Decree No. 236/2025/ND-CP detailing certain provisions of Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly on the application of additional corporate income tax under the rules to prevent base erosion and profit shifting

DECREE
Providing detailed regulations on certain provisions of Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly regarding the application of additional corporate income tax under the global minimum tax rules Providing detailed regulations on certain provisions of Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly regarding the application of additional corporate income tax under the global minimum tax rules

Pursuant to the Law on Government Organization No. 63/2025/QH15;

Pursuant to the Law on Tax Administration No. 38/2019/QH14; the Law Amending and Supplementing Certain Provisions of the Securities Law, the Accounting Law, the Independent Auditing Law, the State Budget Law, the Law on Management and Use of Public Assets, the Law on Tax Administration, the Personal Income Tax Law, the National Reserve Law, and the Administrative Violation Handling Law No. 56/2024/QH15;

Pursuant to Resolution No. 107/2023/QH15 of the National Assembly regarding the application of additional corporate income tax under the global minimum tax rules;

At the proposal of the Minister of Finance;

The Government promulgates this Decree providing detailed regulations on certain provisions of Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly regarding the application of additional corporate income tax under the global minimum tax rules.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations on certain provisions of Resolution No. 107/2023/QH15 dated November 29, 2023 of the National Assembly regarding the application of additional corporate income tax under the global minimum tax rules (hereinafter referred to as the Global Minimum Tax Rules).

Article 2. Applicability

1. Taxpayers as defined in Article 3 of this Decree;

2. Tax authorities; tax officials;

3. Other state agencies, organizations, and individuals related to the implementation of the Global Minimum Tax Rules.

Article 3. Taxpayers

1. A taxpayer is a constituent unit of a multinational group that has annual revenue in the consolidated financial report of the ultimate parent company of at least two out of four consecutive fiscal years immediately preceding the fiscal year for which the equivalent tax liability is determined, amounting to 750 million euros (EUR) or more, excluding cases excluded as provided for in Clause 1, Article 2 of Resolution No. 107/2023/QH15 and Clause 3 of this Article. The constituent unit specified in this clause shall comply with the provisions of Clause 7, Article 3 of Resolution No. 107/2023/QH15.

In the case of a newly established multinational group with less than four years of operation before the fiscal year for which the tax liability is determined, if there are at least two years with annual revenue in the consolidated financial report of the ultimate parent company of 750 million EUR or more, then the constituent unit of that multinational group is a taxpayer.

Annual revenue of 750 million EUR or more is determined based on the consolidated revenue of the ultimate parent company in specific cases as follows:

a) In the case where one or more fiscal years of a multinational group have a period other than twelve months, for each such fiscal year, the threshold of 750 million EUR will be determined corresponding to the number of days in that fiscal year divided by 365 days.

b) Determining the consolidated revenue of the ultimate parent company in the case of mergers and acquisitions at any fiscal year within the four fiscal years prior to the fiscal year for which the tax liability is determined:

b.1) In the case where two or more groups merge or consolidate to form a multinational group, the threshold of consolidated revenue for each fiscal year before the merger or consolidation is determined by the total revenue of each relevant year in the consolidated financial reports of the groups before the merger or consolidation. If the parties apply different fiscal years, the start and end dates of the fiscal year for each entity shall be determined according to the start and end dates of the fiscal year of the group after the merger or consolidation. If an entity has a fiscal year other than twelve months, it shall be implemented according to Point a, Clause 2 of this Article.

b.2) In the case where two independent entities not belonging to any group merge or consolidate to form a group and only have separate financial statements before the merger or consolidation, the threshold of consolidated revenue for each fiscal year before the merger or consolidation is determined by the total revenue of each year in the financial statements of each entity. If the parties apply different fiscal years, the start and end dates of the fiscal year for each entity shall be determined according to the start and end dates of the fiscal year of the group after the merger or consolidation. If an entity has a fiscal year other than twelve months, it shall be implemented according to Point a, Clause 2 of this Article.

b.3) In the case where an entity merges or consolidates into a group or a group merges or consolidates into an entity not belonging to any group, the threshold of consolidated revenue for each fiscal year before the merger or consolidation is determined by the total revenue of each year in the financial statement of the entity plus the revenue in the consolidated financial report of the group in the same year. If the parties apply different fiscal years, the start and end dates of the fiscal year for each entity shall be determined according to the start and end dates of the fiscal year of the group after the merger or consolidation. If an entity has a fiscal year other than twelve months, it shall be implemented according to Point a, Clause 2 of this Article.

b.4) Cases that are determined as mergers or consolidations to determine the consolidated revenue of the ultimate parent company according to the provisions of this point are:

b.4.1) An agreement leading to all or most of the member units of two or more separate groups being placed under common control to form member units of a multinational group;

b.4.2) An agreement leading to an entity not belonging to any group being placed under common control together with another entity or group to form a multinational group.

c) In the case of splitting or dividing a multinational group

c.1) In the case where a multinational group subject to the Global Minimum Tax Rules is split or divided into two or more groups, the threshold of consolidated revenue in the fiscal years after the split or division is calculated separately for each group. The consolidated revenue of each multinational group in the four fiscal years after the split or division is determined as follows:

c.1.1) For the first fiscal year determining tax liability after division or separation: consolidated financial report revenue of the highest parent company within a multinational group is equivalent to 750 million EUR or more. In cases where the first fiscal year of the divided or separated group is not twelve months, the consolidated financial report revenue of the highest parent company shall be adjusted according to the provisions of point a, Clause 2, Article this.

c.1.2) For fiscal years determining tax liability from the second to the fourth year after division or separation: there must be at least two years, following the year of division or separation, where the annual consolidated financial report revenue of the highest parent company within a multinational group is equivalent to 750 million EUR or more.

c.2) The cases determined as division or separation to determine the consolidated revenue of the highest parent company as provided herein include agreements leading to members of a group being divided or separated into two or more independent groups such that they are no longer consolidated into the consolidated report of the same highest parent company.

3. Cases excluded from being taxpayers include:

a) Cases stipulated from point a to point e, Clause 1, Article 2, Resolution No. 107/2023/QH15. Determination of cases excluded under this point is based on the provisions of points 5 to 9 Appendix I; points 10.1, 10.4 Section III Appendix II; Clause 4, Article 3, Resolution No. 107/2023/QH15 and point 2 Appendix I.

b) The case stipulated at point g, Clause 1, Article 2, Resolution No. 107/2023/QH15 includes:

b.1) An entity with at least 95% of its value directly or indirectly owned by one or more entities excluded under point a of this clause (excluding pension service organizations) and whose activities fall into one of the two situations or both:

b.1.1) The entity operates solely or primarily for the purpose of holding assets or investing capital for the benefit of the excluded entities;

b.1.2) The entity only performs ancillary activities for the operations carried out by the excluded entities or by third parties under the ownership of the excluded entities (at least 95% of the value of the entity);

b.2) An entity with at least 85% of its value directly or indirectly owned by one or more entities excluded as stipulated in point a of this clause (excluding pension service organizations), provided that the majority of the entity's income consists of dividends excluded or profits or losses on equity excluded when calculating income or loss according to points 4.1.2 and 4.1.3 Section II Appendix II.

c) Determination of an entity excluded under the provisions of point b of this clause is based on the entire activity of the entity, including the activities of permanent establishments. If an entity is determined to be an excluded entity, all activities of these entities, including those performed by the permanent establishment of the entity, will be excluded according to the Global Minimum Tax Regulation.

d) An entity that is a member of a group and is owned by an investment fund or a real estate investment organization meeting the conditions stipulated in point b of this clause shall be determined as an excluded entity even if the investment fund or real estate investment organization is not the highest parent company of the group.

