduction must be paid in cash or cash equivalent within four years from the time the constituent unit satisfies the conditions for income tax deduction under the law of the country granting the deduction. A partially refundable income tax deduction is a qualifying refundable income tax deduction if it is paid in cash or cash equivalent within four years of a constituent entity meeting the conditions for receiving deductions under the law of the country in which the deduction is given. The income tax deduction that can be refunded to the standard does not include the tax amount that is deducted or refunded under the income tax mechanism that is attributed to the owner who meets the standard or the income tax that is returned to the owner who is refunded to the owner who is not eligible for the refund.
1.3.2. An income tax deduction that can be refunded that does not meet the standard is a tax deduction that is not a tax deduction that is refunded in full or in part.
1.3.3. In case the income tax deduction that can be refunded satisfactorily is allocated from a non-income taxable unit to the owner of such non-income taxable unit, the deduction shall be determined as the owner's income for the purpose of calculating income or loss under the Global Minimum Tax Regulations. In case the refundable income tax deduction does not meet the standard or the non-refundable income tax deduction is allocated from a non-income taxable unit to the owner of such non-income taxable unit, this amount shall not be determined as income when calculating income or loss under the regulations on national minimum tax. which is determined to be a tax deduction within the owner's adjusted scope of application, unless the deduction is a qualifying tax benefit through a non-taxable entity.
1.3.4. Qualified tax benefits through a non-taxable unit are amounts that reduce the investment value of the owner with standard ownership rights (excluding the income tax deduction that can be refunded to the standard), including one of the following:
1.3.4.1. The tax deduction shall be passed on to the owner.
1.3.4.2. Accumulating the amount of the loss to be offset forward to the owner multiplied by (x) the tax rate applicable to the owner.
1.3.5. Qualified ownership is ownership that satisfies the following conditions:
1.3.5.1. An investment in a non-taxable entity, which is determined as an equity interest in accordance with the provisions of the domestic tax law and is determined as an equity interest according to the financial accounting standards permitted to apply in the country where the non-taxable entity operates, when assets, liabilities, incomes, expenses and cash flows of units not subject to income tax are not consolidated on the basis of adding each indicator to the consolidated financial statements of the multinational corporation.
1.3.5.2. The total interest in such ownership (including income distributions, interests on tax losses and income tax deductions that can be fully refunded arising from the non-taxable entity and excluding deductions other than the income tax deductions that can be fully refunded) is expected to be less than the total investment of the owner corresponding to the proportion of the investment recovered in the form of tax deductions minus the income tax deduction that can be reimbursed satisfactorily (regardless of whether the tax deductions are expected to be transferred or used to reduce the tax liability within the scope of the home's application investment).
1.3.5.3. Investors with qualified ownership rights who have used the proportional depreciation method to calculate interest according to financial accounting must apply the proportional depreciation method to determine the investment amount recovered each year. Investors with standard ownership, if they do not use the proportional depreciation method, can also choose to use this method to determine the amount of investment recovered each year. This option is an irreversible option and is made by the constituent entity responsible for declaring qualifying ownership in the first fiscal year in which the investor purchases ownership or the first year in which the investor is subject to the Global Minimum Tax Regulation.
1.3.6. Marketable income tax deduction means an income tax deduction used by the owner of the deduction to reduce its tax obligations within the scope of application in the country which has granted this deduction, and this deduction of the owner must satisfy the conditions on lawful transfer and the conditions on market accessibility.
1.3.6.1. The first owner to whom the tax deduction is applied (hereinafter referred to as the first entity) satisfies the conditions for lawful transferability if the tax deduction provides that the first entity may transfer such deduction to an independent party in a fiscal year in which the first entity satisfies the conditions for the deduction minus (first year) or within 15 months from the end of the first year.
1.3.6.2. The tax deduction purchaser satisfies the conditions for lawful transferability if the tax deduction provisions provide that the deduction-purchaser may transfer such tax deduction to an independent party in the fiscal year in which the deduction-purchaser has purchased such deduction. In case according to the provisions on this tax deduction, the unit purchasing the deduction cannot legally transfer the deduction to an independent party or is subject to stricter legal regulations in transferring the deduction compared to the first unit, this tax deduction does not meet the conditions for lawful transfer to the unit buy deductions.
1.3.6.3. The first entity satisfies the market access conditions if the tax deduction is transferred to an independent party within 15 months from the end of the first year (in case of non-assignment or transfer between affiliates, the tax deduction is similar to that transacted between independent parties within 15 months from the date of the end of the first year) at a price equal to or exceeding the market floor price. The unit that buys the deduction satisfies the conditions for market access if the unit purchases such deduction from an independent party at a price equal to or exceeds the market floor price.
The market floor price is determined to be 80% of the net present value of the tax deduction, where the net present value is determined based on the maturity yield of a debt instrument with a term equal to or equivalent (and with a maximum maturity of 5 years) issued in the same fiscal year in which the tax deduction is transferred (in the case of a reduction in the except for non-transferable tax, it is based on the debt instrument issued in the first year) because the Government has granted a tax deduction.
1.4. Distribution of total incomes from the transfer of tangible assets being real estate
The total income from the transfer of tangible assets being real estate is net interest in the selected year from the transfer of tangible assets being real estate in a country of all constituent units in that country, but does not include gains or losses resulting from the transfer of tangible assets being real estate between members of the group.
1.4.1. In case the total income from the transfer of tangible assets being real estate in a country is generated in a fiscal year, the constituent unit responsible for declaration may choose to adjust the income or loss according to the regulations on global minimum tax in a country for each fiscal year in the period of profit transfer to fiscal years previously according to the provisions of Points 1.4.2 and 1.4.3 of this Section.
When making an adjustment option under this point, applicable taxes relating to any income from the transfer of tangible assets being real estate or net losses from the transfer of tangible assets being real estate in the selected year shall be excluded for the calculation of adjusted applicable taxes.
The selection according to this point is an annual selection.
The period of interest transfer to the previous fiscal years as prescribed at this Point is the selected year and the four fiscal years before the selected year.
1.4.2. Principles of income allocation from real estate transfer:
1.4.2.1. Income from real estate transfer in the selected year shall be equally distributed to the fiscal years in the period of interest transfer to the previous fiscal years. In case the years in the interest transfer period have years in which net losses from real estate transfer are incurred by country, the income from real estate transfer shall comply with the provisions of Points 1.4.2.2 and 1.4.2.3 of this Section.
1.4.2.2. Incomes from real estate transfer in the selected year shall be offset in proportion to the net loss from real estate transfer of each constituent unit, resulting in a net loss from real estate transfer in a fiscal year starting from the first year in which a net loss from real estate transfer is incurred by country in the interest transfer period. the previous fiscal year.
The year in which the net loss from real estate transfer is calculated by country is the fiscal year in the period of interest transfer to the previous fiscal years in which the net loss from the transfer of real estate to a constituent unit in that country is incurred, and the total amount of net loss from real estate transfer of all constituent units exceeds the total net income from the transfer of real estate of constituent units.
