HCMC – Vietnam has become a signatory to the multilateral convention on Mutual Administrative Assistance in Tax Matters (MAAC), which will create a legal framework for the country to expand its international cooperation in tax administration.
According to the Vietnam News Agency, Vietnam and the Organization for Economic Cooperation and Development (OECD) signed the multilateral convention on MAAC on March 22 in Paris.
OECD, which is headquartered in Paris, France, now has 38 member countries, a majority of which are the world’s leading developed economies.
Members participating in the Forum on Implementation of Measures to counter Base Erosion and Profit Shifting must participate in MAAC. But it will help Vietnam enhance its prestige and position in the cooperative framework with multilateral financial organizations such as APEC and ASEAN.
It also paved the way for Vietnam to sign the Multilateral Competent Authority Agreement on common reporting standards, country-by-country reports and other tax rules, which will benefit Vietnam and help the country expand its international cooperation in tax administration.
According to Deputy Secretary-General OECD Yoshiki Takeuchi, Vietnam’s execution of the convention on MAAC showed the country’s determination to prevent tax evasion overseas, moving forward to tax transparency and responding to illegal financial flows.
Takeuchi appreciated Vietnam’s efforts in implementing the minimum criteria of the countering Base Erosion and Profit Shifting project and hoped that Vietnam would become a signatory to this agreement.
MAAC is the most comprehensive multilateral legal framework that covers various forms of international cooperation in tax administration to address tax evasion, information exchange, synchronous tax inspection, overseas tax inspection, and support in tax collection.