đ) In the case of an entity stipulated in point b.1.2 of this clause, where the entire value of the entity is directly or indirectly owned by a non-profit organization, the activities of the entity will be determined as ancillary activities if the total revenue of the members in the group (excluding revenue from non-profit organizations or revenue from an entity excluded under point b.1.1 and point b.2 of this clause or another entity considered as an excluded entity under this provision) is less than 25% of the revenue of the multinational group and less than 750 million EUR (in cases where the fiscal year is not twelve months, it shall be implemented according to the provisions of point a, Clause 2, Article this).

e) Revenue of excluded entities will be included in the group revenue when determining the threshold of consolidated revenue.

g) A constituent entity responsible for filing may choose to relinquish the right to apply Clause 3 of this Article to an entity that is an excluded entity. The choice under this clause applies according to the five-year election provision.

Chapter II
SPECIFIC PROVISIONS

Section 1
PROVISIONS ON CORPORATE INCOME TAX
ADDITIONAL DOMESTIC MINIMUM STANDARDS

Article 4. Principles for Applying the Provision on Minimum Domestic Tax Supplement Standards

1. A constituent unit or a group of constituent units of a multinational corporation that is a taxpayer under Article 3 of this Decree, conducting production and business activities in Vietnam and having a place of residence in Vietnam as defined in Section I of Appendix II, must apply the provision on Minimum Domestic Tax Supplement Standards (hereinafter referred to as QDMTT).

2. In cases where a multinational corporation has more than one constituent unit in Vietnam, the constituent unit responsible for filing returns shall be responsible for determining the obligations according to the QDMTT provisions for all constituent units of the multinational corporation in Vietnam.

The multinational corporation with constituent units subject to the QDMTT may independently decide on the allocation of additional tax payments required under the QDMTT among its constituent units in Vietnam and report the allocated tax information on the Additional Corporate Income Tax Return Form (Form No. 01/TNDN-QDMTT) issued together with this Decree.

3. The provision on QDMTT does not apply to constituent units unable to determine their country or territory of residence (hereinafter collectively referred to as "country"), permanent establishments unable to determine their country of residence, and investment units.

Constituent units unable to determine their country of residence as stipulated in point 1.2 of Section I of Appendix II, permanent establishments unable to determine their country of residence as stipulated in point 2.4 of Section I of Appendix II, and investment units as specified in point 10.1 of Section III of Appendix II.

4. The fiscal year for applying the QDMTT is determined based on the fiscal year of the highest parent company, except in cases provided for in point 15 of Section II of Appendix II.

Article 5. Determining the Amount of Minimum Domestic Tax Supplement Standard

1. The amount of Minimum Domestic Tax Supplement Standard is determined according to the formula prescribed in Clause 2 of Article 4 of Resolution No. 107/2023/QH15, wherein:

a) The rate of additional tax is determined according to the provisions of Clause 3 of Article 4 of Resolution No. 107/2023/QH15. The rate of additional tax is rounded to the fourth decimal place.

If the rate of additional tax is higher than the minimum tax rate (due to the actual tax rate being less than 0), the multinational corporation calculates the additional tax rate at 15%. In this case, tax expenses within the scope of application that have been adjusted to less than 0 in the fiscal year determining the tax liability are transferred to subsequent years to reduce corporate income tax in Vietnam within the scope of application when determining the actual tax rate in Vietnam, and are implemented according to the management procedures for tax expenses less than 0 that have not yet been fully offset as stipulated in point 8.6 of Section II of Appendix II.

b) The actual tax rate in Vietnam is calculated annually and is determined according to the formula in Clause 5 of Article 4 of Resolution No. 107/2023/QH15, wherein:

b.1) Corporate income tax in Vietnam within the scope of application includes: Tax recorded in accounting books related to income or profit of a constituent unit or related to the portion of income or profit of another constituent unit that it holds ownership over; other types of taxes similar in nature to corporate income tax, excluding the following: Additional tax deducted in advance by the parent company according to the Global Intangible Low-Taxed Income (GILTI) standard (if applicable); additional tax deducted in advance by a constituent unit according to the QDMTT; tax paid by a constituent unit that is an insurance company on behalf of the policyholder's investment income.

b.2) Adjusted corporate income tax in Vietnam within the scope of application is the corporate income tax in Vietnam within the scope of application as stipulated in point b.1 of this clause and is adjusted according to the provisions from point 7 to point 11 of Section II of Appendix II.

b.3) The actual tax rate is calculated separately for the following cases:

b.3.1) Constituent units where the highest parent company is a minority shareholder in a subsidiary group where the highest parent company is also a minority shareholder.

b.3.2) Constituent units where the highest parent company is a minority shareholder but are not members of a subsidiary group where the highest parent company is a minority shareholder. Constituent units where the highest parent company is a minority shareholder, and subsidiary groups where the highest parent company is a minority shareholder are specified in point 12 of Section II of Appendix II.

c) The taxable profit for additional tax is determined according to the provisions of Clause 6 of Article 4 of Resolution No. 107/2023/QH15, wherein:

c.1) Net income under the Global Minimum Tax Rule is determined according to the provisions of Clause 7 of Article 4 of Resolution No. 107/2023/QH15, ensuring that the income or loss under the Global Minimum Tax Rule of each constituent unit is net income or loss at the financial statement (prepared according to the financial accounting standards used to prepare the consolidated financial statements of the highest parent company) of the constituent unit in the fiscal year determining the tax liability before any consolidation adjustments to eliminate internal transactions within the group when preparing the consolidated financial statements of the highest parent company and is adjusted according to the provisions from point 1 to point 5 of Section II of Appendix II.

c.2) The value of tangible assets and wages deductible under the Global Minimum Tax Rule is determined according to the provisions of Clause 8 of Article 4 of Resolution No. 107/2023/QH15. The value of tangible assets and wages deductible under the Global Minimum Tax Rule in Vietnam includes the total deductions for tangible assets and the total deductions for wages of each constituent unit, except for constituent units that are investment units. The method of determining the deduction for tangible assets and the deduction for wages is carried out according to the provisions of point 6 of Section II of Appendix II.

d) The adjusted additional tax amount for the current year includes:

d.1) The amount of additional tax arising in cases where the actual tax rate and additional tax of the previous fiscal year must be recalculated according to the provisions of points 9.4, 11.1, 11.4 of Section II, points 1.4 and 9 of Section III of Appendix II.

d.2) The additional tax amount generated shall be determined in accordance with the provisions of Point 8.5, Section II, Appendix II of this Decree, except in cases where the constituent entity responsible for filing chooses to apply the provisions of Point 8.6, Section II, Appendix II.

2. The minimum domestic corporate income tax supplement that meets the standard will be determined as 0 (zero) in the fiscal year in which the tax liability is determined according to Clause 9, Article 4 of Resolution No. 107/2023/QH15, except in the case provided for in Clause 3 of this Article, wherein:

a) Average revenue, income, or loss in Vietnam shall be determined in accordance with Clause 14, Article 3 of Resolution No. 107/2023/QH15.

