Goto Main Content
:::

Select Folders:

Article Content

1.Signed on April 6, 1998; Entered into force on May 6, 1998.
 
The Vietnam Economic and Cultural Office in Taipei and the Taip-
ei Economic and Cultural Office in Hanoi,
Desiring to conclude an Agreement for the avoidance of double t-
axation and the prevention of fiscal evasion with respect to ta-
xes on income for the purpose of further promoting friendship,
cooperation and investment,
Have agreed as follows:

ARTICLE 1
Personal Scope
This Agreement shall apply to persons who are residents of one
or both of the Contracting Parties.

ARTICLE 2
Taxes Covered
1.This Agreement shall apply to taxes on income imposed on beha-
lf of a Contracting Party, irrespective of the manner in which
they are levied.
2.The existing taxes to which the Agreement shall apply are:
(a) in the country represented by the Vietnam Economic and Cult-
ural Office in Taipei:
(i) the personal income tax;
(ii) the profit tax;
(iii) the profit remittance tax;
(iv) the foreign contractor tax; and
(v) the foreign petroleum sub-contractor tax;
(b) in the country represented by the Taipei Economic and Cultu-
ral Office in Hanoi:
(i) the profit seeking enterprise income tax; and
(ii) the individual consolidated income tax.
3.This Agreement shall also apply to any identical or substanti-
ally similar taxes which are imposed after the date of signat-
ure of this Agreement in addition to, or in place of, the exi-
sting taxes.
4.If by reason of changes made in the taxation laws of a Contra-
cting Party, it seems desirable to amend any Article of this
Agreement without affecting the general principles thereof the
necessary amendments may be made by mutual consent by means of
an Exchange of Letters.

ARTICLE 3
General Definitions
1.For the purposes of this Agreement, unless the context otherw-
ise requires :
(a) the terms ”a Contracting Party” and ”the other Contracti-
ng Party”mean the country represented by the Vietnam Econo-
mic and Cultural Office in Taipei and the country represent-
ed by the Taipei Economic and Cultural Office in Hanoi;
(b) the term ”person”includes an individual, a company and any
other body of persons;
(c) the term ”company”means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(d) the terms ”enterprise of a Contracting Party”and ”enterp-
rise of the other Contracting Party”mean respectively an e-
nterprise carried on by a resident of a Contracting Party a-
nd an enterprise carried on by a resident of the other Cont-
racting Party;
(e) the term ”national”means:
(i) any individual possessing the nationality of a Contracting
Party;
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting Pa-
rty;
(f) the term ”international traffic”means any transport by a
ship or aircraft operated by an enterprise of a Contracting
Party, except when the ship or aircraft is operated solely
between places in the other Contracting Party; and
(g) the term ”competent authority”means the Director-General,
Department of Taxation in the countries represented by the
Vietnam Economic and Cultural Office in Taipei and by the T-
aipei Economic and Cultural Office in Vietnam.
2.As regards the application of the Agreement by a Contracting
Party, any term not defined therein shall, unless the context
otherwise requires, have the meaning which it has under the l-
aw of that Party concerning the taxes to which the Agreement
applies.

ARTICLE 4
Resident
1.For the purposes of this Agreement, the term ”resident of a
Contracting Party”means any person who is a resident in acco-
rdance with the tax laws in that Party.
2.Where by reason of the provisions of paragraph I an individual
is a resident of both Contracting Parties, then his status sh-
all be determined as follows:
(a) he shall be deemed to be a resident of the Party in which he
has a permanent home available to him; if he has a permanent
home available to him in both Parties, he shall be deemed to
be a resident of the Party with which his personal and econ-
omic relations are closer (centre of vital interests) ;
(b) if the Contracting Party in which he has his centre of vital
interests cannot be determined, or if he has no permanent h-
ome available to him in either Party, he shall be deemed to
be a resident of the Party in which he has an habitual abode
;
(c) if he has an habitual abode in both Parties or in neither of
them, he shall be deemed to be a resident of the Party of w-
hich he is a national;
(d) if he is a national of both Parties or of neither of them,
the competent authorities of the Contracting Parties shall
settle the question by mutual agreement.
3.Where by reason of the provisions of paragraph I, a person ot-
her than an individual is a resident of both Contracting Part-
ies, then it shall be deemed to be a resident of the Party wh-
ere it was incorporated.

