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PM approves agreement for avoidance of double taxation with Ireland
The Prime Minister has approved the contents of an agreement between the government of Vietnam and the government of Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The Agreement covers taxes on income and gains of individuals and companies. It either grants exclusive taxation rights to one country, or where income remains taxable in both, it provides that each country will relieve any double taxation by allowing a credit for the tax paid in the other. In such cases, the country of residence of the taxpayer will give the credit. The reduction of withholding taxes on dividend, interest and royalty payments is a very important aspect of the Agreement for business and investment.
Other important Articles in the Agreement include the non-discrimination provisions, which protect nationals of each country from discriminatory tax provisions in the other, and also the exchange of information provisions, which are necessary to counter tax evasion.
The Prime Minister has assigned the Ministry of Foreign Affairs to carry out necessary procedures according to the regulations of the Law on signing, participating and implementing international treaties which was approved in 2005.
Nhan Dan
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