IT ' S SMART

Guide the basic content of the Avoidance Agreements

taxing twice and prevent tax evasion against other states.

taxes levy on income and property between Vietnam with

The country and the territories are effective in Vietnam.

_________________

The base of the existing legal texts on corporate income tax, personal income tax;

The Law of Signing, accession and implementation of the number of international treaties 41/2005/QH11 14 June 2005;

The base of the two-fold tax avoidance Agreed and preventing smuggling of taxes on income and property between Vietnam and the countries and territories is in effect;

Base of Protocol 118 /2008/NĐ-CP of the Government that regulates the function, duties, powers, and organizational structure of the Ministry of Finance;

On the recommendation of the Attorney General of the Internal Revenue Service;

The Minister of Finance issued the Information Guide to the basic content of the two-time tax avoidance Agreed Agreed Agreed and prevent tax evasion on taxes that hit income and property between Vietnam with countries and territories (below the call). It is generally valid for the United States to serve as a signage or country depending on the context of the United States.

Chapter I

GENERAL REGULATION

Item 1

OBJECT AND SCOPE APPLICABLE

What? 1. Subject applies

This information regulates the objects that are either a resident of Vietnam or of the United States signed by the Agreement with Vietnam or at the same time as the domestic object of Vietnam and the United States signed the Agreement with Vietnam.

1. According to the Agreement, the term "the residence object of a contracting country" is subject to which the law of a contracting country is subject to taxable tax in that country due to:

1.1. There are housing, there is a time of residence in that country or the same dignable criteria in the event that the object is an individual; or

1.2. There are operating headquarters, registry headquarters, or established in that country or the same dignable criteria in the event that the object is an organization; or, the

1.3. The term also includes either the state or local government of that country, in the case of the stipulated Treaty.

2. According to the current law of taxation in Vietnam, the following subjects are considered to be the subject of Vietnam ' s residence:

2.1. Individuals who meet one of the following conditions:

a) There is a presence in Vietnam from 183 days or more in a calendar year or for 12 consecutive months since the first day in Vietnam;

Individuals present in Vietnam as defined at this point are the presence of that individual on the territory of Vietnam;

b) There is a regular residence in Vietnam in one of the following two cases:

-There is a permanent residence in the law of residence law;

-There are tenants to stay in Vietnam by the rule of the housing law, with the duration of the lease contracts from 183 days or more in the tax year.

The individual case has a permanent residence in Vietnam by regulation at this point but is in fact present in Vietnam less than 183 days in the five tax years that the individual does not prove to be a resident of any country, and that individual is a resident subject. Vietnam.

For example, 1: In 2010, a Japanese expert worked in Vietnam for 10 months. Two months in 2010 (June and December) this expert on family visits. In 2009, the specialist lived and worked in Japan. Japan ' s tax year from 01/4 to 31/3 next year. Thus, in 2010, Japanese experts were mainly working in Vietnam and regularly living in Vietnam, so although experts still have homes and families in Japan and bring Japanese citizenship, the expert is still considered a resident subject to the Japanese government. of Vietnam for tax purposes. (Regulation at Article 4, paragraph b, Agreement between Vietnam and Japan). However, between January 2010 and March 30, 2010, the expert was treated as a Japanese resident for the purpose of tax decisions in Vietnam and Japan.

2.2. Organizations established and operated under the law in Vietnam.

3. The case of the base at regulation 1 and 2 of this Article, if an object is both a resident object of Vietnam and a resident object of the United States signing the Agreement with Vietnam, the residence status of that object is defined as follows:

3.1. For the individual:

The base enters the criteria in order of preference below to identify an individual who is the resident object of Vietnam:

a) If that individual has a permanent residence in Vietnam (home owned or rented home or property owned by that object);

b) If that individual has a permanent residence in both countries but that individual has a more rigorous economic relationship in Vietnam such as: there is a job; there is a business location; where personal property management; or more closely related personal relationships in Vietnam as family relations. the family, the mother, the mother, the husband, the child, the society (the members of the social unions, the professional association, etc.);

c) If it does not determine whether that individual has an economic relationship, a personal relationship in the country is stricer or if that individual has no permanent residence in any country, but that individual has time to be present in Vietnam more than in the year of taxation;

d) If that individual is regularly present in both Vietnam and the United States signing the Agreement with Vietnam as well as not regularly in both countries but that individual carries Vietnamese citizenship or is identified as Vietnamese citizens under the principle of effective nationality. Vietnam.

If that individual has just carried the nationality of Vietnam, and has brought the nationality of the United States to sign a treaty with Vietnam or without the nationality of both countries, then the authorities of Vietnam will resolve this issue through the procedure of bilateral agreement. The authorities have the authority of the United States to sign the Agreement with Vietnam.

3.2. For an object that is not personal:

According to the specific regulation at each Agreement to identify an object that is not personal is the resident subject of Vietnam. At the United Nations, the following regulations define the following criteria:

a) If that object was established or registered to operate in Vietnam then the object was the subject of Vietnam ' s residence; or

b) If that object has its headquarters in Vietnam then the object is the subject of Vietnam ' s residence; or

c) If that object has the actual operating headquarters in Vietnam, that object is considered to be the subject of Vietnam ' s residency (the actual operating headquarters is usually where senior cadres or the leadership of the business conducts meetings, review, discussion, and offer). the management decisions or decisions about production, business of the business or where the most important accounting books are kept); or the business of the business.

d) The case of that object established or registered in both countries or has its headquarters, or the actual operating headquarters in both countries, the competent authorities of Vietnam and the competent authorities of the United States signed the Agreement with Vietnam. determine that the object is only a resident object of one of the two countries through the bilateral agreement procedure. Where the two signage does not reach a common agreement, the object is not considered to be subject to any foreign tax residence for the purpose of adopting the Agreement.

The rules on the residing object as above are stated at the Residential Object Clause (usually Article 4) of the Agreement.

What? 2. Tax types apply

The taxes applied in the Agreed are the types of taxes that hit the income and assets specified in particular at each Agreement.

1. In the case of Vietnam, the taxes that are under the scope of applying the Agreement are:

a) Business income tax; and

b) Personal income tax.

2. In the case of the Contracting States with Vietnam, the taxes that apply the Agreement are specified specifically at Article 2 of the Agreement (usually Clause 3 of Article 2).

Example 2: At Article 2, paragraph 3, point b) The agreement between Vietnam and the N rules is as follows:

" 3. The existing types of taxes applied in the Agreement are:

...

b) In the country N:

i) income tax;

ii) corporate taxes; and

iii) the local occupiation taxes levy on the income. "

According to the above regulation, the case of a locality of the N has a local residence tax levy on the income of the country ' s resident and non-resident subjects the local type of residence tax on that income will be part of the applicable Agreement. between Vietnam and the country of N.

What? 3. The exemption for diplomatic representative members, the consugt agency, said.

According to the Agreement, the regulations at the Agreement shall not affect the immunity of the members of the diplomatic representation of the diplomatic representatives, the consuvage agency stipulated in international treaties that the Socialist Republic of Vietnam signed or joined.

The provisions of the exemption for the members of the diplomatic representative body, the office of the consuls as above are stated at the terms of the Articles of Foreign Affairs Member (usually Article 27) of the Agreement (usually Article 27) of the Agreement.

Item 2

THE PRINCIPLE OF APPLICATION OF THE TREATY

What? 4. The principle of applying the Agreement

When applicable, tax treatment for each case must be based in accordance with each Agreement (including Protocol and/or Correspondence if applicable).

What? 5. Apply Agreement, tax law and related laws.

1. The case with the differences between the regulations at the Agreement and the regulations at the tax law in the country will apply under the provisions of the Agreement.

2. The Agreement does not create new, other or heavier tax obligations than the domestic tax law. In the United States, it is the case where Vietnam has the right to collect taxes on certain types of income or levy taxes at a certain rate of tax, but the tax-current law in Vietnam has not yet regulated tax on that income or regulation. It ' s about a lower tax rate, and it ' s imposed on the law of tax action in Vietnam, which means no taxes or taxes on a lower tax rate.

3. When Vietnam makes rules at the Agreement, if the terms are not defined at the Agreement, then the terms have not been defined as regulation in Vietnam's law for tax purposes at that time. For a term that has not been defined at the Agreement and has not been defined or simultaneously defined in the laws of Vietnam and of the United States signing the Agreement with Vietnam, the competent authorities of the two countries will implement the problem. It's a bilateral agreement. For a term simultaneously defined in tax law and other laws, the definition at the tax law would be applied to implement the Agreement.

What? 6. Some cases refuse to apply the Agreement on the basis of the principle of Agreement.

Unless otherwise specified at the Agreement on the Favourable Limits, the Vietnam Tax Authority will refuse to recommend applying the Agreement in the following cases:

1. The offer of the offer to apply the Agreement to the number of taxes has been born more than three years before the time of the offer to apply the Agreement.

For example 3: During the period 2006 to 2012, Vietnam's annual V business with royalties from the royalties of the children of Cambodia and every year paid a tax in Milai-a following regulations at the Agreement between Vietnam and Macedonia. On 1 October 2012, the V business filed a proposed tax deduction by the Agreement between Vietnam and Ma-lai-a for the entire tax number filed in Ma-lai-a between 2006 and 2012. In this case, the Vietnam Tax Agency only considered tax deductible in Vietnam for the amount of money submitted to the tax number that was born in Ma-lai-a during the three-year period from 1 October 2009 to 1 October 2012.

2. When the main purpose of the contracts or agreements is to be entitled to benefit or reduce taxation by the Agreement.

3. The offer to apply the Agreement is not the entity that owns the entity of the income that the tax number associated with that income is offered as long as the Agreement falls under the Agreement. The entity owner can either be an individual, a company or an organization but must be subject to ownership and control over income, property, or income rights. When considering to identify an object as an entity owner, the Tax Authority will consider all the elements and circumstances associated with that object on the basis of the principle of "formalism" because the goal of the Agreement is to avoid beating the subject. tax twice and prevent tax evasion. In the following cases, an object will not be considered as an entity owner:

a) When the offer is a non-resident object whose obligations to distribute more than 50% of its income to a third country ' s resident object within the 12-month range since receiving income;

b) When the offer is a non-resident non-resident (or virtually no) any business activity except for property rights or rights to generate income;

c) When the offer is a non-resident object with business activity, the number of assets, business size or number of employees is not equal to the income received;

For example, 4: A bank of a country without a treaty with Vietnam established a legal law in France to conduct a loan in Vietnam and offer a tax exemption on loan interest in Vietnam under the Tax Agreement between Vietnam and France. In this case, to determine whether the French in France is eligible to apply the Agreement or not, the Vietnam Tax Authority will base on the amount of loan, the capacity of the French in France (the number and level of expertise of its employees, assets and services). To determine the compatibility between the income and the size of the business. If this legal income is large, it is very large that there is only one office in France with a few employees, and it is recommended that the Agreement be rejected.

d) When the offer is a non-resident non-resident (or virtually no) control or settlement and is not subject to a very low risk of income, or property or rights to generate income;

When the loan agreements or providing a copyright or providing a technical service between the offer is a non-resident object and the subjects in Vietnam include the conditions and terms in another agreement that the offering is having with the United States and the United States. a third party but in the other agreement the offer is the recipient of a loan, copyright or technical service recipient;

e) When the offer is a resident object of a country or territory that does not collect income tax or income tax revenue with a low tax rate (less than 10%) not with the reasons for encouraging investment is regulated at the Agreement;

g) When the offer is a dealer, an intermediated company (except for the case of an agent, an intermediate company offers to apply the Agreement under the authorship of an entity owner).

An intermediate agent or an intermediated company is a company established in a contracting country only to have a form of legal necessity that exists only for the purpose of avoiding or lowering taxes or transfer of profits without engaging in business activities, he said. Essential businesses such as manufacturing, commerce, or service providers.

What? 7. The procedure to resolve the complaint under the Agreement

The procedure of resolving the complaint under the Agreement is stated at the Agreement of the Bilateral Agreement (usually Article 25) of the Agreement.

