Vietnam perfects policy on negotiations, signing of double taxation avoidance deals

Illustrative image (Photo: VNA)

Standing Deputy Prime Minister Pham Binh Minh has signed a decision approving the project on reviewing and evaluating the effectiveness of double taxation avoidance agreements, their impacts on Vietnam's tax policy space and adjustment orientations.

The project aims to perfect the policy on negotiating and signing agreements on double taxation avoidance in accordance with Vietnam's economic development trend, approach international advanced standards and harmonise with international commitments so as to ensure synchronisation, consistency, publicity and transparency.

The strategy of negotiating double taxation avoidance agreements in Vietnam’s current economic integration process aims at not only attracting foreign direct investment, but also encouraging and supporting Vietnamese businesses to invest abroad, bringing maximum benefits to Vietnam in the pision of taxation rights between Vietnam and signatories of agreements.

The project evaluates the effectiveness of Vietnam's agreement negotiations and all double taxation avoidance deals that Vietnam has signed since 1992, and proposes a new negotiation strategy consistent with the actual situation and international practices.

It will develop a strategy for negotiating and signing double taxation avoidance deals in the 2021-2030 period, renew the policy of negotiating agreements with new partners, implement the re-negotiation on the signed agreements, and implement international commitments related to these agreements./.