Net asset loss for a constituent unit and the financial year, is the net loss from the liquidation of tangible assets in a country of that constituent unit during the year, excluding gains or losses on the transfer of assets to another member of the group. The net asset loss shall be reduced by the amount of net asset profit or income from adjusted assets offset against such loss as prescribed at Points 1.4.2.2 and 1.4.2.3 of this section as a result of the previous selection made under this Point.
1.4.2.3. In case the income from real estate transfer transferred back in a fiscal year is less than the total net loss from real estate transfer of all constituent units with net loss from real estate transfer in the fiscal year, such income shall be offset for each constituent unit according to the net loss ratio of each constituent unit the total net loss from real estate transfer of all constituent units has a net loss from real estate transfer.
1.4.2.4. In case in any year of loss, the income from the adjusted assets exceeds the total net loss of all constituent units in the country in which the selection has been made, the income from the adjusted assets shall be carried forward to the year in which the net loss from the transfer of real estate is calculated in the next country (if any) and shall be offset according to the the ratio to any net asset loss of any constituent unit in the country in which the choice was made.
1.4.3. Income from adjusted assets remaining after the application of Points 1.4.2.2 and 1.4.2.3 of this Section shall be equally distributed to each fiscal year in the period of interest transfer to previous fiscal years. Income from the allocated assets of the relevant year will be included in the income or loss under the Global Minimum Tax Regulations for a constituent unit in that country in that year according to the following formula:
| Income from assets allocated for the relevant year to a constituent unit in that country | = | Income from assets allocated for the relevant year | x | Net asset income in the selected year of the constituent unit is determined |
|---|---|---|---|---|
| Net asset income of all constituent units determined in the selected year |
The formula specified at this Point applies to constituent units that have net asset income in the year of selection and such constituent units located in the country in which the choice has been made in the relevant year. If there is no constituent unit identified for the relevant year, the income from the adjusted assets allocated for that year will be distributed equally to each constituent unit in the country in which the choice was made in the relevant year.
In which:
1.4.3.1. Income from assets allocated for the relevant year is income from adjusted assets allocated to that fiscal year in the period of interest transfer to previous fiscal years as prescribed at this Point.
1.4.3.2. Income from adjusted assets related to total income from assets is an amount determined to be equal to the total income from assets in the selected year minus (-) the income that has been offset against the net asset loss of the year in which the net loss from real estate transfer is incurred in the previous country according to the provisions of Points 1.4.2.2 and 1.4.2.3 this.
1.4.3.3. Net asset income is the net profit in the selected year of a constituent unit, which is determined to be the net income from the liquidation of real estate in a country of a constituent unit located in the country in which the choice was made but does not include gains or losses on the transfer of assets to another member of the group.
1.4.4. In case the total income from the transfer of tangible assets being real estate in a fiscal year is insufficient to cover the losses already incurred, the remaining losses shall continue to be offset according to the principles specified at this Point.
1.4.5. The actual tax rate and additional tax, if any, applicable to any previous fiscal year must be recalculated according to the provisions of Point d, Clause 1, Article 7 of this Decree.
1.5. A constituent unit responsible for declaration may choose to apply consolidated accounting operations to exclude incomes, expenses, profits and losses from transactions between constituent units residing in the same country in the same consolidated tax report of the group in that country for calculation of net income or loss under the Minimum Tax Regulations of each of those constituent units. The selection according to this point applies according to the regulations on 5-year selection. In exercising or terminating the election provided for in this paragraph, appropriate adjustments should be made in accordance with the Global Minimum Tax Regulation to ensure that there is no duplication or omission of income or losses under the Global Minimum Tax Regulation from the exercise or termination of the selection.
2. The value of tangible assets and wages are deducted under the Global Minimum Tax Regulations
The value of tangible assets and wages eligible for deduction under the Global Minimum Tax Regulations shall comply with the provisions of Point 6, Section II of this Appendix and the following provisions.
2.1. When calculating the deduction for tangible assets of the supreme parent company, the mechanism for dividend deduction shall not include the remaining value recorded in the book of valid tangible assets corresponding to the excluded income of this supreme parent company.
2.2. Expenses for valid salaries and tangible assets of a transshipment unit which are not allocated to permanent establishments under the provisions of Point 6.4, Section II of this Appendix shall be allocated as follows:
2.2.1. If the net income or loss in the financial statements of the transshipment unit has been allocated to the owner of the constituent unit, the expenditure of wages and valid tangible assets of the unit shall be allocated in the same proportion to the owner of the constituent unit provided that the owner of such constituent unit resides in the country where there are valid public employees and valid tangible assets.
2.2.2. If the transshipment unit is the supreme parent company, the expenditure on wages and valid tangible assets in the country where the supreme parent company resides shall be allocated to that company and reduced accordingly with the excluded income under the provisions of Point 7.1 of this Section.
2.2.3. All expenses on valid wages and other valid tangible assets of the intermediary unit shall be excluded when calculating the value of tangible assets and wages deductible under the Regulations on Global Minimum Tax of the multinational corporation.
3. Allocation of tax within the scope of application from one constituent unit to another constituent unit
3.1. The allocation of tax within the scope of application to permanent establishments, units not subject to income tax, bisexual units, controlled foreign companies (CFCs) and tax levied on incomes divided from one constituent unit to another shall comply with the provisions of Point 3.2 of this Section.
3.2. Taxes within the scope of application shall be allocated from one constituent unit to another as follows:
3.2.1. The applicable tax amount recorded in the accounting books of a constituent unit related to the income or loss under the regulations on global minimum tax of the permanent establishment shall be allocated to such permanent establishment.
3.2.2. The applicable tax amount recorded in the accounting books of a unit not subject to income tax related to income or loss under the Global Minimum Tax Regulations shall be allocated to the owner of such constituent unit under the provisions of Point 3.3.2, Section II of this Appendix.
3.2.3. In case a constituent unit whose owner is subject to the Regulations on taxation for controlled foreign companies, any taxes falling within the scope of application shall be recorded in the accounting books of the direct or indirect owners of the constituent units under the Regulations on taxation for foreign companies under the above-controlled foreign companies the income of the affiliated foreign company shall be distributed to the constituent unit.
In which:
3.2.3.1. Tax regulation for a controlled foreign company is a system of regulations (not IIR) whereby the direct or indirect shareholder of a foreign company (controlled foreign company or CFC) is subject to tax in the current year on part or all of the income earned by the CFC, regardless of whether that income is immediately distributed to that shareholder or not.
3.2.3.2. In case the constituent unit has an owner subject to the Blended CFC Tax Regulations for controlled foreign companies in fiscal years beginning on or before December 31, 2025 but excluding fiscal years ending after June 30, 2027, then the tax on the owner of the constituent unit under the Regulation on tax synthesis for controlled foreign companies will be allocated according to a specific method.
In particular, the General Tax Regulation for controlled foreign companies is the CFC Regulation that requires the accumulation of income, losses and tax deductions of all constituent units to determine the tax liability of related entities and has an applicable tax rate of less than 15%. According to the provisions of this Point, the General Tax Regulations for controlled foreign companies do not take into account the domestic income of a group (although the General Tax Regulations for controlled foreign companies may allow the losses of domestic related entities to be offset against the income of the controlled foreign company).
