Double tax agreements come into force

Double taxation agreements with China, Brunei and Vietnam came into effect Tuesday with the New Year, with experts saying they will bolster trade and attract investment.

The agreement with China on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed on October 2016. Similar DTAs were signed with Brunei in July 2017 and Vietnam in March last year.

Double taxation agreements aim to avoid taxing business with operations in more than one country twice as a result of each country’s domestic tax laws.

Bun Neary, deputy director general of the General Department of Taxation, said these agreements draw more investors to the country. They help create jobs, which, in turn, increases the government tax collection.