On 9 February 2022, Vietnam signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ('the Convention' or 'the MLI'), becoming the 99th jurisdiction to join the Convention. As a result, potentially 75 of Vietnam’s double tax agreements (DTAs) would be amended once the MLI comes into effect. Taxpayers should be aware of these potential changes to DTAs and the impact this may have on their plans for structuring their investments and transactions to claim treaty benefits in Vietnam.
In September 2021, the Ministry of Finance (MoF) officially issued Circular 80/2021/TT-BTC (Circular 80), providing detailed guidance on the Law on Tax Administration on various matters, which also have a chapter focused on the tax filing mechanism for foreign companies doing e-commerce, digital business, and other business in Vietnam without a permanent establishment (PE). The General Department of Taxation (GDT) officially launched the portal for direct tax registration, declaration, and payments by e-commerce companies in Vietnam on 21 March 2022.
The government issued Decree 85/2021 setting out new rules on e-commerce detailing obligations of foreign traders that have e-commerce activities in Vietnam and related parties.
The New Tax Admin Law was approved in June 2019 and took effect from 1 July 2020, except for provisions relating to e-invoices and electronic documents, which will be effective from 1 July 2022. New Decree 126/2020 implementing the Tax Admin Law was issued and took effect from 5 December 2020, subject to some transitional rules.