| Status | Enacted Law |
| Law | On October 21, 2025, Vietnam released Decision 3563/QD-BTC 2025 on the Administrative Procedures for the Minimum Tax. This includes the final forms to be submitted for notification, registration and returns. On August 29, 2025, Vietnam issued Decree 236/2025/ND-CP providing for the detailed provisions for the application of the Pillar 2 Global Minimum Tax rules in Vietnam. Resolution No: 107/2023/QH15 of December 21, 2023 On November 12, 2024, the Vietnamese Ministry of Finance released a draft Decree on the implementation of Resolution No. 107/2023/QH15 on the Global Minimum Tax. The draft decree provides for the detailed application of the GloBE rules in Vietnam. |
| Effective Date | Accounting periods beginning on or after January 1, 2024 |
| IIR | Yes (2024) |
| UTPR | No |
| QDMTT | Yes (2024) |
| Filing Deadlines | Standard |
| Safe Harbours | Transitional CbCR Safe Harbour, QDMTT Safe Harbour and the Simplified Calculations Safe Harbour for NMCEs |
On October 21, 2025, Vietnam released Decision 3563/QD-BTC 2025 on the Administrative Procedures for the Minimum Tax. This includes the final forms to be submitted for notification, registration and returns.
On September 8, 2025, the Ministry of Finance announced it is to issue a draft resolution to amend its global minimum tax law to exempt from the QDMTT entities implementing BOT power projects with a Government Guarantee.
On August 29, 2025, Vietnam issued Decree 236/2025/ND-CP providing for the detailed provisions for the application of the Pillar 2 Global Minimum Tax rules in Vietnam.
On November 12, 2024, the Vietnamese Ministry of Finance released a draft Decree on the implementation of Resolution No. 107/2023/QH15 on the Global Minimum Tax. The draft decree provides for the detailed application of the GloBE rules in Vietnam.
On December 8, 2023, Resolution No: 107/2023/QH15 was issued to enact the Pillar Two GloBE rules. It was published in the Vietnamese Official Gazette on December 21, 2023
General
The Resolution applies an Income Inclusion Rule (IIR) and a domestic minimum top-up tax (intended to be a QDMTT) from January 1, 2024.
The Resolution provides for the high-level application of the IIR and QDMTT in Vietnam.
Currently, key aspects of the GloBE rules covered in the Resolution include:
-The scope of the rules (750 Million threshold);
-Key definitions, including:
MNE Groups
Groups
Constituent Entities
UPEs
Acceptable/Authorized Accounting Standards
Consolidated Financial Accounts
Intermediate Parent Entities (IPEs) and Partially-Owned Parent Entities (POPEs)
-Where entities are located (only non-transparent entities)
-The definition of Excluded Entities (but it doesn’t yet include the extension to 95% subsidiaries)
-The application of the IIR for UPEs, IPEs and POPEs (but it does not include the special rules for IPEs or POPEs owned by other IPEs/POPEs
-The inclusion ratio for allocating top-up tax to parent entities
-The calculation of the GloBE ETR
-The GloBE top-up tax calculation
-The Substance-Based Income Exclusion
-The De-Minimis Exclusion
-The Transitional CbC Safe Harbour
The Decree includes the remainder of the provisions to implement the GloBE rules in Vietnam. This includes:
-GloBE Income Adjustments
-International Shipping Exemption
-Specific rules for PEs/Flow-through Entities
-The calculation of Adjusted Covered Taxes
-Allocation of Covered Taxes
-GloBE Loss Election
-Minority-Owned Entities and Joint Ventures
-Restructuring Rules
-Rules for Investment Entities
-Distribution Tax Regimes
-Taxable Distribution Method Election
Administrative Guidance
The Decree includes a number of aspects of the First and Second Set of OECD Administrative Guidance including:
-Sovereign wealth funds and the definition of Ultimate Parent Entity (Article 1.4)
-Meaning of “ancillary” for Non-Profit Organisations (Article 1.6)
-Forex Hedge election (Article 2.2)
-Debt release election (Article 2.4)
-Accrued Pension Expenses (Article 2.5)
-Excess negative tax carry-forward guidance (Article 2.7)
-Substitute Loss carry forwards (Article 2.8)
-Equity Gain or loss inclusion election (Article 2.9)
-Allocation of taxes arising under a Blended CFC Tax Regimes (Article 2.10)
-Restricted Tier 1 Capital (Article 3.3)
-Portfolio shareholding election (Article 3.5)
-Application of Tax transparency election to Mutual insurance companies (Article 3.6)
-Transitional deferred tax rules (Article 4.1)
Aspects of the Second Set of OECD Administrative Guidance included in the Decree are:
-Tax Credits Guidance (MTTCs) (Article 2)
-SBIE Rules
-Foreign rules (Article 3)
-Stock-based compensation election
-Leases (Article 3)
-QDMTT Safe Harbour (Article 4.1)
No aspects of the Third or Fourth Set of OECD Administrative Guidance are included in the Resolution or Decree, aside from some Safe Harbour provisions.
