• (+0903) 024 034
  • contact@expertis.vn
  • Mon - Fri: 8:00 - 17:30
Search
Fermer
Expertis.vn logo main
  • About Us
    • About Us
      • Introduction to Expertis
      • Association members
      • Contact Us
    • Recruitment
      • The position is recruiting
    • Partner portal
      • Global partners
      • Technology partners
  • Services
    • Audit and assurance
      • Audited financial statements
      • Tax audit
      • Compliance audit service
      • Financial Due Diligence (FDD)
    • Accounting
      • Accounting and tax services package
      • Service of completing accounting records
      • Package business management service
      • Financial reporting service
    • Taxes consulting
      • Consulting services for associated transactions
      • Tax consulting services
      • Tax settlement service
    • Building Accounting - Finance system
      • Service of building accounting system - Finance - Administration
    • Payroll
      • Salary and Social Insurance Management Service
      • Consulting service to build the salary system in the enterprise
      • Service of registering for social insurance for the first time
    • Enterprise & Investment
      • Consulting services for setting up a business
      • Foreign investment consulting service in Vietnam
      • Establishing a foreign representative office in Vietnam
      • Business dissolution service
  • Resources
    • Knowledge of Auditing
      • Auditing knowledge for directors
      • Legal provisions on auditing
      • Update audit news
      • System of auditing standards
    • Knowledge management accounting
      • Accounting knowledge for the director
      • Building an accounting and financial system
      • Enterprise Financial Management
      • Legal provisions on accounting
    • Knowledge of tax
      • Tax knowledge for directors
      • Knowledge of Tax Inspection - Tax Finalization
      • Knowledge of related transactions
      • Tax law provisions
      • Tax news events
    • Knowledge of labor and wage management
      • Wages management knowledge for directors
      • Regulations for Foreign Workers
      • Regulations of law on labor and wages
      • Salary models in the enterprise
      • Update news, events about labor, salary and insurance
      • Salary calculation tool (Gross-Net) – PIT calculation – Social insurance calculation 2022
    • Business and investment knowledge
      • Establishing and managing a business
      • Business and investment environment in Vietnam
      • Foreign investment in Vietnam
      • Borrowing from abroad, repaying foreign loans
  • Sectors
    • Trade
    • Services
    • Construction, installation
    • Production and processing
    • Information Technology
    • Transportation, Logistics
    • Science and technology enterprise
    • Household, Business individual
  • News
    • Tax Newsletter 2022
    • Tax Newsletter 2021
    • Updates
    • Events
    • Supporting businesses due to Covid-19
  • Contact Us
Menu
  • About Us
    • About Us
      • Introduction to Expertis
      • Association members
      • Contact Us
    • Recruitment
      • The position is recruiting
    • Partner portal
      • Global partners
      • Technology partners
  • Services
    • Audit and assurance
      • Audited financial statements
      • Tax audit
      • Compliance audit service
      • Financial Due Diligence (FDD)
    • Accounting
      • Accounting and tax services package
      • Service of completing accounting records
      • Package business management service
      • Financial reporting service
    • Taxes consulting
      • Consulting services for associated transactions
      • Tax consulting services
      • Tax settlement service
    • Building Accounting - Finance system
      • Service of building accounting system - Finance - Administration
    • Payroll
      • Salary and Social Insurance Management Service
      • Consulting service to build the salary system in the enterprise
      • Service of registering for social insurance for the first time
    • Enterprise & Investment
      • Consulting services for setting up a business
      • Foreign investment consulting service in Vietnam
      • Establishing a foreign representative office in Vietnam
      • Business dissolution service
  • Resources
    • Knowledge of Auditing
      • Auditing knowledge for directors
      • Legal provisions on auditing
      • Update audit news
      • System of auditing standards
    • Knowledge management accounting
      • Accounting knowledge for the director
      • Building an accounting and financial system
      • Enterprise Financial Management
      • Legal provisions on accounting
    • Knowledge of tax
      • Tax knowledge for directors
      • Knowledge of Tax Inspection - Tax Finalization
      • Knowledge of related transactions
      • Tax law provisions
      • Tax news events
    • Knowledge of labor and wage management
      • Wages management knowledge for directors
      • Regulations for Foreign Workers
      • Regulations of law on labor and wages
      • Salary models in the enterprise
      • Update news, events about labor, salary and insurance
      • Salary calculation tool (Gross-Net) – PIT calculation – Social insurance calculation 2022
    • Business and investment knowledge
      • Establishing and managing a business
      • Business and investment environment in Vietnam
      • Foreign investment in Vietnam
      • Borrowing from abroad, repaying foreign loans
  • Sectors
    • Trade
    • Services
    • Construction, installation
    • Production and processing
    • Information Technology
    • Transportation, Logistics
    • Science and technology enterprise
    • Household, Business individual
  • News
    • Tax Newsletter 2022
    • Tax Newsletter 2021
    • Updates
    • Events
    • Supporting businesses due to Covid-19
  • Contact Us

