Vietnam, Spain Sign Double Taxation Avoidance Agreement

Vietnam, Spain Sign Double Taxation Avoidance Agreement

Vietnam and Spain on March 7 officially signed an agreement aimed at avoiding double taxation and preventing smuggling between the two countries.

The signing of the agreement took place during an ongoing Vietnam visit by Spanish Secretary of State for Trade & Tourism Pedro Mejia Gomez. 

According to Vietnam’s Deputy Finance Minister Nguyen Thi Bang Tam, the agreement will create more favorable conditions for boosting economic and investment cooperation between the two countries. It will also ensure tax incentives for Spanish investors.

By the end of November 2004, total investment of Spanish investors in Vietnam had reached only USUS$1 million. Bilateral trade has risen - though still low compared to potential - from 91 million euros in 1996 to 425 million euros in 2003. Spain sells chemicals for marking enameled tiles, machinery, electric equipment and steel sheets to Vietnam, and purchases Vietnamese garments, shoes, coffee and other consumer goods.

Vietnam has so far signed double taxation avoidance agreements with 43 countries.

• P.V