Vietnam approves tax treaty with Iran

Hanoi, March 27 (VNA) – The Government recently approved a mutual tax avoidance agreement between Vietnam and Iran. The day the pact will come into effect has yet to be determined. As of July 15, 2014, Vietnam had tax treaties with 69 countries and territories across the globe. Accordingly, residents of contracting nations are taxed at a reduced rate or are exempt from Vietnamese taxes on income or gains they receive from Vietnamese sources. These reduced rates and exemptions vary among countries and specific items of income. Meanwhile, Vietnamese residents or citizens are taxed at a lower rate or are exempt from foreign taxes on income or gains they receive from foreign countries. The treaties also form legal frameworks facilitating cooperation among taxation agencies of contracting countries to prevent tax evasion./.