3.2.4. In case the constituent unit is a bisexual unit, any applicable tax levied on the income of the bisexual unit recorded in the accounting books of the owner of the constituent unit shall be allocated to such bisexual unit.
3.2.5. The tax amount within the scope of application on the profit divided from the constituent unit in the fiscal year recorded in the accounting books of the direct owners of the constituent unit shall be allocated to the constituent unit with such divided profit.
The provisions of this Clause apply to tax within the scope of application of the owner of the constituent unit for the portion of income determined as allocation when the allocated benefits are determined as equity rights according to the tax regulations of the taxing country and the regulations on financial accounting.
3.3. The tax amount within the scope of application allocated to a constituent unit under the provisions of Points 3.2.3 and 3.2.4 of this Section, for indirect incomes included in the adjusted scope of tax of such constituent unit, shall be equal to the lesser of the following amounts:
3.3.1. The applicable tax amount shall be allocated to such indirect income.
3.3.2. The result of the indirect income of the constituent unit shall be taxed under the Regulations on taxation applicable to affiliated foreign companies or under the Regulations on non-taxable subjects multiplied by the domestic additional tax rate of the constituent unit, determined without taking into account the tax amount transferred to the subsidiary under the CFC Regulation or the Regulation on for non-taxable subjects.
The tax amount within the scope of application of the owner of the constituent unit incurred on the remaining indirect income after the application of this point shall not be allocated according to Points 3.2.3 and 3.2.4 of this Section.
3.4. In case the income under the Global Minimum Tax Regulation of a permanent establishment is determined as an income under the Global Minimum Tax Regulation of the parent company as prescribed at Point 2.5, Section II of this Appendix, any applicable tax arising from the place where the permanent establishment is located and related to such income is determined as a tax within the scope of application of the parent company within the limit not exceeding the result from such income multiplied by the highest corporate income tax rate for ordinary income in the country where the parent company resides.
4. Taxes within the scope of application have been adjusted
Taxes within the scope of application that have been adjusted shall comply with the provisions of Points 8 thru 11, Section II of this Appendix and the following provisions:
4.1. Plus adjustments include tax deductions or refunds related to income tax deductions that can be refunded and transferable income tax deductions on the market that are recorded as deductions for current tax expenses.
4.2. Adjustments deducted from tax within the scope of application of a constituent unit do not include income tax deductions that can be refunded to meet the standards and income tax deductions that are transferable on the market.
4.3. In case the transshipment unit is the supreme parent company of a multinational corporation, the loss selection may be carried out according to the regulations on global minimum tax. Deferred tax assets due to losses under the Global Minimum Tax Regulations shall be calculated according to the provisions from Points 10.2 to 10.7, Section II of this Appendix and the provisions on losses under the Global Minimum Tax Regulations of the transshipment unit after the reduction under the provisions of Point 7.2 of this Section.
5. Transfer of assets and liabilities
5.1. In case of transfer of assets and liabilities, the parties shall determine the income or loss according to the regulations on global minimum tax determined according to the provisions of Point 14.1, Section II of this Appendix.
5.2. In case the transfer of assets and liabilities is part of the restructuring under the Global Minimum Tax Regulations, the provisions of Point 5.1 above shall not be applied but shall be implemented as follows:
5.2.1. The transferor (seller) shall exclude any profit or loss from the transfer when calculating income or loss in accordance with the Global Minimum Tax Regulations.
5.2.2. The transferee constituent unit (the purchaser) shall determine the income or loss in accordance with the Global Minimum Tax Regulations of that company after the time of acquisition, based on the book residual value of the assets and liabilities of the transferring constituent unit (the seller) at the time of the transfer.
5.3. Restructuring under the Global Minimum Tax Regulations means the transfer of ownership and type of enterprise (including the case of contributing capital with assets to a constituent unit that this constituent unit does not issue new or additional ownership rights corresponding to the additional assets) or the transfer of assets and liabilities in the such as merger, consolidation, division, separation, liquidation or similar transaction and meet the following conditions:
5.3.1. All or a part of the money paid to the transferee is the owner's benefit issued by the transferee or by an entity related to the transferee; in the case of liquidation it is the interest of the owner of the constituent unit to be transferred or in the event that no amount is paid for the transfer because the issuance of the owner's interest does not make economic sense.
5.3.2. Part or all of the profits or losses from the assets of the transferred constituent units are not subject to tax.
5.3.3. The tax law of the country where the transferee resides stipulates that the transferee must calculate the taxable income after the transfer according to the book value as the basis for calculating the tax of the assets of the transferor and be adjusted according to the non-standard profits or losses upon transfer.
5.4. In case the transfer or acquisition of assets and liabilities is part of a restructuring under the Global Minimum Tax Regulations in which a transferor (seller) registers a non-standard profit or loss, Points 5.1 and 5.2 of this Section shall not apply. which shall be implemented as follows:
5.4.1. The transferring constituent unit (the seller) shall calculate the profit or loss from the transfer into the income or loss in accordance with the Global Minimum Tax Regulations corresponding to the non-standard profit or loss.
5.4.2. The transferee constituent unit (the buyer) shall determine the income or loss according to the Global Minimum Tax Regulations at the time of acquisition according to the remaining book value of the assets and liabilities of the seller at the time of transfer, which has been adjusted in accordance with the tax provisions of the domestic law to account the profits or the loss is not up to standard.
5.5. In case a constituent unit of a multinational corporation has to adjust or is permitted to adjust the book value of assets and liabilities payable at a reasonable value for tax calculation in the country where such constituent unit resides, it shall, at its option, declare constituent units of such multinational corporations shall perform as follows:
5.5.1. Calculate the profit or loss related to the assets and liabilities of such constituent unit when calculating the income or loss under the Global Minimum Tax Regulations, equal to the difference between the remaining value recorded in the accounting books for the assets or liabilities immediately paid in advance and the fair value of the assets or liabilities payable immediately after the date of occurrence of the tax adjustment event (the event that arises from the adjustment) and subtract (or add) the profit (or loss) that does not meet the standards (if any) arising in connection with such adjustment event.
5.5.2. Using the fair value of assets or amounts payable in the accounting books immediately after the adjusted event to determine income or loss in accordance with the Global Minimum Tax Regulations of the fiscal years ending after the adjusted event.
5.5.3. Calculate the sum of the amounts determined at Point 5.5.1 of this Section into the income or loss according to the regulations on global minimum tax of the constituent unit in the fiscal year in which the adjustment event arises or the total allocation of such amounts in 05 years, including the fiscal year in which the adjustment event arises and the following 04 fiscal years; Unless the constituent unit leaves the multinational corporation during this period, the unallocated portion shall be counted in its entirety in the fiscal year in which the constituent unit leaves the multinational corporation.
6. Joint Venture
6.1. Additional tax of a joint venture group means the allocation tax of the supreme parent company from the additional tax portion of all members of the joint venture group.
6.2. The global minimum tax regulations applicable to a joint venture and its subsidiaries for each financial year are as follows:
6.2.1. The joint venture and its subsidiaries are identified as constituent units of a separate multinational corporation and the joint venture is determined to be the supreme parent company of that multinational corporation when calculating the additional tax of the joint venture and its subsidiaries under the provisions of Article 7, Articles 9, 10, 11, 12 and 13 of this Decree.
