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Published: 2024-02-25
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DOI: https://doi.org/10.52932/jfm.vi1.421
Issue
No.79 (2024)
Section
Research Articles
How to Cite
Đạt, T. T., & Chi, N. T. K. . (2024). The impact of corporate income tax on the ability to attract FDI: Empirical study in the case of global minimum tax agreement. Journal of Finance and Marketing, 15(1), 16-29. https://doi.org/10.52932/jfm.vi1.421

The impact of corporate income tax on the ability to attract FDI: Empirical study in the case of global minimum tax agreement

Tran Tho Dat1, Nguyen Thi Kim Chi2
1 National Economics University
2 s:33:"University of Finance - Marketing";

Main Article Content

Abstract

The article evaluated the impact of corporate income tax on the ability to attract FDI in developing countries; in the case of the study considering the "Global Minimum Tax" agreement between countries. The authors use the GLS and D-GMM estimation methods, measured by the effective tax rate variable of corporate income tax to evaluate the impact of corporate income tax on FDI in developing countries during the period. 2012-2022. Research results show that the effective tax rate of corporate income tax has a negative impact on FDI, and has different impacts between countries that apply and do not apply the "Global Minimum Tax". The article also recommends applying Qualified Domestic Minimum Top-up Tax when implementing "Global Minimum Tax" in Vietnam at the CIT rate of 15% to gain the right to collect additional tax on Vietnam's FDI.

Article Details

Keywords

Corporate income tax, Effective tax rate, FDI, Global Minimum Tax (GMT)

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