Vietnam and France have been in talks to establish a double tax agreement (DTA) that would benefit both countries. It is expected to strengthen ties between the two nations and encourage more investments and trade activities.

Double tax agreements are agreements between two countries that aim to prevent taxpayers from being taxed twice on the same income or profits. The agreements typically provide a mechanism for determining the jurisdiction that has the right to tax specific types of income.

The proposed DTA between Vietnam and France is expected to cover various areas, including business profits, dividends, interests, royalties, and capital gains. The agreement will provide greater clarity and certainty to taxpayers, reducing the risk of double taxation. It will also help businesses to plan their investments and cross-border transactions with more confidence.

The negotiations for the DTA between Vietnam and France have been ongoing since 2015, and both countries are now close to finalizing the agreement. The DTA will replace Vietnam`s current tax treaty with France, which was signed in 1994 and has been in effect since 1996.

The implementation of the DTA is expected to have a positive impact on the economy of both Vietnam and France. It will create a more favorable environment for businesses to operate in, increasing the flow of investments and trade between the two countries. The DTA will also help to improve the competitiveness of both Vietnam and France in the global marketplace.

The proposed DTA is a clear indication that Vietnam is continuing to open up its economy and is committed to promoting trade and investment with other countries. The DTA with France will also help to strengthen ties between the two nations, building on the diplomatic relations that have existed between the two countries for over a century.

In conclusion, the proposed DTA between Vietnam and France is a significant development that will benefit both countries. It will provide greater clarity and certainty to taxpayers, reduce the risk of double taxation, and encourage more investments and trade activities. The DTA will further strengthen the diplomatic relations between Vietnam and France and contribute to the economic development of both nations.