Vietnam has entered into comprehensive Double Tax Agreements (DTA) with over 80 countries, with a number of other DTAs agreed but not yet in force.
Vietnam’s DTAs generally follow the OECD model treaty, and provide relief from double taxation on income. The application of CIT rules, for example, may be impacted by a DTA whereby the 5% CIT portion on services provided by a foreign contractor may be eliminated where the foreign contractor does not have profits attributable to a Permanent Establishment in Vietnam.
Download our quick guide to understand about subjects of application, application of DTA’s, substance-over-form and treaty shopping, measures to avoid double taxation in Vietnam as well as Summary of Withholding Tax Rates Contained Within each Agreement.
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