At the time of the signing of the agreement between the Government of Canada and the Government of the Socialist Republic of Vietnam to avoid double taxation and prevent income tax evasion, the signatories agreed that the following provisions are an integral part of the convention. The material for this article is taken from the October 2011 issue of Vietnam Briefing Magazine entitled “Vietnam`s International Taxation Agreements,” available for PDF download in asia Briefing Bookstore. In this issue, we insert Vietnam`s free trade agreements and the importance of avoiding double taxation for Vietnam`s investments. If there is a direct conflict between national tax laws and the tax provisions of a DBAA, they will predominate in the DBAA. However, national tax legislation prevails when the tax obligations contained in the DBAA do not exist in Vietnam or when the tax rates of the agreement are higher than national rates. For example, if a signatory country has the right to impose a tax that does not recognize Vietnam, then Vietnamese tax laws apply. For more information or to contact the company, please email firstname.lastname@example.org, see www.dezshira.com or download the company brochure. It is therefore extremely interesting for foreign investors to be aware of the existing double taxation prevention agreements (DBAA) between Vietnam and different countries, as well as the implementation of these agreements. These contracts effectively eliminate double taxation by imposing exemptions or reducing taxes liability in Vietnam. Access to a library of resources from Vietnam`s current trade agreements, including DBAs and bilateral investment agreements, is available here. With regard to the implementation of an agreement to avoid double taxation and to prevent income tax evasion, residents of countries with a DBAA with Vietnam who earn income in Vietnam are required to pay income taxes in accordance with Vietnam`s income tax legislation. However, these residents may be exempt from taxation if they meet all the following conditions: 16 May – With regard to international trade, each country`s tax systems often place global investors in an unfavourable position of having to expect redundant taxes on their income, i.e. double taxation.
For example, a company may be taxed in its country of residence and in countries where it generates income through foreign investment in the provision of goods and services. The provisions of this paragraph do not affect the corporation`s taxation on the profits on which the dividends are paid. Revenues from technical services Vietnam can tax income from dividends, interest and royalties from technical services. Dividends are generally not taxed at more than 15 per cent, interest, royalties and technical services at 10 per cent. . Business Income For foreign companies (UAE), business income is the result of production and activity in Vietnam. The tax obligations of the FEs are defined as follows: you can keep abreast of the latest business and investment trends across the Netherlands subscribe to Asia Briefing`s free update service with messages, comments, guides and multimedia resources. Vietnam and Singapore sign the second protocol amending the DTA-DBA for individuals and businesses living in Vietnam, for citizens of the country with which Vietnam has signed a DBAA, or for both.
An Introduction to Business in Vietnam This new 32-day report covers everything you need to know about Vietnam activity and is now available as a free PDF download in asia Briefing Bookstore. IN WITNESS WHEREOF have signed this agreement by the undersigned duly authorized by their respective governments.