Vietnam approves a surtax on multinational corporations, with an effective tax rate of 15%

Vietnam's parliament voted on November 29 to approve a surtax on multinational corporations, which will raise the effective rate of corporate tax to 15% from January 1, 2024. Vietnam's basic corporate income tax rate is 20%, but for many years it has provided large foreign investors with an effective tax rate as low as 5% and a long-term zero tax period. According to Vietnamese government documents, after the implementation of the new tax rate, the tax costs of 122 foreign companies will increase sharply, and Vietnam is expected to increase tax revenue by 14.6 trillion dong (601 million US dollars) a year.