DECREE 236/2025/ND-CP GUIDING THE GLOBAL MINIMUM TAX

Terminology: QDMTT – Qualified Domestic Minimum Top-up Tax.

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On August 29, 2025, the Government issued Decree No. 236/2025/ND-CP (Decree 236) detailing a number of articles of the National Assembly’s Resolution No. 107/2023/QH15 (NQ 107) dated November 29, 2023 on the application of additional Corporate Income Tax (CIT) in accordance with regulations to prevent erosion of the global tax base (hereinafter referred to as the Global Minimum Tax Regulation).

We would like to summarize below some notable contents of this Decree 236:

(1) Specific regulations on global minimum taxpayers

According to Article 3 of Decree 236, taxpayers are constituent units of multinational corporations whose annual revenue in the consolidated financial statements of the supreme parent company reaches 750 million euros or more in at least 2 years of the 4 consecutive years preceding the fiscal year in which the tax liability is determined. For newly established corporations, if in the operation period of less than 4 years, there have been at least 2 years of reaching the above revenue level, the constituent unit will also be determined as a taxpayer.

However, not all cases are applicable. Decree 236 also clearly stipulates the groups of excluded subjects. These cases include the units mentioned in Resolution 107/2023/QH15 and the attached appendices, including investment funds, real estate investment organizations or some units with specific ownership and operation structures.

(2) Principles of application of regulations on domestic minimum additional CIT that meet the standards of environmental protection

[2.1] Units constituting or gathering of constituent units of multinational corporations that are taxpayers as prescribed in Article 3 of Decree 236 that have production and business activities in Vietnam and have a residence in Vietnam as determined according to the provisions of Section I, Appendix II must apply the regulations on environmental protection.

[2.2] In case a multinational corporation has more than one incorporated unit in Vietnam, the constituent unit responsible for declaration is responsible for determining the obligations according to the regulations on environmental protection for all constituent units in Vietnam of that multinational corporation.

Multinational corporations with constituent units subject to the application of the Administrative Regulation shall decide on the allocation of additional tax payable under the Administrative Procedure among the incorporated units in Vietnam and declare information on the allocated tax amount in the additional corporate income tax return (Form No. 01/TNDN-QDMTT) issued together with Decree 236.

[2.3] Regulations on environmental protection do not apply to constituent units whose country or territory cannot be identified (hereinafter collectively referred to as the country) of residence, permanent establishments whose country of residence and the investor cannot be identified.

Constituent units whose country of residence cannot be identified specified at Point 1.2, Section I, Appendix II, permanent establishments whose country of residence cannot be identified specified at Point 2.4, Section I, Appendix II, and investment units specified at Point 10.1, Section III, Appendix II.

[2.4] The fiscal year in which the Strategic Planning Authority is applied is determined according to the fiscal year of the supreme parent company, except for the case specified at Point 15, Section II, Appendix II.

(3) Determination of the QDMTT

The minimum standard domestic additional corporate income tax amount is determined according to the formula specified in Clause 2, Article 4 of Resolution No. 107/2023/QH15:

The standard minimum domestic additional corporate income tax amount = (Additional tax rate x Additional taxable profit) + Adjusted additional tax amount for the current year (if any).

Decree 236 also provides detailed guidance on how to calculate the Environmental Protection Plan, regulations on aggregate of minimum taxable income, detailed regulations on transition and deduction of liability.

(4) Decree 236 applies the tax period from fiscal year 2024

Pursuant to Article 23 of Decree 236, Decree 236 officially takes effect from October 15, 2025 and is applied to the tax period from the fiscal year 2024.

Fiscal year 2024 is a fiscal year with a date starting on or after January 1, 2024. In case the constituent unit applies the fiscal year 2024 according to the supreme parent company and has the start date of the fiscal year in December 2023, it is determined as the fiscal year 2024 according to the provisions of Decree 236.

In addition, the provisions of Decree 236 are not applied to determine the payable tax amount under the Law on CIT.

(5) Global Minimum Tax Filing and Remittance Currency

Pursuant to Article 17 of Decree 236, the global minimum tax declaration and payment currency is stipulated as follows:

– The constituent entity shall be responsible for declaring and declaring the information declaration and the explanation of the difference due to the difference in financial accounting standards according to the Regulations on global minimum tax in the currency used to prepare the consolidated financial statements of the supreme parent company.

– The constituent entity shall be responsible for declaring, declaring, declaring additional CIT returns, and paying additional CIT in Vietnam Dong, except for the case of selection specified in Clause 3, Article 17 of Decree 236.

– In case the additional tax amount payable on the information declaration under the Global Minimum Tax Regulation is presented in the currency used to prepare the consolidated financial statements of the supreme parent company (other than Vietnam Dong), the constituent unit responsible for declaration may choose to declare the additional CIT return, pay additional CIT in this currency. In case the constituent unit is responsible for declaring, selecting, declaring and paying tax in Vietnam Dong, the conversion rate is the average transfer exchange rate of the commercial bank where the constituent unit is responsible for regular declaration and transactions on the date of submission of the tax declaration dossier.

(6) Time limit for first-time tax registration

Clause 6, Article 15 of Decree 236 stipulates that the constituent unit is responsible for declaring and submitting tax registration dossiers no later than 90 days from the end of the reporting fiscal year.

In case the corporation has the fiscal year 2024 ending on or before June 30, 2025, the tax registration period is 90 days from the effective date of Decree 236 but not later than the tax declaration and payment deadline applicable to that corporation.