Vietnam: New guidance on tax treaties, mutual agreement procedures, and advance pricing arrangements
Circular No. 95/2026/TT-BTC replaces prior guidance, effective July 1, 2026.
july 15, 2026
The Ministry of Finance has issued Circular No. 95/2026/TT-BTC, guiding the implementation of income tax treaties to address double taxation (DTAs), mutual agreement procedures (MAPs), and advance pricing arrangements (APAs) in Vietnam. The circular became effective on July 1, 2026, replacing Circular No. 205/2013/TT-BTC on DTAs and Circular No. 45/2021/TT-BTC on APAs.
Key updates include the following:
- Treaty objectives and rules: The circular clarifies that the objective of DTAs is to avoid both double taxation and non-taxation. It also updates the definition of immovable property to include land use and lease rights, and caps Vietnam withholding tax rates on passive income for beneficial owners who are residents of treaty partners.
- Digital platforms: An e-commerce or digital platform through which a foreign enterprise conducts all or part of its supply of goods or services in Vietnam will be regarded as a permanent establishment.
- Mutual agreement procedures: The new framework covers filing, review, negotiation, and implementation, and allows for greater taxpayer engagement. A MAP request does not automatically suspend domestic tax obligations.
- Advance pricing arrangements: Taxpayers can request APA coverage for up to five years, although signed agreements are effective for up to three tax years. Under the new guidelines, commercial databases are recognized for benchmarking, optional pre-filing consultations are available, and bilateral and multilateral APAs are centrally handled by the Department of Taxation (DoT).
Read a July 2026 report prepared by the KPMG member firm in Vietnam