HCMC – Vietnam’s Ministry of Finance has signed a multilateral agreement to automatically exchange Country-by-Country (CbC) reports with partner nations, including all 27 European Union (EU) member states, ensuring that the EU will not impose any tax or non-tax defensive measures on Vietnam, according to the Vietnam News Agency.
On January 3, Finance Minister Nguyen Van Thang signed the Multilateral Competent Authority Agreement on the Exchange of CbC Reports (CbC MCAA). The move followed approval from Deputy Prime Minister Bui Thanh Son and aligns with the Global Forum’s assessment under the Organization for Economic Cooperation and Development (OECD).
Subsequently, on February 7, the minister signed five OECD-standard notifications to activate the automatic exchange mechanism with partner countries, including all EU members.
By joining the CbC MCAA, Vietnam fulfills its commitment under the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and adopts BEPS Action 13 on CbC reporting. Under this framework, Vietnam will automatically share data on multinational corporations—including revenue, profit, taxes paid, and business activities—through the OECD’s common transmission system, in accordance with the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which Vietnam signed on March 22, 2023.
Vietnamese parent companies must submit their CbC reports in the OECD’s standard format to local tax authorities, which will then forward the information to international partners. Firms in Vietnam with foreign parent companies are exempt from filing if both countries have signed the CbC MCAA and agreed to automatic information sharing.
Vietnam is now the 107th signatory of the CbC MCAA, with the EU recognizing its proactive cooperation. The Ministry of Finance emphasized that this move strengthens Vietnam’s global reputation, prevents potential EU-imposed defensive measures, and fosters a more favorable business environment. It also lays the groundwork for implementing the global minimum tax and underscores Vietnam’s commitment to financial transparency and international economic integration.
