In January 2025,The European Union (EU) will not impose tax and non-tax defensive measures against Vietnam, thanks to Vietnam’s official signing of the Multilateral Competent Authority Agreement (MCAA) on the exchange of Country-by-Country Reports (CbCR).
Becoming the 107th country to join the MCAA has helped the EU recognize and appreciate Vietnam’s efforts in fulfilling its international commitments, while also placing Vietnam in Annex II of the EU’s list of cooperative tax jurisdictions.
CbCR is an essential tool that enables tax authorities to assess transfer pricing risks and tax avoidance issues by providing detailed data on revenue, profits, paid income taxes, tangible assets, and business activities of multinational corporations in each country. This contributes to identifying businesses subject to the global minimum tax, supporting the implementation of the Qualified Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR) under Resolution 07/2023/QH15 of the National Assembly.
In 2024, the bilateral trade turnover between Vietnam and the EU reached nearly USD 68.4 billion, with Vietnam’s trade surplus standing at USD 35 billion, an increase from USD 28.7 billion in 2023. Vietnam’s exports to the EU rebounded impressively, reaching nearly USD 51.7 billion, an increase of USD 8.08 billion compared to 2023.
Source: VnEconomy
