A Second Protocol amending the standing Agreement for the avoidance of double taxation (DTA) between Singapore and Vietnam entered into force on 11 January 2013.

The Second Protocol revises certain terms in the current DTA, such as Article 5 (Permanent Establishment), Article 11 (Interest) and Article 12 (Royalties). The changes include the establishment of a period test for the furnishing of services under the Permanent Establishment Article, the insertion of a Most-Favoured-Nation clause for the interest withholding tax rate and a lowering of the royalty withholding tax rate from 15% to 10% for certain types of royalties. The Exchange of Information Article has also been updated to the internationally agreed Standard.

These changes will serve to enhance trade and investment flows between the two countries.

The full text of the Second Protocol is available here (PDF, 172KB).

Ministry of Finance