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Double Tax Treaties in Vietnam

Double Tax Treaties in Vietnam

Taxation is usually one of the most important factors for which foreign investors choose to open companies in a certain country. This principle is also available in Vietnam which has a very advantageous taxation system which is supported by a wide network of double taxation agreements.

Up to this moment, Vietnam has signed more than 60 double tax treaties, some of them already in place, while still are pending ratification. You can obtain more information on the taxation system applicable in this country from our company registration agents in Vietnam.

Income falling under the scope of Vietnam’s double tax treaties

One of the main advantages of Vietnam’s double taxation treaties is that is covers both natural persons and foreign companies with activities in the countries. For example, in the case of individuals the income earned here will be taxed only in Vietnam. Also, where a double tax treaty applies, the conditions of the agreement will prevail over those of the national tax legislation.

With respect to companies, Vietnamese double taxation agreements cover the corporate taxes, dividend, interest and royalties payments, as well as incomes generated by non-resident directors of the foreign companies. Most of Vietnam’s conventions for the avoidance of double taxation provide for the permanent establishment status. Vietnamese branch offices of foreign companies are deemed permanent establishments and will be taxed only on the incomes made here.

Our Vietnam company formation consultants can assist foreign companies interested in setting up branches in this country.

What countries has Vietnam signed double taxation agreements with?

As mentioned above, Vietnam has signed double tax agreements with more than 60 countries, among these being:

–          Austria, Hungary, Italy, Spain, Switzerland, Denmark, Germany, Finland, France and the Czech Republic in Europe;
–          Taiwan, Singapore, Hong Kong, the Philippines, Malaysia, China, Japan and South Korea in Asia;
–          The UAE, Brunei, Oman and Qatar in the Middle East
–          Cuba, Venezuela, Canada, Australia, New Zealand, Russia, Morocco and Tunisia in the rest of the world.

Vietnam is currently negotiating several double tax treaties with countries like the United States of America, Argentina and Latvia.

For full information on the avoidance of double taxation, but also for assistance in starting a business in Vietnam, please contact us.