The agreement on the prevention of double taxation and evasion of income tax is signed in Macao by the Secretary for Economy and Finance, Mr Leong Vai Tac (centre, right), and the Deputy Finance Minister of the Socialist Republic of Viet Nam, Mr Do Hoang Anh Tuan.
Macao and Vietnam have signed a bilateral agreement in order to prevent double taxation and evasion of income tax.
The agreement was signed on Monday (16 April) in Macao by the Secretary for Economy and Finance, Mr Leong Vai Tac, and the Deputy Finance Minister of the Socialist Republic of Vietnam, Mr 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 that happen to be residents of the two places.
Macao taxes covered by the agreement are professional tax, complementary tax, and property tax. The Vietnam taxes covered 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.
Mr Leong said the signing of the bilateral agreement on tax was of great importance in increasing transparency and preventing double taxation. It also consolidated conditions for the two sides to develop closer ties in economic and trade affairs.
The Government was looking forward to fostering cooperation with other countries and regions, in order to strengthen Macao’s contribution to the development of fairer tax regulations worldwide, he added.
The agreement signed on Monday was in line with requirements from the Global Forum on Transparency and Exchange of Information for Tax Purposes, an initiative by the Organization for Economic Co-operation and Development (OECD). Macao is a member of the Global Forum.
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 Macao as well as economic and trade ones.