The European Union (EU) has announced that it will not impose tax or non-tax defensive measures on Vietnam following its recent signing of the Multilateral Competent Authority Agreement (MCAA). This agreement facilitates the exchange of country-by-country reports (CbCR) and aims to improve financial transparency.
By joining the MCAA, Vietnam becomes the 107th country to sign this accord, which aligns with global minimum tax regulations.
This development enhances Vietnam’s international reputation and supports its integration into the global economy, fostering a more favorable business environment.
Additionally, the CbCR helps tax authorities assess risks related to transfer pricing and tax avoidance by providing detailed data about multinational corporations’ revenue, profits, and business activities in each country.
This agreement also aids in implementing the Qualified Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR).
The signing of the MCAA underscores Vietnam’s commitment to improving its financial transparency and participating in global economic cooperation. In 2024, Vietnam’s exports to the EU reached nearly $51.7 billion, marking a significant year-over-year increase of .
08 billion.
