Latvian companies in Vietnam to be provided with a stable tax system
Latvian companies working in Vietnam will be provided with a stable tax system that will not be affected by amendments of Vietnam’s regulations. This is provided by Saeima Foreign Affairs Committee’s conceptually supported on Wednesday, 9 May, as confirmed by Saeima’s press-service.
The legislative draft provides for ratifying Latvian-Vietnamese agreement on prevention of double taxation and tax avoidance. The objective of the agreement is preventing tax avoidance of all involved sides.
The document will cover a legislative base to ensure direct cooperation between Latvian and Vietnamese tax administrations, ensuring regular exchange of information, as confirmed by Latvia’s Foreign Affairs Ministry.
Until now lack of appropriate information has made taxation of residents abroad more difficult. It was also difficult to apply several different national tax regulations, the ministry states. Latvia’s Foreign Affairs Ministry reports that once the agreement comes into force, each country’s investors will be provided with more stable taxation regime.