Vietnam becomes 99th member of convention on BEPS prevention

14 Feb '22

1 min read

Pic: Shutterstock

Vietnam recently joined the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) as its 99th member. The country’s ambassador to France Dinh Toan Thang signed the convention early this month at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.

The MLI, or multilateral instrument, covers over 1,800 bilateral tax agreements. It was formed following the initiative of the OECD and G20 countries on the formation of a project on base erosion and profit shifting (BEPS) prevention. It helps synchronise and promote the effectiveness of nearly 3,000 bilateral tax agreements of member countries and territories.

Ambassador Thang said expanding the tax base, preventing collection source erosion and profit shifting is a focus in Vietnam’s tax reform strategy, according to media reports from the country.

Vietnam is the co-chair of OECD’s Southeast Asia Regional Programme for 2022-2025.

According to OECD, BEPS practices cost the sides $100-240 billion in lost revenues annually, which is the equivalent to 4-10 per cent of the global corporate income tax revenue.

Fibre2Fashion News Desk (DS)

More Textiles News - Vietnam...