Safe Harbour and Penalty Relief Guidance
Article 11 and Appendix II, Part V of the Decree includes the detailed operation of the Transitional CbCR Safe Harbour including the definition of Qualified CbC Reports and Qualified Financial Statements, and the treatment of Net Unrealised Fair Value Losses. It also applies some aspects of the December 2023 OECD Administrative Guidance, including:
-Transitional CbCR – Purchase Accounting Adjustments (Part V, Section 9)
-Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting (Part V, Section 6)
-Transitional CbCR – MNEs not required to file CbC Reports (Part V, Section 3)
-Transitional CbCR – Qualified Financial Statements for PEs (Part V, Section 7)
Article 10 of the Decree provides for the QDMTT Safe Harbour. This is based on QDMTTs that qualify under the OECDs Peer Review process for the Safe Harbour.
Article 12 of the Decree includes the Simplified Calculations Safe Harbour for Non Material Constituent Entities.
Elections in the OECD Model Rules
However, the following elections are included in the Draft Decree:
-Excluded Entity Election (Article 3(3));
-Stock-Based Compensation Election; (Article 4.3 of Appendix II)
-Election to use the Realization Method; (Article 4.5 of Appendix II)
-Election to Spread Capital Gains; (Article 1.4 of Appendix II)
-Consolidation Election; (Article 1.5 of Appendix II)
-Unclaimed Accrual Election; (Article 9.7 of Appendix II)
-GloBE Loss Election; (Article 10 of Appendix II)
-Prior Year Adjustment Election; (Article 11.1 of Appendix II)
-Substance-Based Income Exclusion Election; (Article 6.1 of Appendix II)
-Taxable Distribution Election; (Article 12 of Appendix II)
-Tax Transparency Election; (Article 11 of Appendix II)
-Distribution Tax Regime (Article 9 of Appendix II)
Elections in the Administrative Guidance
The following are included in the Decree:
-Equity Investment Inclusion Election;(Article 4.1.3.4/5 of Appendix II)
-Foreign Exchange Hedge Election; (Article 4.1.3.4/5 of Appendix II)
-Excess Negative Tax Carry-Forward Election; (Article 8.5/8.6 of Appendix II)
-Debt Release Election; (Article 4.2 of Appendix II)
-Portfolio Shareholding Election (Article 4.1.2.4 of Appendix II)
Differences to Model Rules
As the Vietnamese Resolution does not provide detailed rules for the calculation of the Pillar Two top-up tax, or numerous other aspects of the GloBE rules, there are currently significant differences from the OECD Model Rules.
The Decree includes the detailed provisions to apply the GloBE rules, but it does not apply the UTPR. Aside from this, the main differences are the provisions for the design of the QDMTT.
Nevertheless there are minor amendments to take account of Vietnams domestic tax regime. For example Section 3.6 of Appendix I of the Decree provides that permanent establishments (PEs) do not include PEs who pay enterprise income tax in Vietnam according to the method of determining enterprise income tax as a percentage of total turnover.
In September 2025, the Ministry of Finance also launched a consultation on an amendment to the GloBE Resolution to exclude entities from the QDMTT that are implementing BOT power projects with a Government guarantee.