1. For the resident subjects of the Contracting Water Agreement with Vietnam

1.1. The case of a residence object of the signed Water (later at this so-called complaint) suggested that the Vietnam Tax Authority determines its tax obligations not in accordance with the regulation of the Agreement, which may be subject to a valid self-regulation. of the tax law or texts on the resolution of the complaint of Vietnam.

1.2. The complaint may not conduct a complaint according to the sequence at Point 1.1, which directly complaints to the authorities of Vietnam stipulated at Article 51 of this or the authorities of the authority of the United States. complaint is a tax residency object to promote the process of procedure of bilateral agreement by regulation at the Agreement. In this case, the complaint had to be conducted within three years from the date of the first announcement of the Tax Authority that led to the tax treatment that the complaint allegedly was not true to the Agreement.

For example, 5: On 1 June 2012, Mr. A, a residence object of the United States signing of the Agreement with Vietnam received a decision to handle the Personal Income Tax of the Bureau of the Province of the Province of H and he argued that the tax obligation stated at the decision to handle the tax was not correct. The treaty. After full implementation of the obligations raised at the tax disposal decision, Mr. A has the right to complain directly to the Tax Directorate-as the competent authorities of Vietnam-to address his case. The deadline for Mr A may proceed with the complaint filed for three years from 1 June 2012.

1.3. To conduct a complaint according to the regulations at Points 1.1 and 1.2 This paragraph, the complaint must make the right regulations below:

a) Full implementation of the obligations that have been informed at the tax disposal decisions (which are tax administrative decisions, tax announcements, etc.) of the previous tax authority and during the complaint process. The case of a complaint about the amount of tax paid by the tax or regulatory authority, who claims to still have to submit enough of that tax, except for the state of state agency having the authority to decide on a temporary decision making tax decisions, the decision to issue taxes. of the tax management agency.

b) The authorities with the authority of Vietnam do not resolve the complaint to the case: the complaint is or has been resolved by the court; or is or has been processed according to the Vietnamese complaint; or the complaint has been too long overdue. regulation at Point 1.2.

2. For Vietnam ' s resident subjects

The case of a Vietnamese resident claim that a signage that defines its tax obligations is not consistent with the regulation of that object Agreement may suggest that the authorities of Vietnam promote the procedure of the procedure. It ' s defined by the rules of the United States. Prior to the recommendation of the competent authorities of Vietnam to promote the process of the procedure of the bilateral agreement, the complaint had to fully implement the obligations that had been informed at the tax treatment decisions of the Vietnam Tax Authority and the United States. A treaty with Vietnam, if the law of the country demands it. The recommendation of the authorities of Vietnam to implement the procedure of bilateral agreement must be conducted within three years of the Day of the Treaty of the Agreement with Vietnam to issue tax treatment decisions on which Vietnam's resident subjects were. It is not appropriate for the protocol of the Agreement.

Chapter II

TAX ON INCOME CATEGORIES

Item 1

INCOME FROM REAL ESTATE

What? 8. The estate definition

According to the regulation at the Agreement, the term real estate will mean by law of the Contracting Water where there is real estate and includes the property sections accompanied by real estate, herds of cattle and equipment used in agriculture and forestry, the rights to be imposed. In terms of land law, the right to use real estate, the right to use payments paid for the exploitation or exploitation of natural resources. Ships, boats, aircraft are not considered real estate.

In particular, in the case of Vietnam, real estate includes:

-Property types are regulated at the definition of real estate by the regulation of the Civil Code and the Property Business Law;

-The assets that are with the estate are above;

-herds of cattle and equipment used in agriculture and forestry;

-The rights are imposed under the law of the land in Vietnam;

-The right to pay the payments paid for the exploitation or the right to exploit the natural resources.

For example, 6: A foreign resident would be considered to be real estate in Vietnam if the object possessed unrelocated properties in Vietnam as housing, construction of the land-based construction site, including property attached to the house, construction work. There ' s this, or the right to use land in Vietnam (according to Article 174: The Estate and the Estate of the Civil Code in 2005) and if that object had a herd of cattle in Vietnam directly connected to the right to use this land, that herd was also considered illegal. It's in Vietnam.

What? 9. Identilocate tax obligations on income from real estate

Under the regulation at the Agreement, all types of income due to a resident object of the United States signing the Agreement with Vietnam obtained from direct use, exploitation or leasing of real estate types in Vietnam, including the real estate of the business or business. of the individual's independent practice, the income tax in Vietnam is required by the law of the current law on taxes in Vietnam.

For example, 7: An X Vietnamese is a resident partner of the beautiful-ga-po that owns a house in Vietnam and uses that house with the purpose of renting. Income from renting this house would be subject to income tax in Vietnam despite the fact that the person was not present in Vietnam during the tax period.

Tax regulations on income from real estate as above are stated at the Clause of the Income from the estate (usually Article 6) of the Agreement.

Item 2

INCOME FROM BUSINESS ACTIVITY

What? 10. The definition of income from business activity

According to the regulation at the Agreement, the income from business activity is the income of the businesses of the Contracting Water with Vietnam (later known as foreign business) manufacturing operations, business in Vietnam, which does not include the income of the country. is stated in Section 1, and items from Section 3 to Section 17 Chapter II, this message.

What? 11. Define the tax obligation on income from business activity.

1. The case of foreign enterprises conducts manufacturing, business in Vietnam but does not establish a legal establishment in Vietnam.

1.1. Tax obligations

According to the regulation at the Agreement, income from foreign business activity is only taxed in Vietnam if the business has a permanent facility in Vietnam and that income is directly related to or indirectly to that permanent facility. In this case the business was only taxed in Vietnam on the allocation of income for that permanent facility.

1.2. Permanent base definition

1.2.1. Under the regulation at the Agreement, the "permanent basis" is a fixed business base of a business, through which the business does a whole or part of its business.

A business of signalers is considered to have a permanent basis in Vietnam if the assembly is three conditions below:

a) maintains in Vietnam a "basis" as a building, an office or part of that building or that office, a vehicle or device, ...; and a ...

b) This facility has a fixed nature, which is to be established at a specified location and/or maintained regularly. The fixed calculation of the business base is not necessarily dependent on whether that basis must be attached to a specific geographical location within a given time length; and the underlying position is required.

c) The business conducts all or part of its business operations through this facility.

For example, 8: China 's X Company opens a pavilion at a Vietnamese New Year' s Market, through this pavilion the company X sells the goods at the fair. At that time, the pavilion was considered to be the permanent facility of the X company in Vietnam.

1.2.2. A business of a contracting country will be considered to conduct business operations through a permanent facility in Vietnam in the following primary cases:

a) That business is in Vietnam: headquarters, branch offices (such as law firm branch, foreign office branch, branch of tobacco companies, banking branches, etc.), offices (including trade representative offices if negotiation is negotiated, signed, etc.) Trading contracts), factories, factories, mines, oil or gas wells, cargo deposits, exploration sites, or natural resource exploitation, or equipment, facilities for exploration exploration of natural resources in Vietnam. Male.

For example, 9: A foreign contractor who uses vehicles, equipment, and workers involved in oil exploration drilling operations in Vietnam will be considered to be conducting business operations through a permanent facility in Vietnam.

b) That business is located in Vietnam a building site, a construction site, installation or assembly, or conducting monitoring activities related to building sites, construction sites, installation or assembly speaking on the condition of local sites, or building sites. Point, construction or surveillance activities lasts for more than 6 months or 3 months (depending on the particular agreement) in Vietnam.

Location, construction or installation includes location, house construction, roads, bridges, bridges, excavation, and river dredging, etc. The time (6 months or 3 months) is calculated from the day the contractor began preparations for construction work in Vietnam, as the establishment of the construction plan construction office, until the completion of the completion of the work, the full hand in Vietnam, including the time. The work space is interrupted by all causes.

Subcontractors of the contracting water to participate in construction, installation, or assembly, are also considered to conduct business operations in Vietnam through a permanent basis if the assembly is eligible at Point 1.2.1.

The period of implementation of the work to determine the permanent basis for the main contractor includes a total of time implementation of the contract sections of the subcontractors and the time of the main contractor's implementation.

Example 10: The Japanese Z Company bids to build a bridge in Vietnam. The construction of the bridge was as follows: 5 months of construction construction by a subsidiary contractor, also a Japanese company, and three months of construction and completion by the contractor Z. In this case, as specified in Article 5, Clause 3, Agreement between Vietnam and Japan, the Z company is considered to conduct business operations in Vietnam through a permanent basis because of the total time of the public exam is eight months (5 months + 3 months); The Y company is not considered to have a permanent facility in Vietnam.

c) That business makes the provision of services including consulting services in Vietnam through employees of the business or another subject to the condition of speaking service activities in a project or related projects, stretching out at the end of the year. Vietnam for a period of time, or several times the duration of the duration of the period, is more than 183 days per period of 12 months.

For example, the Swedish aircraft manufacturer is contracted to sign a maintenance service with the Vietnamese airline. According to the contract, from 1 June 2010 to 30 May 2011, the airline sent technicians to Vietnam to work with a total number of time spent in Vietnam 190 days. In this case, as specified in Clause 4, Article 5, the Agreement between Vietnam and Sweden, the carrier is considered to have a permanent basis in Vietnam by technical experts who have worked in Vietnam for over 6 months in the 12-month period.

For example, 12: Japan's N consulting firm signs the consulting services contracts with the investment holder of the V Power Plant Construction Project in Vietnam as follows: i) contracts a four-month power plant construction advisory contract from August 1, 2010 to November 30, 2010, and ii). The contract service contract was installed three months from January 1, 2011 to March 31, 2011. Both contracts required the presence of representatives of the N Advisory Company at the site of construction and installation of the V Power Plant to implement the work throughout the contract deadline. In order to implement an advisory service contract to install the power plant, the N Advisory Company hired a Japanese B consulting firm to perform as a representative for the Company. In this case, as specified in Clause 4, Article 5, Agreement between Vietnam and Japan, the N Advisory Company is considered to have a permanent basis in Vietnam due to the presence of the Company representative at Project in Vietnam exceeding 6 months in the 12-month period. Months; consulting firm B is not considered to have a permanent basis in Vietnam due to the presence of the Company in Vietnam for no more than 6 months.

Example 13: With assumptions such as Example 12, if the Advisory Company B and the investment holder of the Project also signed an advisory agreement during the run period from 1 April 2011 to 30 July 2011. The contract also requires the representation of the B-consulting Company present throughout the contract deadline at the site of the V. V Power Plant trials in this case, as specified at Clause 4, Article 5, Agreement between Vietnam and Japan, the Advisory Company B is considered. has a permanent residency in Vietnam due to the presence of the Company representative at the Project in Vietnam over six months in the 12-month period.

In connection with the provision of the service, although at the Permanent Regulation Agreement Agreement includes the provision of services including consulting services in Vietnam through employees of the business or another subject to the condition of service activities, it is not a service provider. on a project or related project, which extends in Vietnam for a period of time or more of the period of gross over 183 days in each period of 12 months, but due to the nature of the service, the service supply time does not last for more than 6 months. In the month of a 12-month period, meanwhile, three conditions on the permanent basis at Point 1.2.1 remain satisfied then the provision of the service is still available. is still considered to have a permanent facility in Vietnam.

Example 14: The Swedish aircraft manufacturer signs a maintenance contract maintenance service with Vietnam Airlines for a period of two years. According to the contract, the airline sent technicians to Vietnam to work for a total of 90 days in Vietnam at the airport maintenance site. In this case, as specified in Clause 1, Article 5, the Agreement between Vietnam and Sweden, the carrier is considered to have a permanent basis in Vietnam due to the annual flag of engineering professionals working in Vietnam at a fixed location in Vietnam. Male (protected aircraft).

d) That business is available in Vietnam for an environment dealer, commission agent or any other agent, if those agents spend their whole or most of their activities on that business (the agent depends).

