More than 100 foreign firms face new 15% tax rate in Vietnam

Vietnam has adopted a global minimum corporate tax rate of 15%, affecting over 100 multinational corporations, including Samsung. This move follows a 2021 agreement by more than 130 countries, aiming to end tax rate shopping by large firms. Vietnam, whose corporate income tax is 20%, had previously offered lower rates to major foreign investors. The new tax rate, endorsed by 94% of Vietnam’s National Assembly members, is set to be implemented from next year, impacting around 122 foreign-invested multinationals. The policy change aligns with Vietnam’s growing role as a key business hub, partly driven by the ‘China plus one’ strategy. The Organisation for Economic Co-operation and Development projects that this global tax reform could generate an additional USD220bn in annual government revenues.