Qualifying Domestic Minimum Top-Up Tax (QDMTT)
Articles 4 and 8 of the Resolution provides for a domestic top-up tax (intended to be a QDMTT) from January 1, 2024.
Article 4 details the broad scope of the QDMTT and provides for the method of calculation. However, as for the IIR, the detailed calculation rules are not provided.
Similarly none of the provisions of the OECD Administrative Guidance relating to the design of QDMTTs are included in the Resolution. There are, for instance, no provisions to prevent the push down of CFC taxes or taxes to hybrids/PEs.
Article 4(8) of the Resolution does confirm that the Substance-based Income Exclusion is to apply for QDMTT purposes.
Article 4(9) of the Resolution also confirms that the de-minimis exclusion will apply for QDMTT purposes.
The detailed rules for the application of the QMTT are provided in the Decree. Part II, Section 1 of the Decree includes provisions for a domestic minimum tax (intended to be a QDMTT).
The amount of top-up tax under the QDMTT is the general GloBE top-up tax calculated under the Decree. However, the Decree provides for a number of adjustments.
Article 5 expressly applies irrespective of the shareholdings in the group entities located in Vietnam. This reflects the OECD Administrative Guidance that provides that Top-up Tax that is subject to the QDMTT is based on the whole amount of the jurisdictional Top-up Tax calculated, irrespective of the ownership interests held in the Constituent Entities located in the QDMTT jurisdiction by any Parent Entity of the MNE Group.
The QDMTT applies the general GloBE rules to determine the accounting standard used under Article 4 of the Decree. As such, the domestic minimum tax is calculated using the financial accounting standard of the UPE, and, if that is not practicable, on the basis of an accepted accounting standard or an approved accounting standard, if:
-the constituent entity’s financial statements are prepared in accordance with that standard,
-the information contained in the financial statements is reliable; and
-permanent differences of more than EUR 1 million are conformed with the UPEs accounting standard.
Article 7.4 of Appendix II of the Decree provides for the required adjustment to the allocation of taxes for QDMTT purposes (based on the OECD Administrative Guidance).
Tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules must be excluded, as provided in the OECD Administrative Guidance. This is included in Article 7.4 of Appendix II of the Decree.
This preserves Vietnam’s primary right to tax income accruing to a Vietnamese member entity which is also a CFC. If there were no statutory derogation from the general GloBE rules for the calculation of the domestic minimum tax, and the CFC tax paid by the controlling company abroad were included in the included taxes of the Vietnamese CFC, the effective tax rate would be increased. Therefore, excluding the CFC tax from the Vietnamese CFCs covered taxes allows Vietnam to tax low-taxed income at a higher rate than would be the case under an IIR.
Article 7.4 also prevents the pushdown of tax to hybrids, PEs and for taxes on distributions (except for Vietnamese withholding tax on dividends).
The UTPR exclusion for MNEs in their initial phase of international activity does not need to be included in a QDMTT, however, it can be included. The Second Set of OECD Administrative Guidance provides jurisdictions with three options regarding the temporary UTPR exclusion in their QDMTT legislation.
Option one allows the jurisdiction not to adopt it.
Option two allows the jurisdiction to adopt it but limits it to cases where no Parent Entity is required to apply a Qualified Income Inclusion Rule with respect to Constituent Entities of an MNE Group located in the QDMTT jurisdiction.
Option three allows the jurisdiction to adopt it without any limitations.
Under Article 9 of the Decree, Vietnam will apply option three.
Art 4(2) of the Decree provides that MNE groups with constituent entities subject to the QDMTT shall decide on the allocation of additional taxes payable under the QDMTT among constituent entities in Vietnam and declare information on the allocated tax amount in the Supplementary Corporate Income Tax Declaration (Form No. 01/TNDN-QDMTT).
Under the OECD Administrative Guidance, a domestic minimum tax does not need to apply to Stateless Constituent Entities (or permanent establishments), or to investment entities to be a QDMTT. Article 4 provides that the QDMTT does not apply to these.