6.2.2. The parent company that holds direct or indirect ownership in the joint venture or a subsidiary of the joint venture shall apply IIR to the tax allocated to the parent company from the additional tax of a member of the joint venture group as prescribed in Article 6, Points e and g, Clause 1, Article 7 of this Decree.
7. The supreme parent company is the intermediary unit
7.1. The income under the Global Minimum Tax Regulations in a fiscal year of an intermediary unit being the supreme parent company of a multinational corporation shall be reduced by an amount equal to the income under the Global Minimum Tax Regulations allocated to the ownership in the company if it falls into one of the following three cases:
7.1.1. The holder of such ownership rights must declare tax on this income in a tax period ending not later than 12 months after the end of the fiscal year of the multinational corporation and satisfy one of the following two conditions:
7.1.1.1. Entities holding such ownership rights shall be subject to tax on the whole of this income at a nominal tax rate equal to or higher than the minimum tax rate. The nominal tax rate is the tax rate prescribed by law for the subject who holds the ownership of the income allocated to this subject by the supreme parent company.
7.1.1.2. There are reasonable grounds for determining the applicable tax paid by the supreme parent company and other units of a system of units not subject to income tax and the tax payable by the owner on this income equal to or higher than the value of this income multiplied by the minimum tax rate.
7.1.2. The holder of ownership of the supreme parent company is a resident individual who must pay tax in the country of residence of the supreme parent company (the country where the supreme parent company resides) and directly holds 5% or less of the total ownership of the profits and assets of the supreme parent company.
7.1.3. The holder of ownership of the supreme parent company is an organization of the government, an international organization, a non-profit organization or a pension fund and a resident of the country of residence of the supreme parent company that holds a total ownership of 5% or less of the profits and assets of the supreme parent company.
7.2. When calculating the loss under the Global Minimum Tax Regulation for a fiscal year, an intermediary unit that is the supreme parent company of a multinational corporation will be entitled to a reduction in the loss under the Global Minimum Tax Regulation in that fiscal year equal to the loss under the Global Minimum Tax Regulation corresponding to the ownership portion, except for cases where the owner is not allowed to use such losses when calculating his/her own taxable income.
7.3. Transshipment units that reduce their incomes under the regulations on global minimum tax as prescribed at Point 7.1 of this Section shall have their tax reduced within the corresponding scope of application.
7.4. A permanent residence establishment shall be subject to the provisions of Points 7.1 thru 7.3 of this Section if it falls into one of the following two cases:
7.4.1. Transshipment unit means the supreme parent company of a multinational corporation that conducts all or part of its business activities through such permanent establishment.
7.4.2. A non-taxable unit conducts part or all of its business activities through such permanent establishment and such non-taxable unit is directly owned by the supreme parent company or through a system of non-taxable units.
8. The supreme parent company implements the mechanism for dividend deduction
8.1. Dividend deduction mechanism means a tax mechanism that stipulates that tax is levied only on the owner of the unit by allowing the profit distributed to the owner to be deducted from the taxable income of that unit. According to the mechanism for dividend deduction, the dividends of members of the business cooperation organization are considered profits distributed to the owners. The mechanism for dividend deduction also includes the mechanism for business cooperation organizations to be exempt from income tax.
8.2. A business cooperation organization means an organization that buys or sells goods or services on behalf of its members and must comply with a tax regime in the country where the business cooperation organization resides, ensuring that it does not affect the tax liability for the assets or services of its members purchased and sold through the business cooperation organization this work.
8.3. Dividends to be deducted for a constituent unit subject to the mechanism for dividend deduction are:
8.3.1. The profits shall be divided among the holders of ownership rights and this profit shall be deducted from the taxable incomes of the constituent units under the laws of the country in which such organizations reside.
8.3.2. Dividends distributed by members to members of business cooperation organizations.
8.4. When calculating income or loss under the Global Minimum Tax Regulation for a fiscal year, the supreme parent company that is subject to the mechanism for dividend deduction shall be entitled to a deduction of income under the Global Minimum Tax Regulation in that fiscal year equal to the equivalent of the deductible dividend distributed within 12 months from the end of the fiscal year end of the fiscal year (but the result after deduction is not less than 0 (zero)) if it falls into one of the following three cases:
8.4.1. Such dividends are taxable by the dividend recipients in the tax period which ends not later than 12 months from the end of the fiscal year of the supreme parent company and satisfy one of the following conditions:
8.4.1.1. Dividend recipients shall be subject to tax on such dividends at a nominal tax rate equal to or greater than the minimum tax rate.
8.4.1.2. There are reasonable grounds to determine that the sum of the applicable taxes paid by the supreme parent company and the tax payable by the dividend recipients on such dividends is equal to or greater than the value of the whole of this income multiplied by the minimum tax rate.
8.4.1.3. Dividend recipient is an individual and dividend is a member's dividend from a business cooperation organization that is the supplier.
8.4.2. Dividend recipients are resident individuals who must pay tax in the country of residence of the supreme parent company and hold a total ownership of 5% or less of the profits and assets of the supreme parent company.
8.4.3. Dividend recipients are tax-payable residents in the country of residence of the supreme parent company and are organizations of the Government, international organizations, non-profit organizations or pension funds other than pension service organizations.
8.5. The supreme parent company, when deducting income under the Global Minimum Tax Regulations under Point 8.4 of this Section, shall reduce the tax within the scope of application on a proportional basis (except for taxes that are allowed to deduct dividends, including taxes applied on retained profits and equity), and at the same time reduce income under the Global Minimum Tax Regulations by a corresponding amount.
8.6. If the supreme parent company holds ownership in another constituent unit that is implementing the mechanism for dividend deduction (directly or through a series of constituent units also implementing the mechanism for dividend deduction), Points 8.4 and 8.5 of this section shall apply to each constituent unit residing in the country of residence of the supreme parent company shall comply with the mechanism for deduction of dividends within the income range under the Regulations on global minimum tax which is additionally distributed by the supreme parent company to dividend recipients who meet the conditions specified at Point 8.4 of this Section.
8.7. A member's dividend from a cooperative organization that is a supplier shall be taxable when this dividend reduces an expense that is deducted when calculating the taxable income of the member receiving the dividend. This regulation applies to all members who receive dividends, except for individual members.
9. Tax regulations on the distribution of valid incomes
9.1. Tax regulations on valid income division are regulations on enterprise income tax that satisfy the following conditions:
9.1.1. The company's income is taxable only when the company distributes profits to shareholders or when the company is deemed to have distributed profits to shareholders or when the company incurs expenses unrelated to business activities; Taxes on the distribution of eligible income do not include the taxes incurred by the company on profits distributed even though these taxes are retained and deducted by the company that distributes the profits.
9.1.2. The tax rate shall be equal to or higher than the minimum tax rate.
In case the country of the profit-distributing company applies the nominal tax rate but there are regulations before the application of the nominal tax rate, the tax amount of the distributed profits must be added to reflect the gross income before tax, the prescribed tax rate is the tax rate after the application of the aggregate.
