Agreement between the government of the Socialist Republic of Vietnam and the government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

AGREEMENT

BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the socialist republic of Vietnam and the Government of the republic of Singapore,

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have agreed as follows:

Article 1. Scope of regulation

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

Article 2. Taxes covered

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property.

            The existing taxes to which the Agreement shall apply are:

a. In Vietnam:

i. The personal income tax;

ii. The profit tax;

iii. The profit remittance tax;

iv. The foreign petroleum sub-contractor tax; and

v. The foreign contractor tax;

(Hereinafter referred to as "Vietnamese tax").

b. in Singapore:

The income tax;

(Hereinafter referred to as "Singapore tax").

The Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of the existing taxes. The competent authorities of the Contracting States shall notify each other of significant changes which have been made in their respective taxation laws.

Article 3. General definitions

1. For the purposes of this Agreement, unless the context otherwise requires:

a. The term "Singapore" means the Republic of Singapore;

b. The term "Vietnam" means the Socialist Republic of Vietnam;

c. The term "a Contracting State" and "the other Contracting State" mean Vietnam or Singapore as the context requires;

d. The term "person" includes an individual, a company, a body of persons or any other entity which is treated as a person for tax purposes;

e. The term "company" means anybody corporate or any entity which is treated as a body corporate for tax purposes;

f. The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

g. The term "national" means:

(i) Any individual possessing the nationality of a Contracting State;

(ii) Any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State;

h. The term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

i. The term "competent authority" means:

(i) In the case of Vietnam, the Minister of Finance or his authorised representative; and

(ii) In the case of Singapore, the Minister for Finance or his authorized representative;

j. The term "tax" means Vietnamese tax or Singapore tax as the context requires; and

k. The term "fixed base" means a permanent place for the purpose of performing professional services or other activities of an independent nature.

2. As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning it has under the law of that State concerning the taxes to which the Agreement applies.

Article 4. Resident

1. For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature.

2. Where by reason of the provisions of clause 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

a. He shall be deemed to be a resident of the State in which he has a permanent home available to him;

b. If he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (center of vital interests);