• in United Kingdom: income tax, corporation tax capital gains tax; and
• Vietnam: personal income tax business income tax.

1. In Agreement, unless context otherwise requires:

(a) the term “United Kingdom” means Great Britain and Northern Ireland, including any area outside the territorial sea of the United Kingdom which, under international law and in accordance with this Agreement, is an area within which the United Kingdom may exercise rights with respect to the sea bed and subsoil and their natural resources; and

(b) the term “Vietnam” means the Socialist Republic of Vietnam, and when used in a geographical sense, means the territory of Vietnam, including its territorial sea, in which the laws relating to Vietnamese tax are in force.

2. The taxes which are the subject of this Agreement are defined in Article 2 (Taxes Covered).

1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of that person`s domicile, residence, place of management or any other criterion of a similar nature.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national; and

(d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term “permanent establishment” includes especially:

(a) place management;

(b) branch;

(c) office;

(d) factory;

(e) workshop; and

(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. The term “permanent establishment” also encompasses:

(a) a building site, a construction, assembly or installation project, or supervisory activities in connection therewith, where such site, project or activities continue for a period of more than 183 days;

(b) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, where such activities continue for a period or periods aggregating more than 183 days within any twelve-month period.

Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.

Where an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, the profits of the enterprise of the first-mentioned State shall be taxable in the other State only if and to the extent that they would have been taxed in that other State had the enterprise of the first-mentioned State been a separate enterprise engaged in the same or similar activities under the same or similar conditions.

Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State.

Income derived by an individual who is a resident of a Contracting State in respect of professional services or other independent activities may be taxed in that other State, unless the individual has a fixed base regularly available to him in that other State for the purpose of performing his activities. If he has such a fixed base, only so much of the income as is attributable to that fixed base may be taxed in that other State.

Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

Directors` fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

Pensions and other similar remuneration, as well as annuities, derived by a resident of a Contracting State and paid to that person may be taxed in that State.

Remuneration, other than a pension, paid by one of the Contracting States or a political subdivision or a local authority thereof to an individual in respect of services rendered in the discharge of governmental functions may be taxed only in that State.

Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, receives for the purpose of his maintenance, education or training, shall not be taxed in that State, provided that such payments arise outside that State.

Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement, shall be taxable only in that State.

1. In the United Kingdom, double taxation shall be prevented in the following manner:

(a) where a resident of the United Kingdom derives income which, in accordance with the provisions of this Agreement, may be taxed in Vietnam, the United Kingdom shall allow as a deduction from the tax on that income an amount equal to the tax paid in Vietnam;

(b) subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof), the tax paid in Vietnam shall be allowed as a credit against any United Kingdom tax computed by reference to the same income by reference to which the tax was paid;

(c) notwithstanding the provisions of sub-paragraph (b), the credit shall not exceed that part of the United Kingdom tax which is appropriate to the income which may be taxed in Vietnam.

2. In Vietnam, double taxation shall be avoided in the following manner:

(a) where a resident of Vietnam derives income which, in accordance with the provisions of this Agreement, may be taxed in the United Kingdom, Vietnam shall allow as a deduction from the tax on that income an amount equal to the tax paid in the United Kingdom;

(b) subject to the provisions of the law of Vietnam regarding the allowance as a credit against Vietnamese tax of tax payable in a territory outside Vietnam (which shall not affect the general principle hereof), the tax paid in the United Kingdom shall be allowed as a credit against any Vietnamese tax computed by reference to the same income by reference to which the tax was paid;

(c) notwithstanding the provisions of sub-paragraph (b), the credit shall not exceed that part of the Vietnamese tax which is appropriate to the income which may be taxed in the United Kingdom.

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.

2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

1. Where a person considers that the actions of one or both of the Contracting States result or will result for that person in taxation not in accordance with this Agreement, that person may, irrespective of the remedies provided by the domestic law of those States, present the case to the competent authority of the Contracting State of which the person is a resident or, if the person is a national of neither State, of which the person is a national.

2. The said authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with this Agreement.

3. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes to which this Agreement applies insofar as the taxation thereunder is not contrary to this Agreement. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes to which this Agreement applies. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on one of the Contracting States the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(b) supply information not obtainable laws normal course administration that other Contracting State;

(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public).

Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

1. This Agreement shall enter into force on the thirtieth day after the date of the latter of the notifications referred to in paragraph 2 of this Article, and thereupon it shall have effect:

(a) United Kingdom:

(i) in respect of income tax and capital gains tax for any year of assessment beginning on or after 6th April in the calendar year next following that in which this Agreement enters into force;

(ii) in respect of corporation tax for any financial year beginning on or after 1st April in the calendar year next following that in which this Agreement enters into force;

(b) in Vietnam, in respect of taxes withheld at source, for amounts paid or credited on or after 1st January in the calendar year next following that in which this Agreement enters into force;

(c) in Vietnam, for other taxes, for the fiscal year beginning on or after 1st January in the calendar year next following that in which

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