Canada–Vietnam tax treaty · Art 18 pensions
Canada’s differentiator is Art 18 — source may tax periodic pensions at up to 15 % — plus departure tax and a unique 7.5% technical-services limb. Signed 1997-11-14; in force since 1998-12-16.
Visa → days → tax → labour
- TRC / stay sets how long you may remain.
- Days and habitual abode decide Vietnam tax residence (threshold 183 days).
- Working needs a permit or exemption — separate from tax.
- Relief between the states runs through the Canada–Vietnam DTA (treaty-accord).
Treaty article caps on file
| Article / topic | On file |
|---|---|
| Dividends — ≥70% voting | 5 % |
| Dividends — ≥25% and <70% | 10 % |
| Dividends — other | 15 % |
| Interest | 10 % |
| Royalties | 10 % |
| Fees for technical services | 7.5 % |
| Construction PE | more than 6 months |
| Services PE | more than 6 months in any 12 months |
| Art 15 short-stay limb | 183 days |
| Art 18 pensions — residence | May be taxed in the residence state |
| Art 18 pensions — source | Source may also tax; periodic pensions (ex social security) capped at 15 % |
| Art 22 credit CA ← VN tax | Exists — dollar amounts refused |
| Art 22 credit VN ← CA tax | Exists — dollar amounts refused |
| Art 4 dual-resident tie-breaker | permanent home → centre of vital interests → habitual abode → nationality → mutual agreement |
Dual residence — why day counts disagree
- Vietnam: 183-day / habitual-abode machine (tax residency).
- Canada: domestic residence (ties / sojourning — 183 days sojourn factor) — then treaty if both claim you.
- Dual domestic residence → DTA Art 4: permanent home → centre of vital interests → habitual abode → nationality → mutual agreement.
- Refused: picking treaty residence without permanent-home and vital-interests facts.
Canada-side traps
Domestic Canada gates. They do not travel from the Australia page. We state the gate — not the bill.
1. Departure deemed disposition
Ceasing Canadian residence generally deems a disposition at fair market value — even without a sale. Listed plans including RRSPs sit outside that general gate. FMV bills refused.
2. Property list (T1161)
If FMV of property owned when leaving exceeds 25000 CAD, file Form T1161 by the filing due date.
3. Deferral election
Form T1244 can defer payment of tax on the deemed-disposition income until actual disposition. Security may be required above CRA thresholds — amounts not invented here.
What stays refused
Dollar Art 22 credits, departure CGT bills, provincial add-ons, and detailed post-departure RRSP / TFSA withdrawal tax.
All cells on this page
- Canada–Vietnam double tax agreement existsCanada–Vietnam Income Tax Agreement; treaty-accord.gc.ca id 102424; Income Tax Conventions Implementation Act, 1998yeschecked Aug 2026
- Dividend source cap — company ≥70% voting powerCanada–Vietnam Agreement Art 10 — ≥70% voting power5 %checked Aug 2026
- Dividend source cap — company ≥25% and <70% voting powerCanada–Vietnam Agreement Art 10 — ≥25% and <70% voting power10 %checked Aug 2026
- Dividend source cap — other casesCanada–Vietnam Agreement Art 10 — other cases15 %checked Aug 2026
- Interest source capCanada–Vietnam Agreement Art 11(2)10 %checked Aug 2026
- Royalty source capCanada–Vietnam Agreement Art 12(2)(a)10 %checked Aug 2026
- Fees for technical services source capCanada–Vietnam Agreement Art 12(2)(b)7.5 %checked Aug 2026
- Canada domestic tax traps are modelled on this sitenguon/CA_SIDE_TRAPS.md — CRA emigrant dispositions / ITA s128.1; gates onlyyeschecked Aug 2026
- Canada departure deemed disposition (departure tax) existsITA s 128.1; CRA Dispositions of property for emigrants of Canada (updated 2026-01-20)yeschecked Aug 2026
- Departure deemed disposition excludes RRSP and listed plansCRA emigrant dispositions — excluded rights/interests under ITA s 128.1(10) include RRSPs, RRIFs, TFSAs, RESPs, etc.yeschecked Aug 2026
- T1161 property-list threshold when leaving CanadaCRA — Form T1161 required if FMV of all property owned when leaving > CAD 25,00025000 CADchecked Aug 2026
