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Introduction
Vietnam has so far signed double taxation agreements (DTAs) with 80 countries and territories to avoid double taxation and prevent fiscal evasion in relation to taxes on income. To support their implementation, the Ministry of Finance issued Circular 95/2026/TT-BTC on July 1, 2026, replacing earlier guidance under Circular 205/2013/TT-BTC and Circular 45/2021/TT-BTC.
Circular 95 covers three main areas: implementation of DTAs, the mutual agreement procedure (MAP), and advance pricing agreements (APAs). Of these, MAP marks a notable development, as the new circular sets out in detail how taxpayers may ask the competent tax authorities to address taxation that is not in accordance with a DTA.
Cases in which a MAP request may be rejected
Under Circular 95, a MAP request may be rejected if:
- The request falls beyond the competence of Vietnam’s competent authority to consider and resolve;
- The request is submitted after the applicable time limit has expired. Depending on the relevant DTA, the time limit is either two or three years from the date on which the Vietnamese or foreign tax authority notifies the taxpayer of a tax treatment considered inconsistent with the DTA;
- The taxpayer has not fully fulfilled the obligations arising from the relevant tax treatment decision before or during the MAP process, unless enforcement of the tax calculation or assessment decision has been suspended by a competent authority;
- The taxpayer or a related party is undergoing a tax inspection and the official inspection report has not yet been issued;
- There are grounds to believe that the taxpayer has abused, or is seeking to use, the MAP to obtain a tax benefit contrary to the purpose and nature of the relevant DTA, or to engage in tax avoidance or tax evasion; or,
- The Tax Department concludes that the taxpayer’s tax liability has been determined in accordance with the relevant DTA.
If a MAP request is rejected, Vietnam’s competent authority, i.e., the Minister of Finance or a duly authorised representative of the Minister, will issue a notice of rejection or send a letter of rejection to the competent authority of the relevant contracting party.
Process for handling MAP requests submitted by taxpayers resident in Vietnam
Receipt of MAP application dossiers
A taxpayer resident in Vietnam must submit a MAP application dossier to the Tax Department. The dossier must comprise:
- A written request for application of the MAP, made according to a set form;
- Financial statements and tax returns relevant to the MAP request;
- Documents relating to the notice of tax liability determination, issued by the Vietnamese or foreign tax authority;
- The taxpayer’s transfer pricing documentation for the tax period covered by the MAP request, in the case of a transfer pricing MAP;
- Information, documents and contracts relating to the relevant transactions and activities, together with a detailed explanation of why the taxpayer considers the foreign tax authority’s application of the relevant DTA to be inconsistent with its provisions, and the taxpayer’s analysis of the tax liability concerned;
- Evidence of tax payment, if the taxpayer has paid the tax amount relating to the MAP request;
- A copy of the MAP request and supporting documents, if the taxpayer has submitted, or intends to submit, a MAP request to the foreign tax authority; and,
- Copies of any complaint, appeal or claim and supporting documents, if the taxpayer has initiated, or intends to initiate, another dispute resolution procedure in Vietnam or abroad, together with any decision or outcome of that procedure, if available.
After receiving a complete MAP application dossier from the taxpayer, the Tax Department will conduct the MAP with the foreign tax authority in accordance with the relevant DTA and the procedures set out in Circular 95.
Review and analysis of MAP application dossiers
The Tax Department will review the MAP application dossier to determine whether it is complete and valid, and whether the request falls within the scope of, and meets the conditions for application of, the MAP under the relevant DTA. It may seek clarification or request additional information and documents where necessary.
Once the review is completed, the Tax Department will notify the taxpayer in writing, using the set form, of whether the MAP request has been accepted or rejected, or whether further information and documents are required.
The Tax Department will then analyse the dossier based on the information and documents provided by the taxpayer, with reference to the relevant DTA and domestic tax laws, to determine whether the request is reasonable, complete and well-founded.
During this process, the Tax Department may request additional information from the taxpayer or the competent authority of the relevant contracting party. It may also coordinate with relevant tax units, authorities, organisations and individuals to collect and verify information and supporting evidence, and refer to international practices and experience in similar MAP cases to ensure that the request is handled objectively and in accordance with applicable laws and international standards.
Unilateral resolution of MAP requests
The Tax Department may determine that an MAP request submitted by a taxpayer resident in Vietnam can be resolved under the relevant DTA without exchanging position papers or entering into negotiations with the tax authority of the other contracting state.
Where the request is resolved unilaterally, the Tax Department will notify both the taxpayer and the tax authority of the other contracting state.
Exchange of position papers, MAP negotiations and taxpayer comments
Where the competent authorities of Vietnam and the other contracting state exchange position papers and complete MAP negotiations, and subsequently reach a mutual agreement, the Tax Department will ask the taxpayer in writing to confirm whether it objects to the proposed agreement.
If the mutual agreement does not resolve the double taxation or other taxation that is not in accordance with the relevant DTA, the Tax Department will notify such to the taxpayer in writing.
The taxpayer may not accept only part of the proposed mutual agreement, such as selected issues or tax periods. However, in complex cases in which the Tax Department and the competent authority of the other contracting state consider that reaching an overall agreement may be difficult, the proposed agreement may be divided into separate parts.
Closure of a MAP application dossier
A MAP application dossier will be closed when:
- The MAP request has been resolved unilaterally;
- The MAP request has been withdrawn. The Tax Department will close the application if the taxpayer submits a written withdrawal request, or if it is notified by the competent authority of the other contracting state that the taxpayer there has withdrawn its request. An MAP request may be withdrawn at any time before the mutual agreement is signed, but only in whole rather than in part;
- The MAP request has been concluded following the outcome of negotiations between Vietnam’s competent authority and the competent authority of the other contracting state; or,
- The MAP request cannot be resolved for another reason, even when the taxpayer becomes bankrupt, is dissolved or otherwise ceases to exist, or when an MAP agreement has been reached but cannot be implemented under the relevant DTA or the domestic tax law of either contracting state.
Once the MAP application is closed, the Tax Department will issue a notice thereof to the taxpayer.
Implementation and monitoring of MAP agreements
Once an MAP agreement is reached, the Tax Department will issue an official letter to the tax authority directly managing the taxpayer, requesting it to take the necessary tax administration measures. A copy of the official letter will also be sent to the taxpayer for information and compliance.
The tax authority directly managing the taxpayer will adjust the tax base or take other necessary tax administration measures in accordance with the Tax Department’s instructions. The taxpayer must comply with the instructions of the tax authority.
In case the implementation of an MAP agreement results in the amount of taxes, other payables, late-payment interest or fines already paid exceeding the amount actually due, the tax authority will adjust the taxpayer’s liability, determine the overpaid amount and process the overpayment in accordance with the law on tax administration.
An MAP agreement applies only to the specific case and relevant tax periods concerned and does not constitute a precedent for any other case, taxpayer or tax period.-
Vision & Associates
Hanoi Office
Add: Unit 308-310, Floor 3, Hanoi Towers
49 Hai Ba Trung St., Cua Nam ward., Hanoi, Vietnam
Tel: +84-24-3934 0629 Fax: +84-24-3934 0631
Email: vision@vision-associates.com
Ho Chi Minh City Office
Add: Unit 03.02, Floor 3, Yteco Tower
181 Nguyen Dinh Chieu Street, Xuan Hoa Ward, Ho Chi Minh City, Vietnam
Tel: +84-28-3823 6495 Fax: +84-28-3823 6496
Email: hcmvision@vision-associates.com
Website: http://www.vision-associates.com
