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HMRC internal manual

Double Taxation Relief Manual

Vietnam: Underlying Tax

(1) Documents needed to support the underlying tax claim

The accounts showing the profit out of which the dividend was paid and the extract from the tax assessment detailing taxable income and tax assessed which is at Section E on the first page of the assessment will be required by the Underlying Tax Group .

(2) Reserves

Relevant profits are reduced by transfers to the legal reserve until this equals 10% of share capital.

(3) Spared tax

Credit for spared tax is available under Articles 38-39, 42, 44 & 48 of the Vietnamese Law on Foreign Investment (1996) and is extended to companies previously qualified under Articles 26-28 and 32-33 of the Vietnamese Law on Foreign Investment (1987). The calculation of tax spared prepared by the Vietnamese company’s accountants should be sent to the Underlying Tax Group together with the certificate granting tax sparing status.