News Share

The Tax Hub

Daily Tax Newsletter

Morocco; Vietnam

Responsive image

Treaty between Morocco and Vietnam – details

Details of the Morocco - Vietnam Income Tax Treaty, signed on 24 November 2008, have become available. The treaty was concluded in the Arabic, Vietnamese, French and English languages, each text having equal authenticity. In the case of divergence, however, the English text prevails. The treaty generally follows the UN Model (2001).

The maximum rates of withholding tax are:

-   10% on dividends;
-   10% on interest. An exemption applies to interest borne and paid by a government or the central bank of a contracting state to the government or the central bank of the other contracting state; and
-   10% on royalties.

Deviations from the UN Model include that:

-   the definition of a permanent establishment (PE) includes:
     
(i)   an installation structure, or equipment used for the exploration of natural resources (article 5(2) (g));
(ii)   a sales outlet (article 5(2) (h)); and a warehouse (article 5(2) (i));
     
-   article 6 (Income from immovable property) contains an additional paragraph (5.) stating that income derived from the holding of shares and ancillary rights in a real estate company are taxable in the state of location of the immovable property;
-   article 10(6) provides that a branch profit tax may be levied at a maximum rate of 10%;
-   the definition of royalties includes technical assistance and the furnishing of services (article 12(3));
-   income derived by artistes or sportspersons from activities performed under a cultural agreement between the Contracting States shall be exempt from tax in the State in which the activities are exercised if the visit to the State is wholly supported by funds of either Contracting States, a local authority or a public institution (article 17(3)); and
-   the treaty contains an article on assistance in the collection of taxes (article 27).

The treaty provides for the credit method to avoid double taxation. In addition, both states grant a tax sparing credit with respect to tax reduced or exempted in accordance with domestic legal provisions concerning economic development.

If the income derived by a resident of one state is, under the treaty, exempt from tax in that state, the state may nevertheless take into account the exempt income in calculating the amount of tax on the resident's other income (exemption with progression).

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

FX Rates

Global FX Rates including Tax year Average FX Rates and Spot Rates for all Reporting Currencies.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More