For example, 15: Company V is a resident of Vietnam to sign a dealership with a storage function and deliver a paint product to an H company that is a British resident. According to the contract stipulated, the V company is not allowed to do dealership for any other manufacturer or distribution of paint. In this case, although no contract was signed or collected in Vietnam, the V company became a subordinate agent of the H Company, no longer an independent agent. According to the provisions of the Agreement between Vietnam and the United Kingdom (paragraph 6, Article 5: The Permanent Facility) the H company is considered to have a permanent basis in Vietnam.

That business is a proxy for an object in Vietnam:

-Jurisdiction often negotiable, signing a contract to the name of that business; or signing contracts bearing that object name but binding the obligations or responsibilities of that business; or

-No negotiation authority, contract signing, but a regular right to represent that business in Vietnam.

1.2.3. A foreign business will be considered to be without a permanent basis in Vietnam in the following cases:

a) That business uses the means of saving the store, displaying the goods of the business.

b) That business is available in Vietnam for a repository of purposes only to store, display, or to give a different business.

c) That business is in Vietnam a fixed business facility that aims to purchase goods or gather information to the business.

d) That business is located in Vietnam a fixed business facility that aims only to conduct operational or support activities for the business.

1.2.4. The case of a company is subject to the residence of the Contracting Water with Vietnam controlled or subject to control by a company that is the subject of Vietnam ' s residency, or is conducting business operations in Vietnam (possibly through its permanent facility). or in other forms) will not make any company the permanent facility of the other company.

For example, 16: A foreign enterprise that contributes to the establishment of a joint venture business or a business of 100% foreign capital in Vietnam. At the time, business or business enterprise 100% of the foreign capital is not considered to be the permanent facilities in Vietnam of the foreign business.

However, the company case is a resident subject of the United States Agreement with Vietnam which has formed a joint venture business or a business of 100% of foreign capital in Vietnam (including the manufacturing business) that the company will be treated as a corporation. as there is a permanent facility in Vietnam if:

-Business or business enterprise 100% foreign capital often negotiable, contracting that company name; or signing joint venture business or business 100% foreign capital but binding obligations or obligations to a corporation or a corporation. the responsibility of the foreign company; or

-Business or business enterprise 100% of foreign capital regularly represents foreign company delivery of goods in Vietnam; or to China.

-That foreign company has the right to decide on the physical basis-the engineering of the joint venture business or enterprise 100% of that foreign capital in the process of manufacturing business (i.e., the foreign company ' s use of facilities-engineering and engineering). of the joint venture business or enterprise 100% of foreign capital in Vietnam (if any) in the process of business production is not on the basis of market price principles).

1.3. Specifies the taxable income of the permanent facility

1.3.1. The identification of taxable income of the permanent basis of foreign business, except for foreign bank branches in Vietnam is guided at Point 1.3.3 below, made in accordance with the manual text of the implementation of the revenue income tax law. In addition to the organization, foreign individuals do not establish legal personnel in Vietnam or have income in Vietnam.

1.3.2. When determining the expenses that the headquarters of the foreign business or the offices of the foreign business allocating to a permanent facility in Vietnam, the permanent facility will be considered an independent business jointly conducting activities in the country, and the company ' s operations. like each other or the same in terms of the same or similar conditions and completely independent of the headquarters of the foreign business or the offices of foreign business. In any case, however, the following suballocation of the headquarters of the foreign enterprise or the offices of the foreign business allocated to a permanent facility in Vietnam would not be accepted as the cost excluded:

-royalties or similar payments for patent use or similar rights;

-Roses money for services or for management jobs;

-The interest rate is in all forms.

1.3.3. The identification of taxable income by foreign bank branches in Vietnam follows guidelines on determining the income tax income of the businesses in Vietnam. However, in any case, the following suballocation of the foreign bank's headquarters or the offices of foreign banks allocated to the branch in Vietnam of the foreign bank shall not be accepted as the cost excluded:

-royalties or similar payments for patent use or similar rights;

-Roses money for services or for management jobs.

Tax regulations on business income as above are stated at the Agreement (usually Article 7) of the Agreement.

2. The case of foreign enterprises conducts manufacturing operations, business in Vietnam through the establishment of the legal establishment in Vietnam.

According to the current regulation of Vietnamese law, foreign enterprises may conduct business in Vietnam through the establishment of Vietnamese-based legislation such as joint venture enterprises or business 100% of foreign capital.

As defined by the Agreement, these jurisdictions are obliged to pay income tax on income from manufacturing, business as other Vietnamese businesses by the provisions of the existing corporate income tax law. The income portion of the foreign business received in the form of a shared profit of the investor or income from the transfer of the portion of the contribution (if any) will be made in accordance with the provisions of the respective provisions of the Procurement Agreement. to enter from the equity interest or Income from the property transfer.

For example, 17: China's T Company contributes 70% to the establishment of the X joint venture company in Vietnam. In 2009, the X Company obtained a profit from a business of 100 million dollars; after paying corporate income tax (TNDN) in Vietnam by a tax rate of 25%, the post-tax profit was divided by the rate of contributions. In 2010, the Company T sold 50% of its share in the X venture that earned $3 billion and earned 50 million interest in the amount of capital for the X-loan venture company. The tax obligation of the joint venture company X and Company T in 2010 is as follows:

-The joint venture company X pays TNDN as other Vietnamese businesses. Specific:

Tax TNDN = 100 million copper x 25% = 25 million

-China ' s T-Company pays tax in Vietnam by regulation at the Agreement as follows:

+ For the post-tax profit divided (75 million by 70%): Taxation on equity interest income (directions at Section 4. Earnings from equity interest, Chapter II, This Information;

+ For the income from the transfer of capital funds (3 billion dollars): The tax on the income from the property transfer (instruct at Section 8. Earnings from asset transfer, Chapter II, This Information;

+ For income from loan interest ($50 million): The tax on the income from the loan interest (directed at Section 5. Earnings from loan interest, Chapter II, This Private.

Section 3

INCOME FROM INTERNATIONAL SHIPPING.

What? 12. International transport definition

According to the regulation at the Agreement, international transport is cargo operations, passenger by ship or aircraft, at some of the Agreement that may include either road transport, rail or waterway in the mainland (below known as the "World War II"). In general, the company's business is signed by the company's business, except for the case of the operation, which only takes place between the two locations of Vietnam or the United States of the United States.

Example 18: A Japanese business operates passenger and cargo operations in Vietnam. The following passenger and cargo operations of this business will be considered international transport operations:

Transporting goods, passengers from a location in Vietnam to a location in Japan (including goods, passengers from the Hai Phong through Ho Chi Minh City and Oshaka);

-Cargo transport, passengers from a location in Vietnam to a location outside Vietnam (e.g., Beauty-po-po);

Japan's shipping case states on a freight passenger service to the city of Ho Chi Minh City -- beauty-ga-po -- Hai Phong; ships departing at Ho Chi Minh City and port at the beautiful-station, all passengers. After visiting the beautiful-ga-po returned to the ship to return to the Navy. At the same-ga-po, the ship does not receive any more passengers. Thus, passenger transport was not considered to be international transport (although the ship's cruise ships were shipped outside Vietnam but the point of departure and final destination was in Vietnam).

What? 13. Define the Agreement for the Agreement on the income from international shipping

According to each Agreement, the business of the contracting country performs international transport operations determined in accordance with the following standards:

1. Business due to Vietnam ' s resident object or of the Water signing Agreement with Vietnam Executive; or

2. The business is in fact operating headquarters in Vietnam or in the United States contracting the Agreement with Vietnam;

with that business condition that owns or has the right to use all of at least one means of transport and use of this vehicle into the transport of passengers and/or goods in international transport journeys (known as enterprise-driven transport). Direct executive order.

What? 14. Identilocate income from international shipping

According to the regulations at each Agreement, the income from international transport of objects stated in Article 13 shall be exempt or reduced in taxes in Vietnam or in the United States signing the Agreement with Vietnam.

The scope applies as long as the tax cuts in Vietnam for the business of the United States signing the Agreement with Vietnam include:

1. Income from international transport activity by means of direct operating enterprise and from auxiliary operations immediately with this international transport operation, in particular:

1.1. Revenue from international transport operations by means of a direct-to-direct transport business and from transport (export, single-ticket, or repetition (manifest) transport of passengers and goods).

1.2. The revenue from leasing a portion of the transport vehicle (also known as a seat rental) or rental of a whole vehicle by a single-run business, is directly operated by the business itself.

For example, 19: The Japanese ship A of Japan receives the cargo of the company C from Vietnam to the Netherlands at a cost of $300. The airline has no direct service on the ship's ship, B of Thailand, for a fee of US$ 250. In addition to the cargo carrier A as above, the B carrier also carried out cargo to other customers on the same line as the 200 US dollars. In this case:

-To Train A: the amount of $300 earned from the delivery of goods to the Company C or the amount of $50 obtained due to the disparity from the delivery of goods to Company C and renting a place on board B is not considered an income from international shipping. By the Sea of Japan, the ship to be exempt from the US-owned business of the United States and Japan by the non-direct airline operating the ship (which only bought the entire ship of the ship's ships) should still pay enough income tax.

-To Train B: US $450 is considered to be income from the international shipping operation of a reduced corporate income tax in accordance with the Agreement between Vietnam and Thailand (down 50% of the corporate income tax required).

1.3. Revenue from the operation of cargo or passenger transport when participating in the international transport link with the business conditions involved on the basis of a transport contribution basis by the business itself directly or closed by the company. contribute to the operation of the transport vehicle due to direct operating links and the parties using separate transport. In this case, the revenue is determined on the basis of the certification from the transport operated by the company as the operating party but does not exceed the level of vacancy of the transport vehicle that the business is allowed to exploit under the contact agreement.

1.4. Revenue from passenger or cargo operations operated by the business of international transport is carried on by other business operated by other businesses with one of the following two conditions:

a) That transport is part of the international shipping journey by ship or aircraft directly operated by the business itself and is inscribed in the certification from the business itself.

For example, 20: Also with the 19 example, Japan's A-Ship Company receives the cargo of the company C from Vietnam to the Netherlands at a cost of $300. However, the A-ship A1 was operated by the carrier, which operated the second leg of the second leg from the beautiful-ga-po to the Netherlands. The first leg from Vietnam to Đại Đại-ga-ga, the A must hire the Thai carrier, the shipping company B, for a cost of US$ 50.

-To Train A: the amount of US$ 250 (300-50) proceeds from the direct shipping of goods in international transport of the exempt enterprise income tax under the Agreement between Vietnam and Japan.

-To Train B: the amount of U.S. $50 is considered to be income from the international shipping activity of the tax-income tax rate by the Agreement between Vietnam and Thailand (down 50% of the business income tax must submit).

b) That transport is done on the basis of a one-part of the transport agreement (called a place swap) directly operated by the business itself in return for the business being used in part of the transport by business. It's different. In this case, the revenue was determined on the basis of the shipping certificates issued by the business itself but did not exceed the level of vacancy that the business was mined for free on the vehicle's vehicle by default swap agreement.

1.5. Income from short-term leasing (save) a antenna with a property is an activity that is accompanied by the operation of the transport vehicle operated by the business directly if at the specified Agreement.

The operating properties are accompanied by the operation of the transport vehicle of the long-term lease (save) the antenna is determined to be a antenna-bound antenna with a shipping vehicle entering Vietnam Harbour, the antenna containing the goods of imports and the use of use. The antenna is included in the shipping price; the income for short-antenna rental is due to the recipient of a free-to-shelf antenna.

1.6. The revenue from the leasing of a ship or a drum machine (known collectively as a ceiling rent) is the adjutant to the international transport operation of the transport vehicle directly operated by the business if specified in the Agreement and satisfaction. The following three conditions:

a) The transport vehicle is being used by the business in international shipping; and

b) The total time for rent is shorter than the vehicle time used for the international transport operation of the business itself during the 12-month period beginning or the end of the calendar year; and

c) The lease is not changed the name and signal of the transport vehicle.

The ceiling rental is the form of a ship charter under which the owner provides the tenant of a particular ship that does not include the boat or crew.

The revenue outlined at Points 1.5 and 1.6 will not be considered revenue from the auxiliary operations that go seamless to the international shipping operation to apply the Agreement if the business does not embody the revenues raised at Points 1.1, 1.2, and $1.2 billion. 1.3 or 1.4.