Registration
There are no provisions for registration in the Vietnamese Resolution. However, Article 15(6) of the Decree provides that MNE groups with Constituent Entities in Vietnam are required to register within 90 days from the end of the reporting fiscal year using form No. 01-DKTD-DVHT.
Article 6(3) of the Resolution (Article 14(1) of the Decree) provides that if an MNE group has more than one constituent entity in Vietnam, the UPE or a constituent entity in Vietnam is required to submit a notification to designate the filing constituent entity within 30 days from the end of the reporting fiscal year using Form No. 01/TB-ĐVHT. The form also includes a list of constituent entities subject to the GloBE rules.
Filing/Payment
Filing
The relevant aspects of the submission of a GloBE Information Return (GIR) are included, as provided in the OECD Model Rules.
The proposed approach is that every Constituent Entity located in Vietnam will have an obligation to file a GIR in Vietnam. However, this obligation can be discharged if the GIR is filed by:
-The Ultimate Parent Entity, or
-The Designated Filing Entity.
Where the GIR is being filed by either the Ultimate Parent Entity or the Designated Filing Entity, the Constituent Entity, must file a notification with the Tax Authority on Form No. 03/TB-ĐVHT (included in the Decree).
The notification must contain:
-Details of the entity that is filing the GIR, and
-The jurisdiction in which such an entity is located.
Where the GIR is filed by the Designated Local Entity it needs to outline the Constituent Entities that it is filing on behalf of.
Both the GIR and associated notifications must be filed no later than 15 months after the end of the fiscal year (with an 18-month deadline for the Transition Year).
Article 6(1)-(2) of the Resolution and Article 16 of the Decree also require the submission of a QDMTT Tax Return and/or a Top-Up Tax Return for IIR purposes. The deadline for filing a domestic top-up tax return is 12 months after the end of the fiscal year, whilst the deadline for filing an IIR Top-Up Tax Return for the IIR is 15 months after the end of the fiscal year (18 months in the transition year).
Article 16 of the Decree provides that the QDMTT declaration includes:
-An information declaration form (Form No. 01/TKTT-QDMTT – included in the Decree)
-A supplementary corporate income tax declaration form (Form No. 01/TNDN-QDMTT – included in the Decree)
-An explanatory statement explaining any difference in the financial accounting standard used (Form No. 01/TM – included in the Decree)
-The GIR (unless this is not required)
-A report on the financial data of each constituent entity used for the purpose of preparing the Consolidated Financial Statements of the UPE.
The IIR Top-up Tax declaration includes:
-An information declaration form (Form No. 01/TKTT-IIR – included in the Decree)
-A Supplementary corporate income tax declaration form (Form No. 01/TNDN-IIR – included in the Decree)
-An explanatory statement explaining any difference in the financial accounting standard used (Form No. 01/TM – included in the Decree)
-Consolidated financial statements of the UPE
-A report on the financial data of each constituent entity used for the purpose of preparing the Consolidated Financial Statements of the UPE.
Under Article 17 of the Decree, the filing obligations above are based on the currency used in the preparation of the UPE’s consolidated Financial Statements; however, for the Supplementary corporate income tax declaration form and the payment of tax due, the taxpayer may choose to use Vietnamese Dong.
Top-up tax is required to be paid by the deadline for filing the Top-Up Tax Returns.
Penalties
Not provided in the Resolution, however, Article 19 of the Decree provides that the standard tax penalty provisions apply. Article 11(4) of the Decree applies the OECDs transitional penalty relief provisions.
On October 21, 2025, Vietnam released Decision 3563/QD-BTC 2025 on the Administrative Procedures for the Minimum Tax. This includes the final forms to be submitted for notification, registration and returns.
