On August 29, 2025, the Government issued Decree No. 236/2025/ND-CP detailing certain provisions of Resolution No. 107/2023/QH15 dated November 29, 2023, of the National Assembly regarding the application of additional corporate income tax under the global anti-base erosion regulations.
Below is an article on the principles for applying regulations on the domestic minimum top-up corporate income tax standards effective from October 15, 2025.
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Principles for Applying the Regulations on Principles for Applying Regulations on Qualified domestic minimum top-up tax from October 15, 2025
According to Article 4 of Decree No. 236/2025/ND-CP, the principles for applying the regulations on Qualified domestic minimum top-up tax are as follows:
- Constituent entities or groups of constituent entities of a multinational group that are taxpayers under the provisions of Article 3 of Decree No. 236/2025/ND-CP, conducting production and business activities in Vietnam and having residence in Vietnam as determined under Section I, Appendix II, must apply the regulations on Qualified domestic minimum top-up tax.
- In cases where a multinational group has more than one constituent entity in Vietnam, the constituent entity responsible for tax declaration shall determine the obligations under the regulations on Qualified domestic minimum top-up tax for all constituent entities in Vietnam of that multinational group. The multinational group with constituent entities subject to Qualified domestic minimum top-up tax shall decide on the allocation of the additional tax payable under this tax among the constituent entities in Vietnam and declare the allocated tax amount in the Additional Corporate Income Tax Return (Form No. 01/TNDN - standard domestic minimum top-up corporate income tax) issued together with Decree No. 236/2025/ND-CP.
- The regulations on Qualified domestic minimum top-up tax do not apply to constituent entities that cannot determine the country or territory (hereinafter referred to as “country”) of residence, permanent establishments that cannot determine the country of residence, and investment entities. Constituent entities that cannot determine the country of residence are defined in point 1.2, Section I, Appendix II; permanent establishments that cannot determine the country of residence are defined in point 2.4, Section I, Appendix II; investment entities are defined in point 10.1, Section III, Appendix II.
The fiscal year for applying Qualified domestic minimum top-up tax is determined according to the fiscal year of the ultimate parent company, except as provided in point 15, Section II, Appendix II.
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Provisions on exemption from liability for implementing QDMTT from October 15, 2025
According to Article 10 of Decree 236/2025/ND-CP, the exemption from liability for implementing QDMTT is as follows:
- In case QDMTT in a country meets the conditions for exemption from liability for implementing QDMTT according to the list announced by the Joint Cooperation Forum on Combating Base Erosion and Profit Shifting Globally, the additional tax in that country according to the provisions of Article 7 of Decree 236/2025/ND-CP in Vietnam is determined to be 0 (zero).
- In case QDMTT in a country meets the conditions for exemption from liability for multinational corporations that are not subject to QDMTT in that country or the tax authority in that country does not collect QDMTT for the constituent units in that country, the multinational corporation is not allowed to apply the above provision in Vietnam.
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