The FCT for interest payments to a foreign lender is 5%. Interest on loans before 1999 may be exempt from fct. Offshore loans provided by certain public institutions or para-institutions may benefit from an exemption from the FCT at interest rates if a relevant double taxation convention (DBA) or an intergovernmental convention (IGA) applies. When signing the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion and smuggling of taxes on income and capital, the Signatories have agreed on the following provisions, which shall be part of this Convention. Agreement between the Government of the Russian Federation and the Government of the Republic of Albania for the avoidance of double taxation due to income and capital 1. In the case of Vietnam, double taxation shall be avoided as follows: (d) If each State Party considers him to be its national or if he is a national of one of the two States Parties, the competent authorities of the States Parties shall decide by mutual agreement on the matter. 3. The competent authorities of the Contracting States shall endeavour jointly to establish by common accord any difficulty or doubt arising from the application of the Convention. They may also consult each other on the elimination of double taxation in cases not provided for in the Convention. For foreign investors, it is therefore worth knowing the existing double taxation (DBA) conventions between Vietnam and different countries, as well as the application of these agreements. These agreements effectively eliminate double taxation by identifying exemptions or reducing the amount of taxes payable in Vietnam. The material in this article comes from the October 2011 edition of Vietnam Briefing Magazine, entitled “Vietnam`s International Taxation Agreements”, available as a PDF download from the Asia Briefing Bookstore.
In this issue, we insert Vietnamese free trade agreements and the importance of avoiding double taxation for Vietnamese investments. For more information or to contact the company, please email firstname.lastname@example.org, visit www.dezshira.com or download the company brochure. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is unable to find an appropriate solution itself, to resolve the matter by mutual agreement with the competent authority of the other Contracting State with a view to tax evasion which is not in conformity with the Agreement. .