In cases where there is no constituent entity having revenue, income, or loss in accordance with the Global Minimum Tax Regulation 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 from the calculation of average revenue and average income or average loss under the Global Minimum Tax Regulation. In cases where a multinational group has a constituent entity with a top parent company holding a minority interest, the average revenue and average income stipulated in this clause shall include the revenue or income of that constituent entity.

b) In cases where a constituent entity has a fiscal year other than twelve months, the revenue, income, or loss of that year shall be adjusted in accordance with Point a, Clause 2, Article 3 of this Decree.

c) The constituent entity that chooses to apply or not apply the provisions of this clause is the constituent entity responsible for filing.

3. The minimum domestic corporate income tax supplement that meets the standard in Vietnam shall not be determined as zero in cases where post-filing adjustments related to actual tax rate adjustments occur, causing the average income and average revenue in Vietnam to exceed the threshold specified in Clause 9, Article 4 of Resolution No. 107/2023/QH15 in previous fiscal years. The constituent entity responsible for filing must provide relevant information in accordance with the Information Return under the Global Minimum Tax Regulation and file and pay taxes for those fiscal years and related fiscal years (if any).

4. The determination of the corporate income tax supplement under the Global Minimum Tax Regulation for cases involving constituent entities with a top parent company holding a minority interest, constituent entities joining and leaving a multinational group, asset transfers and liabilities, joint ventures, multinational groups with multiple parent companies, and permanent establishments with a top parent company being a transferor entity shall be carried out in accordance with the corresponding provisions from Point 12 to Point 17, Section II, Appendix II.

Section 2
COMBINED INCOME TAX BASE REGULATION

Article 6. Principles for Applying Combined Income Tax Base Regulations

1. The ultimate parent company, partially-owned parent company, and intermediate parent company in Vietnam, as constituent entities under Article 2 of Resolution No. 107/2023/QH15, directly or indirectly holding ownership interests in constituent entities subject to low tax rates abroad at any time during the fiscal year (taxpayer), must apply the combined income tax base regulation (hereinafter referred to as IIR); they must file and pay taxes according to IIR by allocating part of the additional tax from the Global Minimum Tax Regulation of constituent entities subject to low tax rates abroad in the fiscal year, except when such additional tax is paid in another country where the combined income tax base regulation that meets the standard takes precedence according to the Global Minimum Tax Regulation's priority order for tax collection.

Ownership interest means equity interest, whereby the owner has rights over profits, capital, or other items included in equity of an entity, including the permanent establishment of the main company or a transferor entity, and the permanent establishment of a transferor entity. Equity interest is defined according to the equity item in financial accounting standards used to prepare consolidated financial statements.

2. The order of application of IIR under the Global Minimum Tax Regulation is as follows:

a) A partially-owned parent company residing in Vietnam that directly or indirectly holds ownership interests in constituent entities subject to low tax rates abroad at any time during the fiscal year in which the tax liability is determined must pay tax equal to the portion allocated to the partially-owned parent company from the additional tax of the constituent entity subject to low tax rates abroad in that fiscal year, except when the partially-owned parent company residing in Vietnam is wholly owned directly or indirectly by another partially-owned parent company that has the obligation to apply the IIR that meets the standard in that fiscal year in Vietnam or in another country.

b) An ultimate parent company, a constituent entity of a multinational group residing in Vietnam, that directly or indirectly holds ownership interests in constituent entities subject to low tax rates abroad at any time during the fiscal year in which the tax liability is determined must pay tax equal to the portion allocated to the ultimate parent company from the additional tax of the constituent entity subject to low tax rates abroad in that fiscal year.

c) An intermediate parent company of a multinational group in Vietnam that directly or indirectly holds ownership interests in a constituent entity subject to low tax rates abroad at any time during the fiscal year in which the tax liability is determined must pay tax equal to the portion allocated to the intermediate parent company from the additional tax of the constituent entity subject to low tax rates abroad in that fiscal year, except when the ultimate parent company of the multinational group has the obligation to apply the IIR that meets the standard in that fiscal year in Vietnam or in another country; another intermediate parent company that directly or indirectly controls this intermediate parent company has the obligation to apply the IIR that meets the standard in that fiscal year in Vietnam or in another country.

3. The country implementing the IIR meets the standard set forth in the list published by the Joint Forum on Combating Base Erosion and Profit Shifting.

Article 7. Determination of the Total Additional Tax at One Country

1. The total additional tax at one country shall be determined according to the formula prescribed in Clause 2, Article 5 of Resolution No. 107/2023/QH15, wherein:

a) The rate of additional tax: is determined according to the provisions of Clause 3, Article 5 of Resolution No. 107/2023/QH15. The rate of additional tax is rounded to the fourth decimal place. In cases where the rate of additional tax exceeds the minimum tax rate (due to the actual tax rate being less than zero), multinational corporations shall calculate the additional tax rate as 15%. Costs of taxes within the scope of application that have been adjusted to be less than zero for the fiscal year determining the tax liability shall be transferred to subsequent years to reduce corporate income tax within the scope of application when determining the actual tax rate in that country, and shall be implemented according to the management procedures for costs of taxes less than zero that have not yet been fully offset as stipulated in Point 8.6, Section II, Appendix II.

b) The actual tax rate at one country shall be calculated annually and determined according to the formula provided in Clause 5, Article 5 of Resolution No. 107/2023/QH15, wherein:

b.1) Corporate income tax within the scope of application at one country includes: Taxes recorded in accounting books related to the income or profit of constituent units or related to the portion of income or profit at another constituent unit which the constituent unit holds ownership rights; other types of taxes with a nature similar to corporate income tax; taxes on distributed profits, amounts considered as profit distributions or non-operating expenses according to the regulations on taxation of standardized income distribution and taxes applied to retained earnings and equity of enterprises, including taxes applied to income and equity items, except for the following: Additional taxes pre-deducted by the parent company according to the standardized IIR (if any); additional taxes pre-deducted by a constituent unit according to the QDMTT; taxes paid by a constituent unit acting as an insurance company on behalf of policyholders' investment income, non-standard refundable income taxes, and related taxes due to adjustments made by a constituent unit due to the application of standardized UTPR (if any).

b.2) The adjusted corporate income tax within the scope of application at one country is the amount of corporate income tax within the scope of application as specified in point b.1 of this clause and adjusted according to the provisions of points 3 and 4, Section III, Appendix II.

b.3) The actual tax rate is calculated separately for the following cases:

b.3.1) Constituent units where the highest parent company is a minority shareholder in a subsidiary group where the highest parent company is also a minority shareholder.

b.3.2) Constituent units whose ultimate parent company is a minority shareholder and are not members of a subsidiary group whose ultimate parent company is a minority shareholder.

b.3.3) Constituent units unable to determine their country of residence. Each constituent unit unable to determine its country of residence shall be treated as an independent constituent unit residing in a separate country when determining the actual tax rate and additional tax.

b.3.4) Investment units.

b.4) When determining the actual tax rate and net income according to the Global Minimum Tax Regulation as stipulated in this Article at one country, the adjusted taxes within the scope of application and income or losses according to the Global Minimum Tax Regulation of the constituent units specified in point b.3 of Clause 1 of this Article must be excluded.

c) The taxable profit for additional tax is determined according to the provisions of point c of Clause 1 of this Decree.

c.1) Net income according to the Global Minimum Tax Regulation is determined according to the provisions of point c.1 of Clause 1 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 Regulation is determined according to the provisions of point c.2 of Clause 1 of this Decree and point 2, Section III, Appendix II.

d) The adjusted additional tax amount for the current year is determined according to the provisions of point d of Clause 1 of this Decree.

