The Australia-Vietnam Double Tax Agreement has been updated to reflect changes in the Vietnamese tax laws, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan announced today.
"Australian companies investing in projects beneficial to Vietnam's development will now be able to continue to receive the benefits of the tax sparing relief provisions under the Double Taxation Agreement between Australia and Vietnam," Senator Coonan said
The tax sparing provisions of the Australia-Vietnam Double Taxation Agreement preserve the concessional treatment offered by Vietnam to attract foreign investment.
"In 1996 and 2000, the Vietnamese Government made changes to their domestic laws which meant that the tax sparing relief provisions under the Double Taxation Agreement ceased to be effective."
Through an Exchange of Letters (which entered into force on the 11 February 2003), the Australian Government has ensured that Australian companies investing in specified projects will continue to benefit from the tax sparing relief provisions in the agreement. This will apply from the date of the changes to the Vietnamese domestic laws, until 1 July 2003 when the tax sparing provisions under this treaty will permanently expire.
Senator Coonan said this update to the Double Taxation Agreement will enhance the already strong relationship that Australia has with our near neighbour Vietnam, by supporting investment by Australians in projects beneficial to the economic development of Vietnam.
Copies of the letter exchanged by Australia are available on the Department of Treasury's internet site at: (http://www.treasury.gov.au) at "What's New".
Media contacts:
Bob Lawrence Minister's Office (02) 6277 7360 or 0438 690 305
Paul McBride Treasury (02) 6263 2854