2. The case of two or more enterprises is affiliated to form an affiliated organization or in the name of a non-legal entity that performs international transport operations by means of transport by the organization of the association or the online executive order. And the evidence from the transport is published under the name of the organization of the name or the name of the organization, or the identification of the scope of the application, the reduction of the applicable tax, by the Agreement made separately by the treaty, or by the signing of the Agreement between Vietnam and the United States. in the name or in the name of a residence object or an actual executive headquarters. The base determines the revenue as long as the tax loss is applied similarly to the regulation at Clause 1 and is allocated in accordance with the share of the share of the revenue split to the party in the name of the party, or in a contract or agreement agreement or agreement.

For example, 21: Inter-to-via (SAS) airlines operate international passengers in Vietnam. As such, the company's revenue in Vietnam will be allocated to the parties to the non-SAS non-SAS joint venture capital that is resident in Norway, Denmark, or Sweden to apply to each of the relevant agreements.

When prescriing tax obligations, businesses on the above must separate the amount of income stated above to be judged, reducing the corporate income tax in accordance with the regulation of income from international shipping. In any case of revenue for free, tax cuts do not exceed the corporate income tax revenue of international shipping in accordance with relevant regulatory documents.

The case of the Agreement (such as the Treaty with the Bangkok, the Philippines, and Thailand) stipulated that only a reduction in income tax by a certain percentage, the business must pay income tax on income from international shipping in proportion to the fraction not reduced.

Tax regulations on income from international transport as above are stated at the International Transport Clause (usually Article 8) of the Agreement.

Section 4

INCOME FROM EQUITY INTEREST

What? 15. The equity interest definition

Under the regulation at the Agreement, the equity interest is the amount drawn from the post-tax income of the LLC, the holding company paid to members of the LLC or the shareholders of the holding company, the amount paid by the company. from the post-tax income of the joint venture business, the business of 100% of foreign capital returns to foreign parties, income from foreign (indirect) investment activities (not including income is interest from the regulatory loan at Section 5, Chapter II, Private Investment). This) of the Vietnamese residence subjects, and income is divided from the direct investment activity of Vietnam businesses signed by the country. Tax treatment like equity interest.

Example 22: Vietnam ' s S business investment in the countries X and Y with the situation of income and tax in accordance with the regulation of X and Y as follows:

STT		XX	Y
1 2 3 4 5	Pre-tax income Income tax 28% Post-tax income Income tax on equity interest Real income	100 28 72 14.4 (20% tax) 57.6.	100 28 72 No, no, no, no, no. 72

Thus, the S business, within the scope of the Agreement with the X, is considered to have a cash interest from abroad as 72; within the scope of the Agreement with the Y, it is not considered to have a foreign interest in foreign currency.

What? 16. Identilocate tax obligations on income from equity interest expense

1. According to the regulation at the Agreement, Vietnam has the right to collect taxes on equity interest issued by a company that is a resident object of Vietnam paid to a resident object of the United States signing the Agreement with Vietnam by a limited tax rate according to each Agreement. (usually not more than 15%) with the object condition being the subject of the entity.

2. The case of a Vietnamese resident object receiving interest in the shares of a company is the resident object of the United States Agreement with Vietnam, the United States signed the Agreement with Vietnam entitled to tax income as stipulated at Clause 1, this, Vietnam has the right to collect taxes on this income by regulation in a tax-current law in Vietnam; but Vietnam must take two-fold tax avoidance measures for this income (regulation at Chapter III. The measure of avoidance of taxation is twice in Vietnam.

3. The case of a resident object receiving interest in the equity interest that the current law on taxes in Vietnam does not stipulate income tax returns on this type of income or levy taxes at a lower rate of tax regulation at the Agreement, the subject has income. Enter the tax obligation in accordance with the laws of taxation in Vietnam.

For example, 23: A British company invested $14 million in a joint venture in Vietnam, and in 2010 received interest in equity in Vietnam. Although the Agreement between Vietnam and the United Kingdom (clause 2.a, Article 10: Equity Interest Rates), Vietnam has the right to collect taxes on income from the UK Company ' s shares with a 7% tax rate, but as defined by the existing tax law, Vietnam has not revoked. the tax on the income from the equity interest of businesses should the Company pay no taxes on the amount of income from the equity interest listed above.

What? 17. Define the entity The agreement for income from equity interest

According to the regulation at the Agreement, the tax regulations on equity interest only apply to the residence subjects at the same time as the subject of receiving and being subject to the benefit of the advantage of the shares-i.e. shareholders. Therefore, in addition to some cases that do not benefit the prescribed Agreement at Article 6. Some cases refuse to apply the Agreement on the basis of the Treaty Benefits Principle, reduced tax rates, or the tax exemption on income from the specified equity interest rate at the Agreement which will not apply to:

1. The subject receives a share payment of interest but not a shareholder or not a resident object.

For example, 24: An Investment Fund registered in the country S (established by its members as resident subjects of the countries with the Agreement with Vietnam) joined the creation of the V-based joint venture company in Vietnam. That investment fund is not a residence object of the S. Interest in the shares received by the Investment Fund from the Company Corporation V and the income received by the Capital Fund ' s capital gains from the share interest margin divided by the Investment Fund is not applicable. The treaty between Vietnam and the countries of which members are subject to residence.

2. The equity interest provided by the company is Vietnam ' s resident object paid to a permanent facility located in Vietnam by a resident partner of the United States Agreement signed with Vietnam.

For example, 25: The bank branch of the CV is a branch of the foreign bank in Vietnam of the Bank of France of France to purchase shares in a Vietnamese holding company and is divided into a share interest. At the request of the CV branch, that share of interest is transferred directly to the C-based bank C headquartered in Pa-ri. In this case, the beneficiary of the equity interest is the CV branch, not the bank C. Due to the CV branch is a permanent basis of the C bank in Vietnam should follow the regulation of the Agreement between Vietnam and France (paragraph 5, Article 10: Ancient interest). section), the tax regulations on equity interest will not apply to the C bank that tax regulations on income from business activities will be applied (Article 7: Corporate gain, Agreement between Vietnam and France).

3. The equity interest provided by the company is Vietnam ' s resident partner paying for a permanent basis of another Vietnamese company located in the United States signing the Agreement with Vietnam.

For example, 26: The V Bank of Vietnam has a VC branch in the L which is the United States Agreement with Vietnam. Under the rules of the L, the VC branch is considered a permanent basis for V banks in that country. The VC branch buys the shares of a company in Vietnam and is divided by equity. In this case, tax regulations on equity interest in the Agreement between Vietnam and L will not be applied.

Tax regulations on income from equity interest are as above stated at the Agreement (usually Article 10) of the Agreement.

Section 5

INCOME FROM LOAN INTEREST

What? 18. Definition of interest from a loan

Under the regulation at the Agreement, "interest from the loan" is the income from loans under any form, whether or not guaranteed by mortgage and whether or without the right to benefit the borrower, including the income from the certificate. The Government of the Government and the income from ordinary bonds or bonds, including bonuses and awards that go with securities, bonds, or ordinary bonds.

What? 19. Define the tax obligation on income from loan interest.

1. According to the regulation at the Agreement, Vietnam has the right to collect taxes on the interest of the loan in Vietnam for a resident object of the United States signing the Agreement with Vietnam by a limited tax rate (usually no more than 10%) according to each Agreement, The subject of the subject condition is the subject of the subject.

The interest from the loan in Vietnam was the loan from the loan of any resident of Vietnam and payable, including the gains and payable by the Government of Vietnam and the local authorities of Vietnam. or permanent facilities or fixed facilities of a foreign resident object present in Vietnam.

For example, 27: QT Bank branch is the foreign bank branch in Vietnam of Thailand's Q bank that pays the bank of Q a loan interest. As the QT branch is a permanent basis of the Q bank in Vietnam, it is recommended by the Agreement between Vietnam and Thailand, which is considered to be born in Vietnam and subject to tax in Vietnam at a rate of 10% (2.a, Article 11: Loan from the loan. However, due to the amount of tax on Vietnam's current loan income in this case, it is 5% the amount of interest is only taxable in Vietnam at a rate of 5%.

2. The case of a Vietnamese resident object receiving interest from the loan money in the United States signed the Agreement with Vietnam, the United States signed the Agreement with Vietnam entitled to taxation at that income according to the provisions of Article 1 above and Vietnam. is also the right to collect taxes on this income by regulation of tax-current legislation in Vietnam, but also Vietnam must take two-fold tax avoidance measures for this income (regulation at Chapter III). The measure of avoidance of taxation is twice in Vietnam.

3. The case of tax-current law enforcement in Vietnam does not stipulate the income of income tax on this type of income or levy taxes at a lower rate of tax stipulated at the Agreement, the income subject will take tax obligations under the rules. It ' s about tax law enforcement in Vietnam.

Example 28: Also, for example 27, but assumed interest from the loan money paid to a resident object was the individual in Thailand. Despite the agreement between Vietnam and Thailand (clause 2.b, Article 11: Interest from the loan), Vietnam has the right to collect taxes on this interest rate at a rate of 15%. But as defined by Vietnam ' s personal income tax law, the applicable tax rate is 5%. Therefore, Vietnam only collects tax at a 5% tax rate instead of 15%.

What? 20. Define Entity The agreement for income from the loan interest

Under the regulation at the Agreement, the tax regulations on the income from the loan are only applicable to the direct lenders to the loan, directly receiving interest from the loan and at the same time the subject of the benefit of the interest from that loan. is the lender.

For example, 29: A Vietnamese company signs a loan deal with the Bank of Korea. According to the contract of the contract, the company of Vietnam received a loan from and paid both capital and interest loans to Bank H into an account of Bank H open at Bank C in water C. In this case, the interest in interest was the Bank H of Korea. If you want to do it, the C has a two-fold tax avoidance Agreement with Vietnam.

For example, 30: Company A residence in Vietnam signs capital loans with Bank C in the country X, Bank D in the country Y and E Bank in the country Z and the borrower is transferred directly from the account of these banks to Company A. In that, water X and Y signed the Agreement. Avoid taxation twice with Vietnam. Company A can pay interest in the following manner: (i) The Company A transfer directly loan interest to each Bank of C, D and E respectively to the capital gains rate; or (ii) Company A transfer of the full loan interest to Bank C, then the division of interest due to a profit. The agreement of the loan parties (Bank C, D and E). In this case, the loan payment for the Bank C and D's capital loan of the case (i) and the Bank C of the case (ii) will be applied the Agreement.

Example 31: Suppose with Example 30 above, Company A pays interest in a manner (iii) as follows: Company A transfers full loan interest to the E bank, then the profit-sharing of the loan from the loan parties (Bank C, D and E). In this case, the Bank C, D and E are not applicable to the Agreement.

In addition to some cases that are not in accordance with the Agreement stipulated at Article 6. Some cases refuse to apply the Agreement on the basis of the Treaty Benefits Principle, reduced tax rates, or the tax exemption for income from the regulatory loan at the Agreement which will not apply to:

1. The object receives an interest payment from the loan but is not a lender.

For example, 32: A Vietnamese company pays interest rates to Thailand's C bank. At the request of this bank, this loan interest was transferred to the French P bank with its headquarters in Pa-ri. In this case, the beneficiary of the interest is the C bank of Thailand, not the P Bank of France. Therefore, the P bank does not have the right to require the application of regulations at the Agreement between Vietnam and France for the loan.

2. Interest from a loan from Vietnam to a permanent facility located in Vietnam by a resident partner of the United States Agreement with Vietnam.

For example, 33: A Vietnamese company paying loan interest to the foreign bank branch V in Vietnam of the foreign bank of the C is a Thai resident. In this case, the amount of interest from the loan received by the Foreign Bank Branch V is treated as conventional business income (not income from the loan interest) of the Foreign Bank Branch V in Vietnam as per the provisions of the loan. Treaty between Vietnam and Thailand.

3. Interest from a loan from Vietnam paid to a permanent basis by another Vietnamese company based in the United States Agreement with Vietnam.