d.1) According to the provisions of point d.1 of Clause 1 of this Decree, if a taxpayer generates an adjusted additional tax for the current year at one country during the fiscal year determining the tax liability but does not have net income according to the Global Minimum Tax Regulation in that country in the fiscal year, then the net income according to the Global Minimum Tax Regulation of each constituent unit in that country for calculating the allocation ratio for the parent company for the constituent unit subject to a lower tax rate shall be equal to the additional tax allocated to that unit divided by the minimum tax rate. The additional tax allocated to the constituent unit in this case shall be calculated based on the ratio of the net income according to the Global Minimum Tax Regulation of that constituent unit over the total net income according to the Global Minimum Tax Regulation of all constituent units in one country in the fiscal year in which the recalculation is carried out according to the provisions of point d.1 of Clause 1 of this Decree.

d.2) According to the provisions of point d.2 of Clause 1 of this Decree, if a taxpayer generates an adjusted additional tax for the current year at one country during the fiscal year determining the tax liability, then the net income according to the Global Minimum Tax Regulation of each constituent unit in that country for calculating the allocation ratio for the parent company for the constituent unit subject to a lower tax rate in the fiscal year shall be equal to the additional tax allocated to that unit according to the provisions of this point divided by the minimum tax rate. The adjusted additional tax for the current year allocated to each unit according to the provisions of this point shall only be allocated to constituent units that record adjusted taxes within the scope of application less than zero and less than the net income or loss according to the Global Minimum Tax Regulation of that constituent unit multiplied by the minimum tax rate. The allocation will be carried out based on the ratio calculated for each constituent unit according to the following formula:

The amount to determine the allocation ratio for each constituent unit = (Net income or loss according to the Global Minimum Tax Regulation x Minimum tax rate) - Adjusted tax within the scope of application.

d.3) If a constituent unit is allocated additional tax adjusted for the current year in accordance with point d.1, point d.2 of this clause and Clause 10, Article 5 of Resolution 107/2023/QH15, then that constituent unit shall be determined as a constituent unit subject to low tax rate.

đ) When determining the additional tax payable under the IIR, the amount of additional tax under the QDMTT calculated in another country during the fiscal year in which the tax liability is determined shall be deducted. The country implementing the QDMTT is listed in the list published by the Joint Forum on Base Erosion and Profit Shifting.

e) The amount of tax allocated to the parent company from the additional tax of the constituent unit subject to a low tax rate, as stipulated in Clause 11, Article 5 of Resolution No. 107/2023/QH15, includes:

e.1) The income allocated according to ownership held by other owners is the income considered to belong to those owners according to the principles of the financial reporting standards accepted for use in the consolidated financial statements of the ultimate parent company, assuming the net income of the constituent unit subject to a low tax rate equals the income under the Global Minimum Tax Regulation, while ensuring the following conditions:

e.1.1) The parent company is determined to have prepared consolidated financial statements in accordance with the accounting standards of the consolidated financial statements of the ultimate parent company (Assumed Consolidated Financial Statements);

e.1.2) The parent company has control over the constituent unit subject to a low tax rate so that all revenues and expenses of the constituent unit subject to a low tax rate are consolidated correspondingly with each revenue and expense item of the parent company in the assumed consolidated financial statements;

e.1.3) All income under the Global Minimum Tax Regulation of the constituent unit subject to a low tax rate is determined to arise from transactions with parties that are not entities within the group;

e.1.4) All ownership interests not directly or indirectly held by the parent company are determined to be held by parties that are not entities within the group;

e.2) In the case where the constituent unit is a conduit entity, the income under the Global Minimum Tax Regulation of the constituent unit subject to a low tax rate used to allocate additional tax under the IIR will not include income already allocated to the owners of the conduit entity who are not members of the group and hold ownership interest in the conduit entity directly or indirectly through a system of non-taxable entities;

g) A parent company holding indirect ownership interest in a constituent unit subject to a low tax rate through an intermediate parent company or a partially-owned parent company that does not meet the conditions to be excluded from the application of the Combined Income Tax Regulation under point a or point c of Clause 2, Article 6 of this Decree, the amount of tax allocated to the parent company from the additional tax of the constituent unit subject to a low tax rate will be reduced. The amount of tax reduction is equal to the amount of tax allocated to the parent company and this tax has been calculated by the intermediate parent company or the partially-owned parent company under the IIR standard;

2. The total additional tax at a country will be determined as 0 (zero) in accordance with Clause 12, Article 5 of Resolution No. 107/2023/QH15, except in the cases provided for in Clause 3 of this Article, including:

a) Average revenue, income, or loss at a country is determined in accordance with Clause 14, Article 3 of Resolution No. 107/2023/QH15. In the case where there are no constituent units with revenue or income or loss under the Global Minimum Tax Regulation in that country in the first or second fiscal year before the fiscal year in which the tax liability is determined, those years will be excluded when calculating average revenue and average income or loss under the Global Minimum Tax Regulation in that country. In the case of a multinational group with a constituent unit where the ultimate parent company is a minority owner, the average revenue and average income specified in this clause include the revenue or income of that constituent unit;

b) In cases where a constituent entity has a fiscal year other than twelve months, the revenue, income, or loss of that year shall be adjusted in accordance with Point a, Clause 2, Article 3 of this Decree.

c) The constituent entity that chooses to apply or not apply the provisions of this clause is the constituent entity responsible for filing.

d) The selection provision of this Article does not apply to a constituent unit that is an unidentifiable resident constituent unit or an investment entity. Revenue, income, or loss of an unidentifiable resident constituent unit or an investment entity is excluded when calculating average revenue and average income or loss under the Global Minimum Tax Regulation in that country;

3. The total additional tax at a country shall not be determined as zero in the event of post-filing adjustments related to actual tax rate adjustment clauses causing average income and average revenue in that country to exceed the threshold set out in Clause 12, Article 5 of Resolution No. 107/2023/QH15 in previous fiscal years. The responsible constituent unit must provide relevant information in accordance with the Information Return under the Global Minimum Tax Regulation and file and pay taxes for those fiscal years and related fiscal years (if any);

4. The determination of additional corporate income tax under the IIR for certain asset and liability transfers, joint ventures, ultimate parent company as a conduit entity, ultimate parent company implementing dividend withholding tax rules, regulations on taxation of legitimate income distribution, actual tax rate calculation for investment entities, selection of tax-exempt investment entities, selection of methods for applying income distribution tax regulations, constituent units with ultimate parent companies as minority owners, provisions for constituent units joining and leaving multinational groups, multinational groups with multiple ultimate parent companies shall be carried out in accordance with the corresponding provisions from point 5 to point 15 of Section III of Appendix II;

Section 3
TRANSFER AND REDUCTION OF LIABILITY PROVISIONS

Article 8. Handling Tax Items During the Transition Period

1. The transition year for a country is the first fiscal year in which a multinational group falls within the scope of application of the Global Minimum Tax Rules in that country.

2. When determining the effective tax rate in a country during the transition year and for each subsequent year, the multinational group must calculate all deferred tax assets and deferred tax liabilities reflected or recorded in the financial statements of all constituent units in that country at the beginning of the transition year. Deferred tax assets and deferred tax liabilities are determined according to the provisions from Point 1 to Point 6, Section IV, Appendix II.

3. In the case where a constituent unit subject to the Global Minimum Tax in Vietnam before being subject to the Income Inclusion Rule in the home country of the parent company, the new transition year is the first fiscal year in which the constituent unit becomes subject to the Income Inclusion Rule in the home country of the parent company, and the effective tax rate in Vietnam is determined according to the provisions of Point 7, Section IV, Appendix II.

