Vietnam - US discuss double taxation avoidance agreement, creating favorable conditions for businesses of both countries

According to information from the Vietnamese Ministry of Finance , on the afternoon of May 13 (local time), within the framework of a working trip to the United States and participation in the US Investment Program "SelectUSA 2025", Mr. Dang Ngoc Minh - Deputy Director of the Tax Department (Ministry of Finance) and a number of members of the Ministry of Finance's working delegation had a working session with Ms. Rebecca Burch - Deputy Assistant Secretary of the US Treasury Department on a number of contents, including the Double Taxation Avoidance Agreement between Vietnam and the United States (DTA).

The Vietnamese Ministry of Finance had a working session with the US Department of the Treasury on a number of issues, including the Double Taxation Avoidance Agreement between Vietnam and the US. Photo: BTC

The Double Taxation Avoidance Agreement (DTA) between Vietnam and the United States (US) was signed on July 7, 2015 in Washington, USA. After the Agreement was signed, Vietnam completed the procedures for approving the validity of the agreement between the two countries in accordance with the provisions of the Law on International Treaties 2016. However, since 2017, after major policy reforms by the US, the US has not yet ratified the agreement between the two countries, so to date, the Tax Agreement between the two countries has not come into effect.

Currently, countries are in the process of negotiating Pillars 1 and 2, within the framework of the OECD/G20 global tax reform initiative on base erosion and profit shifting (BEPS) for tax avoidance by multinational corporations. Therefore, the United States has proposed that countries that have signed double taxation avoidance agreements with the United States amend and supplement the signed agreements, including Vietnam.

During the meeting, the two sides clarified their views and positions on the draft Protocol proposed by the US side. From there, relevant agencies of the two countries will continue to review and revise it to submit to competent authorities.

The approval of the Double Taxation Avoidance Agreement between Vietnam and the United States will create a legal framework to encourage and facilitate businesses of the two countries when conducting business or investing in the other country.

According to the Foreign Investment Agency (Ministry of Finance), as of the end of April 2025, the United States had 1,447 valid FDI projects in Vietnam with a total registered capital of 11.94 billion USD, ranking 10th out of 143 countries and territories investing in Vietnam.

Nguyen Hoa

Source: https://congthuong.vn/viet-nam-hoa-ky-trao-doi-ve-hiep-dinh-tranh-danh-thue-hai-lan-tao-thuan-loi-cho-doanh-nghiep-hai-nuoc-387617.html