The CTF, which applied conditions to a foreign lender, is 5%. Interest on loans prior to 1999 may be exempt from CTF. Offshore loans granted by certain public or parapublic institutions may benefit from an exemption from FCT interest if a double taxation agreement (DBA) or intergovernmental agreement (IGA) applies. concerned with reaching an agreement to avoid double taxation and to prevent tax evasion on income and capital income taxes; It is much more common to seek the services of a qualified and experienced accountant to seek tax breaks through double taxation agreements. Fees vary depending on the complexity of an individual`s personal life, in almost all cases, the tax savings far exceed all the costs of using an accountant – and they can be sure to pay the correct amount of tax with total confidence. 2. The competent authority endeavours to resolve the matter by mutual agreement with the competent authority of the other State party, by mutual agreement, where the objection appears to be well founded and is not in a position to find a satisfactory solution to resolve the matter by mutual agreement with the competent authority of the other contracting State, in order to avoid tax evasion that is not in accordance with the agreement. 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.
The comprehensive agreement (SI1994/3216) came into force on 15 December 1994 and comes into force when there is a direct conflict between national tax legislation and tax legislation within a DBAA, giving priority to the provisions of 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. The table below shows countries that have entered into a double taxation agreement with the United Kingdom (as of October 23, 2018). On the UK government`s website, you will find an updated list of active and historic double taxation conventions. 3. The competent authorities of the contracting states try to resolve by mutual agreement any difficulty or doubt about the interpretation or application of the convention. 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. This agreement does not affect the tax privileges granted to members of diplomatic or permanent missions or consular missions in accordance with the general rules of international law or the provisions of specific agreements.