Vietnam considers exempting global minimum tax for coal projects


The Finance Ministry warned that enforcing the global minimum tax could trigger larger compensation payouts under so-called ‘adverse change in law’ clauses in BOT contracts. — VNA/VNS

HANOI: Vietnam is weighing a global minimum tax exemption for several government-guaranteed coal-fired power projects, a move that is likely to forgo hundreds of millions of dollars in revenue, but help the country avoid compensation claims and maintain investor confidence.

The proposal is set out in the draft amendment of the National Assembly’s Resolution No. 107/2023/QH15 on the implementation of the global minimum tax, which the Finance Ministry has submitted for legal appraisal.

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