Macau and Vietnam have signed a bilateral agreement in order to prevent double taxation and evasion of income tax. The agreement was signed on Monday in Macau by the Secretary for Economy and Finance, Lionel Leong, and the Deputy Finance Minister of the Socialist Republic of Vietnam, Do Hoang Anh Tuan.
The arrangement is aimed at preventing situations where the two governments simultaneously tax a single item of income belonging to people who are residents of the two places.
The Macau taxes covered by the agreement are professional tax, complementary tax, and property tax. The Vietnam taxes covered by the agreement are individual income tax and corporate income tax.
In addition, the agreement covers reciprocal arrangements on certain tax matters relating to income from: immovable property; affiliated companies; dividends; interest; royalties; transfer of property; pensions; government services; and educational study and traineeships.
According to Leong’s statement issued by the Government Information Bureau, the signing of the bilateral agreement on tax is of great importance in increasing transparency and preventing double taxation. According to the statement, it also consolidated conditions for the two sides to develop closer ties in economic and trade affairs.
“The government has been striving to advance cooperation in the exchange of tax information with other countries and regions, particularly Portuguese-speaking countries and those covered by the ‘Belt and Road’ initiative that have close cultural ties with Macau,” the statement reads.
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