Vietnam’s Ministry of Finance has signed a multilateral agreement to automatically exchange country-by-country tax reports with international partners, including all 27 European Union member states. This move, approved by Deputy Prime Minister Bui Thanh Son, aligns with OECD standards and prevents the EU from imposing tax or non-tax defensive measures on Vietnam. The agreement allows Vietnam to share multinational corporations’ tax and financial data through the OECD’s common transmission system.

By becoming the 107th signatory of the agreement, Vietnam fulfills its commitments under the Inclusive Framework on Base Erosion and Profit Shifting and strengthens its position in global financial transparency. The Ministry of Finance highlighted that this step fosters a more favorable business environment and lays the foundation for implementing a global minimum tax. Vietnamese parent companies will now submit tax reports to local authorities for automatic exchange, while subsidiaries of foreign firms are exempt if their home countries also participate.

This agreement marks a significant step in Vietnam’s integration into the international tax system, ensuring compliance with global standards and boosting investor confidence. The EU has recognized Vietnam’s proactive cooperation, reinforcing its commitment to economic transparency and international trade.