ARTICLE 5
Permanent Establishment
1.For the purposes of this Agreement, the term ”permanent esta-
blishment”means a fixed place of business through which the
business of the enterprise is wholly or partly carried on.
2.The term ”permanent establishment”includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources; and
(g) a building site, construction, assembly or installation pro-
ject or supervisory activities in connection therewith, but
only where such site, project or activities continue for a
period of more than six months.
3.Notwithstanding the preceding provisions of this Article, the
term ”permanent establishment”shall be deemed not to include
:
(a) the use of facilities solely for the purpose of storage, di-
splay or transport of goods or merchandise belonging to the
enterprise;
(b) the maintenance of a stock of goods or merchandise belonging
to the enterprise solely for the purpose of storage, display
or transport;
(c) the maintenance of a stock of goods or merchandise belonging
to the enterprise solely for the purpose of processing by a-
nother enterprise;
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other activ-
ity of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in sub-paragraphs (a) to
(e), provided that the overall activity of the fixed place
of business resulting from this combination is of a prepara-
tory or auxiliary character.
4.Notwithstanding the provisions of paragraphs 1 and 2, where a
person-other than an agent of an independent status to whom p-
aragraph 5 applies-is acting in a Contracting Party on behalf
of an enterprise of the other Contracting Party, that enterpr-
ise shall be deemed to have a permanent establishment in the
first-mentioned Contracting Party in respect of any activities
which that person undertakes for the enterprise, if such a pe-
rson has and habitually exercises in that Party an authority
to conclude contracts in the name of the enterprise, unless t-
he activities of such person are limited to those mentioned in
paragraph 3 which, if exercised through a fixed place of busi-
ness, would not make this fixed place of business a permanent
establishment under the provisions of that paragraph.
5.An enterprise of a Contracting Party shall not be deemed to h-
ave a permanent establishment in the other Contracting Party
merely because it carries on business in that other Party thr-
ough a broker, general commission agent or any other agent of
an independent status, provided that such persons are acting
in the ordinary course of their business.
6.The fact that a company which is a resident of a Contracting
Party controls or is controlled by a company which is a resid-
ent of the other Contracting Party, or which carries on busin-
ess in that other Party (whether through a permanent establis-
hment or otherwise), shall not of itself constitute either co-
mpany a permanent establishment of the other.

ARTICLE 6
Income from Immovable Property
1.Income derived by a resident of a Contracting Party from immo-
vable property (including income from agriculture or forestry)
situated in the other Contracting Party may be taxed in that
other Party.
2.The term ”immovable property”shall have the meaning which it
has under the law of the Contracting Party in which the prope-
rty in question is situated. The term shall in any case inclu-
de property accessory to immovable property, livestock and eq-
uipment used in agriculture and forestry, rights to which the
provisions of general law respecting landed property apply, u-
sufruct of immovable property and rights to variable or fixed
payments as consideration for the working of, or the right to
work, mineral deposits, sources and other natural resources;
ships, boats and aircraft shall not be regarded as immovable
property.
3.The provisions, of paragraph I shall apply to income derived
from the direct use, letting, or use in any other form of imm-
ovable property.
4.The provisions of paragraphs I and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of independe-
nt personal services.

ARTICLE 7
Business Profits
1.The profits of an enterprise of a Contracting Party shall be
taxable only in that Party unless the enterprise carries on b-
usiness in the other Contracting Party through a permanent es-
tablishment situated therein. If the enterprise carries on bu-
siness as aforesaid, the profits of the enterprise may be tax-
ed in the other Party but only so much of them as is attribut-
able to that permanent establishment.
2.Subject to the provisions of paragraph 3, where an enterprise
of a Contracting Party carries on business in the other Contr-
acting Party through a permanent establishment situated there-
in, there shall in each Contracting Party be attributed to th-
at permanent establishment the profits which it might be expe-
cted to make if it were a distinct and separate enterprise en-
gaged in the same or similar activities under the same or sim-
ilar conditions and dealing wholly independently with the ent-
erprise of which it is a permanent establishment.
3.In determining the profits of a permanent establishment, there
shall be allowed as reasonable deductions expenses which are
incurred for the purposes of the business of the permanent es-
tablishment, including executive and general administrative e-
xpenses so incurred, whether in the Party in which the perman-
ent establishment is situated or elsewhere.
4.Insofar as it has been customary in a Contracting Party to de-
termine the profits to be attributed to a permanent establish-
ment on the basis of an apportionment of the total profits of
the enterprise to its various parts, nothing in paragraph 2 s-
hall preclude such Contracting Party from determining the pro-
fits to be taxed by such an apportionment as may be customary;
the method of apportionment adopted shall, however, be such t-
hat the result shall be in accordance with the principles con-
tained in this Article.
5.No profits shall be attributed to a permanent establishment by
reason of the mere purchase by that permanent establishment of
goods or merchandise for the enterprise.
6.For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be determi-
ned by the same method year by year unless there is good and
sufficient reason to the contrary.
7.Where profits include items of income which are dealt with se-
parately in other Articles of this Agreement, then the provis-
ions of those Articles shall not be affected by the provisions
of this Article.

