On 9 October 2026, the Council of the European Union removed Vietnam from the EU list of non-cooperative jurisdictions for tax purposes, commonly known as the EU tax blacklist. The decision follows reforms to Vietnam’s framework for exchanging tax information upon request, after its inclusion on the list in February 2026.
Vietnam has moved from Annex I to Annex II, where it remains under monitoring pending a new review by the OECD Global Forum. This marks progress in Vietnam’s international tax cooperation, while further assessment remains necessary.
What Does This Mean for Businesses in Vietnam?
Progress in international tax cooperation
The decision recognises Vietnam’s efforts to address tax transparency concerns and align with international standards. For businesses assessing Vietnam as an investment destination, it is a positive development in the country’s tax governance framework.
Cross-border tax treatment requires review
Companies with Vietnam–EU transactions should review whether Vietnam’s previous listing affected their tax position.
The practical impact will depend on the relevant EU Member State’s domestic legislation, the transaction involved and applicable effective dates. Businesses should confirm whether listing-related measures continue to affect their arrangements before changing their tax treatment or reporting approach.
Tax transparency remains a priority
Vietnam’s inclusion in Annex II means its commitments remain subject to monitoring. The EU assessment framework continues to cover tax transparency, fair taxation and international standards against base erosion and profit shifting (BEPS).
Businesses should therefore continue to assess and meet their applicable transfer pricing, Country-by-Country Reporting (CbCR), tax reporting, and information disclosure obligations.
What Should Businesses Review?
Companies with operations or transactions connecting Vietnam and the EU should focus on four areas:
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Tax exposure: Check whether the previous listing affected withholding tax, expense deductibility, reporting requirements or other measures in the relevant EU Member State.
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Transaction documentation: Reassess cross-border payments, related-party arrangements, and supporting records where the listing was identified as a tax risk.
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Regulatory developments: Monitor Vietnam’s OECD Global Forum review and subsequent updates to the EU list.
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Ongoing compliance: Maintain complete, consistent documentation to support applicable tax filings and information requests.
Ascentium Vietnam's Perspective
Vietnam’s removal from the EU tax blacklist is a positive step in strengthening international tax cooperation. For businesses, the immediate priority is to understand how the change applies to their transactions and whether any adjustments are needed.
Businesses should work with their local finance teams and group tax advisers to understand the impact and determine whether any changes are needed.
Ascentium Vietnam supports businesses with accounting, tax compliance and advisory solutions, helping connect local requirements with wider group responsibilities. Contact our experts to discuss your Vietnam tax obligations and documentation needs.
