According to a recent update from the Vietnamese government, the income tax treaty with Azerbaijan entered into force on 11 November 2014. The treaty, signed 19 May 2014, is the first of its kind between the two countries.
The treaty covers Azerbaijan individual income tax, corporate income tax, property tax, and land tax. It covers Vietnamese personal income tax, business income tax, agricultural land-use tax, and non-agricultural land-use tax.
The treaty includes provisions that a permanent establishment will be deemed constituted if an enterprise furnishes services in a Contracting State through employees or other engaged personnel for the same or connected projects for a period or periods aggregating more than 6 months within any 12-month period.
A permanent establishment will also be deemed constituted when a person conducts activities in a Contracting State (including offshore activities) related to the exploration for and exploitation of natural resources located in that State.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The treaty applies from 1 January 2015.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.