<p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"></p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><span class="timeline-images inline-block"><img class="pasted-image" src="https://crm1.vugiasoftware.com/files/timeline_files/pasted_image_file692eb711cc462-image_Jywnk.png" alt="pasted_image_file692eb711cc462-image_Jywnk.png"></span><span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;"><em style="margin: 0px; padding: 0px; border: 0px; outline: none;"><br></em></span></p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;"><em style="margin: 0px; padding: 0px; border: 0px; outline: none;">Our Newsletter #40 would lead you on the following:</em></span></p><h4 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 25px; text-align: justify;">LEGAL UPDATE</h4><h5 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-size: 18px; text-align: justify;">I. Work permits for foreign employees working in Vietnam</h5><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">On 07 August 2025, the Government issued&nbsp;<a href="https://thuvienphapluat.vn/van-ban/EN/Lao-dong-Tien-luong/Decree-219-2025-ND-CP-foreign-workers-working-in-Vietnam/669168/tieng-anh.aspx" style="margin: 0px; padding: 0px; border: 0px; outline: none; text-decoration-line: underline; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">Decree No. 219/2025/ND-CP</a>&nbsp;regulating foreign employees working in Vietnam (“<span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">Decree 219</span>”), which takes effect on the same date. This Decree introduces several significant changes concerning work permits (“<span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">WP</span>”) for foreign employees, as follows:</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">1. Cases where foreign employees are not subject to work permit requirements</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">Decree 219 specifies 15 cases in which foreign employees are not required to obtain a WP, including:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Owners or capital-contributing members of a limited liability company with a capital contribution value of at least VND 3 billion;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Chairpersons or members of the Board of Directors of a joint stock company with a capital contribution value of at least VND 3 billion;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Persons responsible for establishing a commercial presence in Vietnam;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreign managers, executive directors, experts, or technical workers who (a) come to Vietnam for a total working period of less than 90 days in a year, or (b) are intra-corporate transferees within 11 service sectors listed under Vietnam’s WTO commitments and have been employed by the foreign enterprise for at least 12 consecutive months before such transfer;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreigners certified by a ministry, ministerial-level agency, or provincial People’s Committee as entering Vietnam to work in the fields of finance, science, technology, innovation, national digital transformation, or other socio-economic priority sectors; and</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Additionally, there are 10 other cases as specified in Article 7 of Decree 219.</li></ol><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">In our opinion, Decree 219 adds case (v) above to encourage the development of Vietnam’s digital economy</span>.</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">2. Changes to the notification procedure for cases exempt from WP requirements</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">According to Decree 219, foreign employees who are not subject to WP requirements are not required to obtain a Certification of WP Exemption; however, they must notify the competent authority, which will issue such certification at least 03 working days before the date on which the foreign employee is expected to start working in Vietnam. This notification will replace the previous reporting obligation, including the following cases:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreigners who are heads of representative offices, project offices, or persons primarily responsible for the operations of international organizations or foreign non-governmental organizations in Vietnam;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreigners entering Vietnam for less than 03 months to conduct service offerings;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreigners entering Vietnam for less than 03 months to handle complex technical or technological incidents affecting or potentially affecting production or business operations, which cannot be resolved by Vietnamese experts or by foreign experts already in Vietnam;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreign lawyers who have been granted a Law Practice License in Vietnam under the Law on Lawyers;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreigners married to Vietnamese citizens and residing in Vietnam;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Owners or capital-contributing members of a limited liability company with a capital contribution value of at least VND 03 billion;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Chairpersons or members of the Board of Directors of a joint stock company with a capital contribution value of at least VND 03 billion;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreign reporters and journalists certified by the Ministry of Foreign Affairs to operate;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Dependents of members of foreign diplomatic missions in Vietnam who are permitted to work under relevant international treaties to which Vietnam is a party;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Persons responsible for establishing a commercial presence; and</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Foreign managers, executive directors, experts, or technical workers whose total working time in Vietnam is less than 90 days per year.</li></ol><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">Of note, the notification must include the following key details: full name, date of birth, nationality, passport number, name of the foreign employer, working location, and duration of employment</span>.