Vietnamese Ambassador to France Dinh Toan Thang (L) signs the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, also known as the Multilateral Instrument (MLI), Paris, France, February 9, 2022 - Photo: VNA

Vietnamese Ambassador to France Dinh Toan Thang, authorized by Foreign Minister Bui Thanh Son, signed the Convention in Paris, France on February 9.

The MLI, covering over 1800 bilateral tax treaties, offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the Organization for Economic Co-operation and Development (OECD)/ OECD G20 Base Erosion and Profit Shifting Project (G20 BEPS Project) into bilateral tax treaties worldwide.

The MLI modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also implements agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies.

Speaking at the ceremony, Deputy Secretary-General of the OECD Yoshiki Takeuchi welcomed Viet Nam, Thailand and Lesotho to join the Convention, asking new members of the MLI to early complete necessary procedures to approve the Convention and put into force.

Ambassador Dinh Toan Thang highlighted the significance of the signing as Viet Nam has taken over the charge of the Co-chairs of the OECD Southeast Asia Regional Programme (SEARP) during 2022-2025.

He expressed his hope that the implementation of the MLI will make contribution to developing the cooperative ties between Viet Nam and the OECD and realizing the Memorandum of Understanding (MoU) to strengthen cooperation between Viet Nam and the OECD in the 2022-2026 period.

Viet Nam has joined seven OECD Legal Instruments so far.