WAREHOUSE OF ENTERPRISE MANAGEMENT KNOWLEDGE

Specialized content, carefully edited, compiled and updated by the Expertis Committee

Tax knowledge for directors

  • Tax authorities and the fight against profiteering from value added tax (VAT)
  • Do not leave when being subject to tax enforcement
  • Banks must provide personal banking data to the tax authorities
  • Tax administration for enterprises with associated transactions from 2020
  • Tax obligation when the business is suspended
  • Sanctions for administrative violations on taxes and invoices (from December 05, 12)
  • Knowledge of Tax Administration should know for businesses
  • How businesses make tax planning (Tax Planning)
  • Tax policy: a constant worry of foreign investors
  • Schedule for submitting tax returns 2020
  • Tax administration assignment in Ho Chi Minh City

Knowledge of tax examination - tax settlement

  • Tax authorities and the fight against profiteering from value added tax (VAT)
  • Provision for devaluation of inventory
  • Correct understanding of the time to issue invoices
  • Provisions on tax assessment from 2020
  • Are royalties subject to contractor tax
  • Tax examination procedures are issued by the General Department of Taxation
  • Reasonable and valid expenses are deductible when the enterprise makes tax finalization

Knowledge of related transactions

  • Tax strictly controls associated transactions against transfer pricing: What should Vietnamese enterprises do?
  • Declare associated transactions for businesses in Vietnam
  • Transfer pricing: Vietnamese enterprises are careful to collect tax arrears
  • Guide on Affiliate Transactions for Enterprises in Vietnam
  • Affiliate transactions (transfer pricing) – Part 4: guidance on declarations and records
  • Affiliate transactions (transfer pricing) – Part 3: Classification of associated transactions and the principle that the substance determines the form
  • Affiliate transactions (transfer pricing) – Part 2: Transfer pricing methods of multinational companies in Vietnam
  • Affiliate transactions (transfer pricing) – Part 1: Tax basis and profit transfer
  • Tax administration for enterprises with associated transactions from 2020
Legal regulations on affiliate transactions (Transfer pricing)
  • Circular 45/2021/TT-BTC guiding the application of APA in tax administration for enterprises with associated transactions
  • Official Dispatch 271/TCT-TTKT introducing new contents of Decree 132/2020/ND-CP on tax administration for enterprises with associated transactions
  • Appendices of Decree 132/2020/ND-CP on related-party transactions
  • Decree 132/2020 / ND-CP on tax administration applicable to enterprises with associated transactions
  • Official Letter 2835/TCT-TTKT guiding the implementation of Decree 68/2020/ND-CP issued by the General Department of Taxation
  • Decree 68/2020/ND-CP amending and supplementing Decree 20/2017/ND-CP on tax administration for enterprises with associated transactions
  • Circular 41/2017/TT-BTC guiding the implementation of Decree 20/2017/ND-CP stipulating tax administration for enterprises with associated transactions
  • Decree 20/2017 / ND-CP on tax administration applicable to enterprises with associated transactions