9.1.3. These regulations take effect on or before July 1, 2021.
9.2. In case the constituent unit is subject to the tax regulations on the distribution of valid incomes, the constituent unit responsible for the declaration may make a selection according to the regulations on annual selection to add an additional tax on the amounts determined as profits divided under the provisions of Point 9.4 of this Section to the tax the scope of application has been adjusted in the fiscal year. The selection according to this point applies to all constituent units in a country.
9.3. Tax on amounts determined as distributed profits shall be equal to one of the following two amounts if whichever is smaller:
9.3.1. The amount that needs to be increased in order for the actual tax rate specified at Point b, Clause 1, Article 7 of this Decree in a country in a fiscal year to be equal to the minimum tax rate.
9.3.2. The tax on the divided amount shall be payable if the constituent units residing in that country carry out the distribution of all income in accordance with the Tax Regulations on the distribution of valid income in that year.
9.4. When electing to comply with the provisions of Point 9.3 of this Section for each fiscal year, a tax recovery account shall have to be set up for the profits determined to be divided. The tax amount on amounts determined as divided profits determined under the provisions of Point 9.4 of this Section in a country shall be recorded in the tax recovery account for profits determined as divided in the fiscal year in which such account is established. At the end of each subsequent fiscal year, the balances of tax recovery accounts on profits determined to have been divided and established for the previous fiscal years shall be recorded as reduced in the following order provided that the value after the reduction is not less than 0 (zero):
9.4.1. Firstly, the tax paid by the constituent units in the fiscal year on the actual income that has been divided or determined to have been divided.
9.4.2. Secondly, the amount is calculated as the net loss under the Global Minimum Tax Regulations of that country multiplied by the minimum tax rate.
9.4.3. Thirdly, the recovered loss shall be carried forward in the current fiscal year as prescribed at Point 9.5 of this Section.
9.5. The recovered loss transfer shall be made to a country when the amount specified at Point 9.4.2 of this Section exceeds the balance of the tax recovery account for the profits determined as divided. The carry-on of recovered losses will be equal to that excess and be included in subsequent fiscal years as a deduction against the tax recovery account on profits determined to have been split in those fiscal years. When this amount is received in the next fiscal year, the recovered loss carry-on must be reduced by the corresponding amount.
9.6. On the last day of the fourth fiscal year from the fiscal year in which the tax recovery account on profits determined to be divided is established, if there is still a balance on the account (determined under the provisions of Point 9.4 of this Section), the actual tax rate and additional tax of the fiscal year in which such account is established must be calculated according to the provisions of Point d, Clause 1, Article 7 of this Decree. At that time, the balance of this account shall be deducted from the adjusted applicable taxes determined in the fiscal year.
9.7. Taxes paid in a fiscal year relating to actual or determined divided incomes shall not be added to the adjusted applicable taxes in case they have been deducted from the tax recovery account on profits determined to be divided according to regulations at Point 9.4 of this Section.
9.8. In a fiscal year in which a unit is subject to selection under the provisions of point 9.3 above and leaves the multinational corporation or transfers almost all of its assets to an entity other than a constituent unit of that multinational corporation in the same country, the actual tax rate, additional tax of the group and additional tax shall be adjusted as follows:
9.8.1. For each fiscal year before the fiscal year in which the unit is no longer a member of the group, in case the tax recovery account for the group's profits determined to be divided in that country established for the relevant year still has a balance, the actual tax rate and additional tax of the year of account establishment shall be recalculated according to the the principles specified at Point d, Clause 1, Article 7 of this Decree. At that time, the balance of the tax recovery account for profits determined to be divided shall be deducted from the adjusted tax amount determined for each relevant fiscal year.
9.8.2. The additional tax amount due to recalculation shall be multiplied by the liquidation rate recovered to determine the adjusted additional tax of the current year.
After applying the provisions of this Point, the tax recovery account for profits determined as divided, income under the Global Minimum Tax Regulations, taxes within the scope of application have been adjusted, the value of tangible assets and wages deducted under the Global Minimum Tax Regulations for fiscal years with accounts tax recovery for profits determined to be divided must be reduced at a rate corresponding to the recovery liquidation rate.
9.9. The recovery liquidation rate determined for each unit that is no longer a member is determined according to the following formula:
| Recovery liquidation rate | = | Income under the Global Minimum Tax Regulations of the constituent unit |
|---|---|---|
| Net income in a country |
In which:
9.9.1. Incomes under the Global Minimum Tax Regulations of a constituent unit is the total income under the Global Minimum Tax Regulations of the unit that is no longer a member determined under the provisions of Point c.1, Clause 1, Article 7 of this Decree for each fiscal year corresponding to the tax recovery account for profits determined as divided in a country;
9.9.2. Net income in a country means the total net income under the Global Minimum Tax Regulations in a country for each fiscal year corresponding to the tax recovery account for profits determined to have been distributed in that country.
9.10. In case the constituent unit is subject to the tax regulations on the distribution of valid incomes, the regulations on loss selection under the regulations on global minimum tax specified at Point 10, Section II of this Appendix shall not apply.
10. Calculation of actual tax rates for investment units
10.1. Investment unit means:
10.1.1. An investment fund, a real estate investment unit or an insurance investment unit.
10.1.2. A unit with at least 95% of the value of such unit is directly owned by a unit specified at Point 10.1.1 of this Section or through a system of investment funds or real estate investment organizations and this unit operates only or almost exclusively to hold assets or invest capital in the interests of those investment units.
10.1.3. A unit whose value of at least 85% of that unit is owned by a unit specified at Point 10.1.1 of this Section provided that most of the unit's income is an excluded dividend or an excluded gain or loss on equity is excluded when calculating income or loss under the Minimum Tax Regulations as prescribed at Point 4.1.2 or Point 4.1.3, Section II of this Appendix.
10.2. Investment fund means a fund that satisfies all the following criteria:
10.2.1. Established to gather assets (which can be financial assets and non-financial assets) from a number of investors (including some investors who do not have an associated relationship).
10.2.2. Investing under a predetermined investment policy.
10.2.3. Allow investors to reduce the cost of trading, research and analysis or disperse general risks.
10.2.4. Established primarily to generate investment income or profits or to prevent an event, a general or specific outcome.
10.2.5. Investors have the right to recover capital from the assets of the fund or enjoy incomes arising from such assets, based on the contributions of such investors.
10.2.6. The unit or its management board shall be governed by the provisions of the law of the country where the unit is established or managed (including relevant regulations on anti-money laundering and investor protection).
10.2.7. Managed by professional investment fund managers, on behalf of investors.
10.3. Insurance investment unit means a unit that satisfies the regulations on investment funds or is a real estate investment organization, established in connection with debts under insurance contracts or annuity contracts and is owned by a unit identified as an insurance company according to the regulations of the country where the the resident owning unit (including the case where the insurance investment unit is owned by a forwarding unit identified as an insurance company as prescribed). An insurance investment unit can be wholly owned by one unit or by several units belonging to the same multinational corporation. Insurance investment units are excluded from the regulations on identification of intermediary parent companies.
