(VOVworld) - The Union Cabinet of India has approved the Protocol amending the agreement between India and Vietnam on avoidance of double taxation and prevention of fiscal evasion for income taxes.

Indian and Vietnamese enterprises are discussing business opportunities (Photo: VNA)

The Protocol provides internationally accepted standards for effective exchange of information on tax issues, including bank information, the Indian Government’s Press Information Bureau said on Wednesday. The protocol also stipulates that information on Indian citizens received from Vietnam can be shared with other law enforcement agencies with authorization of the competent authorities of Vietnam and India. The existing Double Taxation Avoidance Agreement (DTAA) between India and Vietnam was signed in 1994. Both sides agreed to update the agreement’s Article 27 on the “Exchange of Information” in line with international standards and supplement a new article on “Assistance in the Collection of Taxes. The amending protocol was issued for the purpose.