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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 24

Methods for Elimination of Double Taxation

(1) In Vietnam, double taxation shall be eliminated as follows:

  • Where a resident of Vietnam derives income, profits or gains which under the law of the Slovak Republic and in accordance with this Agreement may be taxed in the Slovak Republic, Vietnam shall allow as a credit against its tax on the income, profits or gains an amount equal to the tax paid in the Slovak Republic. The amount of credit, however, shall not exceed the amount of the Vietnamese tax on that income, profits or gains computed in accordance with the taxation laws and regulations of Vietnam.

(2) In the case of the Slovak Republic, double taxation shall be eliminated as follows:

  • (a) The Slovak Republic, when imposing taxes on its residents, may include in the tax base upon which such taxes are imposed the items of income which according to the provisions of this Agreement may also be taxed in Vietnam, but shall allow as a deduction from the amount of tax computed on such a base an amount equal to the tax paid in Vietnam. Such deduction shall not, however, exceed that part of the tax payable in the Slovak Republic, as computed before the deduction is given, which is appropriate to the income, in accordance with the provisions of this Agreement, may be taxed in Vietnam.
  • (b) In the case of a dividend paid by a company which is a resident of Vietnam to a company which is a resident of the Slovak Republic and which controls directly or indirectly 10 percent or more of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Vietnamese tax creditable under the provisions of sub-paragraph (a)) Vietnamese tax payable, as referred to in paragraph (4), by the company in respect of the profits out of which such dividend is paid.

(3) Where in accordance with any provisions of this Agreement income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

(4) For the purpose of sub-paragraph (b) of paragraph (2), the term "Vietnamese tax payable" shall be deemed to include any amount which would have been payable as Vietnamese tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under the Vietnamese laws.

(5) Relief from the Slovak tax by virtue of paragraph (4) shall be given for a period of 10 years only, beginning on the date on which this Agreement entered into force.