The decree of August 29, 2025 included a number of forms including:
–Form No. 01-DKTD-DVHT – Registration Form
–Form No. 01/TB-ĐVHT – Designated entity notification Form
–An information declaration form (Form No. 01/TKTT-QDMTT)
–A supplementary corporate income tax declaration form (Form No. 01/TNDN-QDMTT)
–An explanatory statement explaining any difference in the financial accounting standard used (Form No. 01/TM)
–An information declaration form (Form No. 01/TKTT-IIR)
–A Supplementary corporate income tax declaration form (Form No. 01/TNDN-IIR)
–An explanatory statement explaining any difference in the financial accounting standard used (Form No. 01/TM)
The forms are also published as Administrative Procedures on Vietnams E-Filing portal and split into 4 filing Pillar 2 Filing Packages:
–Code 1.014405 – Notification of CEs;
–Code 1.014406 – Registration;
–Code 1.014407 – QDMTT filing; and
–Code 1.014408 – IIR filing.
| Vietnam | |||
|---|---|---|---|
| Effective Date: | Accounting periods beginning on or after January 1, 2024 | ||
| Section/Article | |||
| First Set of OECD Administrative Guidance | |||
| 1.1 | Rebasing monetary thresholds in the GloBE Rules | ||
| 1.2 | Deemed consolidation test | App II, (4) excludes the state | |
| 1.3 | Consolidated deferred tax amounts | ||
| 1.4 | Sovereign wealth funds and the definition of Ultimate Parent Entity | App II, (5.4) | |
| 1.5 | Clarifying the definition of ‘Excluded Entity’ | ||
| 1.6 | Meaning of ancillary for Non-Profit Organisations | 3(3) decree | |
| 2.1 | Intra-group transactions accounted at cost | ||
| 2.2 | Excluded Equity Gains or Loss and hedges of investments in foreign operations | 4.1.3.4/5, App II, Decree | |
| 2.3 | Excluded Dividends- Asymmetric treatment of dividends and distributions | ||
| 2.4 | Debt release Election | 4.2 Decree (appendix II) | |
| 2.5 | Accrued Pension Expenses | 4.1.8 Decree (appendix II) | |
| 2.6 | Covered Taxes on deemed distributions | ||
| 2.7 | Excess Negative Tax Carry-forward guidance | 8.5/8.6 decree (appendix II) | |
| 2.8 | Substitute Loss carry forwards | 9.1.5 Decree (appendix II) | |
| 2.9 | Equity Gain or loss inclusion election | 4.1.3.4/5, App II, Decree | |
| 2.9 | Qualified Ownership Interest/Flow through entity | 1.3.5, Appendix II, Draft Decree | |
| 2.1 | Allocation of taxes arising under a Blended CFC Tax Regimes | 3.2-3.4 Appendix II Decree | |
| 3.1 | Application of Taxable Distribution Method Election to Insurance Investment Entities | ||
| 3.2 | Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity | App II, 10.3 Decree | |
| 3.3 | Restricted Tier 1 Capital | 4.8 Decree (appendix II) | |
| 3.4 | Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders | ||
| 3.5 | Simplification for Short-term Portfolio Shareholdings | 4.1.2.4 Decree (appendix II) | |
| 3.6 | Application of Tax transparency election to Mutual insurance companies | 11.2, App II, Decree | |
| 4.1 | Deferred tax assets with respect to tax credits under Article 9.1.1 | Appendix II(Section) IV | |
| 4.2 | Applicability of Article 9.1.3 to transactions similar to asset transfers | Appendix IV | |
| 4.3 | Asset carrying value and deferred taxes under 9.1.3 | Appendix IV/App II, Part II, 1.2 | |
| Second Set of OECD Administrative Guidance | |||
| 1 | Currency conversion rules | ||
| 2 | MTTCs | 1.3.6 Appendix II, Decree | |
| 3 | SBIE Rules | ||
| – Foreign rules | 6.2.1 decree (appendix II) | ||
| Stock-based compensation election | |||
| Leases | 6.3.1 decree (appendix II) | ||
| – Impairment losses inc in tangible asset value | |||
| 4.1 | QDMTT Safe Harbour | Art 10 decree | |
| 4.2 | UTPR Safe Harbour | ||
| Third Set of OECD Administrative Guidance | |||
| 1 | Transitional CbCR – Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment) | ||
| 2.2.1 | Transitional CbCR – JVs | ||
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | Part V, 6 decree | |
| 2.3.2 | Transitional CbCR – Using different accounting standards | ||