</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">3. Changes in the authority and procedures for issuing WP</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">Decree 219 revises the competent authorities and procedures for issuing WP with several important updates:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The provincial People’s Committee where the foreign employee is expected to work is now the competent authority to issue WP.</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The issuance of the Judicial Record Certificate will be processed online concurrently with the WP application through an integrated one-stop mechanism on the National Public Service Portal, connecting the provincial People’s Committee and the police authority that issues the Judicial Record Certificate;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The processing time for issuing a WP is shortened to 10 working days from the date of receipt of a complete dossier; and</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The application for WP issuance must be submitted within 60 days, but no later than 10 days before the expected commencement date of employment.</li></ol><h5 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-size: 18px; text-align: justify;">II. New investment procedures from 03 September 2025</h5><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">On 03 September 2025, the Government issued&nbsp;<a href="https://thuvienphapluat.vn/van-ban/EN/Dau-tu/Decree-239-2025-ND-CP-amendments-to-Decree-31-2021-ND-CP-elaboration-of-the-Law-on-Investment/672577/tieng-anh.aspx" style="margin: 0px; padding: 0px; border: 0px; outline: none; text-decoration-line: underline; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">Decree No. 239/2025/ND-CP</a>&nbsp;(“<span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">Decree 239</span>”) amending and supplementing several articles of Decree No. 31/2021/ND-CP guiding the implementation of the Law on Investment. The decree took effect on the same day and introduces the following changes:</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">1. Changes to administrative procedures and investment application dossiers</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">The receipt and processing of dossiers related to investment activities have been supplemented with the following requirements:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">For electronic dossiers, investors are required to use digital signatures when submitting dossiers to competent state authorities;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">Both electronic copies and hard copies submitted to competent authorities have the same legal validity, and investors are responsible for ensuring their consistency. If there is any discrepancy, the hard-copy dossier shall prevail;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">In addition, from 03 September 2025, information regarding the addresses and methods for receiving electronic dossiers from investors shall be publicly announced on the portals of the competent authorities.</li></ol><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">2. Regulations on centralized digital technology zones</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">On 14 June 2025, the Government issued the&nbsp;<a href="https://thuvienphapluat.vn/van-ban/Cong-nghe-thong-tin/Law-71-2025-QH15-Digital-Technology-Industry-668801.aspx" style="margin: 0px; padding: 0px; border: 0px; outline: none; text-decoration-line: underline; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">Law on Digital Technology Industry 2025</a>, which takes effect from 01 January 2026, while several articles of this Law take effect from 01 July 2025. This Law introduces a new concept of a “centralized digital technology zone” which is a functional zone that concentrates on activities such as research and development, support, training, promotion of innovation, incubation of digital technology and digital-technology enterprises, production and business of digital-technology products and services, provision of infrastructure, and the supply of services to organizations, enterprises, individuals, and other activities carried out within the zone. Accordingly, Decree 239 also expands its scope of application to these centralized digital technology zones, placing them alongside industrial zones and export processing zones. One key point to note is that a centralized digital technology zone that has already been established will continue to enjoy investment incentives, even in the following cases:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">It is removed from the planning under applicable laws; or</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">It is approved for conversion to another land-use purpose; or</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The investment project for the construction and infrastructure operation of the zone is terminated in accordance with the Law on Investment.</li></ol><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">In all 03 situations above, the investment incentives for projects implemented within the zone shall continue to be maintained in accordance with their corresponding legal documents.</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">3. Decree 239 updates the names of authorities on investment administration</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">According to the amendments under Decree 239, from 03 September 2025, the names of several authorities relating to investment administration are updated as follows:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The Ministry of Planning and Investment is updated to the Ministry of Finance;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The Ministry of Agriculture and Rural Development is updated to the Ministry of Agriculture and Environment;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">The Department of Planning and Investment is updated to the Department of Finance.</li></ol><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">Investors should take note of these updates to ensure the correct identification of competent authorities when completing application forms and carrying out administrative procedures</span>.