ARTICLE 8
Shipping and Air Transport
1.Profits derived by an enterprise of a Contracting Party from
the operation of ships or aircraft in international traffic s-
hall be taxable only in that Party.
2.For the purposes of this Article, profits from the operation
of ships or aircraft in international traffic include:
(a) profits from the rental on a full (time, voyage or bareboat)
basis of ships or aircraft; and
(b) profits from the use, maintenance or rental of containers (
including trailers and related equipment for the transport
of containers) used for the transport of goods or merchandi-
se;
where such rental or such use, maintenance or rental, as the
case may be, is incidental to the operation of ships or aircr-
aft in international traffic.
3.The provisions of paragraphs 1 and 2 shall also apply to prof-
its from the participation in a pool, a joint business or an
international operating agency.

ARTICLE 9
Associated Enterprises
1.Where
(a) an enterprise of a Contracting Party participates directly
or indirectly in the management, control or capital of an e-
nterprise of the other Contracting Party, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Contra-
cting Party and an enterprise of the other Contracting Party
,
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations wh-
ich differ from those which would be made between independent
enterprises, then any profits which would, but for those cond-
itions, have accrued to one of the enterpriqes, but, by reason
of those conditions, have not so accrued, may be included in
the profits of that enterprise and taxed accordingly.
2.Where a Contracting Party includes in the profits of an enter-
prise of that Party-and taxes accordingly-profits on which an
enterprise of the other Contracting Party has been charged to
tax in that other Party and the profits so included are profi-
ts which would have accrued to the enterprise of the first-me-
ntioned Party if the conditions made between the two enterpri-
ses had been those which would have been made between indepen-
dent enterprises, then that other Party shall make an appropr-
iate adjustment to the amount of the tax charged therein on t-
hose profits. In determining such adjustment, due regard shall
be had to the other provisions of the Agreement and the compe-
tent authorities of the Contracting Parties shall, if necessa-
ry, consult each other.

ARTICLE 10
Dividends
1.Dividends paid by a company which is a resident of a Contract-
ing Party to a resident of the other Contracting Party may be
taxed in that other Party.
2.However, such dividends may also be taxed in the Contracting
Party of which the company paying the dividends is a resident
and according to the laws of that Party, but if the recipient
is the beneficial owner of the dividends the tax so charged s-
hall not exceed 15 per cent of the gross amount of the divide-
nds.
This paragraph shall not affect the taxation of the company in
respect of the profits out of which the dividents are paid.
3.The term ”dividends” as used in this Article means income f-
rom shares or other rights, not being debt-claims, participat-
ing in profits, as well as income from other corporate rights
which is subjected to the same taxation treatment as income f-
rom shares by the laws of the Party of which the company maki-
ng the distribution is a resident.
4.The provisions of paragraphs 1 and 2 shall not apply if the b-
eneficial owner of the dividends, being a resident of a Contr-
acting Party, carries on business in the other Contracting Pa-
rty of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or perfor-
ms in that other Party independent personal services from a f-
ixed base situated therein, and the holding in respect of whi-
ch the dividends are paid is effectively connected with such
permanent establishment or fixed base. In such case, the prov-
isions of Article 7 or Article 14, as the case may be, shall
apply.
5.Where a company which is a resident of a Contracting Party de-
rives profits or income from the other Contracting Party, that
other Party may not impose any tax on the dividends paid by t-
he company, except insofar as such dividends are paid to a re-
sident of that other Contracting Party or insofar as the hold-
ing in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base situ-
ated in that other Party, nor subject the company's undistrib-
uted profits to a tax on the company's undistributed profits,
even if the dividends paid or the undistributed profits consi-
st wholly or partly of profits or income arising in such other
Party.