10.4. A real estate investment organization is an organization that holds assets mainly real estate and is owned by many investors. A real estate investment organization whose income is taxed only once in the nature of income of the real estate investment organization or income divided among the subjects holding the ownership of such real estate investment organization (within one year at the latest). In case the property holder is a unit without tax obligations, the condition of being taxed only once is not met in the year in which the income allocated to investors can be exempt from tax, but still meets the regulations on real estate investment organizations.
10.5. Constituent units being investment units must determine the actual tax rates as prescribed at this Point, except for investment units that are not subject to income tax or selected entities specified at Point 11 or Point 12 of this Section.
10.6. The actual tax rate of an investment unit is a constituent unit of a group, which shall be calculated separately when calculating the actual tax rate according to the group in the country where such investment unit resides. The actual tax rate for each investment unit is determined by the taxes within the adjusted scope of application of the investment unit divided by the income under the regulations on global minimum tax of this investment unit, which is calculated according to the provisions of Point c.1, Clause 1, Article 7 of this Decree allocated to the multinational corporation. In case there is more than one investment unit residing in one country, the tax amount within the scope of application has been adjusted and the income under the Global Minimum Tax Regulation of each investment unit allocated to the multinational corporation shall be aggregated to calculate the actual tax rate of all investment units in that country.
10.7. Taxes within the scope of application which have been adjusted by the investment unit shall be determined as the sum of the taxes within the scope of application which have been adjusted and determined for the investment unit under the provisions of Point b.2, Clause 1, Article 7 of this Decree corresponding to the income under the regulations on global minimum tax of the to multinational corporations and taxes within the scope of application shall be allocated to the investment units under the provisions of Point 3 of this Section. The adjusted applicable tax of the investor does not include any applicable tax of the investor calculated on the income that is not the part of the income under the Global Minimum Tax Regulation of the investor allocated to the multinational corporation.
10.8. The portion of income under the Global Minimum Tax Regulations of the investment unit allocated to the multinational corporation shall be determined by the portion allocated from the income or loss according to the Regulations on the Global Minimum Tax of the investment unit to the supreme parent company in accordance with the regulations on the ratio of allocation to the parent company for the unit shall be subject to low tax rates in the fiscal year as prescribed at Point e, Clause 1, Article 7 of this Decree only on the basis of ownership without having to make the selection as prescribed at Point 11 or Point 12 of this Section.
10.9. Additional tax of a constituent unit means an investment unit determined by multiplying the additional tax rate of the investor unit by the income under the global minimum tax regulations of the investment unit after deducting the value of tangible assets and the salary deducted under the global minimum tax regulations of the applicant investors. The additional tax rate of an investor will be the positive percentage difference between the minimum tax rate and the actual tax rate of the investor. In case there are more than one investment unit residing in one country, the income under the Global Minimum Tax Regulation of the investor unit and the value of tangible assets and salaries deducted under the Global Minimum Tax Regulation of each investment unit shall be aggregated for calculation of additional tax of all investment units in that country.
10.10. The value of tangible assets and salaries deductible under the regulations on global minimum tax shall be determined by an investment unit under the provisions of Point c.2, Clause 1, Article 7 of this Decree and exclusion provisions shall not apply to the investment unit. The value of tangible assets and salaries deducted according to the regulations on minimum tax of an investment unit shall be calculated only for valid tangible assets and valid salaries paid to valid employees of investment units.
11. Selection of investment units not subject to income tax
11.1. A constituent unit responsible for declaration may choose to identify a constituent unit as an investment unit that is not subject to income tax in case the country of residence of the owner of such investment unit stipulates that such owner shall be taxable on the difference in the annual revaluation of the reasonable value of the right ownership under the mechanism of adjustment according to the market price or similar mechanism and the tax rate applicable to the income of this owner is equal to or greater than the minimum tax rate.
11.2. A mutual insurance unit also has the right to choose under the provisions of Point 11.1 of this Section for investment units controlled by this mutual insurance unit.
11.3. A constituent unit indirectly owns an investment unit through direct ownership in another investment unit, if the first investment unit is subject to a market-adjusted mechanism or a similar mechanism for direct ownership in the second investment unit, that constituent unit shall be determined is taxable under the mechanism of adjustment according to the market price or a similar mechanism for indirect ownership in the first investment unit.
11.4. The selection under this Point shall comply with the regulations on 5-year selection. If the choice is terminated, the gain or loss from the liquidation of the assets or liabilities held by the investor is determined based on the fair value of the assets or liabilities on the first day of the year in which the choice is terminated.
12. Selection of methods of application of tax regulations to income distribution
12.1. The constituent unit responsible for declaration may select the owner of the constituent unit which is not the investment unit may apply tax provisions to the division of income with respect to ownership in the constituent unit being the investment unit if there are reasonable grounds for determining the owner of the constituent unit constituents shall be subject to tax on incomes from investment units at tax rates equal to or greater than the minimum tax rates.
12.2. The method of application of tax regulations to the distribution of income is as follows:
12.2.1. Distributions and amounts deemed to have been divided from the income under the Global Minimum Tax Regulations of the investment unit under the tax regulations of the country in which the owner resides shall be included in the income under the Global Minimum Tax Regulations of the owner of the constituent unit that has actually received such division (the owner it is not an investment unit).
12.2.2. The total amount of gross tax to be deducted domestically shall be included in the income under the Regulations on Global Minimum Tax and the tax within the scope of application that has been adjusted by the owner of the constituent unit that has actually received such division (such owner is not the investor).
12.2.3. The proportional income of the owner of the constituent unit in the undivided net income under the regulations on global minimum tax of the investor in the year under review shall be determined as the income under the regulations on global minimum tax of the investor in the reporting fiscal year. The income under the regulations on global minimum tax specified at this Point multiplied by the minimum tax rate determined as the additional tax of a constituent unit subject to the low tax rate in a fiscal year as prescribed in Article 6, Points e and g, Clause 1, Article 7 of this Decree.
12.2.4. The income or loss under the Global Minimum Tax Regulation of the investor in the fiscal year and any applicable taxes that have been adjusted in relation to such income shall be excluded when calculating the actual tax rate as prescribed in Article 7 of this Decree; Points 10.6, 10.7, 10.8 and 10.9 of this Section, except for the cases specified at Point 12.2.2 of this Section.
12.3. Net income under the undivided Global Minimum Tax Regulations of a fiscal year is the income under the Global Minimum Tax Regulations of the investor (if any) in the year under the following deductions, provided that the value after deduction is not less than 0 (zero):
12.3.1. The tax amount falls within the scope of application of the investor;
12.3.2. Distributions and amounts deemed to have been distributed to shareholders who are not constituent units that are investment units during the period under consideration;
12.3.3. Losses under the Global Minimum Tax Regulations incurred during the period under review.
12.3.4. Investment losses are transferred.
12.4. Net income under the undivided Global Minimum Tax Regulation for the year under review is not deducted by the distributions or amounts are considered divided if such distributions have been determined to be net income deductions under the undivided Global Minimum Tax Regulation of the previous year under review. When calculating undivided net income under the Global Minimum Tax Rule, the loss under the Global Minimum Tax Regulation is recorded as a reduction in the portion of the loss that was used to reduce the undivided net income under the Global Minimum Tax Regulation at the end of the previous fiscal year. If the Global Minimum Tax Loss for a fiscal year has not been reduced to 0 (zero) before the end of the last review period for that fiscal year, the remaining loss will become a forwarded investment loss and be reduced in the same manner as the Global Minimum Tax Loss in fiscal years main next.
