The Government recently approved a mutual tax avoidance agreement between Viet Nam and Iran. — Photo VGP

HA NOI (Biz Hub) — The Government recently approved a mutual tax avoidance agreement between Viet Nam and Iran.

The day it will go into effect hasn't been determined.

As of July 15, 2014, Viet Nam had tax treaties with 69 countries and territories across the globe.

Residents in participating nations will be taxed at a reduced rate, or are exempt from Vietnamese taxes on income they receive from Vietnamese sources. The reduced rates and exemptions vary among countries and specific incomes. Meanwhile, Vietnamese residents and citizens are taxed at a lower rate or are exempt from foreign taxes on income they receive from other countries.

The treaties also establish legal frameworks that help taxation agencies in contracting countries prevent tax evasion.— VNS