Article 9. Reduction of Liability in the Initial Stage of Implementing International Investment Activities

1. Additional tax under the Global Minimum Tax in Vietnam is determined as 0 (zero) during the initial stage of implementing international investment activities by a multinational group.

2. A multinational group is considered to be in the initial stage of implementing international investment activities if it meets both conditions simultaneously in the fiscal year determining its tax liability as follows:

a) The multinational group has constituent units in no more than 06 countries at any point in time during the fiscal year determining its tax liability;

b) The total book value of tangible assets of all constituent units in all countries outside the reference country does not exceed 50 million EUR.

The reference country of a multinational group is the country in which the multinational group has the highest total value of tangible assets in the first fiscal year when the group first falls within the scope of application of the Global Minimum Tax Rules.

The total value of tangible assets in a country is the total book value of all tangible assets of all constituent units in the multinational group residing in that country. The book value of tangible assets is the average value at the beginning and end of the period of the tangible assets recorded on the financial statements of each constituent unit (after deducting depreciation or cumulative amortization, impairment losses).

3. Paragraph 1 of this Article shall not apply to any fiscal year starting later than five years after the first day of the first fiscal year when the multinational group first falls within the scope of application of the Global Minimum Tax Rules. For multinational groups within the scope of the Global Minimum Tax Rules from the fiscal year 2024, the five-year period will begin from the start date of the fiscal year 2024.

Article 10. Reduction of Liability for Having Implemented the Global Minimum Tax

1. If the Global Minimum Tax in a country satisfies the conditions for reduction of liability for having implemented the Global Minimum Tax as listed by the Joint Forum on Base Erosion and Profit Shifting, then additional tax in that country under Article 7 of this Decree in Vietnam is determined as 0 (zero).

2. If the Global Minimum Tax in a country satisfies the conditions for reduction of liability but the multinational group is not subject to the Global Minimum Tax in that country or the tax authority in that country does not collect the Global Minimum Tax from the constituent unit in that country, then the multinational group shall not apply Paragraph 1 of this Article in Vietnam.

Article 11. Reduction of Liability During the Transition Period

1. The transition period is the time frame that includes fiscal years starting on or before December 31, 2026 but does not include fiscal years ending after June 30, 2028.

2. During the transition period, the reduction of liability based on the consolidated profit report shall be as follows:

a) The additional tax amount at a country in a fiscal year will be determined to be 0 (zero) when meeting one of the following criteria:

a.1) In the fiscal year, the multinational group has a compliant consolidated profit report with total revenue under 10 million EUR and pre-tax income below 1 million EUR or a loss in that country;

a.2) In the fiscal year, the multinational group has a simplified effective tax rate at least 15% for fiscal years 2023 and 2024; 16% for fiscal year 2025; and 17% for fiscal year 2026 in that country;

a.3) The pre-tax income of the multinational group in that country is equal to or lower than the value of tangible assets and deductible wages calculated according to the Global Minimum Tax Regulation for constituent units residing in that country based on the compliant consolidated profit report, wherein the ratio to determine the value of tangible assets and deductible wages is the ratio according to the Global Minimum Tax Regulation, including the ratio during the transition period as stipulated in Appendix issued together with Resolution No. 107/2023/QH15;

a.4) Losses on the compliant consolidated profit report.

b) The method for determining total revenue, pre-tax income, compliant consolidated profit report, simplified effective tax rate, and compliant financial statements is specified from Point 1 to Point 10, Section V, Appendix II.

3. The provisions set forth in Clause 2 above are calculated based on data from all units and permanent establishments in a country.

The reduction of liability based on the consolidated profit report as provided for in Clause 2 of this Article for joint ventures and subsidiaries of joint ventures shall be applied as constituent units of a separate multinational group, except for income or losses and total revenue according to the Global Minimum Tax Regulation taken from the compliant financial statements.

4. During the transition period, administrative penalties for tax violations as stipulated in Point b, Clause 6, Article 6 of Resolution No. 107/2023/QH15 shall not be imposed for the following acts:

a) Submitting notification late or failing to submit notification as prescribed in Clause 1, Article 14 of this Decree;

b) Registering taxes late up to 90 days from the deadline prescribed in Article 15 of this Decree;

c) Submitting notification of changes to tax registration content late as prescribed in Article 15 of this Decree without changing the tax registration certificate or tax identification number notification;

d) Submitting notification of changes to tax registration content late up to 90 days from the deadline prescribed in Article 15 of this Decree, resulting in changes to the tax registration certificate or tax identification number notification;

đ) Incorrectly declaring or incompletely declaring contents in tax declaration documents without leading to a shortage of tax payable or an increase in tax exemptions, reductions, or refunds;

e) Submitting tax declaration documents late up to 90 days from the deadline prescribed in Clause 5, Article 16 of this Decree; submitting tax declaration documents late from 91 days onwards but without generating tax payable;

g) Submitting tax declaration documents late from 91 days onwards from the deadline prescribed in Clause 5, Article 16 of this Decree, generating tax payable but the taxpayer has paid the full amount of tax and late payment interest into the state budget before the tax authority announces the decision to inspect tax, or another competent authority announces the decision to inspect or audit, or before the tax authority prepares the record of the late submission of tax declaration documents;

h) Incorrectly declaring the basis for calculating tax or the amount of tax deducted or incorrectly identifying cases eligible for tax exemptions, reductions, or refunds leading to a shortage of tax payable or an increase in tax exemptions, reductions, or refunds, but economic transactions have been fully reflected in accounting books, legal invoices, and documents, and the taxpayer has voluntarily paid the full amount of tax due and late payment interest into the state budget before the competent authority issues the administrative penalty decision.

5. If no administrative penalty is imposed as stipulated in Clause 4 of this Article, the authorized authority shall not issue a penalty decision, but the taxpayer must still comply with notifications, tax registrations, submission of tax declaration documents, and tax payments as prescribed in this Decree.

6. The provisions set forth in Clause 2 of this Article shall not apply to the country of the ultimate parent company if the ultimate parent company is a conduit entity and the ultimate parent company implements a dividend withholding mechanism, except where all ownership interests in the ultimate parent company are held by qualified owners. Specific applications are as follows:

a) If the ultimate parent company is a conduit entity or implements a dividend withholding mechanism, the profit or loss before corporate income tax (and any other related tax) of the ultimate parent company shall be reduced by an amount equivalent to the portion distributed or deemed distributed according to the ownership held by qualified owners.

b) If the ultimate parent company is a conduit entity, the qualified owner is the holder of ownership interests as stipulated from Point 7.1.1 to Point 7.1.3, Section III, Appendix II.

c) If the ultimate parent company implements a dividend withholding mechanism, the qualified owner is the recipient of dividends as stipulated from Point 8.4.1 to Point 8.4.3, Section III, Appendix II.

7. The provisions regarding the reduction of liability based on the consolidated profit report for investment entities residing in a country as prescribed in the consolidated profit report (the country of the investment entity) shall be applied as follows:

a) Investment entities shall apply separately as prescribed in Points 10, 11, and 12, Section III, Appendix II, except as provided for in Point b of this clause, wherein:

a.1) Water of the investment unit and the country where the owner of the investment unit is located, if they are residents with provisions continuing to apply the regulations on reduced responsibility based on consolidated profit reporting during the transitional period;

a.2) The pre-tax profit or loss and total revenue of the investment unit (and any other related taxes) shall be recorded for the country of the direct owner of the investment unit according to the corresponding ownership ratio.

b) The investment unit does not have to apply separately unless it chooses to implement the provisions of Points 11 and 12 Section III Appendix II, and all constituent units that are owners of the investment unit are residents in the country of the investment unit.

