According to the new treaty, tax at source has been set at 5-15% on royalties, 10% on interest and dividend payments, and 7.5% on payments for technical services
Israel and Vietnam signed last week a tax treaty to prevent double taxation. The treaty which is based on OECD model is aimed to removing tax barriers affecting bilateral trade and mutual investment.
According to the newly signed treaty, tax at source has been set at 5-15% on royalties, 10% on interest and dividend payments, and 7.5% on payments for technical services.
The two countries adopted the OECD model for capital gains taxes; the seller will pay capital gains tax only in his country of residence.
In a statement issued by the Israeli finance ministry it was noted that trade between the two countries is expanding rapidly. Israel's exports to Vietnam have grown by 3% since last year, and now total $36.6 million. Israel's chief exports to Vietnam are mineral and mining products ($9.8 million), telecommunications ($9.7 million, a growth of 35%), and chemicals ($6.6 million).