The OECD on June 21 announced that Vietnam has pledged to work alongside other nations on the continuing the work of the OECD/G20 base erosion profit shifting (BEPS) project, becoming the 100th member of the “Inclusive Framework on BEPS.”
The BEPS plan is designed assist countries fight multinational group tax avoidance and improve cross-border tax dispute resolution.
By becoming a member of the BEPS inclusive framework, Vietnam will join other countries implementing the BEPS “minimum standards,” which were designed by OECD and G20 nations in October 2015.
These standards require Vietnam to place limits on tax treaty shopping, implement country-by-country reporting, limit the benefits of any intellectual property or other preferential tax regimes, and fully implement the mutual agreement procedure in its tax treaties. Vietnam must also pay a fee to participate.
As a member of the framework, Vietnam will monitor countries’ implementation of the BEPS standards will also assist in developing further international tax standards to address remaining BEPS issues.
