HANOI: Vietnam has become the 100th member to join the Inclusive Framework (IF) on Base Erosion and Profit Shifting (BEPS), the General Department of Taxation announced.
BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Under the IF, 100 countries and jurisdictions are collaborating to implement measures to tackle the problem of BEPS.
The announcement was made by Đặng Ngọc Minh, deputy chief of the General Department of Taxation. The move represents another important step taken by the country in the international tax arena, as well as in the Asia-Pacific region, Minh said.
Being part of the IF will facilitate the implementation of agreed minimum standards, and peer review processes will provide Vietnam with support and guidance under the Platform for Collaboration on Tax, put in place by the International Monetary Fund, the Organisation for Economic Co-operation and Development (OECD), the United Nations and the World Bank Group, he added.
The IF was established in January 2016, after the G20 Leaders urged the timely implementation of the BEPS package released in October 2015 and called on the OECD to develop a more inclusive framework with the involvement of interested non-G20 countries and jurisdictions, including developing economies.
Members of the IF have the opportunity to work together on equal footing with other OECD and G20 countries to implement the BEPS package and develop further standards to address the remaining BEPS issues.
Vietnam has also expressed interest in joining the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and the Global Forum on Transparency and Exchange of Information for Tax Purposes, Minh said.