ARTICLE 11
Interest
1.Interest arising in a Contracting Party and paid to a resident
of the other Contracting Party may be taxed in that other Par-
ty.
2.However, such interest may also be taxed in the Contracting P-
arty in which it arises and according to the laws of that Par-
ty, but if the recipient is the beneficial owner of the inter-
est, the tax so charged shall not exceed 10 per cent of the g-
ross amount of the interest.
3.The term ”interest”as used in this Article means income from
debt-claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the deb-
tor's profits, and in particular, income from government secu-
rities and income from bonds or debentures, including premiums
and prizes attaching to such securities, bonds or debentures.
Penalty charges for late payment shall not be regarded as int-
erest for the purpose of this Article.
4.The provisions of paragraphs 1 and 2 shall not apply if the b-
eneficial owner of the interest, being a resident of a Contra-
sting Party, carries on business in the other Contracting Par-
ty in which the interest arises, through a permanent establis-
hment situated therein, or performs in that other Party indep-
endent personal services from a fixed base situated therein a-
nd the debt-claim in respect of which the interest is paid is
effectively connected with such permanent establishment or fi-
xed base. In such case the provisions of Article 7 or Article
14, as the case may be, shall apply.
5.Interest shall be deemed to arise in a Contracting Party when
the payer is that Party itself, a political subdivision, a lo-
cal authority or a resident of that Party. Where, however, the
person paying the interest, whether he is a resident of a Con-
tracting Party or not, has in a Contracting Party a permanent
establishment or a fixed base in connection with which the in-
debtedness on which the interest is paid was incurred, and su-
ch interest is borne by such permanent establishment or fixed
base, then such interest shall be deemed to arise in the Party
in which the permanent establishment or fixed base is situated
.
6.Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some oth-
er person, the amount of the interest, having regard to the d-
ebt-claim for which it is paid, exceeds the amount which would
have been agreed upon by the payer and the beneficial owner in
the absence of such relationship, the provisions of this Arti-
cle shall apply only to the last-mentioned amount. In such ca-
se, the excess part of the payments shall remain taxable acco-
rding to the laws of each Contracting Party, due regard being
had to the other provisions of this Agreement.

ARTICLE 12
Royalties
1.Royalties arising in a Contracting Party and paid to a reside-
nt of the other Contracting Party may be taxed in that other
Contracting Party.
2.However, such royalties may also be taxed in the Contracting
Party in which they arise, and according to the laws of that
Party, but if the recipient is the beneficial owner of the ro-
yalties, the tax so charged shall not exceed 15 percent of the
gross amount of the royalties.
3.The term ”royalties”as used in this Article means payments
of any kind received as a consideration for the use of, or the
right to use, any copyright of literary, artistic or scientif-
ic work including cinematograph films, or films or tapes used
for radio or television broadcasting, any patent, trade mark,
design or model, plan, secret formula or process, or for the
use of, or the right to use, industrial, commercial, or scien-
tific equipment, or for information concerning industrial, co-
mmercial or scientific experience.
4.The provisions of paragraphs 1 and 2 shall not apply if the b-
eneficial owner of the royalties, being a resident of a Contr-
acting Party, carries on business in the other Contracting Pa-
rty in which the royalties arise, through a permanent establi-
shment situated therein, or performs in that other Party inde-
pendent personal services from a fixed base situated therein,
and the right or property in respect of which the royalties a-
re paid is effectively connected with such permanent establis-
hment or fixed base. In such case the provisions of Article 7
or Article 14, as the case may be, shall apply.
5.Royalties shall be deemed to arise in a Contracting Party when
the payer is that Party itself, a political subdivision, a lo-
cal authority or a resident of that Party. Where, however, the
person paying the royalties, whether he is a resident of a Co-
ntracting Party or not, has in a Contracting Party a permanent
establishment or a fixed base in connection with which the li-
ability to pay the royalties was incurred, and such royalties
are borne by such permanent establishment or fixed base, then
such royalties shall be deemed to arise in the Party in which
the permanent establishment or fixed base is situated.
6.Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some oth-
er person, the amount of the royalties, having regard to the
use, right or information for which they are paid, exceeds the
amount which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the pro-
visions of this Article shall apply only to the last-mentioned
amount. In such case, the excess part of the payments shall r-
emain taxable according to the laws of each Contracting Party,
due regard being had to the other provisions of this Agreement
.