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | ||
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | Part V, 3 decree | |
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | ||
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | ||
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | Part V, 9 decree | |
| 3.1 | Identifying Consolidated Revenue | ||
| 3.2 | Mismatch between Fiscal Years of the UPE and another Constituent Entity | ||
| 3.3 | Mismatch between Fiscal Year and Tax Year of Constituent Entity | ||
| 4.2.1 | Blended CFCs -multiple GloBE Jurisdictional ETRs | ||
| 4.2.2 | Blended CFCs – not required to calculate an ETR | ||
| 4.2.3 | Blended CFCs – income of non-GloBE Entities | ||
| 5.3 | 30 June 2026 Filing deadline | ||
| 6 | NMCE Simplified Calcs | Art 12 decree | |
| Fourth Set of OECD Administrative Guidance | |||
| 1.2.1 | Aggregate DTL Category basis | ||
| 1.2.1 | Exclusion of certain types of GL accounts and separate tracking | ||
| 1.2.1 | Exclusion of GL accounts that generate standalone DTAs | ||
| 1.2.1 | Exclusion of swinging accounts and separate tracking | ||
| 1.2.2 | FIFO/LIFO Basis | ||
| 1.2.3 | Aggregation of Short-term DTLs | ||
| 1.2.2 | Reversal of DTLs that accrued before the Transition Year | ||
| 1.2.2 | 5 year unclaimed accrual election | ||
| 2.1.2 | Recalculated deferred tax where GloBE carrying value differs from accounting carrying value | ||
| 2.1.2 | GloBE and accounting carrying values and the Transition Rules | ||
| 2.1.2 | Additional provisions for Intragroup transactions accounted for at cost | ||
| 2.1.2 | Exclusion of GloBE carrying value from SBIE | ||
| 3.1.3 | General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps | ||
| 3.1.3 | Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income | ||
| 3.1.3 | Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries | ||
| 4.1 | Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids | ||
| 4.2 | Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process | ||
| 4.2.2 | Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids | ||
| 4.2.3 | Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules | ||
| 5.2.2 | Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity | ||
| 5.3.2 | Non-group owners: Partially owned Flow-through Entities | ||
| 5.3.5 | Non-group owners: Indirect minority ownership | ||
| 5.4.2 | Taxes allocated to a flow-through entity | ||
| 5.5.2 | Hybrid entities – Taxes pushed down include indirect owners | ||
| 5.5.4 | Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system | ||
| 5.6.2 | Extension of taxes pushed down to include Reverse Hybrids | ||
| 6.1.4 | Option to exclude a Securitization Entity from scope of QDMTT | ||
| 6.1.4 | Option to not impose top-up tax liabilities on SPVs used in securitization transactions | ||
| 6.1.4 | Amendments to the Switch-Off rule | ||
| 6.1.4 | New definition: Securitization Entity | ||
| 6.1.4 | New definition: Securitization Arrangement | ||
| January 2025 OECD Administrtive Guidance | |||
| 1 | Articles 8.1.4 and 8.1.5 | ||
| 1 | Amendments to CbCR Safe Harbour for 9.1 | ||
| 1 | Amendments to QDMTT Safe Harbour for 9.1 | ||
| 1 | Article 9.1 of the GloBE Rules | ||
| 1 | Central Record of Legislation with Transitional Qualified Status | Yes |
| Note | Vietnam | |
|---|---|---|
| QDMTT?(Enacted/Draft) | Is there a QDMTT in the Legislation? | Yes-Enacted |
| Effective Date: | ||
| Administrative Guidance/Safe Harbour Guidance? | Are the provisions of the OECD Administrative Guidance and Safe Harbour Guidance reflected in the current legislation? | Partially |
| Separate/Transposed QDMTT | Is the QDMTT a Separate QDMTT or a Transposition of the GloBE Rules (with Amendments) | Transposed |
| Domestic Groups | A QDMTT can also apply to purely domestic groups. | No |
| Scope Definitions | The definitions of Ultimate Parent Entity, MNE Group, and Constituent Entity correspond with the definitions in the GloBE Rules. | Yes – Article 5 |