</p><h5 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-size: 18px; text-align: justify;">III. Application of top-up corporate income tax under global anti–base erosion tax rules</h5><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">On 29 August 2025, the Government issued&nbsp;<a href="https://thuvienphapluat.vn/van-ban/EN/Doanh-nghiep/Decree-236-2025-ND-CP-elaboration-of-some-articles-of-National-assembly-s-Resolution-107-2023-QH15/672323/tieng-anh.aspx" style="margin: 0px; padding: 0px; border: 0px; outline: none; text-decoration-line: underline; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">Decree No. 236/2025/ND-CP</a>&nbsp;(“<span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">Decree 236</span>”) detailing several provisions of&nbsp;<a href="https://thuvienphapluat.vn/van-ban/EN/Doanh-nghiep/Resolution-107-2023-QH15-application-of-Top-up-Tax-under-the-Global-Anti-Base-Erosion-rules/591521/tieng-anh.aspx" style="margin: 0px; padding: 0px; border: 0px; outline: none; text-decoration-line: underline; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">Resolution No. 107/2023/QH15</a>&nbsp;on the application of top-up corporate income tax (“<span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">CIT</span>”) under global anti–base erosion tax rules. The decree takes effect from 15 October 2025 and includes the following key updates:</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">1. Determination of taxpayers under Decree 236</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">A taxpayer is a constituent entity of a multinational enterprise group whose consolidated revenue reported in the ultimate parent entity’s consolidated financial statements reaches EUR 750 million or more in at least 2 years during the 4 fiscal years preceding the fiscal year in which tax liability is being determined, excluding exempted cases.</p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">Additionally, for newly established multinational enterprise groups with less than 4 years of operation, if they have at least 2 fiscal years with consolidated revenue of EUR 750 million or more, their constituent entities in Vietnam are also considered taxpayers.</p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">A constituent entity of a multinational enterprise group: includes any company or organization within the group, as well as any permanent establishment of such company or organization, including: the ultimate parent entity, intermediate parent entities (if any), partially owned parent entities (if any), subsidiaries, branches, permanent establishments, or other business units of the group.</p><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">2. Guidance on determining revenue based on the ultimate parent entity’s consolidated revenue</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">Revenue equivalent to EUR 750 million or more is determined based on the consolidated revenue of the ultimate parent entity in the following specific cases:</p><ol style="margin-right: 0px; margin-bottom: 10px; margin-left: 18px; padding: 0px; border: 0px; outline: none; list-style-type: lower-roman; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">In cases where the fiscal year of the multinational enterprise group differs from 12 months, the revenue threshold shall be determined proportionally based on the number of days in that fiscal year divided by 365 days;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">In cases of mergers or consolidations occurring in any of the 04 fiscal years preceding the fiscal year in which the tax obligation is determined, the consolidated revenue shall be calculated depending on each specific scenario, such as mergers between multinational enterprise groups, mergers between independent entities, or mergers between a multinational enterprise group and a non-group entity. These scenarios are also guided in detail under Decree 236;</li><li style="margin: 0px; padding: 0px 0px 10px 5px; border: 0px; outline: none;">In cases of group demergers or splits, the consolidated revenue after the demerger or split shall be determined separately for each newly formed group during the 04 fiscal years following the demerger or split. Depending on the timing of the demerger/split and the length of the fiscal year, specific principles apply, as guided in detail under Decree 236.</li></ol><h6 style="margin-top: 0px; margin-bottom: 0.7em; padding: 0px; border: 0px; outline: none; color: rgb(32, 51, 103); font-family: &quot;Times New Roman&quot;, serif; line-height: 1.25; font-weight: 700; font-size: 16px; text-align: justify;">3. Principles for applying the qualified domestic minimum top-up tax</h6><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">Taxpayers subject to Decree 236 who conduct business or production activities in Vietnam and are considered residents of Vietnam as defined in the Appendix of Decree 236 must adhere to the regulations on the Qualified Domestic Minimum Top-Up Tax (“<span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">QDMTT</span>”).</p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;">In cases where a multinational enterprise group has multiple constituent entities in Vietnam, one constituent entity must be designated to determine the QDMTT obligations for all constituent entities of that multinational enterprise group in Vietnam.</p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><span style="margin: 0px; padding: 0px; border: 0px; outline: none; font-weight: 700;">Please note that the QDMTT does not apply to: (i) Constituent entities whose jurisdiction of residence cannot be determined; (ii) Permanent establishments whose jurisdiction of residence cannot be determined; and (iii) Investment entities. These exemptions are clearly provided in Section I, Appendix II of Decree 236. In addition, the fiscal year for determining the QDMTT is based on the fiscal year of the ultimate parent entity, except in special cases</span>.</p><p style="margin-right: 0px; margin-bottom: 20px; margin-left: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); font-family: Roboto, sans-serif; font-size: 14px; text-align: justify;"><em style="margin: 0px; padding: 0px; border: 0px; outline: none;">The above is not official advice from&nbsp;<a href="https://www.blawyersvn.com/" style="margin: 0px; padding: 0px; border: 0px; outline: none; text-decoration-line: underline; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">BLawyers Vietnam</a>. If you have any questions or suggestions about the above, please contact us at&nbsp;<u style="margin: 0px; padding: 0px; border: 0px; outline: none;"><a title="consult@blawyersvn.com" href="mailto:info@blawyersvn.com" style="margin: 0px; padding: 0px; border: 0px; outline: none; color: rgb(0, 0, 0); transition: 0.3s; font-weight: 700;">info@blawyersvn.com</a></u>. We would love to hear from you.</em></p><div><em style="margin: 0px; padding: 0px; border: 0px; outline: none;"><br></em></div>