For example, 34: The V Bank of Vietnam has a VC branch in the L which is the United States Agreement with Vietnam. Under the rules of the L, the VC branch is considered a permanent basis for V Bank in that country. The VC branch for a company in Vietnam borrowed money and received a loan from the loan. In this case, the tax regulations on the interest from the loan at the Agreement between Vietnam and L will not be applied.

4. Interest from the loan of births in Vietnam paid to a permanent basis of a third country's business in the United States signed the Agreement with Vietnam.

For example, 35: A Vietnamese company paying loan interest to the N Bank branch in the N of the Bank C is Thailand's resident partner. In this case, the loan interest received by the Bank Branch N does not apply the provisions of the Agreement between Vietnam and Thailand.

5. The loan money is not directly transferred from the account of the loan as the resident subject of the Agreement with Vietnam.

For example, 36: Suppose that for example 30 states above, the entire amount of loan under contract is transferred to Company A from the Bank's account; then, the loan interest raised on this loan amount will not be under the Agreement.

Tax regulations on the income from the interest from the loan as above are stated at the Interest Rate clause (usually Article 11) of the Agreement.

Section 6

ROYALTIES FROM ROYALTIES

What? 21. Money definition

Under the regulation at the Agreement, the royalties are the funds paid for use or have the right to use:

1. The copyright of the literary, artistic, or scientific work, including both movie types and the types of tapes or plates used in radio or television;

2. By invention, patent;

3. Commercial label;

4. Design, pattern, carcase, formula or secret process;

5. Computer software;

6. Industrial, commercial and scientific equipment;

7. Information concerning industrial experience, science and commerce.

What? 22. Define tax obligations for income from royalties

1. According to the regulation at the Agreement, Vietnam has the right to collect taxes on royalties issued in Vietnam to a resident object of the United States signing the Agreement with Vietnam under a limited tax rate (usually no more than 10%) depending on the Agreement, with the article The subject is subject to an actual object.

Royalties from Vietnam were the royalties issued by any one of Vietnam's residents and had to pay, including royalties received and payable by the Government and local government agencies, Vietnam or other countries. a permanent facility or a fixed base that a foreign resident has in Vietnam.

2. The case of a Vietnamese resident object receiving royalties from the United States signed the Agreement with Vietnam, the United States signed the Agreement with Vietnam entitled to tax the income according to the stipulation at paragraph 1 above, Vietnam has the right to collect. tax on this income by regulation in the existing law on taxes in Vietnam; but also Vietnam must take two-fold tax avoidance measures for this income (regulation at Chapter III. The measure of avoidance of taxation is twice in Vietnam.

For example, 37: A joint venture-making joint venture in Vietnam is contracted to a South Korean company which regulates the company's lubrication formula for the company's lubricants in 20 years. When the Vietnamese joint venture paid royalties to the South Korean company, under the rule of law existing in Vietnam, the joint venture should deduct tax on royalties of 10% of the total royalties to file a budget. However, the base of the Agreement between Vietnam and South Korea (clause 2.a, Article 12: royalties), the joint venture is only deductible at 5% instead of 10%.

3. The case of tax-current law on taxes in Vietnam does not stipulate income tax on this type of income or levy taxes at a lower rate of tax stipulated at the Agreement, the income subject will take tax obligations under the regulations. Tax practice law in Vietnam.

For example, 38: Suppose that for example 37 states, the South Korean company has been a venture capital company in Vietnam using the formula for a 20-year period. According to the Agreement between Vietnam and South Korea (paragraph 2.a, Article 12: The royalties), Vietnam has the right to tax the rights to South Korea due to the transfer of the right to the use of the oily phase of oil into currency capital at a rate of 5%. However, according to the provisions of the Vietnam Law, if the funding of the technology transfer is exempt from income tax, the South Korean company is exempt from taxation.

What? 23. Define the Agreement for the Agreement on income from royalties.

Under the regulation of the Agreement, the tax regulations on royalties only apply to the subject directly receiving and at the same time the object of copyright income-meaning the person with the right to own, use and exploit the copyright. Therefore, it will not apply to:

1. Subject to the payment of the royalties payment but not subject to ownership, the right to use and the right to exploit copyright; or

2. The royalties of birth rights in Vietnam are directly related to a permanent facility located in Vietnam of the entity subject to a residence object of the United States signing agreement with Vietnam; or

3. Pre-royalties from Vietnam pay for a permanent basis by another Vietnamese company based in the United States Agreement with Vietnam.

Example 39: A branch of the British tobacco company in Vietnam allows a Vietnamese company to use the commercial formula and brand brand of the British tobacco company in Vietnamese company products under the conditions of the inspection and monitoring of the process. use. In this case, royalties from the use of the formula and commercial brand of the British tobacco company are directly related to the branch. As the branch is a permanent facility in Vietnam by the British tobacco company, it should be defined by the Agreement between Vietnam and the United Kingdom (paragraph 4, Article 12: royalties), Vietnam has the right to collect taxes on this income as for income from business activities. (Article 7: The Corporate Union's Profit of the Agreement between Vietnam and the United Kingdom).

Tax regulations on income from royalties as above are stated at the Agreement (usually Article 12) of the Agreement.

Section 7

INCOME FROM PROVIDING TECHNICAL SERVICES

What? 24. Technical service fee definition

Under the regulation at the Agreement, the technical service fee is the payments in any form that pays for any object, not the worker for the payable object, for any of the services that carry technical, management or private properties. Yeah.

What? 25. Define tax obligations for income from the technical service

1. According to the regulation at the Agreement, Vietnam has the right to collect taxes on the fee of technical services born in Vietnam to a resident object of the contracting country Agreement with Vietnam under a limited tax rate (usually no more than 10%) according to each Agreement, with the The object of the subject is subject to an actual object.

The fees for technical services in Vietnam are payments under any form caused by a Vietnamese resident subject and must pay, including the amount of technical service fees that are subject to and payable by the Government and local government authorities. Vietnam or its permanent facilities or facilities that a foreign resident has in Vietnam.

For example, 40: Company X is the subject of residential production in Vietnam. To expand the commodity consumption market to Europe, the X Company hired the M Company in Germany legal advice on opening branch or product consumption agency. This advisory service was implemented in Germany and the Company M did not have a permanent basis in Vietnam.

In this case, when paying the service fee to the Company M, Company X is obliged to deduct the corporate income tax with a tax rate of no more than 7.5% by the Agreement between Vietnam and Germany (paragraph 1.b, Article 12: royalties and technical services fees).

2. The case of a Vietnamese residency object receiving the charge of a technical service in the United States signed the Agreement with Vietnam, the United States signed the Agreement with Vietnam entitled to tax the income according to the stipulation at paragraph 1 above, Vietnam has the right to Tax revenue on this income is prescribed by the law on tax practice in Vietnam; but Vietnam must take two-fold tax avoidance measures for this income (regulation at Chapter III. The measure of avoidance of taxation is twice in Vietnam.

Tax regulations on income are the same technical service fees listed at the Agreement (usually Article 13) of the Agreement.

Section 8

INCOME FROM ASSET TRANSFER

What? 26. The definition of income from asset transfer

Income from asset transfer is income in all forms from the sale, transfer (whole or part) or exchange of assets and rights to the property; even the case takes the property to a business base in exchange for the rights at the business base. That's it

What? 27. Identitiate tax obligations on income from property transfer

1. Tax obligations on income from real estate transfer in Vietnam

Under the regulation of the Agreement, Vietnam has the right to collect income tax on the provisions of the existing law on taxes in Vietnam for income from the Vietnam estate transfer of a resident partner of the United States Agreement with Vietnam.

For example, 41: French oil-mining company transferred oil rights to oil at a location in the Vietnam Sea, earning it the income tax in accordance with the law of Vietnam.

2. Tax obligations on the income from the property transfer are the business assets of a permanent facility in Vietnam.

Under the regulation at the Agreement, Vietnam has the right to collect income tax under the provisions of the existing law on taxes in Vietnam for income from the transfer of the business assets of the permanent facility or transfer of permanent facilities in Vietnam of the country. a resident of the United States.

For example, 42: The Bank C branch of the country P (which is the country that signed the Agreement with Vietnam) operates in Hanoi. In 2010, the branch ceased operations and sold the entire equipment and assets used for the business purpose of the branch. Income obtained from the above transfer will be prescriing tax (after excluding the remaining value of the device and assets) according to the current corporate income tax rate in Vietnam (25%).

3. Tax duty on the income from ship transfer, boat, aircraft operating in international transport and shipping.

As defined by the Agreement, the ship's income from shipping, boats, aircraft operates in international transport (as defined at Article 12). The country's international shipping definition) was signed by the international shipping business of the United States Agreement with Vietnam not to pay taxes in Vietnam.

4. Tax obligations on the income from the capital transfer of foreign investors in enterprises that have foreign investment capital, in a trust or a name that the real estate value domines the proportion of the principal in the total capital of the business.

In the majority of the Agreement between Vietnam and the United States, Vietnam has the right to collect income tax in the case of foreign goods transfer of capital in enterprises, trusts or signage to Vietnam ' s resident subjects. The value of real estate accounts for the total assets of the business.

The rate of real estate value in the total assets of the business is the simple average number of real estate value ratios in the business ' s total assets at the time of the property transfer, the timing of the start and the end of five counts. Taxes just before the year in which the property is transferred. The identification of real estate value is based on the asset's audits that has been audits at the time of the above.

The principal proportion of the real estate value in the total assets of the business is determined as follows:

-The case at the Agreement is specific in terms of proportion or in terms of the proportion specified at the rate of regulation at the Agreement, as at Clause 4, Article 13, the Agreement between Vietnam and Spain rules the rate of above 50%, or at Section 4, Article 14, Agreement between Vietnam and Oman and at Section 4, Article 13, the Agreement between Vietnam and the United Kingdom of the United Kingdom of the United Arab Emirates regulates the ratio mostly over 50%.

-The case at the Agreement is not specified in proportion or in terms of the principal ratio, calculated primarily by 50%.

For example 43: On March 30, 2012, an investor was subject to Indonesia's capital of Indonesia. The value of real estate in the total assets of the V business at the time of March 30, 2012, January 1, 2011, and December 31, 2011, were 60%, 40% and 53% respectively. The identification of the principal ratio of real estate value in the total number of assets of the V business for the purpose of determining the tax obligations of the investor-in-municipality of Indonesia as follows:

Paragraph 4, Article 13: The yield from the transfer of the property, the Agreement between Vietnam and Indonesia,

" 4. The yield due to a residence object of a signed country proceeds from the transfer of shares or the corresponding rights at a corporation whose assets include the whole or mainly real estate located in the other signage that may be taxed in the other country. "

The above regulation does not specify the specific proportion of the real estate value in the company's assets so the ratio above 50% will be considered primarily.

The simple average number of real estate values in the total assets of the business is determined as follows:

(60% + 40% + 53%)/3 = 51%.

As such, in this example, real estate value has taken up primarily among the assets of the Company V.

5. Tax obligations on income from the equity transfer in a company in Vietnam.

In some agreements the regulation of income from the transfer of the shares of a resident subject of the United States Agreement with Vietnam in a company is the subject of Vietnam's subject to taxing in Vietnam.

Example 44: Clause 5, Article 13: The yield from the transfer of the property, the Agreement between Vietnam and Indonesia

"The yield from the transfer of the shares at a company is subject to the residence of a contracting country that is not the shares mentioned at paragraph 4 that may be taxed in that country."

According to the above regulations, if a resident object of Indonesia has income from the transfer of shares in a company that is the subject of Vietnam, the income will be taxable in Vietnam.

6. Tax obligations on income from other property transfers in Vietnam

Under the provisions of the Agreement, the income from the transfer of other assets to the properties of the property states 1 to 5 states above the Vietnam of a residence object of the United States signing the Agreement with Vietnam is not subject to income tax in Vietnam.

