Vietnam–United Arab EmiratesDouble Tax Agreement
For UAE residents (who pay no personal income tax), the DTA primarily prevents Vietnam from taxing UAE-source income of Vietnamese residents and vice versa.
Important notice. Treaty rates shown are standard rates from published treaty texts. Reduced rates may apply subject to beneficial ownership requirements and other conditions specified in each treaty article. Tax treaty application is technically complex and fact-specific. Consult a qualified tax advisor for your specific situation before relying on these rates.
Withholding Tax Rates at a Glance
Dividends WHT
N/Aon dividend payments
Interest WHT
N/Aon interest payments
Royalties WHT
N/Aon royalty payments
Treaty Signed
2008
In Force Since
2010
Status
Active
Model
OECD-based
What This Means for Expats
Residency Tie-Breaker Rules
The UAE does not impose income tax on individuals, so the tiebreaker is most relevant for corporate residency purposes.
Practical Context
The UAE-Vietnam DTA is unique because the UAE does not impose personal income tax. The treaty is primarily relevant for corporate structures and for UAE resident companies investing in Vietnam. For individuals, it provides a framework that clarifies Vietnam's right to tax UAE-resident individuals on Vietnam-source income. Vietnamese companies with UAE branches benefit from the treaty's business profits provisions.
Key Treaty Provisions Explained
Dividends
This treaty does not specify a standard WHT rate on dividends, or one or both countries do not impose such withholding. Consult a qualified tax adviser for your specific situation.
Interest
This treaty does not specify a standard WHT rate on interest. Consult a qualified tax adviser for your specific situation.
Royalties
This treaty does not specify a standard WHT rate on royalties. Consult a qualified tax adviser for your specific situation.
Frequently Asked Questions
Does Vietnam have a tax treaty with United Arab Emirates?
Yes. Vietnam and United Arab Emirates have a Double Taxation Agreement (DTA) that has been in force since 2010. The treaty prevents the same income from being taxed in both countries and sets withholding tax caps on dividends, interest, and royalties.
What is the withholding tax rate on dividends under the Vietnam–United Arab Emirates DTA?
The Vietnam–United Arab Emirates DTA does not set a specific withholding tax rate on dividends in the standard sense, as one or both countries may not impose personal income tax on this income type. Consult a tax adviser for your specific situation.
How does the United Arab Emirates–Vietnam DTA affect my salary as an expat?
Under Article 15 of the Vietnam–United Arab Emirates DTA, employment income is generally taxable in Vietnam if you are working in Vietnam. The treaty's tiebreaker rules determine your residency: The UAE does not impose income tax on individuals, so the tiebreaker is most relevant for corporate residency purposes. If you are a Vietnamese tax resident, your worldwide income may be subject to Vietnam PIT, with a credit or exemption for taxes paid in United Arab Emirates.
What is a Permanent Establishment (PE) under the Vietnam–United Arab Emirates treaty?
A Permanent Establishment is a fixed place of business through which a United Arab Emirates company carries on business in Vietnam. If a PE exists, Vietnam can tax the profits attributable to it. Common PE triggers include offices, branches, factories, construction sites lasting more than 6 months, and dependent agents. United Arab Emirates companies operating in Vietnam should assess PE risk carefully.
Get Tax Advice for Vietnam
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