Tax law provisions

  • Decree No. 15/2022/ND-CP stipulating tax exemption and reduction under Resolution 43/2022/QH15
  • Identify tax incentives for software
  • Circular 19/2021/TT-BTC guiding electronic transactions in the tax field
  • Regulations on Consolidation of legal documents and how to use Consolidated documents
Tax Administration
  • Circular 80/2021/TT-BTC guiding tax administration from January 01, 01
  • Circular 78/2021/TT-BTC on invoices and documents
  • Official Letter 6770/CTTPHCM-KK on filing tax returns during the implementation of Directive 16/CT-TTg
  • Circular 31/2021/TT-BTC on risk management in tax administration
  • Circular 105/2020/TT-BTC dated December 03, 12 guiding tax registration
  • Decree 126/2020 / ND-CP guiding the Law on Tax Administration 2019
  • Law on Tax Administration 2019 (Law No. 38/2019/QH14)
  • Circular 119/2014/TT-BTC amending the application of tax declaration by deduction method
V.a.t tax
  • Decree No. 15/2022/ND-CP stipulating tax exemption and reduction under Resolution 43/2022/QH15
  • Reducing VAT from 10% to 8% in 2022 (From February 01 – Detailed application instructions)
  • Circular 43/2021/TT-BTC supplementing medical instruments and equipment subject to VAT rate of 5%
Corporate income tax
  • Circular 71/2021/TT-BTC providing guidance on corporate income tax for establishments carrying out socialization that have not yet been collected according to Resolution 63/NQ-CP dated May 25, 5
  • Costs related to Covid are included in business expenses and not included in personal income taxable income
  • Decision 29/2021/QD-TTg on special investment incentives
  • Decree 57/2021/ND-CP on corporate income tax incentives for projects producing supporting industry products
  • Circular 03/2021/TT-BTC guiding the CIT exemption and reduction for science and technology enterprises
personal income tax
  • Changes in the way to calculate PIT in 2022
  • Legal regulation system of personal income tax
Receipts
  • Official Dispatch 5113/TCT-CS guiding some contents about e-invoices
  • Official Letter 4144/TCT-CS General Department of Taxation introduces new contents in Circular 78/2021/TT-BTC guiding invoices and documents
  • The process of managing electronic invoices issued by the General Department of Taxation
  • Decree No. 123/2020 / ND-CP on invoices and documents
  • Circular 88/2020/TT-BTC amending and supplementing Article 26 of Circular 68/2019/TT-BTC
  • Circular 68/2019/TT-BTC guiding Decree 119/2018/ND-CP on e-invoices when selling goods and providing services
  • Consolidated document 11/VBHN-BTC in 2018 guiding the implementation of Decree 51/2010/ND-CP and 04/2014/ND-CP on invoices for selling goods and providing services
  • Circular 39/2014/TT-BTC guiding the implementation of Decree 51/2010/ND-CP and Decree 04/2014/ND-CP stipulating invoices for selling goods and providing services
  • Decree 04/2014/ND-CP amending and supplementing a number of articles of Decree No. 51/2010/ND-CP dated May 14, 05 regulating invoices for selling goods and providing services
  • Decree 51/2010 / ND-CP on invoices for selling goods and providing services
Penalties for administrative violations of tax and invoices
  • Decree 102/2021/ND-CP on penalties for administrative violations in the fields of taxation, invoices, accounting and auditing
  • Decree 125/2020/ND-CP stipulating penalties for administrative violations on taxes and invoices
Extension, tax exemption and reduction due to Covid-19
  • Resolution 11/NQ-CP on tax payment extension 2022
  • Resolution 43/2022/QH15 on fiscal and monetary policies to support the socio-economic recovery and development program
  • Decree 92/2021/ND-CP guiding Resolution 406/NQ-UBTVQH15 on tax exemption and reduction
  • Official Letter 3887/TCT-CS on business support and sponsorship for COVID-19 prevention and control activities
  • Decree 52/2021/ND-CP extending the deadline for payment of VAT, CIT, PIT and land rent in 2021 (Due to Covid-19)
  • Decree 41/2020/ND-CP Extension of deadlines for payment of VAT, CIT, PIT and land rent (Due to Covid-19)