ARTICLE 13
Capital Gains
1.Gains derived by a resident of a Contracting Party from the a-
lienation of immovable property referred to in Article 6 and
situated in the other Contracting Party may be taxed in that
other Party.
2.Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an e-
nterprise of a Contracting Party has in the other Contracting
Party or of movable property pertaining to a fixed base avail-
able to a resident of a Contracting Party in the other Contra-
cting Party for the purpose of performing independent personal
services, including such gains from the alienation of such a
permanent establishment (alone or with the whole enterprise)
or of such fixed base, may be taxed in that other Party.
3.Gains derived by a resident of a Contracting Party from the a-
lienation of shares or comparable interests in a company, the
assets of which consist wholly or principally of immovable pr-
operty situated in the other Contracting Party, may be taxed
in that other Party.
4.Gains derived by an enterprise of a Contracting Party from the
alienation of ships or aircraft operated in international tra-
ffic or movable property pertaining to the operation of such
ships or aircraft, shall be taxable only in that Party.
5.Gains from the alienation of any property other than that ref-
erred to in paragraphs 1, 2, 3 and 4 shall be taxable only in
the Contracting Party of which the alienator is a resident.

ARTICLE 14
Independent Personal Services
1.Income derived by a resident of a Contracting Party in respect
of professional services or other activities of an independent
character shall be taxable only in that Party unless he has a
fixed base regularly available to him in the other Contracting
Party for the purpose of performing his activities. If he has
such a fixed base, the income may be taxed in the other Party
but only so much of it as is attributable to that fixed base.
2.The term ”professional services”includes especially indepen-
dent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians
, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15
Dependent Personal Services
1.Subject to the provisions of Articles 16, 18, and 19, salaries
, wages and other similar remuneration derived by a resident
of a Contracting Party in respect of an employment shall be t-
axable only in that Party unless the employment is exercised
in the other Contracting Party. If the employment is so exerc-
ised, such remuneration as is derived therefrom may be taxed
in that other Party.
2.Notwithstanding the provisions of paragraph 1, remuneration d-
erived by a resident of a Contracting Party in respect of an
employment exercised in the other Contracting Party shall be
taxable only in the first-mentioned Party if:
(a) the recipient is present in the other Party for a period or
periods not exceeding in the aggregate 183 days in the cale-
ndar year concerned, and
(b) the remuneration is paid by, or on behalf of, an employer w-
ho is not a resident of the other Party, and
(c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other Party.
3.Notwithstanding the preceding provisions of this Article, rem-
uneration derived in respect of an employment exercised aboard
a ship or aircraft operated in international traffic by an en-
terprise of a Contracting Party shall be taxable only in that
Party.

ARTICLE 16
Directors' Fees
Directors' fees and other similar payments derived by a resident
of a Contracting Party in his capacity as a member of the board
of directors of a company which is a resident of the other Cont-
racting Party may be taxed in that other Party.

ARTICLE 17
Artistes and Sportsmen
Notwithstanding the provisions of Articles 14 and 15, income de-
rived by a resident of a Contracting Party as an entertainer, s-
uch as a theater, motion picture, radio or television artiste,
or a musician, or as a sportsman, from his personal activities
as such exercised in the other Contracting Party, may be taxed
in that other Party.

Where income in respect of personal activities exercised by an
entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsman himself but to another person,
that income may, notwithstanding the provisions of Articles 7, 1
4 and 15, be taxed in the Contracting Party in which the activi-
ties of the entertainer or sportsman are exercised.

ARTICLE 18
Pensions
Subject to the provisions of paragraph 2 of Article 19, pensions
and other similar remuneration paid to a resident of a Contract-
ing Party in consideration of past employment shall be taxable
only in that Party.