8. The provisions at point a Clause 2 of this Article do not apply to:

a) Constituent units that cannot determine their resident country;

b) Multinational groups with multiple parent companies whose consolidated profit reports do not include information about the entire group;

c) Countries where constituent units have chosen to apply the regulation on tax allocation of income according to Point 9 Section III Appendix II;

d) Countries where a multinational group subject to the Global Minimum Tax Regulation has constituent units but did not apply the reduced responsibility regulations during the transitional period in the previous fiscal year, except when the previous year the multinational group did not apply the reduced responsibility regulation due to having no constituent units in that country.

Article 12. Reduced Responsibility

1. The additional tax amount at one country (excluding adjusted additional tax for the current year) for the fiscal year is determined to be 0 (zero) when meeting one of the following criteria:

a) The ordinary profit criterion;

b) The revenue and minimum income threshold criterion;

c) The effective tax rate criterion.

2. Constituent units may choose to use a simplified calculation method to determine compliance with the criteria stipulated in Clause 1 of this Article.

3. For insignificant constituent units, to determine the right to choose to use the simplified calculation method as provided in Clause 1 of this Article in one country, the responsible declarant of the insignificant constituent unit may annually determine the income or loss, revenue, and tax within the scope of application already adjusted for the insignificant constituent unit by applying the simplified calculation method for insignificant constituent units.

Insignificant constituent units and the application of the simplified calculation method for insignificant constituent units are defined according to Points 11 to 13 Section V Appendix II.

Article 13. Cases Not Eligible for Reduced Responsibility

1. A constituent unit that has a tax payment obligation and is one or more constituent units residing in Vietnam must pay additional tax or be subject to adjustment according to Article 6, point e and point g Clause 1 Article 7 of this Decree if it does not apply the mechanism of reduced responsibility (cannot determine the additional tax amount as zero) under the Global Minimum Tax Regulation in Articles 11 and 12 of this Decree.

2. The implementation of reduced responsibility in one country according to Articles 11 and 12 of this Decree will not be applied if all of the following conditions exist:

a) Vietnam may be allocated additional tax according to the Global Minimum Tax Regulation in cases where the effective tax rate calculated according to Articles 5 and 7 of this Decree for countries applying lower reduction rates than the minimum rate;

b) The tax authority of Vietnam has notified the constituent unit with a tax payment obligation within 36 months after submitting the information report according to the Global Minimum Tax Regulation about specific events and circumstances that could have significantly affected the eligibility for reduction of constituent units residing in countries applying reduction cases and requested the constituent unit with a tax payment obligation to clarify within six months about the impact of these events and situations on the eligibility for reduction of constituent units;

c) The constituent unit with a tax payment obligation cannot prove that the events and situations mentioned in point b of this clause do not significantly affect the eligibility for reduction of constituent units during the allowed response time mentioned above.

Section 4
DECLARATION, PAYMENT OF TAX AND TAX MANAGEMENT

Article 14. Notification of Affiliated Entities Responsible for Declaration and List of Affiliated Entities Subject to Resolution No. 107/2023/QH15

1. A multinational group subject to Resolution No. 107/2023/QH15 or an affiliated entity assigned responsibility by the group shall submit a notification of the affiliated entity responsible for declaration and a list of affiliated entities subject to Resolution No. 107/2023/QH15 to the tax authority responsible for managing corporate income tax under the Global Minimum Tax Regulation (hereinafter referred to as the tax authority) using Form No. 01/TB-DVHT issued together with this Decree within thirty days from the end of the fiscal year being reported.

2. In cases where a multinational group changes the affiliated entity responsible for declaration or the list of affiliated entities subject to Resolution No. 107/2023/QH15, the affiliated entity responsible for declaration must resubmit the notification to the tax authority using Form No. 01/TB-DVHT issued together with this Decree no later than the deadline for submitting the Information Return and Supplementary Corporate Income Tax Return under the Global Minimum Tax Regulation for the fiscal year in which the change occurred.

3. In cases where a multinational group has a non-member joint venture of a joint venture group, a joint venture group, or a subsidiary with a controlling parent company holding a minority interest, or an affiliated entity with a controlling parent company holding a minority interest but not a member of a subsidiary with a controlling parent company holding a minority interest, which is subject to the QDMTT provision, such non-member joint ventures of a joint venture group, joint venture group, or subsidiary with a controlling parent company holding a minority interest, or affiliated entities with a controlling parent company holding a minority interest but not a member of a subsidiary with a controlling parent company holding a minority interest shall be responsible for submitting a notification of the affiliated entity responsible for declaration and a list of affiliated entities subject to Resolution No. 107/2023/QH15 according to the provisions of Clause 1 and Clause 2 of this Article.

4. The tax authority shall accept notifications of affiliated entities responsible for declaration and lists of affiliated entities subject to Resolution No. 107/2023/QH15 through one of the following methods:

a) Receiving the file directly at the tax authority;

b) Receiving the file sent via postal service;

c) Receiving electronic files through the electronic transaction portal.

Article 15. Tax Registration

1. Tax registration subjects

a) Affiliated entities designated to be responsible for declaration of a multinational group;

b) Non-member joint ventures of a joint venture group applying the QDMTT provision;

c) Companies designated to be responsible for declaration of a joint venture group applying the QDMTT provision;

d) Affiliated entities designated to be responsible for declaration of a subsidiary with a controlling parent company holding a minority interest applying the QDMTT provision;

e) Affiliated entities with a controlling parent company holding a minority interest that are not members of a subsidiary with a controlling parent company holding a minority interest applying the QDMTT provision.

2. Tax registration subjects as stipulated in Clause 1 of this Article shall be granted a ten-digit tax identification number.

3. Tax registration subjects as stipulated in Clause 1 of this Article shall use the tax identification number granted according to Clause 2 of this Article to directly declare and pay supplementary corporate income tax under the Global Minimum Tax Regulation.

4. Determination of Affiliated Entity Responsible for Declaration

a) The determination of the affiliated entity responsible for declaration shall be carried out according to the provisions of Clause 3 of Article 6 of Resolution No. 107/2023/QH15. The notification of the affiliated entity responsible for declaration shall be implemented according to the provisions of Article 14 of this Decree.

b) In cases where a multinational group changes the affiliated entity responsible for declaration, the new affiliated entity responsible for declaration shall continue to use the previously issued tax identification number and shall be responsible for inheriting the tax obligations of the previous affiliated entity responsible for declaration. The newly responsible affiliated entity shall complete the procedures for changing tax registration information according to the provisions of Clause 8 of this Article.

c) In cases where a multinational group has a non-member joint venture of a joint venture group, a joint venture group, or a subsidiary with a controlling parent company holding a minority interest, or an affiliated entity with a controlling parent company holding a minority interest that is not a member of a subsidiary with a controlling parent company holding a minority interest, which is subject to the QDMTT provision, such non-member joint ventures of a joint venture group, joint venture group, or subsidiary with a controlling parent company holding a minority interest, or affiliated entities with a controlling parent company holding a minority interest that are not members of a subsidiary with a controlling parent company holding a minority interest shall determine the affiliated entity responsible for declaration according to the provisions of point a and point b of this clause.

d) In cases where the tax authority designates the affiliated entity responsible for declaration of a multinational group according to the provisions of point b, point c, or point d of Clause 3 of Article 6 of Resolution No. 107/2023/QH15, the tax authority shall send a notification using Form No. 02/TB-DVHT issued together with this Decree to the affiliated entity responsible for declaration. The affiliated entity responsible for declaration designated by the tax authority shall complete the tax registration procedures according to the provisions of this Article. The designation of the affiliated entity responsible for declaration by the tax authority is as follows:

d.1) For multinational groups subject to the QDMTT provision according to the provisions of Article 4 of Resolution No. 107/2023/QH15, the tax authority shall designate the affiliated entity with the largest total asset value on the most recent financial report in Vietnam to complete the tax registration procedures;

d.2) For multinational groups subject to the IIR provision according to the provisions of Article 5 of Resolution No. 107/2023/QH15, the tax authority shall designate the ultimate parent company, partially-owned parent company, or intermediate parent company in Vietnam to complete the tax registration procedures.

d.3) In the case of multinational groups subject to the provisions of QDMMT and IIR, the tax authority shall designate one constituent unit to be responsible for filing returns according to one of the two criteria mentioned above.