Updating tax events news

  • Notes for individuals and businesses when finalizing taxes in 2021
  • Necessary documents and deadline for personal income tax finalization in 2022
  • Is it necessary to declare tax when there is no personal income tax?
  • Will there be a penalty for not finalizing personal income tax in 2022?
  • Decree No. 15/2022/ND-CP stipulating tax exemption and reduction under Resolution 43/2022/QH15
  • Reducing VAT from 10% to 8% in 2022 (From February 01 – Detailed application instructions)
  • Manage input and output information of businesses and individuals through electronic invoices
  • Transfer pricing: Vietnamese enterprises are careful to collect tax arrears
  • If I do not generate income, do I have to declare PIT?
  • Tax risk assessment and key monitoring of taxpayers from July 02, 07
  • Guide to PIT finalization in 2020
  • Exemption or reduction of corporate income tax for science and technology enterprises
  • Schedule for filing all kinds of tax returns for 2021
  • New regulations on tax declaration for businesses from December 12
  • New point of Decree 126 / ND-CP on tax administration is applicable from December 05, 12
  • Carefully get penalized with Provisional Corporate Income Tax
  • Banks must provide personal banking data to the tax authorities
  • Increased penalties for administrative violations of taxes and invoices from December 05, 12
  • Tax administration for enterprises with associated transactions from 2020
  • Not required to use e-invoices from 01/11/20
  • Cases of wrong electronic invoicing need to be handled
  • Decree 114/2020 / ND-CP guiding the implementation of tax reduction of 30% of CIT payable by 2020
  • Official Letter 3867 / TCT-KK in 2020 regarding refund of overpaid value-added tax due to incorrect payment
  • 3867 / TCT-KK on overpaid VAT refund
  • Guide to properly implement tax policies for advertising activities on Facebook, Google
  • Official Letter 2578 / TCT-CS dated 23/6/2020 on the time required to use e-invoices
  • Official Letter 3529 / TCT-KK on refunded VAT policy for investment projects that are terminated
  • Official Letter 3185 / TCT-HTQT 2020 on withholding tax paid abroad from tax payable in Vietnam
  • Official Letter 2668 / TCT-CS in 2020 on value added tax policy for enterprises when transformed into export processing enterprises issued by the General Department of Taxation
  • 9 new points to know about the Tax Administration Law 2019 (effective from July 01, 07)
  • Home
  • General knowlegde
  • Knowledge of tax
  • Line of audit updates
  • Affiliate transactions (transfer pricing) – Part 3: Classification of associated transactions and the principle that the substance determines the form

Affiliate transactions (transfer pricing) – Part 3: Classification of associated transactions and the principle that the substance determines the form

Category
  • Associated parties (according to Decree 132/2020 / ND-CP)
  • Classify transactions by activity
  • Some cases are often missed when self-determination
  • Definition of the principle that essence determines form
  • Principles of application

Associated parties (according to Decree 132/2020 / ND-CP) #

Parties that have an affiliated relationship (hereinafter referred to as "a party") are parties with a relationship in one of the following cases:

a) A party participates directly or indirectly in the administration, control, capital contribution or investment in the other party;

b) The parties are directly or indirectly under the control, control, capital contribution or investment of another party.

