Samsung and other foreign companies pay Vietnam to give millionsdollar reform that would compensate them for higher levies are face from next year under global Repair of tax rulesmeaning source in He said talks.
Discussions precede the introduction in January of minimum tax rate of 15% for Large multinational corporations under a tutor global Organization-led reform for Economic Cooperation and Development (OECD).
Vietnam complied with Organization for Economic Co-operation and Development ruleEffectively raise the tax rate to 15% for a lot of Multinational corporations operating in country and who Owns currently Much lower taxes rate Thanks to various sweeteners.
the global rule Require companies to pay less in Low tax jurisdiction for face higher-up collection in they home nation.
higher-up The tax means that foreign companies can withdraw out Precious foreign currency from Vietnam to comply with The rule and Hanoi decision To implement higher 15% tax rate And plans for compensation aim to prevent this from happening.
The country in Southeast Asia which is highly dependent on Infusion of foreign investment prime that it economycross-border concerns rule That could make them less attractive to large multinational companies.
“If this matter is not fully resolved, Vietnam’s competitiveness will fade,” said Hong Son, chairman of the board. of Korean room of a job in Vietnam, noting that South Korean investors were particularly sensitive to these changes.
in a meeting with government Officials in April, Corey tech giants Samsung Electronics, LG Electronics, US chipmaker Intel and Germany’s Bosch were among those half Dozens of big investors who to push for Source compensation who He attended the meeting.
under pressure government It is a draft resolution that can be approved by Parliament in October offers partial compensation for big The source said: declining To be named because the discussions were internal.
no one of The companies responded to the requests for comments.
Companies invested dozens of Billions of dollar in country and major employers. samsung, for For example, he is the largest single foreign investor in Vietnam, employing 160,000 people and produce half of her smart phones in state, accounting for approximately onev of Countries total exports.
Samsung tax rate It varies by region and ranges between 5.1% and 6.2%. in 2019 in The two northern provinces in which smartphones are produced, according to government Local cited data media.
under the proposal compensation decision, is still subject to changescomp with Big investments in Vietnam will be allowed to receive taxes after deducting taxes cash Distributions or refundable tax credits to support manufacture or research expenses.
the total cost of The planned measure is estimated at several hundred of millions of dollars a yearsaid the source, referring to the bill for Vietnam will amount to at least $200 million annually.
However, the costs should severely match Additional revenues that Vietnam is expected to collect from higher the taxes you will charge on big multinational under new global rules, the source said.
Smaller companies that do not fall into the range of the new global rules maybe also The source said that to receive handouts. it is expected that reduce potential friction with Organization for Economic Co-operation and Development rules.
Ministry of Vietnam for Planning and investment did the Organization for Economic Co-operation and Development reply for requests for comment.
