The income tax treaty between Malta and Vietnam entered into force on 25 November 2016. The treaty, signed 15 July 2016, is the first of its kind between the two countries.
The treaty covers Malta income tax and covers Vietnamese personal income tax and business income tax.
If a company is considered resident in both Contracting States and its place of effective management cannot be determined or its place of effective management is in neither State, the competent authorities will determine the company's residence for the purpose of the treaty through mutual agreement. If no agreement is reached, the company will not be entitled to any relief or exemption from tax provided by the treaty.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services through employees or other engaged personnel if the activities continue for the same or connected project within a Contracting State for a period or periods aggregating more than 6 months within any 12-month period.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise conducts activities that relate to the exploration for and exploitation of natural resources located in a Contracting State (including offshore activities).
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 2017.
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.