The above related parties are specified as follows:

a) An enterprise directly or indirectly holds at least 25% of the capital contributed by the owner of the other enterprise;

b) Both enterprises have at least 25% of the owner's capital contributed directly or indirectly by a third party;

c) An enterprise is the largest shareholder in terms of the owner's equity and holds directly or indirectly at least 10% of the total shares of the other enterprise;

d) An enterprise borrows or lends to another business in any form (including loans from third parties guaranteed from the party's financial resources and financial transactions available). similar nature) provided that the loan amount is at least equal to 25% of the owner's equity of the borrowing enterprise and accounts for more than 50% of the total value of medium and long-term debts of the borrowing enterprise;

d) An enterprise appoints a member of the board of directors to manage or take control of another enterprise provided that the number of members appointed by the first enterprise accounts for more than 50% of the total members of the board of directors. operating or taking control of the second business; or a member designated by the first enterprise has the right to determine the financial or business operations of the second enterprise;

e) Two enterprises with more than 50% of members of the board of directors or a board member have the right to decide on the financial policies or business activities designated by a third party;

g) Two enterprises are operated or controlled by personnel, finance and business activities by individuals in one of the spousal relationships; biological parents, adoptive parents, stepfather, stepmother, mother-in-law, parents-in-law; natural children, adopted children, stepchildren of wife or husband, daughter-in-law, son-in-law; siblings, siblings of the same parent, sibling of the same parent, brother, sister, half sister, brother-in-law, brother-in-law, sister-in-law, sister-in-law of the same parent or the same parent, same mother of different father; paternal grandparents, maternal grandparents; grandchildren, grandchildren; aunt, uncle, uncle, uncle and nephew;

h) Two business establishments having a head office and a permanent establishment or a permanent establishment of a foreign organization or individual;

i) Enterprises are controlled by an individual through his / her capital contribution to that enterprise or directly participate in the management of the enterprise;

k) Other cases in which the enterprise is subject to the actual management, control and decision on the production and business activities of the other enterprise;

l) The enterprise has transactions to transfer or receive the transfer of contributed capital of at least 25% of the contributed capital of the owner of the enterprise in the tax period; to borrow or lend at least 10% of the owner's equity at the time of the transactions in the tax period with the operator or controller of an enterprise or with an individual in a relationship as prescribed in point g this clause.

Classify transactions by activity #

Business activities: Buying, selling, exchanging, renting, leasing, borrowing, lending, transferring, transferring machinery, equipment, goods, providing services;

Financial activities: Borrowing, lending, financial services, financial guarantee and other financial companies;

Activities related to the right to use: Buying, selling, exchanging, renting, leasing, borrowing, lending, transferring or transferring tangible and intangible assets;

Synergistic activities between related parties: Agreements on common use of resources such as synergies, cooperation in exploitation and use of human resources, cost sharing among related parties.

Some cases are often missed when self-determination #

Companies and affiliates

Official Letter No. 5695 / CT-TTHT dated June 19, 6 of Ho Chi Minh City Tax Department: In case the Company establishes another independent accounting branch, it is calculated that the Company participates directly or indirectly in the administration, control, capital contribution or investment in a branch, the transactions arising between the Company and the branch are associated transactions.

The Branch and the Company make a declaration of associated transactions together with the corporate income tax finalization declaration as prescribed.

Control of individuals through capital contribution

One or more businesses are controlled by an individual either through his / her capital contribution to that enterprise or directly participating in operating the business.

Official Letter No. 46426 / CT-TTHT dated July 10, 7 of Hanoi Tax Department:

In case the Company is controlled by an individual through his / her capital contribution to the Company or directly participates in the management of the Company, the Company shall be considered as related parties and any arising transactions including loan, loan) between related parties in the process of production and business is an associated transaction in accordance with the provisions of the Decree.

Official Letter No. 43637 / CT-TTHT dated June 28, 6 of Hanoi Tax Department:

Where individual A's Company is under the control of an individual through his / her capital contribution to the Company or directly participates in the management of the Company, it shall be considered as affiliated parties according to instructions. in the Decree.

Definition of the principle that essence determines form #

Currently, many countries around the world have applied the tax calculation principle on the basis of the nature of the transaction to decide the form. The application of the tax calculation principle on the basis of the transactional nature determines the form in the determination of taxpayers' tax obligations is one of the new points that are highly appreciated by experts.