12.5. The year of consideration, the period of consideration, the amount considered divided and the total amount of gross tax to be deducted domestically shall be determined as follows:
12.5.1. The year under review is the third year preceding the reporting fiscal year.
12.5.2. Review period means the period that begins on the first day of the year under review and ends on the last day of the reporting financial year in which a unit of the group holds ownership.
12.5.3. The amount deemed to have been divided arises when direct or indirect ownership in the investment unit is transferred to a non-group unit and is equal to the income divided proportionally from the corresponding undivided portion of the net income under the Global Minimum Tax Regulations of the ownership on the date of transfer (excluding the amount of are considered divided).
12.5.4. The total amount of gross tax to be deducted domestically is the tax that is allowed to be deducted from the tax liability of the owner of the constituent unit related to the distribution of profits of the investment unit.
12.6. The selection under Point 12 of this Section shall comply with the regulations on 5-year selection. If the selection is terminated, the corresponding income of the owner of the constituent unit in the undivided net income under the Global Minimum Tax Regulation of the investor for the year under the review year at the end of the fiscal year preceding the year of termination of the choice shall be determined as income under the Global Minimum Tax Regulation of the first unit for the year of termination of selection and an additional tax on a constituent entity subject to a low tax rate shall be determined to be incurred by multiplying the minimum tax rate by the income under that Global Minimum Tax Regulation in the year of termination of selection in accordance with Article 6, Points e and g, Clause 1, Article 7 of this Decree.
13. In case the constituent units have the supreme parent company being the minority owner
The calculation of the actual tax rate and additional tax in a country in case the constituent units have the supreme parent company being the minority owner shall comply with the provisions of Point 12, Section II of this Appendix.
14. Regulations on constituent units participating in and leaving multinational corporations
In case a constituent unit joins and leaves a multinational group, the provisions at Point 13, Section II of this Appendix shall apply.
In case the company to which the ownership is transferred is the parent company and is a unit of two or more multinational corporations in the year of transfer, the transferred company shall separately apply the IIR to the tax allocated to the transferred company from the additional tax of the constituent units subject to the tax rate low, determined for each multinational corporation.
15. Multinational corporations with multiple parent companies
In case a multinational corporation has many parent companies, the provisions at Point 16, Section II of this Appendix shall apply.
Parent companies of multinational corporations with many parent companies in Vietnam shall apply IIR as prescribed in Articles 6 and 7 of this Decree for the tax allocated to each parent company from the additional tax of the constituent unit subject to low tax rates.
1. Refundable tax assets and refundable tax payable
1.1. Assets of refundable tax and deferred tax payable under the provisions of Clause 2, Article 8 of this Decree include losses that have not yet been recorded due to adjustments to accounting records, depreciation provisions or failure to meet the conditions for recognition.
1.2. Deferred tax assets and refundable tax payable must be calculated at the lower tax rate between the minimum tax rate and the domestic tax rate applicable to such unit.
1.3. The deferred tax assets related to the deduction of the forwarded tax are determined by the deferred tax assets pre-deducted in the accounting books used to calculate the actual tax rate in the transitional year and subsequent years if the tax rate applied to determine such refundable tax asset is lower than the minimum tax rate or in any case Otherwise, the deferred tax assets at this Point are determined as follows:
| Deferred tax assets | = | Deferred tax assets recorded in the accounting books | × | Minimum tax rate |
|---|---|---|---|---|
Domestic tax rate applied to calculate deferred tax assets for such unit |
1.4. Refundable tax assets that have been recorded at a tax rate lower than the minimum tax rate may be calculated at the minimum tax rate if the taxpayer can prove that the deferred tax asset is related to the loss under the Global Minimum Tax Regulations. Deferred tax assets do not take into account the effect of adjustments due to assessment or due to accounting recognition.
1.5. Assets of refundable tax and deferred tax payable shall not be adjusted according to the provisions on deferred tax expenses under the provisions of Points 9.1.1 thru 9.1.4 and 9.4, Section II of this Appendix, except for the case specified at Point 2 of this Section.
2. Deferred tax assets arising from items excluded when calculating income or loss under the Global Minimum Tax Regulations must be excluded when calculating deferred tax assets and deferred tax payable under the provisions of Point 1 of this Section if such deferred tax assets are formed from a transaction that takes place after the 30th day of the month 11 in 2021.
3. The exclusions specified at Point 2 of this Section include deferred tax assets arising from excluded items when calculating income or losses under the Global Minimum Tax Regulations because these excluded items are expenses not recorded under accounting regulations, such as depreciation expenses that exceed actual costs.
4. In case of transfer of property between constituent units (including case of transfer of property within a country, case of cross-border transfer of property, case of transfer or determined as transfer of property in a unit) after November 30, 2021 and before the start of the transition year, the value of the transferred assets (except for inventories) shall be based on the remaining book value of the assets at the time of transfer of the assets and the assets of deferred tax and deferred tax payable under the regulations on global minimum taxes shall also be based on the remaining book value.
4.1. Transitional year means the transitional year for a constituent unit that sells assets, specifically the first year in which the constituent unit's low-taxable income is subject to the application of the Global Minimum Tax Regulation or the year in which the constituent unit is subject to the application of the QQ, regardless of whether other constituent units in the country are subject to the Global Minimum Tax Regulation or not.
4.2. Residual book value means the remaining book value of the transferred assets on the date of transfer, after adjusting capital expenses and depreciation after transfer and before the start of the transition year.
5. In case the transactions at Point 4 of this Section are recorded in accounting according to the book value of the constituent unit to which the property is transferred, the constituent unit to which the property is transferred may record a deferred tax asset which is the sum of the following two values:
5.1. The tax amount already paid by the property transferor for the transfer transaction.
5.2. Deferred tax assets may have arisen or may be recognized by the property transferor under Point 1 of this Section but have not actually arisen or have been refunded because the income from the transfer of such property has been included in the taxable income of the property transferor.
6. In case the transferee constituent unit records the acquired assets in the accounting books at a reasonable price, this unit may use the remaining book value recorded in the accounting books to determine additional tax according to the Global Minimum Tax Regulations for all subsequent years if such constituent unit in the if the residual value recorded in the books of the assets in the accounting books is not used for the determination of additional tax under the Global Minimum Tax Regulations, the deferred tax assets shall be entitled to record deferred tax assets equal to the value of the minimum tax rate multiplied by (x) the difference between the book value as the basis for tax calculation of the assets and the remaining value recorded shall be determined according to the Global Minimum Tax Regulations at Point 4 of this Section.
7. In case a constituent unit is subject to IPR in Vietnam before being subject to IIR in the parent company's country, then:
7.1. Tax expenses less than 0 that have not been fully cleared under the provisions of Point a, Clause 1, Article 5 of this Decree and Point 8.5, Section II of this Appendix shall be excluded at the beginning of a new transitional year.