Example 45: A Chinese construction company takes the machinery to Vietnam to implement a construction work within three months. After the competition, the company moved back to the country and sold the number of machines in Vietnam. As defined by the Agreement between Vietnam and China, the company does not have a permanent basis in Vietnam (paragraph 3.a, Article 5: Permanent Facility), thus not paying taxes in Vietnam (paragraph 6, Article 13: The yield from the asset transfer).

Tax regulations on income from the property transfer as above are stated at the Account of the Income from the Property transfer (usually Article 13) of the Agreement.

Section 9

INCOME FROM INDEPENDENT PERSONAL SERVICE ACTIVITY

What? 28. The definition of income from independent personal service activity

According to the regulation at the Agreement, the income from the independent personal service activity is income attributo an individual to the resident subject of the Agreement signed by the Republic of Vietnam from an independent activity to provide vocational services such as scientific services, literature, and business. study, art, education or teaching, namely the independent practice of doctors, lawyers, engineers, architects, dentists, accountants and auditor.

Income from independent personal service activity does not include the employment activity (regulated at the terms of income from the Personal Activity of Dependencies), the preemies of directors (regulated at the Compensation Clause), the pension (which is regulated). located at the Pension Clause), serving the state (regulated at the Accession Income Clause), the income of the student, the student (regulated at the Student Income Clause), teachers and professors (regulated at the Terms of Compensation). The income of Professor, teacher and researcher) and the independent demonstration activity of the artists and athletes (regulated at the Article of the World). the income of the Artist and the athlete).

What? 29. Identilocate the tax obligation on income from independent personal service activity in Canada.

As stipulated by the Agreement, a resident subject of the United States Agreement with Vietnam to provide an independent personal service in Vietnam would have to pay a personal income tax in Vietnam in the following cases:

1. The individual acts independently through a fixed base.

The term "fixed base" refers to a permanent or stable location within the national territorial domain through which an individual performs the provision of a career service (e.g., a medical clinic, architectural office, and office). A lawyer or a lawyer, ...). The principle of defining the "fixed base" is similar to the principle that defines the "permanent basis" of the business stating at Point 1.2, Article 11, this Information.

2. The individual is present in Vietnam from 183 days or more in the year of taxation or within 12 months from the date to Vietnam, depending on the treaty.

3. The individual obtained a certain amount of income, according to each Agreement, from the implementation of the independent profession in Vietnam over a given period of time (typically in one fiscal year).

For example, 46: In 2012, a doctor was a resident of Bangkok, who conducted an operation at an international hospital in Vietnam and received a total of 50,000,000. The doctor ' s time in Vietnam to conduct the operation is five days. According to the regulation of the Agreement between Vietnam and Bangkok (paragraph 1c, Article 15: Independent Personal Service Activity), the doctor's income is 50,000,000 (exceeding US$ 1,500), so this doctor is obliged to pay a personal income tax in Vietnam.

Tax regulations on income from independent individual service activities as above are stated at the Agreement on the Independent Personal Services Activity (usually Article 14) of the Agreement.

Section 10

INCOME FROM DEPENDENT PERSONAL SERVICE ACTIVITY

What? 30. The definition of income from a dependent personal service

As defined by the Agreement, the income from personal service activities depends on the income in the form of public money provided by an individual who is the resident object of the United States Agreement with Vietnam obtained from work in Vietnam and vice versa. Income from non-dependent personal service activities does not include the income of individuals as independent practice individuals (regulated at the Independent Vocational Services Clause), the board member of the business executive board (regulated at the Terms of Hostilities). The artist, the artist, the athlete (which is regulated at the income of the Artist and the athlete), the staff serves to the Foreign Government (regulated at the Government of the Government's income), and the money in the form of pension funds. (stipulated at the Terms of Pensions).

What? 31. Define the tax obligation on income from the dependent personal service.

1. According to the regulation at the Agreement, an individual who is a resident object of the United States signing of the Agreement with Vietnam, whose income from employment in Vietnam would have to pay income tax on that employment income in Vietnam under the current rules of conduct. Vietnam ' s personal income tax.

For example, 47: In 2012, Mr. A was a resident of France working for the bank branch F as the foreign branch of a French bank in Vietnam for two months. His entire salary and income A is due to the F-payment branch. In the year before and after, Mr. A was not present in Vietnam. In this case, Mr. A was obliged to pay a personal income tax on the income received from the time of employment in Vietnam under the current regulations on personal income tax in Vietnam.

2. If the individual states at the 1-1 and then satisfy the following three conditions, the proceeds from the job done in Vietnam are exempt from the income tax in Vietnam:

a) That individual is present in Vietnam under 183 days in the 12-month period beginning or ending in five tax counts; and

b) The employer is not a resident object of Vietnam regardless of whether that money is paid directly by the employer or through an object representing the employer; and the employer, the employer.

c) That money is not due to a permanent facility the employer has in Vietnam and has to pay.

For example, 48: The N Company of Japan participated in the creation of the joint venture S which distributs goods in Vietnam. In 2012, Company N sent Mr. Z to Vietnam as a company representative to negotiate contracts for the Company N providing "secret" sales to the S venture for a period of a month. In the previous year and then Mr. Z was not present in Vietnam. The entire income and cost of Mr. Z during his time in Vietnam was paid by the Company N. In this case, Mr. Z agreed to satisfy all 3 conditions at paragraph 2 above should be exempt from personal income tax in Vietnam.

3. The concept of "employer" states at Point 2.b) used to refer to the object using actual labor. Typically, an object is considered a true employer if there are the following rights and obligations:

a) That object has the right to the product and services generated by the worker and responsible as well as the risk to that labor;

b) The object gives guidance and provides the labor means for the worker;

c) That object has control and is responsible for the labor site.

Example 49: Also with Example 48 above, in 2013, Mr. Z went to Vietnam as a joint venture of the S venture to guide the application of "secret" over the three-month period. In the year before and after, Mr. Z was not present in Vietnam. With the spirit of help for the S venture, the entire income and cost of Mr. Z during the employment period in Vietnam was paid by the Company N. In this case, in terms of form, Mr. Z has agreed to satisfy all three of the terms of paragraph 2 above, but in essence, for the standards of real labor, Mr. Z ' s real employer during his time working in Vietnam is the joint venture. S, not Company N. Therefore, Mr. Z is not exempt from the personal income tax in Vietnam.

4. The Vietnamese case is subject to the residence of the Contracting Water with Vietnam with no income from the Vietnam-based operation that only income from overseas employment will not have to pay income tax in Vietnam for the country. That money.

For example, 50: In 2011, Vietnam's V Construction Company sent workers to Laos to work at a Company's work in Laos for a whole period of 12 months. Income from the wages of these workers due to the work in Laos would not be subject to taxation in Vietnam.

5. Individuals who work on ships, boats, aircraft (crew, crew, crew) in the international transport operation of the business are either resident or the actual operating headquarters in Vietnam that will pay income tax in Vietnam.

For example, 51: Company S is a Vietnamese marine shipping business that hires ships and sailors who are foreigners to exploit the Chinese-beautiful-ga-po international shipping line, the S Company is obligated to withhold personal income tax. Vietnamese law on salaries paid to individuals who were members of the crew, although this salary was part of the cost of renting the ship.

Tax regulations on the income from individual-dependent personal service activities are stated at the Dependent Personal Service Operation Clause (usually Article 15) of the Agreement.

Section 11

INCOME FROM RETRIBUTION

What? 32.

According to the regulation at the Agreement, the Director of TB is income due to a resident object of the United States signing the Agreement with Vietnam received in Vietnam as a member of the board of directors of the Company, the Board of Directors of the Company or of the holder of senior management. level in a business is the subject of Vietnam ' s residence; and vice versa. This income does not include salaries led by members of the above received from the implementation of other functions in the business as workers, consultants, advisers, and salaries of foreign individuals who hold office in the office of representative public affairs. Foreign corporations are located in Vietnam. The usual income is considered to be income from the dependent personal service operation (regulation at Section 10. Income from dependent personal service activities, Chapter II, This Information.

What? 33. Define the tax obligation on income from the director of the director

As defined by the Agreement, the individual case is the subject of residence in the United States signed to the Agreement with Vietnam as a member of the board of directors of the Company, the Board of Directors of the Company, or as the holder of senior management. in the company is the subject of Vietnam ' s residence, that individual will have to pay taxes on that income in accordance with the personal income tax regulations in Vietnam (not to distinguish whether that individual is present in Vietnam).

For example, 52: A British residency object is a member of the board of directors of a joint venture in Vietnam. In 2012, the object only went to Vietnam to work for a total of 60 days and receive a fee as a member of the Board of Directors. The United Nations base between Vietnam and the United Kingdom and the provisions of the current personal income tax law in Vietnam, the subject must pay a personal income tax on remuners received as a board member with a current tax rate in Vietnam. Male (20%) calculated on the total income received by the non-resident object of Vietnam.

Tax regulations on the income from the compensation of the director as above are stated at the Agreement of the Director of the Director (usually Article 16) of the Agreement.

Section 12

INCOME FROM PERFORMANCE ACTIVITIES

ARTISTS AND ATHLETES.

What? 34. The definition of income from the performance activities of the artist and the athlete

As defined by the Agreement, the income from performance activities of the artist and athlete is the income from performing arts, sports in Vietnam of the artist itself, the athlete being the subject of residence in the United States signing the Agreement with Vietnam. Male; and vice versa.

What? 35. Identilocate the tax obligation on income from the performance activities of the artist and the athlete.

1. Though there are regulations at Section 9. Income from Independent Vocational Activity and Section 10. Income from dependent personal activity, Chapter II, this Smart, the individual case is the resident object of the United States Agreement with Vietnam to conduct a demonstration of performing arts, sports in Vietnam, and receiving income from performance. That would have to pay income tax on Vietnamese law.

For example, 53: In 2012, at the invitation of Vietnam's V Performing Company a singer was a South Korean resident who had a performance in Vietnam and received a fee of $500,000,000. The singer's time in Vietnam to participate in the show was three days. According to the provisions of the Agreement between Vietnam and South Korea (paragraph 1, Article 17: Artist and athlete) the singer is obliged to pay a personal income tax in Vietnam.

2. Despite the regulations at Section 2. Income from business activity, Section 9. Income from Independent Vocational Activity and Section 10. Income from dependent personal activity, Chapter II, This Smart, in the case of income from the performing arts, sport in Vietnam of the individual is the resident subject of the United States signing agreement with Vietnam not to pay the performer. If you pay for another subject, the income will be taxed in Vietnam by means of Vietnamese law.

For example, 54: Also for example 53, Korean singer sang in Vietnam on a contract (negotiated and signed in South Korea) between Vietnam's V-performing Company and South Korean Star Company. According to the provisions of the Agreement between Vietnam and South Korea (paragraph 2, Article 17: Artist and athlete) the income of the Star Company from this contract will be subject to corporate income tax in Vietnam.

3. The case of an individual 's performing arts, sport, company is subject to residence in the United States Agreement with Vietnam made in the framework of cultural exchange program between the Government of the two countries, then income from the program' s demonstration activity. In Vietnam, the foreign company will be exempt from taxes in Vietnam, if the treaty between Vietnam and Vietnam is regulated.

For example, 55: In 2012, in the framework of a cultural exchange signed between the Government of Vietnam and the Government of South Korea, a singer is a South Korean resident who had a performance in Vietnam and received a compensation of 500,000,000. According to the provisions of the Agreement between Vietnam and South Korea (paragraph 3, Article 17: Artists and athletes) the singer is not obliged to pay a personal income tax in Vietnam.

Tax regulations on the income of artists and athletes as above are stated at the Agreement of Artists and athletes (usually Article 17) of the Agreement.

Section 13

INCOME FROM PENSION

What? 36. The definition of income from pension

As defined by the Agreement, the income from the pension is a pension due to the domestic object of the signage of the Agreement with Vietnam received from the previous work done in Vietnam; and vice versa. The income from the pension stipulated at this does not include pension funds issued by the Government, the local government agency of Vietnam and the United States Agreement with Vietnam paid for this income being considered income from the Government of the Government. In Section 14: Income from the Service of Government, Chapter II, This Information.

