The EU will not impose tax and non-tax defensive measures against Vietnam, since the country officially signed the Multilateral Competent Authority Agreement (MCAA) on the exchange of country-by-country reports (CbCR) in January this year, according to a report from the Government News.

As Vietnam has officially become the 107th signatory of the CbC MCAA, the EU acknowledges and highly appreciates the nation's efforts in fulfilling its international commitments and has included Vietnam in Annex II of the EU's list of non-cooperative jurisdictions for tax purposes.

The signing of the CbC MCAA in early 2025 is an appropriate step to ensure the implementation of the global minimum tax according to the planned roadmap. It also reaffirms Vietnam's commitment to enhancing financial transparency and international economic integration.

The CbCR is a crucial tool that helps tax authorities assess transfer pricing risks and tax avoidance issues by providing detailed data on revenue, profits, income taxes paid, tangible assets, and business activities of multinational corporations in each country.

This report also helps identify enterprises subject to global minimum tax regulations, thereby supporting the implementation of the Qualified Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR) in accordance with Resolution 07/2023/QH15 of the National Assembly.

With total two-way trade reaching nearly $68.4 billion in 2024, Vietnam recorded a trade surplus of $35 billion with the 27 EU member states - higher than the $28.7 billion recorded in 2023.

Vietnam's exports to the EU made an impressive recovery in 2024, reaching nearly $51.7 billion, an increase of $8.08 billion compared to 2023.