According to a recent update from the Vietnamese government, the income tax treaty with Iran entered into force on 26 June 2015. The treaty, signed 14 October 2014, is the first of its kind between the two countries.
The treaty covers Iranian income taxes on real estate, agriculture, salary, occupation (business), and legal persons. It covers Vietnamese personal income tax and business income tax.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services in a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 6 months within any 12-month period.
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 in Iran from 21 March 2016 (first day of Farvardin - Iranian calendar), and in Vietnam from 1 January 2016.
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