Vietnam Approves 15% Minimum Tax on Multinationals, Aiming to Raise $601 Million
• Vietnam's parliament approved a global minimum corporate tax rate of 15% for multinationals starting Jan 1, 2023 • The new 15% rate will significantly impact over 120 foreign companies like Samsung that previously had much lower effective tax rates • Samsung alone is expected to shoulder a large portion of the estimated $601 million in additional annual tax revenue • Vietnam delayed separate measures to offset the tax hike with incentives for affected companies until 2024 • While the tax hike is part of a global reform, experts warn it could dampen foreign investment if Vietnam does not offer adequate alternative benefits