Understanding the impact of BEPS 2.0 Pillar Two on businesses in Vietnam and Singapore

Gain insights on key operational and tax considerations for investments in ASEAN with a focus on businesses with Singapore and Vietnam operations.

Singapore and Vietnam share a unique bilateral investment relationship; Singapore ranks among the top foreign investors in Vietnam, with investments in sectors such as manufacturing, real estate and logistics. Between 2021 and 2023, Singapore contributed to 25% of the foreign direct investment (FDI) inflow into Vietnam. A hallmark of this bilateral relationship is the network of Vietnam-Singapore Industrial Parks (VSIPs) dating back to the establishment of the first VSIP in Binh Duong in 1996. Bilateral trade between the countries has since continued to flourish; and Singapore companies are actively expanding their presence across Vietnam.​

Base Erosion and Profit Shifting (BEPS) 2.0 Pillar Two is the global minimum tax framework aimed at deterring multinational corporations from employing tax avoidance strategies. Under BEPS 2.0 Pillar Two, the Qualified Domestic Minimum Top-up Tax (QDMTT) obliges entities to pay a top-up tax in jurisdictions where their effective tax rate falls below 15%, while the Income Inclusion Rule (IIR) requires parent entities to include low-taxed income of their foreign subsidiaries in their taxable income.​

With Vietnam implementing QDMTT and IIR effective from 2024 and Singapore following suit in 2025, an increasing number of businesses with Singapore parent entities and Vietnam operations face uncertainties around how to optimize their taxes and operations:​

• How can the top-up tax impact be minimized?​

• How will the implementation timing difference between Singapore and Vietnam impact bottom lines?​

• How are investment policies evolving in the wake of BEPS 2.0 Pillar Two, and how will they change during this transitional period and over the long run?​

These questions underscore the importance of navigating the interplay between QDMTT and IIR for Singapore businesses with Vietnam operations.​

In addition, the Vietnam government is also expected to collect US$600 million of additional taxes from the implementation of BEPS 2.0 Pillar Two, but both the Singapore and Vietnam governments have announced that they plan to re-invest the additional top-up tax collected for economic and industry development in the respective country. Therefore, understanding how countries tweak their investment promotion and incentive policies is crucial for businesses operating across borders.​

During the webinar, our speakers will share insights on key operational and tax considerations for investments in ASEAN with a focused discussion on businesses with Singapore and Vietnam operations. The webinar will also include updates on BEPS 2.0 Pillar Two, investment policies and the post-Pillar Two incentive environment in Vietnam and Singapore. Join us to gain valuable insights and strategies for navigating the evolving tax landscape in Singapore and Vietnam.

Webinar highlights​

• Overview of major operational and tax considerations for investments in ASEAN.​

• Overview of recently released resolutions that influence Vietnam's Pillar Two framework.​

• Insights into the Vietnam government's investment support initiatives, as well as its intentions and policy options regarding BEPS 2.0 Pillar Two compliance requirements, accounting standards and the QDMTT Safe Harbor.​

• Updates on Singapore's post-Pillar Two investment policy and incentive opportunities.​

• Sharing on key considerations and opportunities for Singapore businesses with operations in Vietnam.​

Speakers​

• Johanes Candra, Partner, Business Incentives Advisory, Ernst & Young Solutions LLP​

• Trang Pham, Senior Partner, Tax, Ernst & Young Vietnam Limited​

• Paul Griffiths, Partner, Operating Model Effectiveness, Ernst & Young Solutions LLP​

The webinar will be conducted via Zoom.​

Important note:​

A confirmation email will be sent to you if your registration is successful. EY Corporate Advisors Pte. Ltd. reserves the right to accept registrations, cancel the event or amend the schedule and speakers due to circumstances beyond our control. ​

Registration has closed for this webinar. For enquiries, please contact the organizer.