July 20, 2026
Vietnam - Updates DTA, MAP and APA Framework Under New Tax Guidance
Summary
The Ministry of Finance of Vietnam issued Circular No. 95/2026/TT-BTC, effective from July 1, 2026, providing updated guidance on the implementation of double taxation agreements (DTAs), mutual agreement procedures (MAPs), and advance pricing arrangements (APAs). The circular establishes revised procedures for treaty application, MAP requests and implementation, and APA applications, including provisions regarding APA periods, benchmarking information sources, pre-filing consultations, and competent authority procedures.
Key points
Updated Guidance on Double Taxation Agreement Implementation
Circular No. 95/2026/TT-BTC provides updated guidance on the implementation of Vietnam’s double taxation agreements.
The circular clarifies that tax treaty application is intended to address:
Elimination of double taxation;
Prevention of tax evasion; and
Situations where income is not taxed in either contracting jurisdiction.
The circular also provides updated guidance regarding treaty relief procedures, permanent establishment considerations for digital platforms, and exchange of information mechanisms.
Updated Mutual Agreement Procedure Framework
Circular No. 95/2026/TT-BTC establishes procedures for mutual agreement procedure (MAP) applications, review, negotiation, conclusion, and implementation.
The framework applies to cases involving disputes arising from the interpretation or application of applicable tax treaties.
The circular specifies procedures relating to MAP requests, including review of requests and communication of outcomes to taxpayers.
MAP Filing Requirements and Domestic Tax Obligations
The circular provides requirements relating to MAP request submissions, including applicable filing timelines under relevant tax treaties.
A MAP request does not automatically suspend domestic tax obligations arising from tax assessment decisions issued by Vietnamese tax authorities or treaty partner authorities.
Temporary suspension may apply where decided by the competent state authority.
Recognition of Commercial Databases for APA Benchmarking
Circular No. 95/2026/TT-BTC provides that commercial databases may be used for APA benchmarking purposes.
The selection of comparable companies, benchmarking analysis, and transfer pricing method selection for covered related-party transactions are conducted in accordance with the transfer pricing framework under Decree No. 255/2026/ND-CP on tax administration for enterprises having related-party transactions.
The circular recognizes commercial databases as information sources for benchmarking analyses conducted in connection with APA applications.
APA Coverage Period
The circular revises provisions relating to APA application periods.
Taxpayers may request APA coverage for a period of up to five consecutive tax years beginning from:
The year in which the APA application dossier is submitted; or
The immediately following tax year.
The requested APA period cannot exceed the period during which the taxpayer has operated, conducted business activities, and declared and paid corporate income tax in Vietnam.
A signed APA may be effective for up to three tax years from the signing year or the following year, subject to the agreed terms.
A signed APA may be renewed for an additional period of up to three tax years.
APA Pre-Filing Consultation Meetings
Circular No. 95/2026/TT-BTC introduces provisions regarding pre-filing consultation meetings for APA applications.
The consultation meetings may address matters including:
Covered related-party transactions;
Proposed transfer pricing methodology;
Documentation requirements; and
Available information sources.
Centralized Processing of Bilateral and Multilateral APAs
The circular revises procedures for the administration of APA applications.
Bilateral APA and multilateral APA applications are handled centrally by the Department of Taxation.
Unilateral APA applications may be processed by relevant local tax authorities where delegated by the Department of Taxation.
Treatment of Pending APA Applications
The circular provides transitional provisions for APA applications submitted before the effective date of Circular No. 95/2026/TT-BTC that have not yet been concluded.
Such applications are processed in accordance with the applicable legal framework in effect under the circular.
MAP and APA Outcome Implementation
The circular provides procedures relating to the implementation of MAP and APA outcomes.
The procedures include communication between competent authorities, taxpayers, and relevant tax authorities regarding agreed outcomes.
Source:
Ministry of Finance of Vietnam, Circular No. 95/2026/TT-BTC guiding the implementation of double taxation agreements, mutual agreement procedures, and advance pricing arrangements (July 1, 2026)
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Disclaimer:
This content is for general informational purposes only and does not constitute professional advice.
Information provided herein is based on publicly available sources as of the publication date and may be subject to change.
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