ARTICLE 19
Public Service
Remuneration, other than a pension, paid by a Contracting Party
to an individual in respect of services rendered to that Party
shall be taxable only in that Party.
However, such remuneration shall be taxable only in the other C-
ontracting Party if the services are rendered in that Party and
the individual is a resident of that Party who:
i) is a national of that Party; or
ii) did not become a resident of that Party solely for the purp-
ose of rendering the services.
Any pension paid by, or out of funds created by, a Contracting
Party to an individual in respect of services rendered to that
Party shall be taxable only in that Party.
However, such pension shall be taxable only in the other Contra-
cting Party if the individual is a resident of, and a national
of, that other Party.
The provisions of Articles 15, 16 and 18 shall apply to remuner-
ation and pensions in respect services rendered in connection w-
ith a business carried on by a Contracting Party.

ARTICLE 20
Students and Apprentices
Payments which a student or business apprentice who is or was i-
mmediately before visiting a Contracting Party a resident of the
other Contracting Party and who is present in the first-mention-
ed Party solely for the purpose of his education or training re-
ceives for the purpose of his maintenance, education or training
shall not be taxed in that Party, provided that such payments a-
rise from sources outside that Party.

ARTICLE 21
Teachers, Professors and Researchers
An individual who is a resident of a Contracting Party immediat-
ely before making a visit to the other Contracting Party, and w-
ho, at the invitation of any university, college, school or oth-
er similar educational institution which is recognized by the c-
ompetent authority in that other Contracting Party, visits that
other Contracting Party for a period not exceeding two years so-
lely for the purpose of teaching or research or both at such ed-
ucational institution shall be exempt from tax in that other Co-
ntracting Party on any remuneration for such teaching or resear-
ch.
This Article shall only apply to income from research if such r-
esearch is undertaken by the individual for the public interest
and not primarily for the benefit of some other private person
or persons.

ARTICLE 22
Other Income
1.Items of income of a resident of a Contracting Party, wherever
arising, not dealt with in the foregoing Articles of this Ag-
reement shall be taxable only in that Party.
2.The provisions of paragraph 1 shall not apply to income, other
than income from immovable property as defined in paragraph 2
of Article 6, if the recipient of such income, being a reside-
nt of a Contracting Party, carries on business in the other C-
ontracting Party through a permanent establishment situated t-
herein, or performs in that other Party independent personal
services from a fixed base situated therein, and the right or
property in respect of which the income is paid is effectively
connected with such permanent establishment or fixed base. In
such case the provisions of Article 7 or Article 14, as the c-
ase may be, shall apply.

