The tax treaty between Vietnam and Latvia - the first of its kind between the two countries - entered into force on 6 August. The Tax Treaty, signed 19 October 2017, applies a dividend tax rate of 5% to owners with a greater than 70% capital ownership, and a 10% rate to owners with a lesser ownership. Under the new treaty a 10% tax applies to interest and royalties while a 7.5% tax applies to technical services.