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The long-standing double taxation agreement between the United Kingdom and Vietnam, originally signed on 15 December 1994, has officially been updated through the Multilateral Instrument (MLI).
For context, the original treaty took effect in Vietnam on 1 January 1995 for withholding taxes paid after 1 January 1994, and in the UK starting 1 April 1995 for Corporation Tax and 6 April 1995 for Income Tax and Capital Gains Tax.
Now, the modifications introduced by the MLI have new effective dates:
- In both the UK and Vietnam, the updated rules for taxes withheld at source came into effect on 1 January 2024.
- In the UK, changes apply from 1 April 2024 for Corporation Tax and 6 April 2024 for Income Tax and Capital Gains Tax.
- In Vietnam, the updated rules for other taxes will take effect from 1 January 2025.
These changes aim to streamline tax processes and prevent double taxation for businesses and individuals operating across the two countries, reflecting evolving international tax standards.
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