CIRCULAR NO.205/2013/TT-BTC DATED 24 DECEMBER 2013 OF MOF IN GUIDANCE OF IMPLEMENTING DOUBLE TAX AVOIDANCE AGREEMENTS
Circular No.205/2013/TT-BTC guiding on double tax avoidance agreement as follows:
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Applied entities are entities of Vietnam or of the countries that sign agreements or the resident entities of both entities.
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For Vietnam, kind of taxes applied in agreements are CIT, PIT. For the signing country: kind of taxes applied in agreements are specifically stated in article 2 of agreement
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When applying, treatment for each case must be based on regulations of the agreement (including Protocol and/or exchange letter (if any)).
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The Circular’s guidance to determine tax obligations for 17 activities generating income such as trading, international transport, interest, independent personal services, dependent personal services, remuneration of BOD ….
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Accordingly, resident entities of Viet Nam that have income from the signing country with Viet Nam and paid tax in this country, Viet Nam can still collect tax and refer to double tax avoidance agreement to exclude from double tax payments of these entities.
Measurement of double tax avoidance agreement is tax deduction, presumptive tax deduction , indirect deduction.