| Income and covered taxes of Constituent Entities | The QDMTT must compute the tax liability for the jurisdiction by taking into account the income and covered taxes of Constituent Entities under the GloBE Rules. | Yes – Article 5 |
| Separate ETRs | A QDMTT must determine a separate ETR and Top-up Tax amount for MOCEs, Joint Ventures and JV Subsidiaries. | Yes – Article 5 |
| Charging | A QDMTT must impose a Top-up Tax on one or more domestic Constituent Entities on the Excess Profits of all domestic Constituent Entities, including the domestic Parent Entity. | Yes – Article 5 |
| Enforceability | The legal liability for the domestic top-up tax needs to be enforceable against at least one Constituent Entity in the jurisdiction. | Yes – Article 5 |
| Different Accounting Standard? – Optional | Is the use of a local accounting standard optional? | No |
| Different Accounting Standard? – Mandatory | Is the AG2 guidance followed? | No |
| Different Accounting Standard? – Default GloBE rules | Do the general GloBE rules apply for the QDMTT accounting standard? | Yes – Article 5 |
| Require 100% ownership? | The QDMTT )can require 100% ownership | No |
| Differences to GloBE Rules: tighter restriction is consistent with local tax rules | The QDMTT can be more restrictive than the GloBE Rules where the tighter restriction is consistent with local tax rules. | None |
| Differences to GloBE Rules: Not relevant to in the context of its domestic tax system | The QDMTT can exclude adjustments that are not relevant to in the context of its domestic tax system. | None |
| Income/Loss of a PE | The QDMTT must exclude the income or loss of a foreign Permanent Establishment from the income or loss of the Main Entity. | Yes – Article 5 |
| Tax Transparency | A QDMTT must include certain tax transparent provisions. | Yes – Article 5 |
| Adjusted Covered Taxes Consistency | The range of taxes included in Covered Taxes needs to be the same or narrower, as under the GloBE rules. | Yes – Article 5 |
| GloBE Loss Election? | Not Required in QDMTT | Yes – Article 5 |
| No Pushdown to CFC or PE | A QDMTT must exclude: (1) tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules and (2) tax paid or incurred by a Main Entity that is allocated to a PE in the jurisdiction. | Article 7.4 of Appendix II of the Draft Decree |
| Exclude tax allocated to Hybrids | Second AG Guidance | Article 7.4 of Appendix II of the Draft Decree |
| Exclude allocated net basis tax on dividends (except WHT) | Second AG Guidance | Article 7.4 of Appendix II of the Draft Decree |
| UPE that is a Flow-Through Entity | Second AG Guidance | Yes – Article 5 |
| UPE subject to Deductible Dividend Regime | Second AG Guidance | Yes – Article 5 |
| Eligible Distribution Tax Systems | Second AG Guidance | Yes – Article 5 |
| ETR Computation for Investment Entities | Second AG Guidance | Yes – Article 5 |
| Investment Entity Tax Transparency Election | Second AG Guidance | Yes – Article 5 |
| Taxable Distribution Method Election | Second AG Guidance | Yes – Article 5 |
| Multi-Parented MNE Groups | Second AG Guidance | Yes – Article 5 |
| Additional Top-Up Tax/Excess Negative Tax Expense | A QDMTT needs to have provisions for additional top-up tax where there is no Net GloBE Income and the Adjusted Covered are less than zero and less than the Expected Adjusted Covered Taxes. Amount. Excess Negative Tax Carry-forward rules also need to be in place. | Yes – Article 5 |
| Modified Top-Up Tax Formula | The QDMTT top-up tax formula needs to be modified as the GloBE Rules subtract tax paid under a QDMTT from the current GloBE Top-up Tax. | Yes – Article 5 |
| Same Approach As GloBE Rules | A QDMTT must require that top-up tax is taken into account by the relevant Constituent Entity at the same time and in the same manner as under the GloBE Rules (eg it can’t be carried forward). | Yes – Article 5 |
| SBIE Included? | Not Required in QDMTT | Yes – Article 5 |
| SBIE Rates same as GloBE? | Not Required in QDMTT | Yes – Article 5 |
