Vietnam and San Marino signed an agreement to avoid double taxation in Rome, Italy on February 14.

The agreement aims to prevent asset and income tax evasion, helping boost bilateral economic cooperation.

Addressing the signing ceremony, Deputy Finance Minister Truong ChiTrung stressed that the agreement’s clear and transparent taxregulations will create a sound legal environment for both sides toconduct business and invest in each country.

It willhelp facilitate economic, investment and trade cooperation between thetwo countries, create tax incentives for foreign investors in Vietnamand raise economic and investment cooperation between Vietnam andother European countries, he added.

Trung said hisministry will work closely with its San Marino counterpart toeffectively implement the agreement, thereby facilitating bilateraleconomic and trade exchanges.

San Marino Ministerfor Finance and Budget Claudio Felici said the agreement is veryimportant for a small country like San Marino, given the currentglobal economic recession.

Despite limited tradeactivities between San Marino and Vietnam, the signing of thedocument will give fresh impetus to the two countries’ cooperation anddevelopment, and help San Marino businesses explore Vietnam’slegal system.

San Marino is one of thesmallest countries in the world. It covers 61.5 square kilometres andhas a population of 30,000. The republic is a member of the UnitedNations and has developed relations with many countries around theglobe.

Vietnam and San Marino established diplomatic ties in 2007. -VNA