Viet Nam joins Multilateral Convention to Tackle Tax Evasion and Avoidance
- 14 April 2023
- Posted by:
- Category: Intercounbix News
IBX-Jakarta. It‘s a bit old news actually, precisely at the end of March 2023, but there is nothing wrong with “posting“ on the IBX Website to enrich content about tax avoidance information in countries around the world. Quoting from www.oecd.org/tax, At the OECD Headquarters in Paris, Mr. Cao Anh Tuan, Deputy Finance Minister of Viet Nam, signed the world’s widest-reaching international treaty for multilateral tax co-operation, the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (or the Convention), bringing the total number of jurisdictions that participate in the Convention to 147.
With today’s signing, Viet Nam joins international efforts towards greater tax co-operation and exchange of information and further strengthens the reach of the Convention in Asia. The signing will pave the way for Viet Nam to engage in the exchange of information with 146 other jurisdictions, including all major financial centres. These exchange relationships will be added to over 8 000 exchange relationships already in place under the Convention.
The Convention enables jurisdictions to engage in a wide range of mutual assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection. It guarantees extensive safeguards for the protection of taxpayers’ rights.
The Convention is the primary instrument for swift implementation of the Standard for Automatic Exchange of Financial Account Information in Tax Matters (Common Reporting Standard (CRS)). The CRS – developed by the OECD and G20 countries – enables more than 110 jurisdictions to automatically exchange offshore financial account information.
Beyond the exchange of information on request and the automatic exchange pursuant to the Standard, the Convention is also a powerful tool in the fight against illicit financial flows and is a key instrument for the implementation of the transparency standards within the work of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).