May 16 – In international trade, the tax systems of individual countries often place global investors at a disadvantage to expect redundant taxes on their income, i.e. double taxes. 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. 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. Personal income Residents of countries with a DTAA with Vietnam who earn income in Vietnam are required to pay income taxes in accordance with Vietnamese income tax legislation. However, these residents may be exempt from tax if they meet all the following requirements: The material for this article dates from October 2011 from 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. 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. For more information or to contact the company, please email firstname.lastname@example.org, see www.dezshira.com or download the company brochure.
Access to a library of resources from Vietnam`s current trade agreements, including DBAs and bilateral investment agreements, is available here. Investors whose PEs are authorized to trade in Vietnam are subject to Vietnam`s corporate tax laws. Those who conduct transactions under a contract with Vietnamese organizations or individuals are taxed in accordance with the laws of the foreign contractor`s country of origin. Stay ahead in emerging Asian countries. Our subscription service offers regular regulatory updates, including the latest legal, tax and accounting changes affecting your business. Save my name, email and site in this browser for the next time I comment. . On the other hand, Vietnamese residents must fulfil at least one of the following benefits: income from the provision of independent services is also subject to corporation tax and foreign persons who thus derive income must pay the corresponding income taxes.