Singapore and Vietnam move closer to revising avoidance of double taxation

Both countries signed a Second Protocol to revise the long-standing tax agreement.

In a release, the Inland Revenue Authority of Singapore announced that Singapore and Vietnam have inked a Second Protocol that expresses both parties' desire to amend the agreement governing the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The said agreement was signed at Hanoi on 2 March 1994, and proposals have been forwarded on how the agreement will be tweaked.

Changes proposed include new definitions on what encompasses and governs dividends exemption, interest taxation, royalties, capital gains and exchange of information, among other areas of concern. The IRAS has detailed the proposed changes here.