From October 7th to 9th, a delegation from the Vietnam General Department of Taxation, led by Deputy General Director Vu Chi Hung, visited Japan. The trip aimed to strengthen cooperation between the two tax authorities, especially in the field of transfer pricing, and to work towards signing the first Advance Pricing Agreement (APA).

The Importance of APA Agreements

APA agreements are considered an important tool for multinational enterprises to achieve stability in tax obligations, thereby encouraging investment. The signing of an APA between Vietnam and Japan will create a more attractive investment environment for Japanese businesses in Vietnam and help reduce transfer pricing disputes between the two tax authorities.

Key Highlights of the Visit

At the reception, Deputy General Director Vu Chi Hung expressed his appreciation for the long-standing and effective cooperative relationship between the two tax authorities. He also emphasized the importance of signing an APA agreement and hoped to receive positive support from Japan.

The Director General of the Japan Tax Agency, Oku Tatsuo, shared a similar view. He said that signing an APA agreement would bring many benefits to both countries, especially businesses operating in Vietnam.

One of the main contents of the visit was the negotiations on the Mutual Agreement Procedure (MAP). Representatives of the two sides exchanged views on issues related to APA dossiers, including structure, content, and necessary requirements.

Achievements

The visit achieved many positive results, such as:

• Enhanced mutual understanding: Representatives of the two tax authorities had the opportunity to exchange, share experiences, and gain a better understanding of issues related to tax administration and transfer pricing.
• Progress towards signing an APA: Negotiations on the APA have made positive progress, laying the groundwork for signing the agreement in the near future.
• Expanded cooperation: The two sides agreed to strengthen cooperation in other areas such as personnel training, information sharing, and experience exchange.

Future Outlook

The signing of an APA between Vietnam and Japan will be a significant milestone in the cooperative relationship between the two countries. This agreement will not only benefit businesses but also contribute to enhancing Vietnam’s prestige in the international community.