ARTICLE 23
Elimination of Double Taxation
1.In the case of a resident of the country represented by the V-
ietnam Economic and Cultural Office in Taipei, double taxation
shall be avoided as follows:
Where a resident of the country represented by the Vietnam Ec-
onomic and Cultural Office in Taipei derives income from the
country represented by the Taipei Economic and Cultural Office
in Hanoi, tax payable in the country represented by the Taip-
ei Economic and Cultural Office in Hanoi on that income in ac-
cordance with the provisions of this Agreement may be credited
against the tax levied in the country represented by the Viet-
nam Economic and Cultural Office in Taipei on that resident.
The amount of credit, however, shall not exceed the amount of
tax in the country represented by the Vietnam Economic and Cu-
ltural Office in Taipei on that income computed in accordance
with its tax laws and regulations.
2.For the purposes of credit referred to in paragraph I, the te-
rm ”tax payable in the country represented by the Taipei Eco-
nomic and Cultural Office in Hanoi”shall be deemed to include
any income derived from sources in the country represented by
the Taipei Economic and Cultural Office in Hanoi had the inco-
me not been taxed at a reduced rate or exempted from tax paya-
ble in the country represented by the Taipei Economic and Cul-
tural Office in Hanoi in accordance with:
(a) the provisions of Articles 6,7,8 or 8-1 of the Statute for
Upgrading Industries and Articles 28, 29 or 33 of the Statu-
te for Encouraging Private Participation in Transportation
Construction in the country represented by the Taipei Econo-
mic and Cultural Office in Hanoi as amended from time to ti-
me and connected regulations, as are effective on the date
of signature of this Agreement as have been modified only in
minor aspects after the date of signature of this Agreement;
or
(b) any other special incentive measures designed to promote ec-
onomic development in the country represented by the Taipei
Economic and Cultural Office in Hanoi which may be introduc-
ed hereafter in modification of or in addition to, the exis-
ting laws, as may be agreed between the competent authoriti-
es of the Contracting Parties.
3.In the case of a resident of the country represented by the T-
aipei Economic and Cultural Office in Hanoi, double taxation
shall be avoided as follows:
Where a resident of the country represented by the Taipei Eco-
nomic and Cultural Office in Hanoi derives income from the co-
untry represented by the Vietnam Economic and Cultural Office
in Taipei, tax payable in the country represented by the Viet-
nam Economic and Cultural Office in Taipei on that income in
accordance with the provisions of this Agreement may be credi-
ted against the tax levied in the country represented by the
Taipei Economic and Cultural Office in Hanoi on that resident.
The amount of credit, however, shall not exceed the amount of
tax in the country represented by the Taipei Economic and Cul-
tural Office in Hanoi on that income computed in accordance w-
ith its tax laws and regulations.
4.For the purposes of credit referred to in paragraph 3, the te-
rm ”tax payable in the country represented by the Vietnam Ec-
onomic and Cultural Office in Taipei”shall be deemed to incl-
ude any income derived from sources in the country represented
by the Vietnam Economic and Cultural Office in Taipei had the
income not been taxed at a reduced rate or exempted from tax
payable in the country represented by the Vietnam Economic and
Cultural Office in Taipei in accordance with:
(a) the provisions of Articles 26, 27, 28, 32 or 33 of the Law
on Foreign Investment 1987 in the country represented by the
Vietnam Economic and Cultural Office in Taipei as amended f-
rom time to time and connected regulations, as are effective
on the date of signature of this Agreement as have been mod-
ified only in minor aspects after the date of signature of
this Agreement; or
(b) any other special incentive measures designed to promote ec-
onomic development in the country represented by the Vietnam
Economic and Cultural Office in Taipei which may be introdu-
ced hereafter in modification of or in addition to, the exi-
sting laws, as may be agreed between the competent authorit-
ies of the Contracting Parties.
5.The provisions of paragraphs 2 and 4 shall apply in a period
of seven and a half years from the date on which this Agreeme-
nt enters into force. These provisions shall apply to a resid-
ent of the country represented by the Taipei Economic and Cul-
tural Office in Hanoi approved by the Investment Commission a-
nd to a resident, of the country represented by the Vietnam E-
conomic and Cultural Office in Taipei. The period of applicat-
ion may be extended by mutual agreement between the competent
authorities of the Contracting Parties.

ARTICLE 24
Non-discrimination
1.The nationals of a Contracting Party shall not be subjected in
the other Contracting Party to any taxation or any requirement
connected therewith which is other or more burdensome than the
taxation and connected requirements to which nationals of that
other Contracting Party in the same circumstances are or may
be subjected. This provision shall not be construed as obligi-
ng the competent authority of a Contracting Party to grant to
nationals of the other Contracting Party not resident in the
first-mentioned Party those personal allowances, reliefs and
reductions for tax purposes which are by law available only to
nationals of the first-mentioned Party or to such other perso-
ns as may be specified therein who are not resident in that P-
arty.
2.The taxation on a permanent establishment which an enterprise
of a Contracting Party has in the other Contracting Party sha-
ll not be less favourably levied in that other Party than the
taxation levied on enterprises of that other Party carrying on
the same activities.
3.The provision of this Article shall not be construed as oblig-
ing the competent authority of a Contracting Party to grant to
residents of the other Contracting Party any personal allowan-
ces, reliefs and reductions for taxation purposes on account
of civil status or family responsibilities which are granted
to the residents of the first-mentioned Party.
4.Enterprises of a Contracting Party, the capital of which is w-
holly or partly owned or controlled, directly or indirectly,
by one or more residents of the other Contracting Party, shall
not be subjected in the first-mentioned Party to any taxation
or any requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to wh-
ich other similar enterprises of that first-mentioned Party a-
re or may be subjected.
5.The provisions of paragraphs 2 and 4 of this Article shall not
apply to the profit remittance tax in the country represented
by the Vietnam Economic and Cultural Office in Taipei, which
in any case shall not exceed 10 per cent of the gross amount
of profits remitted, and the taxation in the country represen-
ted by the Vietnam Economic and Cultural Office in Taipei in
respect of oil exploration or production activities or in res-
pect of agricultural production activities.
6.A Contracting Party concludes or has already concluded with a-
ny other country a tax treaty of which the non-discrimination
provisions are less discriminatory to a resident of the other
Contracting Party than the current provisions of non-discrimi-
nation of this Agreement, the first-mentioned provisions shall
be applied promptly in place of the last-mentioned provisions.
7.In this Article the term ”taxation”means taxes which are the
subject of this Agreement.

