Vietnam and the US exchange techniques on the double tax avoidance agreement

In the framework of a business trip in the United States and attending the United States investment program "Selectusa 2025", Mr. Dang Ngoc Minh - Deputy Director of the Leading Tax Department and a number of members of the Ministry of Finance had a meeting with Ms. Rebecca Burch - Deputy Assistant Minister of the US Finance and some members on some contents including the United States Agreement between Vietnam and the United States (Vietnam).

The Agreement for Agreement on Taxation between Vietnam and the United States was signed on July 7, 2015 in Washington, USA. After the Agreement was signed, Vietnam has completed the procedures for approving the effectiveness of the Council between the two countries in accordance with the Law on International Treaty in 2016. However, since 2017, after the major reform of the US policy, the United States has not yet passed the Council between the two countries, so so far the tax agreement between the two countries has not been effective.

Currently, countries are in the process of negotiating pillars 1 and 2 within the framework of the OECD/G20 global tax reform initiative on Combating erosion of tax calculation and profit transfer (BEPS) to avoid taxes of multinational companies, therefore, the United States has proposed that countries that have signed a Board of Directors with the United States amend and supplement the Board of Directors that have signed, including Vietnam.

At the meeting, the two sides clarified their views and stance on the draft Protocol proposed by the United States. From there, relevant agencies of the two countries will continue to review and revise to submit to competent authorities.

The approval of the Board of Directors between Vietnam and the US will create a legal framework to encourage and protect businesses of the two countries when conducting business activities or investing in the other country.