| De Minimis Rule Included? | Not Required in QDMTT | Yes – Article 5 |
| Restructuring Rules? | A QDMTT needs to include restructuring rules as provided in the GloBE rules to the extent necessary to conform to the tax reorganization rules in the jurisdiction. | Yes – Article 5 |
| Safe Harbours? | A QDMTT needs to contain GloBE safe harbours. | Yes – Article 5 |
| Deferred Tax Transition Rule? | A QDMTT must include the deferred tax starting point under Article 9.1.1 of the Model Rules. | Yes – Article 5 |
| SBIE Transitional Rates? | Not Required in QDMTT | Yes – Article 5 |
| Initial Phase of International Activity Exemption | Not Required in QDMTT | Yes – Article 9 |
| Elections? | Where the GloBE Rules permit an election, a QDMTT must generally also provide for the election and require the MNE Group to make the same election under the QDMTT as is made under the GloBE Rules. | Yes – Article 5 |
| Deferred Tax transition: First time or refreshing rule? | Second AG | Yes – Article 5 |
| New transition year – amend tax attributes? | Second AG | Yes – Article 5 |
| Currency provisions? | Second AG | – |
| DTL Recapture rules – Aggregate DTL Categories | Fourth AG, 1.2.8 | |
| DTL Recapture rules Unclaimed Accrual Five-Year Election | Fourth AG, 1.2.8 | |
| Reverse Hybrid Pushdown | Fourth AG, 5.6.2 | |
| Securitization Entities – A QDMTT may also exclude a Securitisation Entity from its scope | Fourth AG, 6.1.4 | |
| Securitization Entities – A jurisdiction may allocate the QDMTT liability for any QDMTT top-up tax to another Constituent Entity (if any) that is located in the jurisdiction | Fourth AG, 6.1.4 | |
| Note |
| Vietnam | ||
|---|---|---|
| Effective Date: | Accounting periods beginning on or after January 1, 2024 | |
| Section/Article | ||
| Safe Harbour & Penalty Relief Guidance | De Minimis Test | 6(6) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR Test | 6(6) |
| Safe Harbour & Penalty Relief Guidance | Routine Profits Test | 6(6) |
| Safe Harbour & Penalty Relief Guidance | Simplified Covered Tax defn (inc exclusion of uncertain tax positions) | Draft Decree Appendix V(8) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR defn | Draft Decree Appendix V(4) |
| Safe Harbour & Penalty Relief Guidance | Transition Period | 6(6) |
| Safe Harbour & Penalty Relief Guidance | Transition Rate | 6(6) |
| Safe Harbour & Penalty Relief Guidance | Defn of Qualified Financial Statements | Draft Decree Appendix V(5) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Joint Ventures | Awaiting Ordinance |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Tax Neutral UPEs | Awaiting Ordinance |
| Safe Harbour & Penalty Relief Guidance | Special Rules for Investment Entities and their Constituent Entity-owners | Awaiting Ordinance |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Net Unrealised Fair Value Loss | Draft Decree Appendix V(10) |
| Safe Harbour & Penalty Relief Guidance | Exclusions | Awaiting Ordinance |
| December 2023 OECD Administrative Guidance | ||
| 1 | Transitional CbCR – Purchase Accounting Adjustments(consistent reporting condition, goodwill impairment adjustment) | Awaiting Ordinance |
| 2.2.1 | Transitional CbCR – JVs | Awaiting Ordinance |
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | Draft Decree Appendix V(6) |
| 2.3.2 | Transitional CbCR – Using different accounting standards | Awaiting Ordinance |
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | Awaiting Ordinance |
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | Draft Decree Appendix V(13) |
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | Draft Decree Appendix V(7) |
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | Awaiting Ordinance |
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | Draft Decree Appendix V(9) |
| January 2025 OECD Administrtive Guidance | ||
| Amendments to CbCR Safe Harbour for 9.1 |
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