đ) After the tax authority designates a constituent unit to be responsible for filing returns under Point d of this Clause, the designated constituent unit must notify the tax authority via Form No. 01/TB-DVHT within ten days from the date of receipt of the designation notification from the tax authority.

5. Tax registration dossier

The tax registration dossier includes the Tax Registration/Change Information Registration Form No. 01-ĐKTĐ-DVHT issued together with this Decree.

6. Time limit for initial tax registration

The constituent unit responsible for filing must submit the tax registration dossier no later than ninety days from the end of the fiscal year.

For multinational groups with a fiscal year ending on or before June 30, 2025, the time limit for tax registration is ninety days from the effective date of this Decree but not later than the deadline for filing and paying taxes applicable to that group.

7. Notification of taxpayer identification number

The tax authority will accept, process the initial tax registration dossier, and issue the Notification of Taxpayer Identification Number Form No. 01-MST-DVHT issued together with this Decree to the constituent unit responsible for filing in accordance with the law on tax administration.

8. Change of tax registration information

a) In the case where a multinational group changes information about the group on the Tax Registration/Change Information Registration Form, the constituent unit responsible for filing must undertake to change the tax registration information and resubmit the Tax Registration/Change Information Registration Form No. 01-ĐKTĐ-DVHT issued together with this Decree to the tax authority within ten working days from the date of occurrence of the change.

b) In the case where a multinational group changes the constituent unit responsible for filing in Vietnam, the new constituent unit responsible for filing must undertake to change the tax registration information and resubmit the Tax Registration/Change Information Registration Form No. 01-ĐKTĐ-DVHT issued together with this Decree to the tax authority within ten working days from the date of occurrence of the change.

9. Place of submission of initial tax registration dossier and change of tax registration information

The constituent unit responsible for filing must submit the initial tax registration dossier and change of tax registration information to the tax authority assigned the task of managing the additional minimum corporate income tax in accordance with the global minimum tax regulations.

10. The acceptance and processing of tax registration dossiers in accordance with the global minimum tax regulations shall be carried out in accordance with the law on tax administration.

Article 16. Filing and Payment of Taxes

1. Tax Return Dossier

a) The tax return dossier under the Additional Minimum Domestic Income Tax Regulation (QDMTT) includes:

a.1) Information Declaration Form under the Global Minimum Tax Regulation (Form No. 01/TKTT-QDMTT) issued together with this Decree;

a.2) Additional Corporate Income Tax Return Form (Form No. 01/TNDN-QDMTT) issued together with this Decree;

a.3) Explanation of Differences Due to Accounting Standards (Form No. 01/TM) issued together with this Decree;

a.4) Information Declaration Form under the Global Minimum Tax Regulation for multinational groups for common group information, group structure information, and information related to the calculation of actual tax rates and additional taxes of constituent units in Vietnam, except in cases where the multinational group does not need to file the Information Declaration Form under the Global Minimum Tax Regulation in any country (original or copy);

a.5) Financial data report of each constituent unit used for the preparation of the consolidated financial statement of the ultimate parent company (original or copy);

b) The tax return dossier under the Combined Reporting of Minimum Taxable Income Regulation (IIR) includes:

b.1) Information Declaration Form under the Global Minimum Tax Regulation (Form No. 01/TKTT-IIR) issued together with this Decree;

b.2) Additional Corporate Income Tax Return Form (Form No. 01/TNDN-IIR) issued together with this Decree;

b.3) Explanation of Differences Due to Accounting Standards (Form No. 01/TM) issued together with this Decree;

b.4) Consolidated Financial Statement of the Ultimate Parent Company (original or copy);

b.5) Financial data report of each constituent unit used for the preparation of the consolidated financial statement of the ultimate parent company (original or copy);

2. A constituent unit does not need to submit the Information Declaration Form under the Global Minimum Tax Regulation of the ultimate parent company to the Vietnamese tax authority if the Information Declaration Form under the Global Minimum Tax Regulation has been submitted in either of the following cases:

a) The ultimate parent company resides in a country with an Agreement between Competent Authorities on Exchange of Information under the Global Minimum Tax Regulation in effect with Vietnam during the fiscal year;

b) The unit designated to file the Information Declaration Form under the Global Minimum Tax Regulation resides in a country with an Agreement between Competent Authorities on Exchange of Information under the Global Minimum Tax Regulation in effect with Vietnam during the fiscal year.

The constituent unit responsible for filing in Vietnam must notify the Vietnamese tax authority about the information of the unit that has submitted the Information Declaration Form under the Global Minimum Tax Regulation as stipulated at Points a and b of this Clause and the country where the unit resides via Form No. 03/TB-DVHT issued together with this Decree.

3. For constituent units that cannot determine their resident country under the Combined Reporting of Minimum Taxable Income Regulation (IIR), the constituent unit owning the constituent unit that cannot determine its resident country must submit the Information Declaration Form under the Global Minimum Tax Regulation to the Vietnamese tax authority like other constituent units residing in Vietnam.

4. Place of Submission of Tax Return Dossier

The constituent unit responsible for filing tax declaration forms to submit to the tax authority assigned to manage corporate income tax shall file supplementary declarations in accordance with the global minimum tax regulations.

5. The deadline for submitting tax declaration forms and paying taxes shall be applied according to Clause 1 and 2 of Article 6 of Resolution No. 107/2023/QH15. The deadline for submitting the Information Declaration Form as stipulated in Point a.4 of Clause 1 of this Article and the notification as stipulated in Clause 2 of this Article shall be no later than 18 months after the end of the fiscal year for the first year in which any constituent unit of a multinational group falls within the scope of Resolution No. 107/2023/QH15; 15 months after the end of the fiscal year for subsequent years.

6. In cases where the constituent unit responsible for filing discovers errors or omissions in the tax declaration forms filed in accordance with the global minimum tax regulations for the current reporting fiscal year or previous reporting fiscal years, excluding adjustments made to income or losses under the global minimum tax regulations as provided for in Point 4.1.7 Section II Appendix II and Point 11 Section II Appendix II of this Decree, the constituent unit responsible for filing in the current reporting fiscal year shall supplement the tax declaration forms in accordance with the laws on tax administration.

7. The acceptance and processing of tax declaration forms in accordance with the global minimum tax regulations shall be carried out in accordance with the laws on tax administration.

8. Payment, offsetting, and refund of taxes

a) Corporate income tax supplements pursuant to the global minimum tax regulations shall be paid into the central budget. The constituent unit responsible for filing shall pay the corporate income tax supplements in accordance with the laws on tax administration.

