Vietnam-US double taxation avoidance agreement approved

14:17 | 02/03/2017 Economy

The Government recently issued a resolution to ratify an agreement and a protocol on avoiding double taxation and preventing income tax evasion between Vietnam and the United States of America.

In 2016, the US was the biggest importer of Vietnam's footwear exports with import value of US$4.48 billion, a year on year increase of 10 percent - Photo: Vneconomy

The Ministry of Foreign Affairs was asked to complete necessary procedures in accordance with law.

Meanwhile, the Ministry of Finance was directed to work with relevant ministries and agencies to carry out the agreement and protocol after they take effect.

On July 7, 2015, Deputy Minister of Finance Vu Thi Mai and US Deputy Secretary of State for Economic Growth, Energy and the Environment Catherine A. Novelli signed the agreement.

The agreement aims to avoid or eliminate double taxation of the same income in the two countries while creating a legal framework for Vietnam’s taxation department and foreign taxation agencies in the management of international taxation.

By August 10, 2016, Vietnam had inked agreements on the avoidance of double taxation and the prevention of income tax evasion with 75 countries and territories worldwide.