- Election exists to defer payment of departure tax (T1244)CRA Form T1244 — election under ITA s 220(4.5) to defer payment of departure tax until actual dispositionyeschecked Aug 2026
- Art 4 individual dual-resident tie-breaker cascadeCanada–Vietnam Income Tax Agreement Art 4(2) — treaty-accord.gc.ca id 102424permanent home → centre of vital interests → habitual abode → nationality → mutual agreementchecked Aug 2026
- Dual CA–VN domestic residents use DTA Art 4Canada–Vietnam Agreement Art 4(2) — dual domestic residence resolved by treaty cascadeyeschecked Aug 2026
- Construction PE thresholdCanada–Vietnam Agreement Art 5(3)(a) — building site / construction / assembly / installation / supervisory > six months6 monthschecked Aug 2026
- Services PE thresholdCanada–Vietnam Agreement Art 5(3)(b) — services / consultancy aggregating > six months within any twelve-month period6 monthschecked Aug 2026
- Dependent personal services short-stay limbCanada–Vietnam Agreement Art 15(2)(a) — present ≤183 days in any twelve-month period (one of conditions)183 dayschecked Aug 2026
- Art 22 credit: Canada ← Vietnam taxCanada–Vietnam Agreement Art 22(1)(a) — Canadian credit for Vietnamese tax on VN profits/income/gains (subject to Canadian foreign-tax credit law)yeschecked Aug 2026
- Art 22 credit: Vietnam ← Canada taxCanada–Vietnam Agreement Art 22(4) — Vietnam deduction equal to Canadian income tax paid (capped at VN tax attributable to that income)yeschecked Aug 2026
- Art 22 foreign-tax credit dollar amounts deliberately not modelledArt 22 mechanism filed; machine refuses dollar foreign-tax credit mathsyeschecked Aug 2026
- Departure-tax dollar amounts deliberately not modelledITA s 128.1 / CRA emigrant dispositions gate filed; FMV bills and provincial add-ons refusedyeschecked Aug 2026
- Canada–Vietnam DTA signedtreaty-accord.gc.ca id 102424 — Done at Hanoi 14 November 19971997-11-14checked Aug 2026
- Canada–Vietnam DTA entry into forceCanada Gazette / Income Tax Conventions Implementation Act 1998 note — Agreement in force 16 December 1998; Finance tax-treaty list1998-12-16checked Aug 2026
- Art 18 pensions may be taxed in the source state (not residence-only)Canada–Vietnam DTA Art 18(2) — pensions arising in a Contracting State may also be taxed in the source Stateyeschecked Aug 2026
- Art 18 periodic pension source-tax capCanada–Vietnam DTA Art 18(2) — periodic pension payments (other than social-security legislation) source tax ≤15% of gross15 %checked Aug 2026
- Art 18 social-security payments are outside the 15% periodic-pension capCanada–Vietnam DTA Art 18(2) — 15% cap does not apply to payments under the social security legislation of a Contracting Stateyeschecked Aug 2026
- Canada sojourn day count used in residence analysisCRA — sojourning in Canada for 183 days or more in a tax year is a residence factor / deemed-resident sojourn test context183 dayschecked Aug 2026
Common questions
- How do Canada–Vietnam pension articles differ?
- Unlike AU/KR/CN/JP/UK residence-only pension articles, Canada–Vietnam Art 18 lets the source state also tax pensions. Periodic pension payments (other than social-security legislation) are capped at 15% of gross.
- What is Canada departure tax?
- Leaving Canada can trigger a deemed disposition of property (ITA s 128.1). T1161 listing and T1244 deferral gates are filed; FMV dollar bills are refused.
- Is there a unique Canada–Vietnam treaty limb?
- Yes — fees for technical services are capped at 7.5% of gross under the filed treaty text. No other pair on this site files that limb.
- When did the Canada–Vietnam DTA enter into force?
- Signed in Hanoi on 14 November 1997; entered into force on 16 December 1998.
Cells cite primary sources with check months. Method · Sources · Disclosure. Not personalised tax advice.
Also filed: Australia · Singapore · South Korea · China · Japan · United Kingdom · United States.