What? 37. Define Tax Obligations for the income from the pension.

Depending on the particular agreement, the income is the pension that will be taxable:

a) Only in the country where pension recognition is subject to residence; or

b) Only in the country where the pension is paid; or

c) At the same time in the country ' s residence of the pension object and in the country giving birth to the source of pensions if the pension object is either a resident or a permanent facility in the country.

For example, 56: Mr. F was a French citizen and worked for the private sector in France, when he retired to Vietnam. In accordance with Article 17: The pension, the Agreement between Vietnam and France, the income from the pension received from France would only be taxed in Vietnam regardless of the pension paid by the French pension fund.

For example, 57: Mr. M is an Oman citizen and works for the private sector at Oman. During his time in office, Mr. M closed the retirement insurance fund for the Government of Oman's Government, when he retired to Vietnam. Under the provisions of Clause 2, Article 19: pension money and social insurance payments, the Agreement between Vietnam and Oman, income from pension funds received by this retirement insurance fund will only be taxed at Oman.

For example, 58: Mr. M is a resident of Denmark and works for the private sector in Denmark, when retired to Vietnam. As stipulated by Article 18: The pension and the same amount of money, the Agreement between Vietnam and Denmark, income from the pension received from Denmark will be taxed in Vietnam and Denmark if the Danish national law has a tax levy of the deal. With the pension.

Tax regulations on income from pension as above are stated at the Agreement (usually Article 18) of the Agreement.

Section 14

INCOME FROM GOVERNMENT SERVICE

What? 38. The definition of income from government service.

Under the regulation at the Agreement, the income from government service is the income of money, wages, government pension, the local government of a contracting country to pay for an individual to carry out tasks for the government. That's the signing water.

What? 39. Define tax obligations on wage income from government service activity in the United States

1. The case of foreigners signed by the Government of the Water Agreement with Vietnam sent to Vietnam to work for the institutions of that government in Vietnam or for economic, cultural, and aid cooperation programs between the two countries, the money. Salary, public money paid by the Foreign Government to that individual will be exempt from income tax in Vietnam, even if the purpose of such work on such tasks becomes the subject of Vietnam ' s residency.

For example, 59: Mr. J is a Japanese citizen working for the JICA office in Vietnam. Earnings from Mr. J ' s salary during the employment period in Vietnam would be exempt from personal income tax in Vietnam (Clause 1.a, Article 19, Agreement between Vietnam and Japan).

2. Cash, public money by the Government of a United States Agreement with Vietnam will only be taxed in Vietnam if paid for an individual is the subject of Vietnam ' s residency to carry out jobs for the Foreign Government in Vietnam and this individual. satisfied one of the two conditions below:

a) to Vietnamese nationality; or

b) It has been the subject of Vietnam ' s residence prior to the implementation of jobs in Vietnam serving the Foreign Government.

For example, 60: Mr. V is a Vietnamese citizen who works for the JICA office in Vietnam. Income from Mr. V's salary during his time at the JICA office Vietnam would be subject to a personal income tax in Vietnam by the provisions of Vietnam's personal income tax law (paragraph 1.b (i), Article 19, Agreement between Vietnam and Japan).

What? 40. Define tax obligations on pension income from government service activity in the United States.

When an individual receives a pension paid from a fund led by the State of Vietnam or local government agencies of Vietnam (later known as the State of Vietnam), or is paid by the State of Vietnam itself due to the previous employment of the country. The state of Vietnam this pension will only be taxable in Vietnam; unless the individual is said to be a resident subject of the United States signed the Agreement with Vietnam and has just brought the nationality of that sign. In the case that the individual is both a resident subject of the United States signing the Agreement with Vietnam and the country's nationality, the income of the individual's pension will only be subject to the tax in that sign.

For example 61: Mr. V is a Vietnamese citizen who works for the Government of Vietnam. When he retired, Mr. V lived in Japan. As a result, the pension due to the employment of the Government of Vietnam would be exempt from the income tax in Japan (paragraph 2.A., Article 19, Agreement between Vietnam and Japan).

For example 62: Mr. J is a Japanese citizen working for the Vietnam Embassy in Japan. When he retired, Mr. J was still living in Japan. As a result, the pension due to the employment of the Government of Vietnam would only be subject to personal income tax in Japan (paragraph 2.b., Article 19, Agreement between Vietnam and Japan).

What? 41. Define the tax obligation on wage income and pension funds from the Government ' s business operations.

Although there have been regulations at Articles 39 and 40 above, taxation on wages, wages, or pension funds paid by the Foreign Government to an individual for participating in the business activities of the Foreign Government in Vietnam as active duty. of the rail transport enterprise, postal or state-performing company that will be imposed by regulation, depending on the case, at Section 10. Income from dependent personal activity, Section 11. Income from the director's fee, Section 12. Earnings of Artist and athletes and Section 13. Income from pensions, Chapter II, this is a private.

Tax regulations on income from the Government serve as above are stated at the Government Service Activity Clause (usually Article 19) of the Agreement.

Section 15

STUDENT INCOME, INTERNSHIP.

AND STUDENT STUDENTS.

What? 42. Student income definition, internship and vocational students

According to the regulation at the Agreement, the income of students, students, and foreign students in Vietnam cater to the study, study, study in Vietnam, under the terms of the provisions of this provision only included:

1. Income received from overseas sources for academic purposes, living in Vietnam.

2. Income received from work in Vietnam is directly related to academic activity, study, vocational education in Vietnam (in the case of a regulatory agreement). In some agreements, this income is only tax-exempt within a given level of income.

What? 43. Define tax obligations on student income, internship and vocational students in the United States.

The student case, the internship, the foreign students just before they went to Vietnam to study, study, study as the resident subject of the treaty country with Vietnam, students, students, students, foreign students who would be exempt from income tax. Vietnam for the types of income stated at Article 42.

For example 63: A student is a Chinese resident to Vietnam to study folk art for a period of four years. During his study in Vietnam, he received a $800,000/month scholarship from China, teaching Chinese to a school in Hanoi with earnings of $50 per month and participating in Vietnamese folk art performance with a total income of $2,500. America/Year. According to the regulations at the Agreement between Vietnam and China (Article 20: Students, vocational students and internship students), the student is exempt from the tax income tax on scholarship money, income from performing in the range of $2,000; and paying income tax. for the income from teaching and the excess of over $2,000 of performance income.

Tax regulations on student income, internship, student students such as above are stated at the Student Charter, internship and vocational students (usually Article 20) of the Agreement.

Section 16

INCOME BY TEACHERS, PROFESSORS AND RESEARCHERS.

What? 44. The income definition of teachers, professors and researchers.

In a number of Agreed Agreed agreements for tax treatment on the income of teachers, professors and foreign researchers from teaching activities, presentations, research in Vietnam. This income includes income from teaching activities, presentations, research at universities or educational institutions recognized by the Government of Vietnam.

What? 45. Determining the tax obligation to teachers ' income, professors and other researchers.

1. The income of teachers, professors and foreign researchers from teaching activities, presentations, studies in Vietnam under Article 44 stated above will be exempt from taxation in Vietnam (within the specified period at the Agreement) if conditions under the command are not available. This is satisfying:

-Just before the visit to Vietnam teaching, presentations, research, teachers, professors, foreign researchers are subject to the residency subjects of the United Nations signing agreement with Vietnam; and

-Teaching, presentations, research conducted at universities or educational institutions is recognized by the Government of Vietnam.

For example, 64: According to a Program Between a Vietnamese V University and a University of Phi-Philip University, starting in the 2012 academic year, the University of P sent a teacher to teach at the University of V for a period of three years. The teacher will be exempt from a personal income tax in Vietnam for income from teaching at V University for a two-year period since arriving in Vietnam and will have to pay personal income tax in Vietnam for income from teaching at the University of Vietnam. In the third year (paragraph 1, Article 21: Teachers, professors and researchers, the agreement between Vietnam and the Philippines).

2. The exemption as the above does not apply to the case of a teaching activity, the study serves for the individual purpose of an individual or of a private organization.

For example, 65: According to a contract signed by a private hospital V of Vietnam, in 2012, a professor was the subject of Philip's residency (as a member of the contract) to study at the hospital for 12 months. The professor will have to pay private income tax in Vietnam for income from research activities under contract.

Tax regulations on the income of teachers, professors and researchers as above are stated at the Terms of Teachers, professors and researchers (usually Article 21) of the Agreement.

Section 17

OTHER INCOME

What? 46. Other income definitions

Under the regulation at the Agreement, the other income is the entire income that has not been mentioned at other terms of the Agreement, such as: income from winning the lottery, winning bets at casinos, income from the pension in accordance with the obligation of marriage. Your family, your ...

What? 47. Define tax obligations on different income

1. By regulation at the Agreement, a resident residing in the United States signed the Agreement with Vietnam to have other income from Vietnam would have to pay a tax on the provisions of the existing law on taxes in Vietnam. However, at some agreements (such as the Agreement between Vietnam and France, Vietnam and the United Kingdom), Vietnam is committed to tax on other income in this case.

For example 66: Mr. H is a resident of China and Mr. P is a resident of France, during a two-week tour in Vietnam, both of which won a lottery of 20 million in Hanoi. According to Vietnam's personal income tax regulation, it is an unusual income that both of you are obliged to pay taxes in Vietnam for this prize money. According to the Agreement between Vietnam and China (paragraph 2, Article 22: Other income), Vietnam may collect taxes on Mr. H.'s income by the Agreement between Vietnam and France (paragraph 1, Article 20: Other income), Mr. P's income is tax-exempt in Vietnam.

2. The other case of income related to the permanent facility in Vietnam of a resident object of the United States signed with Vietnam, Vietnam has the right to collect taxes on that income under the provisions of the existing law on taxes in Vietnam and the appropriate. It ' s about regulation at Section 2. Income from business and Section 9. Income from the operation of the independent profession, depending on the case, Chapter II, this message.

For example, 67: The V bank branch is the Vietnamese branch of the Bank of Japan, which buys a car of a company in the United States of X and is awarded US$ 10,000. This automobile is used for the business purpose of the V. Branch, although according to the internal policy of the S bank, such earnings must be considered as income of the headquarters and transfer to the bank ' s account in Japan, the income of the bank accounts. From this prize money is still considered to be in fact relevant to the V branch-a permanent basis of the S bank in Vietnam by the provisions of the Agreement between Vietnam and Japan (paragraph 2, Article 21) and so Vietnam has the right to collect taxes on this income. according to the provisions of the existing law on taxes in Vietnam and in accordance with the regulation at Section 2. Income from business activity, Chapter II, This Smart. (Article 7 of the Agreement between Vietnam and Japan).

Tax regulations on other income as above are stated at the Other Income Clause (usually Article 22) of the Agreement.

Chapter III

TWO-TIME TAX AVOIDANCE MEASURE IN VIETNAM

Under the regulation at the Agreement, when a tax object is the subject of Vietnam ' s residence, income from the Water signing Agreement with Vietnam and paying taxes in the country (by the regulation of the Agreement and the law of that country), Vietnam can still have the right to collect. Tax on these income amounts, but Vietnam also has an obligation to take two-fold tax avoidance measures so that the tax is not taxed twice.

According to each Agreement signed, Vietnam may take a measure or merge the measures to avoid taxation twice as stipulated in Articles 48, Article 49, Article 50 of this.

What? 48. Tax deduction

In the case of a Vietnamese resident subject to income and paying taxes in the United States signed to the Agreement with Vietnam, if at the Agreement, Vietnam pledged to take tax deductible measures when the residence object prescribes the income tax in Vietnam. That income would be included in the income tax income in Vietnam by the law of the current law on taxes in Vietnam and the amount of tax paid in the contracting state would be deducted into the tax in Vietnam. Tax deduction performs in accordance with the principles below:

a) The tax has filed in the Contracting Water deduction is the tax ordinance prescribed at the Agreement;

b) The tax number that is deducted does not exceed the tax amount must be filed in Vietnam on income from the Contracting Water in accordance with the existing law of taxation in Vietnam but also not deductible or the tax refund has been higher in foreign countries;

c) The tax number filed in the Contracting Water is deducted as the tax number arise in the time of the tax year in Vietnam.

