G7 tax agreement
21 June, 2021
For some time now, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) initiative has been working on solutions to the tax challenges arising from the digitalization of the economy and the taxation of certain MNCs. The solutions are referred to as Pillars 1 & 2.
In a meeting on 5 June, G7 Finance Ministers issued a communique on Pillars 1 and 2 noting their commitment to, “reaching an equitable solution on the allocation of taxing rights,” and committing to, “a global minimum tax of at least 15% on a country by country basis.”
While no immediate changes will occur, both of these initiatives are likely to have important consequences for the tax regime in Vietnam over the longer term.
