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EU not to impose tax, non-tax defensive measures against Vietnam

11 Mar '25
2 min read
EU not to impose tax, non-tax defensive measures against Vietnam
Pic: Adobe Stock

Insights

  • Vietnam has officially signed the Multilateral Competent Authority Agreement on the exchange of country-by-country reports, implying that the EU will not impose tax and non-tax defensive measures against the country, contributing to enhancing its international reputation and creating a favourable environment for domestic businesses.
  • Vietnam became the 107th signatory of the agreement.
Vietnam has officially signed the Multilateral Competent Authority Agreement (MCAA) on the exchange of country-by-country reports (CbCR), implying that the European Union (EU) will not impose tax and non-tax defensive measures against the country, contributing to enhancing its international reputation and creating a favourable environment for domestic businesses.

Vietnam became the 107th signatory of the CbC MCAA.

The signing was done after Vietnamese Deputy Prime Minister Bui Thanh Son approved the decision, which aligns with the review conducted by the Secretariat of the Global Forum under the Organization for Economic Cooperation and Development (OECD).

The signing is an appropriate step to ensure the implementation of the global minimum tax according to the planned roadmap. It also reaffirms Vietnam's commitment to enhancing financial transparency and international economic integration, according to Vietnamese media outlet.

The CbCR is a crucial tool that helps tax authorities assess transfer pricing risks and tax avoidance issues by offering detailed data on revenue, profits, income taxes paid, tangible assets and business activities of multinational corporations in each country.

It also helps identify enterprises subject to global minimum tax regulations, thereby supporting the implementation of the Qualified Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR).

Vietnam's exports to the EU recovered in 2024, reaching nearly $51.7 billion—a YoY rise of $8.08 billion.

ALCHEMPro News Desk (DS)

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