The constituent unit responsible for filing shall be liable for the corporate income tax supplements in accordance with the laws on tax administration.

b) In cases where the constituent unit responsible for filing has an amount of tax due, late payment penalties, and fines related to corporate income tax supplements under the global minimum tax regulations that have been paid exceeding the amount of tax, late payment penalties, and fines due, such excess amounts may be offset against the remaining tax, late payment penalties, and fines owed related to corporate income tax supplements under the global minimum tax regulations, deducted from the tax, late payment penalties, and fines due for the next tax payment, or refunded when the taxpayer no longer owes any tax, late payment penalties, or fines related to corporate income tax supplements under the global minimum tax regulations.

c) In cases where the taxpayer requests to offset the excess tax, late payment penalties, and fines paid related to corporate income tax supplements under the global minimum tax regulations against the tax, late payment penalties, and fines still owed related to corporate income tax supplements under the global minimum tax regulations, no late payment penalties will be charged on the amount offset during the period from the date of the excess payment to the date the tax authority implements the offset.

d) The procedures and formalities for offsetting and refunding taxes shall be carried out in accordance with the laws on tax administration.

đ) To serve the purpose of monitoring revenue collection for the QDMTT by the tax authority, the tax authority may allocate the QDMTT to constituent units based on income criteria.

9. The constituent unit responsible for filing shall register for tax, file tax returns, and pay taxes through the electronic transaction portal.

Article 17. Currency for Tax Declaration and Payment

1. The entity responsible for tax declaration shall declare the Information Return Form and the Explanatory Note on Accounting Standards Differences for the Minimum Global Taxation Rule using the currency used to prepare the consolidated financial report of the highest parent company.

2. The entity responsible for tax declaration shall declare the Supplementary Corporate Income Tax Return Form and pay the Supplementary Corporate Income Tax in Vietnamese Dong, except in cases where it chooses to apply the provisions of Clause 3 of this Article.

3. In cases where the amount of supplementary tax payable on the Information Return Form under the Minimum Global Taxation Rule is stated in the currency used to prepare the consolidated financial report of the highest parent company (different from Vietnamese Dong), the entity responsible for tax declaration may choose to declare the Supplementary Corporate Income Tax Return Form and pay the Supplementary Corporate Income Tax in that currency. If the entity responsible for tax declaration chooses to declare and pay the tax in Vietnamese Dong, the exchange rate for conversion shall be the average inter-bank buying and selling transfer rate of the commercial bank where the entity responsible for tax declaration regularly conducts transactions on the day of submitting the tax declaration form.

Article 18. Tax Inspection for the Fulfillment of Supplementary Corporate Income Tax Obligations under the Minimum Global Taxation Rule

1. The tax inspection activities for the fulfillment of supplementary corporate income tax obligations under the Minimum Global Taxation Rule shall be carried out in accordance with the laws on tax administration.

2. The Tax Department shall conduct tax inspections on the entity responsible for tax declaration and other entities within the same multinational group in Vietnam.

Article 19. Handling Late Payment of Taxes

1. In cases where the entity responsible for tax declaration fails to pay or pays insufficiently the supplementary corporate income tax within the prescribed deadline, the entity responsible for tax declaration must pay the supplementary corporate income tax and late payment interest on the unpaid tax amount.

2. Handling late payment of supplementary corporate income tax under the Minimum Global Taxation Rule and enforcement of administrative decisions on tax management shall be carried out in accordance with the laws on tax management applicable to the entity responsible for tax declaration and other entities within the same multinational group in Vietnam (if any).

Article 20. Administrative Sanctions for Violations of Tax Law

1. The entity responsible for declaring supplementary corporate income tax in Vietnam that commits administrative violations regarding the obligation to pay supplementary corporate income tax under the Minimum Global Taxation Rule includes: violation of the registration deadline; violation of the deadline for reporting changes in registration information; violation of the deadline for reporting the entity responsible for tax declaration and the list of entities subject to Resolution No. 107/2023/QH15; incorrect or incomplete declarations in tax documents not leading to a reduction in the amount of tax due or an increase in the amount of tax exempted, reduced, or refunded; violation of the deadline for submitting tax declaration forms; violation of providing information related to determining tax obligations; violation of compliance with tax inspection, audit decisions, and enforcement of administrative tax decisions; incorrect declarations leading to a reduction in the amount of tax due or an increase in the amount of tax exempted, reduced, or refunded; tax evasion as stipulated in legal documents on administrative sanctions shall be punished according to those provisions, except for the cases specified in Clause 4 of Article 11 of this Decree.

Administrative sanctions for tax violations do not include cases where the entity responsible for tax declaration declares supplementary adjustments according to the provisions on actual tax rate adjustments set forth in Points 9.4, 11.1, 11.4 Section II, Point 1.4 and Point 9 Section III Appendix II.

2. Matters concerning the authority to impose sanctions, the amount of fines, procedures, and other matters related to administrative sanctions for tax violations under Clause 1 of this Article shall be implemented in accordance with the laws on administrative sanctions for tax violations and invoices.

Article 21. Exchange Rates

1. In cases where the reporting currency used in the consolidated financial statements of the highest parent company is the Vietnamese Dong, the foreign exchange rate for determining the revenue thresholds and income levels prescribed in Articles 2, 4, 5, and 6 of Resolution 107/2023/QH15 and the monetary thresholds stipulated in this Decree shall be the average central exchange rate or the average cross-currency exchange rate of December of the immediately preceding year to the year in which the revenue and income arise, as published by the State Bank of Vietnam.

2. In cases where the reporting currency used in the consolidated financial statements of the highest parent company is not the Vietnamese Dong, the foreign exchange rate for determining the thresholds mentioned in Clause 1 of this Article shall be the average exchange rate of December of the immediately preceding year to the year in which the revenue and income arise, as published by the European Central Bank.

3. In cases where the European Central Bank does not publish the conversion rate for the currency used in the consolidated financial statements of the highest parent company, the average exchange rate of December of the immediately preceding year to the year in which the revenue and income arise, as published by the Central Bank of the country where the highest parent company is located, shall be used.

Article 22. Automatic Information Exchange for Tax Administration Related to Additional Corporate Income Tax under the Global Anti-BEPS Rules

The tax authority shall implement automatic information exchange in accordance with the Multilateral Competent Authority Agreement on the Exchange of Information to Combat Base Erosion and Profit Shifting for the purpose of tax administration related to additional corporate income tax under the global anti-BEPS rules.

Chapter III

IMPLEMENTING PROVISIONS

Article 23. Effectiveness of Implementation

1. This Decree takes effect from October 15, 2025, and applies from the fiscal year 2024. The fiscal year 2024 is the fiscal year that begins on or after January 1, 2024. In cases where a constituent entity adopts the QDMTT method to determine the fiscal year 2024 according to the highest parent company and has a fiscal year start date in December 2023, it may be determined as the fiscal year 2024 in accordance with this Decree.

2. The provisions of this Decree shall not be applied to determine the amount of tax payable under the Law on Corporate Income Tax.

Article 24. Appendices Issued Together with the Decree

This Decree is issued together with Appendix I containing certain terms according to the global minimum tax regulations of the Joint Forum on Base Erosion and Profit Shifting, Appendix II detailing the methods for determining factors to calculate additional corporate income tax under the global anti-BEPS rules, and Appendix III containing tax declaration forms and payment vouchers.

Article 25. Responsibilities for Implementation

The Minister, Heads of Ministries, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.