Double Taxation Agreement Vietnam

For more information or to contact the company, please email, visit or download the company brochure. May 16 — When it comes to international trade, the tax systems of different countries often put global investors in an unfavorable position to pay redundant taxes on their income – that is, double taxes. For example, a company may be subject to taxes in its country of residence, as well as in countries where it obtains income through foreign investment for the supply of goods and services. At the time of the signing of the Agreement between the Government of Canada and the Government of the Socialist Republic of Vietnam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned agreed that the following provisions form an integral part of the Convention. The material in this article comes from the October 2011 edition of Vietnam Briefing Magazine, entitled «Vietnam`s International Taxation Agreements», available as a PDF download from the Asia Briefing Bookstore. In this issue, we insert Vietnamese free trade agreements and the importance of avoiding double taxation for Vietnamese investments. Residents of countries that have a DBA with Vietnam who obtain income in Vietnam must pay income taxes subject to Vietnamese income tax laws. However, these residents may be exempt if they meet all of the following conditions: access to a library of resources from Vietnam`s current trade agreements, including DBA and bilateral investment agreements, here. DESIRING to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to tax on income, the provisions of this paragraph shall not affect the taxation of the profits of the company from which the dividends are paid. In the event of a direct contradiction between national tax legislation and the tax provisions of a DBAA, priority is given to the DBA ABA. However, national tax laws take precedence where the relevant tax obligations contained in the DBAA do not exist in Vietnam or where the tax rates in the agreement are higher than national rates. For example, if a signatory country is allowed to collect a type of tax that Vietnam does not recognize, Vietnamese tax laws apply.

For foreign investors, it is therefore worth knowing the existing double taxation (DBA) conventions between Vietnam and different countries, as well as the application of these agreements. These agreements effectively eliminate double taxation by identifying exemptions or reducing the amount of taxes payable in Vietnam. Directors` fees and similar payments made by a member of the board of directors of a company established in the other Contracting State resident in a Contracting State may be taxed in that other State. The menu is not available if Javascript is disabled. This Convention shall apply to persons domiciled in one or two Contracting States. Previous article: Vietnam adopts a regulatory update that concerns foreign brands and, in both cases, conditions different from those obtained between independent companies are imposed or imposed between the two companies in their commercial or financial relations, then all income that, in the absence of these conditions, would not have been paid to one or the other of the companies, but which, because of those conditions, would not have been perceived in this way. The income of this business can be included and taxed accordingly. .