7.2. The provisions at Point 9.4, Section II of this Appendix shall not apply to the deferred tax payable which has been used to calculate the actual tax rate according to the PMU and shall not be recovered before the new transitional year. The provisions at Point 9.4, Section II of this Appendix only apply to deferred tax payable arising during and after the new transitional year.
7.3. Deferred tax assets due to losses incurred in the year preceding the new transitional year as prescribed at Point 10, Section II of this Appendix shall be excluded. The constituent units responsible for declaration may choose to apply the provisions at Point 10, Section II of this Appendix from the new transitional year.
7.4. Deferred tax assets and deferred tax payable determined before the new transitional year shall be excluded. Clause 2, Article 8 of this Decree shall be applied at the beginning of a new transitional year.
7.5. In case the domestic minimum supplementary corporate income tax meets the standards arising under the provisions of Point 8.5, Section II of this Appendix related to deferred tax assets arising from tax losses, such deferred tax assets shall not be determined to arise from excluded items when calculating income or losses under tax regulations global minimum.
1. Total turnover means the total turnover of a multinational corporation in a country on the standard inter-country profit statement.
2. Profit before enterprise income tax means profit before enterprise income tax in a country on the standard inter-country profit statement.
3. Standard inter-country profit statement means an inter-country profit statement made and submitted using standard financial statements.
In case a multinational corporation is subject to the Global Minimum Tax Regulations but is not required to submit an inter-national profit report as prescribed, that multinational corporation is eligible for liability reduction on the basis of the inter-national profit report if the multinational corporation completes the determination of the liability deduction item on the basis of reporting inter-country profits during the transition period in the information declaration under the Global Minimum Tax Regulations, using data on total revenue and profit before corporate income tax from standard financial statements.
4. The simplified actual tax rate is determined according to the following formula:
| Simplified Effective Tax Rate | = | Simplified applicable taxes |
|---|---|---|
| Profit or loss before income tax is reported in the standard inter-country profit statement of a multinational corporation |
5. Qualified financial statements are:
5.1. Accounting books shall be used for the preparation of consolidated financial statements of the supreme parent company. In some cases, the constituent unit may use accounting books that have included adjustments related to accounting at the purchase price when calculating pre-tax income or loss.
5.2. Separate financial statements of each constituent unit provided that these reports are prepared in accordance with accepted financial accounting standards or permitted financial accounting standards in case the accounting books of the constituent units are made in accordance with the permitted financial accounting standards and the information in the accounting books is of value rely.
5.3. In case a constituent unit is not included in the consolidated financial statements of a multinational corporation on the basis of adding each indicator due to its size or material factors, the standard financial statements are the accounting books of such constituent units used to make inter-country profit statements of the multinational corporation.
6. The use of data in standard financial statements must be consistent and accurate.
7. In case a resident establishment does not have standard financial statements, the multinational corporation may determine the proportion of the total revenue and profit before corporate income tax of the parent company allocated to the resident establishment by using the separate financial statements made by the parent company for the resident establishment to serve the reporting needs financial statements, comply with the provisions of law, tax reporting or internal management. If a loss arising from a permanent establishment is allocated to such permanent establishment, the corresponding pre-corporate income tax profit of the parent company must be adjusted so that the loss is not calculated twice.
8. Simplified applicable taxes are income tax expenses in a country reported on the standard financial statements of a multinational corporation, after excluding any taxes that are not applicable taxes and taxes related to uncertain tax operations (pending adjustment) in the report financial statements meeting the standards of multinational corporations.
9. In case there is an agreement on bisexual price difference implemented after December 15, 2022, the profit before corporate income tax and corporate income tax expenses must be adjusted as prescribed.
10. Net loss from fair value revaluation that has not been realized if it exceeds EUR 50 million in a country that is excluded from profit or loss before income tax. The net loss from revaluation at fair value that has not yet been realized is the sum of losses, minus interests, incurred due to changes in the fair value of ownership (except for the case of ownership of indirect investment ownership).
11. Non-material constituent units, which are units and their permanent establishments are not allowed to consolidate on the basis of adding each indicator on the consolidated financial statements of the supreme parent company based on their size or material factors, these units shall be determined as constituent units under the provisions of Point a, Clause 2 Article 3 of Resolution No. 107/2023/QH15 with the following conditions:
11.1. Consolidated financial statements are the reports specified at Point a or c, Clause 10, Article 3 of Resolution No. 107/2023/QH15;
11.2. Independently audited consolidated financial statements.
11.3. In case the entity's total turnover exceeds EUR 50 million, the accounting books used for the preparation of inter-country profit statements must comply with accepted financial accounting standards or a permitted financial accounting standard.
12. Application of the simple calculation method for non-essential constituent units is the use of indicators under relevant regulations on inter-country profit reporting (total turnover and payable corporate income tax for the current year) to replace the norms under the Global Minimum Tax Regulations (income, turnover and tax within the scope of application have been adjusted) to determine the satisfaction of the liability reduction criteria as prescribed in Article 12 of this Decree.
13. Relevant regulations on inter-country profit reporting are regulations of the supreme parent company or the parent company's country submitting inter-country profit statements on behalf of the supreme parent company. If the country of the supreme parent company does not have regulations on inter-country profit reporting or a multinational corporation is not required to file an inter-country profit report in any country, the relevant regulations on inter-country profit reporting shall comply with common standards.
| No. | Denominator | Content |
|---|---|---|
| 1 | Form No.: 01/TB-DVHT | Notice of the constituent units responsible for declaration and list of constituent units subject to Resolution No. 107/2023/QH15 |
| 2 | Form No.: 02/TB-DVHT | Notice of designation of the constituent unit in Vietnam responsible for declaring and paying taxes according to the Global Minimum Tax Regulations |
| 3 | Form No.: 03/TB-DVHT | Notice that the constituent unit has submitted the Information Declaration under the Global Minimum Tax Regulations in the country with which the Agreement between competent authorities on the exchange of information under the Global Minimum Tax Regulations is in force with Vietnam |
| 4 | Form No.: 01-MST-ĐVHT | Tax code notification |
| 5 | Form No.: 01-DKTĐ-DVHT | Tax registration/change information declaration form |
| 6 | Form No.: 01/TNDN-QDMTT | Supplementary corporate income tax return applicable to the Regulations on standard domestic minimum supplementary corporate income tax |
| 7 | Form No.: 01/TNDN-IIR | Supplementary corporate income tax return applicable to the Regulations on minimum taxable income synthesis |
| 8 | Form No.: 01/TM | Explanatory note explaining the difference due to differences in financial accounting standards |
| 9 | Form No: 01/TKTT-QDMTT | Information declaration applicable to the Regulations on additional minimum domestic corporate income tax that meets the standard |
| 10 | Form No.: 01/TKTT-IIR | Information form applicable to the Regulations on the synthesis of minimum taxable income |
View the PDF file of the forms in Appendix III.
| Legal document in Vietnamese |
|---|
236-cp.signed.pdf |
| Legal document in English |
|---|
ND236_29082025CP_En.pdf |
| Issued date | Effective date | Expired date |
|---|---|---|
| 29/08/2025 | 15/10/2025 |
| Document name | Issued date | Effective date | Expired date |
|---|---|---|---|
| abz_107/2023/QH15 | 29/11/2023 | 01/01/2024 |