ARTICLE 25
Mutual Agreement Procedure
Where a person who is a resident of a Contracting Party conside-
rs that the actions of the competent authority of one or both of
the Contracting Parties result or will result for him in taxati-
on not in accordance with the provisions of this Agreement, he
may, irrespective of the remedies provided by the domestic law
of those Parties, present his case to the competent authority of
the Contracting Party of which the person is a resident. The ca-
se must be presented within three years from the first notifica-
tion of the action resulting in taxation not in accordance with
the provisions of the Agreement.
The competent authority shall endeavour, if the objection appea-
rs to it to be justified and if it is not itself able to arrive
at a satisfactory solution, to resolve the case by mutual agree-
ment with the competent authority of the other Contracting Party
, with a view to the avoidance of taxation which is not in acco-
rdance with this Agreement. Any agreement reached shall be impl-
emented notwithstanding any time limits in the domestic law of
the Contracting Parties.
The competent authorities of the Contracting Parties shall join-
tly endeavour to resolve any difficulties or doubts arising as
to the application of the Agreement. They may also consult toge-
ther for the elimination of double taxation in cases not provid-
ed for in the Agreement.
The competent authorities of the Contracting Parties may commun-
icate with each other directly for the purpose of reaching an a-
greement in the sense of the preceding paragraphs.

ARTICLE 26
Exchange of Information
1.The competent authorities of the Contracting Parties shall ex-
change such information as is necessary for carrying out the
provisions of this Agreement or of the domestic laws of the C-
ontracting Parties concerning taxes covered by the Agreement
insofar as the taxation thereunder is in accordance with this
Agreement. Any information so exchanged shall be treated as s-
ecret and shall not be disclosed to any persons or authorities
other than those concerned with the assessment or collection
of taxes which are the subject of this Agreement.
2.In no case shall the provisions of paragraph 1 be construed so
as to impose on a Contracting Party the obligation:
(a) to carry out administrative measures at variance with the l-
aws and administrative practice of that or of the other Con-
tracting Party;
(b) to supply information which is not obtainable under the laws
or in the normal course of the administration of that or of
the other Contracting Party;
(c) to supply information which would disclose any trade, busin-
ess, industrial, commercial or professional secret or trade
process, or information, the disclosure of which would be c-
ontrary to public policy.

ARTICLE 27
Entry into Force
This Agreement shall enter into force thirty days after it has
been signed, and shall have effect:
(a) in respect of taxes withheld at source, for amount paid or
credited on or after the first day of the month next follow-
ing that on which the Agreement enters into force; and
(b) in respect of other taxes, for taxable years of the persons
entitled to the benefits of this Agreement beginning on or
after the first day of the month next following that on whi-
ch the Agreement enters into force.

ARTICLE 28
Termination
This Agreement shall remain in force until terminated by either
of the Contracting Party. Either Contracting Party may terminate
the Agreement at any time after a period of five years from the
date on which the Agreement enters into force, provided that at
least six months prior notice of termination in writing has been
given. In such event, the Agreement shall cease to have effect:
(a) in respect of taxes withheld at source, for amounts paid or
credited on or after the end of the calendar year in which
the notice is given; and
(b) in respect of other taxes, for taxable years of persons ent-
itled to the benefits of the Agreement beginning on or after
the first day of January following that in which the notice
is given.
IN WITNESS WHEREOF the undersigned, being duly authorized there
to by their respective authorities have signed this Agreement.

DONE in duplicate at Hanoi this 6th day of April of the year one
thousand nine hundred and ninety-eight in the English langua-ge.

FOR THE TAIPEI ECONOMIC AND FOR THE VIETNAM ECONOMIC
CULTURAL OFFICE IN HANOI AND CULTURAL OFFICE IN TAIPEI
[Signed] [Signed]
Hu Cha-Chi Dang Dinh Luu