The principle of "Nature of formality" is the principle to analyze the business activities of taxpayers to determine the nature of the associated transaction as a basis for comparison with equivalent independent transactions, ensure that the associated transactions properly reflect the nature of trade, economics and finance shall be conducted between the parties without affiliation, not to allow these affiliated relations to distort tax obligations to state budget of taxpayers. This principle is based on the data, the actual implementation of transactions between affiliates to compare with independent transactions in similar conditions, regardless of the form of the transaction shown in the contract or document. between parties with affiliation. The determination of the nature of economic, financial and commercial relations of associated transactions is made based on comparison and comparison with independent conditional transactions.

Independent comparables are independent transactions between unrelated parties or an independent transaction is selected on the basis of analysis, comparison, and identification of similar comparables. to determine the price, profit rate and profit distribution ratio in order to determine taxpayers' tax obligations to pay to the state budget, to ensure compliance with the Law on Tax Administration and the Law on Corporate Income Tax. Karma.

The tax authority that manages, checks and inspects the transfer pricing of taxpayers according to the principle of independent transaction and the nature of operation and transaction shall decide tax obligations corresponding to the value generated from the nature of transactions, production and business activities of taxpayers, not recognizing associated transactions that do not follow the principles of independent transactions, reduce the enterprises' tax obligations to the state budget and transfer pricing to determine the correct tax liability.

Expenses of associated transactions that are inconsistent with the nature of the independent transaction or do not contribute to generating revenue or income for taxpayers' production and business activities shall not be included in deductible expenses when determined. income subject to corporate income tax in the period.

Principles of application #

The arising costs must be consistent with the nature of independent transactions or contribute to the creation of revenue and added value for production and business activities.

Based on the collection of information, determining the nature of associated transactions, economic relations, financial trade in contracts or documents, agreements, the tax authority will analyze the reality of production activities. business, functions of the taxpayer through real-time comparison and contracts, documents, agreements). Thereby, redefine transactions and risks according to the principle of independent trading and the essential principle determines the form.

The tax authority will impose tax in case the enterprise performs the transactions that are not in accordance with the economic nature or the actual arising; Enterprises having associated transactions fail to comply with the provisions on the obligation to declare and provide information according to tax administration regulations.

Learn about transfer pricing - Part 2: Transfer pricing methods of multinational companies in Vietnam
Part 4: Instructions for a few things about declarations and records
Useful article for you?
Share this post:
  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
Updated on October 5, 2021
Transfer pricing: Vietnamese enterprises are careful to collect tax arrears

Powered by BetterDocs

Category
  • Associated parties (according to Decree 132/2020 / ND-CP)
  • Classify transactions by activity
  • Some cases are often missed when self-determination
  • Definition of the principle that essence determines form
  • Principles of application
Do you need advice?

We will advise and answer your problems, and propose solutions in detail, best suited to your needs and goals.

Connect now
Related services
  • Consulting services for associated transactions
  • Tax consulting services
  • Tax settlement service
Menu
  • Consulting services for associated transactions
  • Tax consulting services
  • Tax settlement service
  • Mon - Fri: 8:00 - 17:30
  • No. 234 3/2 Street, Ward 12, District 10, HCMC, Vietnam
  • +(84 028) 62646967 - (+84) 903 024 034
  • cskh@expertis.vn
Twitter Facebook f Whatsapp

About us

  • About Us
  • Recruitment
  • Contact Us

Services

  • Audit and assurance
  • Accounting
  • Taxes consulting
  • Payroll
  • Business & Investment

Write comment here...

  • News
  • Events
  • Resources
  • Useful ebooks
  • Tax Newsletter 2021

Subscribe now

DMCA.com Protection Status

Copyright 2021 © Expertis Audit and Consult Company

 

REGISTER QUOTE

To receive the fastest quotation, please complete correctly and complete the information below:

[contact-form-7 id = "18259 ″ title =" Subscribe to a quote "]

GET PROFILE EXPERTIS

To receive our Profile via Email, please enter the correct and complete information below:

[contact-form-7 id = "18306 ″ title =" Receive Profile "]