For example 68: Mr. A is a Lao citizen and a resident of Vietnam in 2011. In 2011, Mr. A had an eight-month employment tax in Vietnam, 40,000,000, and 4 months (between September 2011 and December 2011) in Laos of 80,000,000. The tax year of Laos from 01/10 to September 30 next year. According to the provisions of the Agreement between Vietnam and Laos (Clause 1, Article 15: Personal service activities dependent) Mr. A must pay taxes in Laos on income obtained from the country at the rate of tax on the provisions of this Water Tax Act (20%). Assuming that in addition to the stated income, Mr. A does not have other sources of income. In this case, the prescribation of taxes and tax deductions filed in Mr A ' s Laos in Vietnam is as follows:

-Determine Mr. A ' s tax income for the 2011 tax year (according to the tax current law in Vietnam):

(40,000,000 yen + 80,000,000 yen) = 120,000,000

-Define Mr. A ' s income tax in the 2011 tax year (according to tax-current legislation in Vietnam):

(60,000,000 bronze x 5% + 60,000,000 bronze x 10%) = 9,000,000

-The tax number filed in Laos (under Lao tax law):

80.000,000 bronze x 20% = 16,000,000

-Vietnamese law tax on income in Laos:

$9,000,000: 12 months x 4 months = 3,000,000

So Mr. A was only deductible for 3,000,000 dollars on a total of 16,000,000 people who had filed over 80.000,000 of the cash income that was born in Laos.

For example, 69: Vietnam's V Company has a permanent facility in Laos. In 2010, the facility was determined to have an income of US$ 100,000. Under the provisions of the Agreement between Vietnam and Laos (Clause 1, Article 7: Corporate Advantage), V Company is obliged to pay income tax under the Lao Tax Law on the number of income identified by this permanent facility (tax rate of 20%). In this case, the prescribation of tax and tax deductions submitted in Laos of the Company V in Vietnam as follows:

-Determine the tax number filed in Laos (under the Lao Tax Law):

$100,000 U.S. x 20% = US$ 20,000

-Determine the amount of tax must be filed in Vietnam (according to the current law of taxation in Vietnam):

$100,000 U.S. x 25% = $25,000

-Tax number in Vietnam:

$25,000-US$ 20,000 = $5,000

For example, 70: Also for example 69, assuming V Company is a joint venture company and is entitled to a 10% corporate income tax rate. Then, the tax filing and tax deduction filed in Laos of the V Company in Vietnam as follows:

-Determine the tax number filed in Laos (under the Lao Tax Law):

$100,000 U.S. x 20% = US$ 20,000

-Determine the amount of tax must be filed in Vietnam (according to the current law of taxation in Vietnam):

$100,000 U.S. x 10% = $10,000

-The maximum amount of tax is deducted in Vietnam: $10,000

In this case, the Company V was deducted $10,000 out of the total $20,000 in taxes submitted in Laos. The $10,000 (US$ 20,000-US$ 10,000) portion is not deductible to the income tax on domestic income (if any) of the V Company and is not transferred to the following year.

What? 49. Tax deductible measure

Where a Vietnamese resident object has income and must pay taxes in the United States Agreement with Vietnam (the tax rate is exempt or reduced as a special favor), if at the Agreement, Vietnam is committed to implementing the tax deductible measure. Then when the subject of the residence, which prescribes the income tax in Vietnam, those revenues will be counted on the income tax in Vietnam by the law of the existing law on taxes in Vietnam and the amount of the tax deduction is deductible. Vietnam. The tax number is the tax number that is the subject of Vietnam ' s residency to be filed in the United States signing the Agreement with Vietnam on the income of birth in that signing country, but as prescribed at the law of that signing country is exempt or reduced as a preferable measure. Special.

Tax deduction performs in accordance with the principles below:

a) The tax has submitted or treated as submitted in the Deductible Contracting Country is the tax sharper prescribed at the Agreement;

b) The tax number that is deducted does not exceed the tax amount that must be filed in Vietnam on income from the Water signed by the existing law of taxation in Vietnam;

c) The tax number filed in the Contracting Water is deducted as the tax number arise in the time of the tax year in Vietnam.

For example, 71: Vietnam's Q Company has a permanent facility in the U-x-be-ki-xan. In 2010, the facility was determined to have an income of US$ 100,000. Under the provisions of the U-concrete Tax Law, this income is exempt from the tax as a special preferable measure (the case is not exempt, which would have to pay a tax rate of 33%). The Q company is obligated to pay taxes in Vietnam at the current tax rate (25%). According to the regulations at the Agreement between Vietnam and the United States of Germany (paragraph 5, Article 24: Elimination of taxation twice), Vietnam is obliged to deduct the number of securities (i.e., the tax should be submitted but exempt from U-pe-be-ki-xtincrease). In this case, the prescribation of taxes and the deduction of the number of securities of the Q Company in Vietnam is as follows:

-Identify the number of securities in the U-bench-x-krose tax (in accordance with the U-be-pe-ki-x-xt tax law):

$100,000 U.S. x 33% = $33,000

-Determine the amount of tax must be filed in Vietnam (according to the current law of taxation in Vietnam):

$100,000 U.S. x 25% = $25,000

Thus, the Company Q was in fact not paying taxes but was deemed to have paid $25,000 (out of a total of $33,000 in accordance with the U.S. tax law) and was excluded from the tax return tax in Vietnam (i.e., it is). You don't have to pay taxes in Vietnam.

What? 50. Indirect deductible measure

1. The case of a Vietnamese residency object that has income from the Country signing Agreement with Vietnam that the income is subject to corporate income tax before being divided on that object and at the Agreement, Vietnam is committed to taking the deductible measure. Except for indirect taxes, when you account for income tax in Vietnam, those revenues will be counted on tax revenues in Vietnam by the law of tax-existing legislation in Vietnam, and indirect taxes filed in the United States are deductible. Taxes must be filed in Vietnam. In any case, however, the amount of tax deductible does not exceed the amount of taxation that must be filed in Vietnam on income from abroad under the law of the current law on taxes in Vietnam.

The indirect tax number is deducted as the tax number led by a holding company being the subject of the Agreement Agreement with Vietnam filed in the Contracting Water in the form of corporate income tax before the share of equity for Vietnam ' s residency subject with this provision. Vietnam ' s residency subject directly controls a minimum rate of voting rights by the holding company (usually 10%).

For example, 72: The V Company of Vietnam invested US$ 10,000,000 (equivalent to 20% of its equity) at the N Company of the Russian Federation. In 2010, the N Company had an income of US$ 100,000 and was required to pay taxes under the Russian Federal Tax Law (30% tax rate). The tax returns of the N Company are divided by the Company V in accordance with the proportion of shares and must pay taxes in the Russian Federation with a 10% tax rate (clause 2.a Article 10: The share interest, the Agreement between Vietnam and the Russian Federation). The V company is obliged to pay tax in accordance with the existing law on taxes in Vietnam at the current rate of tax (25%). In this case, the prescribation of tax filing and indirect tax deduction by Company V in Vietnam is as follows:

-Vietnam 's V Company' s pre-tax profit earned in the total number of profit of the N Company in the Russian Federation is:

$100,000 U.S. x 20% = US$ 20,000

-The number of corporate income taxes Company N has filed in the Russian Federation for the return portion of Company V under the Russian Federation Tax Code is:

US$ 20,000 x 30% = $6,000

-The dividend dividend is divided after the V Company tax is:

US$ 20,000-US$ 6,000 = $14,000

-The number of V Company taxes must be filed in the Russian Federation for the dividend yield divided by the Agreement between Vietnam and the Russian Federation is:

$14,000 U.S. x 10% = $1,400

-The V Company tax rate must be filed in the Russian Federation (including direct taxes submitted by the Company V on dividends and indirect taxes provided by the Company V of Company V filed on corporate income) is:

US$ 1,400 + US$ 6,000 = $7,400.

-The V Company tax rate must be filed in Vietnam by the rule of tax-current law in Vietnam:

US$ 20,000 x 25% = $5,000

In this case, the V Company was only deductible as the $5,000 in the total of $7,400 filed in the Russian Federation. The $2,400 ($7,400-$5,000-$5,000) portion is not allowed to deduct the tax on domestic income (if any) of the V.

2. Despite the above regulation, Vietnam only performs indirect tax deduction when there is a commitment at the Agreement, but if according to the regulation of Vietnam law, the foreign income of a Vietnamese resident object is deducted from the indirect tax. And then this procedure is still done.

Example 73: Also with the example of 72 above, assuming investment in the Company N in the Russian Federation is a direct investment project of the Company V under the regulation of Vietnamese law, although V Company's investment rate accounts for less than 10% of the company's capital. Ty N but indirect tax deductible measures are still made (Points 21, Article 7, Chapter II, Digital News) 123 /2012/TT-BTC 27 July 2012 by the Ministry of Finance directed to enforce certain provisions of the Digital Enterprise Income Tax Act. 14 /2008/QH12 And the orientation of the digital decree. 124 /2008/NĐ-CP November 11, 2008, Decree No. 122 /2011/NĐ-CP December 27, 2011, the government regulates the implementation of a number of Business Income Tax Law, although the Agreement between Vietnam and the Russian Federation (paragraph 2, Article 23: Measure measures twice) does not specify.

Although there are regulations as on the implementation of the two-time tax avoidance measures, but if prescribed by the Agreement, the foreign income of Vietnam ' s resident object is exempt from the tax in Vietnam, this income will be exempt from the tax. and not unless the tax number has filed in foreign countries (i.e. only taxed once and not to apply the tax avoidance measure twice). For example, the scholarship money of students and foreign students during the study period in Vietnam (Section 15. Student income, student practice, and vocational students, Chapter II, this information.

The provisions for the two-fold tax avoidance measures are outlined at the Agreement (usually Article 23) of the Agreement (usually Article 23) of the Agreement.

Chapter IV

RESPONSIBILITY AND AUTHORITY

AUTHORITIES HAVE JURISDICTION.

What? 51. Authorities have jurisdiction.

Under the provisions of the Agreement, the authorities have the jurisdiction of the Vietnamese side in the Tax Agreement as the Minister of Finance or the authorized representative of the Minister of Finance.

The Minister of Finance authorized the Directorate of Taxation to implement the provisions and powers prescribed at Article 52.

What? 52. Responsibility and the powers of the Tax Directorate in the implementation of the Agreement of the Agreement

In order to implement the provisions of the Agreement, the Tax Directorate is authorized by the Minister of Finance to carry out the following duties and powers:

1. The Executive Committee announces the enforcement of the implementation or termination of the validity of each Agreement in the tax sector after the notification of the Foreign Ministry ' s validity;

2. Organization of the Scout and Guide, inspection, inspection of the Internal Revenue Service, Tax Expenditures and proxy organizations in the implementation of the Agreement;

3. As Vietnam ' s "competent authorities" in the handling of the work related to the Agreement, including:

a) Research and settlement of disputes, complaints, petitions and related matters in the course of the implementation of the Agreement with the competent authorities of the United States signed the Agreement with Vietnam through the implementation of the procedure of the bilateral agreement stipulated. at the Accords;

b) the exchange of information with the Foreign Tax Authority, which exploits the information provided by the Foreign Tax Authority and is responsible for keeping the information secret under the provisions of the Agreement;

c) Implemuces of the measures to assist administrative administration in accordance with the provisions of the Agreement and in accordance with the provisions of the Vietnamese law.

Chapter V.

THE ORGANIZATION.

What? 53. This investment has been in effect since 6 February 2014, replacing the Digital Digital Information Agency. 133 /2004/TT-BTC December 31, 2004, the Ministry of Finance directed the implementation of the two-fold tax avoidance Agreed Agreed Agreement on income and property taxes between Vietnam and Vietnam. The procedures that apply the Agreement are implemented by regulation at the Tax Management Law and the existing manual text.

In the course of implementation if there is an entangrium, the agency, the organization, the individual reflects in time to the Ministry of Finance for the study of the ./.