Vietnam and the US hold technical exchanges on the Double Taxation Avoidance Agreement

On the afternoon of May 13, during a working trip to the US and attending the 2025 US Investment Summit, Deputy Director of the Tax Department Dang Ngoc Minh and a number of members of the Ministry of Finance's working delegation had a working session with Deputy Assistant Minister of Finance of the host country Rebecca Burch on a number of issues, including the Double Taxation Avoidance Agreement.

Tạp chí Doanh Nghiệp•15/05/2025

Photo caption — Deputy Director of the Tax Department Dang Ngoc Minh and members of the Ministry of Finance 's working delegation at the working session. Photo: VNA

The Double Taxation Avoidance Agreement between Vietnam and the United States was signed on July 7, 2015 in Washington. After signing, Vietnam completed the procedures to ratify the Agreement in accordance with the provisions of the Law on International Treaties 2016. However, since 2017, after major policy reforms in the United States, the country has not yet ratified it, so the Agreement has not yet come into effect.

In addition, as countries are currently negotiating Pillars 1 and 2 within the framework of the global tax reform initiative of the Organization for Economic Cooperation and Development (OECD)/Group of 20 leading developed and emerging economies (G20) on combating base erosion and profit shifting (BEPS) to avoid taxes by multinational corporations, the US side has asked countries that have signed agreements with it to amend and supplement the agreements, including Vietnam.

During the meeting, the delegations of the two countries clarified their views and positions on the draft Protocol proposed by the US, so that relevant agencies of the two countries will continue to review and amend it before submitting it to competent authorities. The approval of the tax agreement between Vietnam and the US will create a legal framework to encourage and protect businesses of the two countries when conducting business or investing in each other's country.

According to data provided by the Foreign Investment Agency, as of April 30, 2025, the US currently has 1,447 valid projects with a total registered capital of more than 11.94 billion USD, ranking 10th out of 143 countries and territories investing in Vietnam. US enterprises have invested in 18/21 sectors in the national economic sector classification system, focusing most on accommodation and food services; processing and manufacturing industry; water supply and waste treatment; real estate business; transportation and warehousing...

Meanwhile, Vietnam has 252 investment projects in the US with a total investment capital of 1.36 billion USD. Vietnam's investment projects focus on professional activities, science and technology; real estate; processing and manufacturing industries.

Source: https://doanhnghiepvn.vn/tin-tuc/viet-nam-va-my-trao-doi-cap-ky-thuat-ve-hiep-dinh-tranh-danh-thue-hai-lan/20250515065106733