Can Tho City Tax Department provides guidance on vtv2 trực tiếp bóng đá hôm nay implementation of Decree 20 on related-party transactions
Can Tho Tax Department provides guidance on vtv2 trực tiếp bóng đá hôm nay implementation of Decree 20 on related-party transactions
On February 17, 2025, vtv2 trực tiếp bóng đá hôm nay Can Tho City Tax Department issued Official Dispatch 876/CTCTH-TTHT of 2025 regarding vtv2 trực tiếp bóng đá hôm nay implementation ofNghị định 20/2025/NĐ-CP.
View vtv2 trực tiếp bóng đá hôm nay full text of Official Dispatch 876/CTCTH-TTHT of 2025here
vtv2 trực tiếp bóng đá hôm nay Can Tho City Tax Department notes several points as follows:
(1)Amendments and supplements to Points d, k and addition of Point m of Clause 2, Article 5 ofDecree No. 132/2020/ND-CPregulating related parties.
- A guarantor or lender that is an economic organization operating under vtv2 trực tiếp bóng đá hôm nay Law on Credit Institutions (referred to as Bank) will no longer be considered a related party to vtv2 trực tiếp bóng đá hôm nay borrowing enterprise if they do not directly or indirectly manage, control, contribute capital, or invest in vtv2 trực tiếp bóng đá hôm nay borrowing enterprise. Additionally, vtv2 trực tiếp bóng đá hôm nay Bank and borrowing enterprise, or guarantor, do not directly or indirectly undergo management, control, capital contribution, or investment from another party.
- Addition of vtv2 trực tiếp bóng đá hôm nay case in which related parties include "credit institutions with their subsidiary or controlling or affiliated companies as per vtv2 trực tiếp bóng đá hôm nay regulations of vtv2 trực tiếp bóng đá hôm nay Law on Credit Institutions and any amendments, supplements, or replacements thereto (if any)."
(2)Amendments and supplements to Clause 2, Article 21 ofDecree No. 132/2020/ND-CPstipulating vtv2 trực tiếp bóng đá hôm nay responsibilities of vtv2 trực tiếp bóng đá hôm nay State Bank with businesses having related-party transactions.
vtv2 trực tiếp bóng đá hôm nay State Bank is responsible for coordinating vtv2 trực tiếp bóng đá hôm nay provision of information reported according to legal regulations concerning related persons of vtv2 trực tiếp bóng đá hôm nay Board of Directors members, Members' Council members, Supervisory Board members, General Director (Director), Deputy General Director (Deputy Director), and equivalent titles as stated in vtv2 trực tiếp bóng đá hôm nay credit institution's charter; related persons of shareholders holding 01% or more of vtv2 trực tiếp bóng đá hôm nay charter capital of vtv2 trực tiếp bóng đá hôm nay credit institution; related companies of vtv2 trực tiếp bóng đá hôm nay credit institution as per vtv2 trực tiếp bóng đá hôm nay State Bank’s data management system when requested by vtv2 trực tiếp bóng đá hôm nay Tax authority.
(3)Replacement of Appendix I - Information on related-party relationships and related-party transactions
Appendix I - Information on related-party relationships and related-party transactions issued withDecree No. 132/2020/ND-CPis replaced by Appendix I issued withDecree 20/2025/ND-CP.
Can Tho City Tax Department provides guidance on vtv2 trực tiếp bóng đá hôm nay implementation of Decree 20 on related-party transactions? (Image from Internet)
When are taxpayers exempted from transfer pricing declaration and documentation requirements in Vietnam?
Based on Article 19 ofDecree 132/2020/ND-CPregulating cases where taxpayers are exempted from transfer pricing declaration and documentation requirements, including:
(1)Taxpayers are exempted from filing transfer pricing determination at Section III, Section IV of Appendix I issued withDecree 132/2020/ND-CP, exempted from preparing transfer pricing documentation as stipulated inNghị định 132/2020/NĐ-CPin cases of transactions solely arising with related parties subject to corporate income tax in Vietnam, applying vtv2 trực tiếp bóng đá hôm nay same corporate income tax rate as vtv2 trực tiếp bóng đá hôm nay taxpayer, and where no party enjoys corporate income tax incentives during vtv2 trực tiếp bóng đá hôm nay tax calculation period, but they must declare vtv2 trực tiếp bóng đá hôm nay basis for exemption at Section I, Section II of Appendix I issued withDecree 132/2020/ND-CP.
(2)Taxpayers are obliged to declare transfer pricing determination according to Appendix I issued withDecree 132/2020/ND-CP, but are exempted from preparing transfer pricing documentation in vtv2 trực tiếp bóng đá hôm nay following cases:
- Taxpayers have related-party transactions while vtv2 trực tiếp bóng đá hôm nay total revenue generated in vtv2 trực tiếp bóng đá hôm nay tax period is less than VND 50 billion, and vtv2 trực tiếp bóng đá hôm nay total value of all related-party transactions generated in vtv2 trực tiếp bóng đá hôm nay tax period is under VND 30 billion;
- Taxpayers who have entered into an Advanced Pricing Agreement (APA) and submit an annual report as required by law on APAs. Related-party transactions not covered by APAs require taxpayers to comply with transfer pricing determination regulations as per Article 18 ofDecree 132/2020/ND-CP;
- Taxpayers engage in simple functional activities without revenue or expenses from vtv2 trực tiếp bóng đá hôm nay exploitation and use of intangible assets, generate revenue below VND 200 billion, and apply a net profit margin before interest and corporate income tax (excluding financial revenue and expense differentials) over net sales, including sectors such as:
+ Distribution: From 5% or more;
+ Manufacturing: From 10% or more;
+ Processing: From 15% or more.
In cases where taxpayers separately track and account for revenues and expenses of each sector, they shall apply vtv2 trực tiếp bóng đá hôm nay net profit margin before interest and corporate income tax over net sales corresponding to each sector.
If taxpayers separately track and account for revenues but not expenses of each sector in their production and business activities, they shall allocate expenses according to vtv2 trực tiếp bóng đá hôm nay revenue proportion of each sector to apply vtv2 trực tiếp bóng đá hôm nay net profit margin prior to interest and corporate income tax over net sales corresponding to each sector.
In cases where taxpayers do not separately track and account for revenues and expenses of each sector of operation to determine vtv2 trực tiếp bóng đá hôm nay net profit margin before interest and corporate income tax corresponding to each sector, they shall apply vtv2 trực tiếp bóng đá hôm nay highest net profit margin before interest and corporate income tax over net sales of their highest sector.
In cases where taxpayers do not apply vtv2 trực tiếp bóng đá hôm nay net profit margin specified in this point, they must prepare transfer pricing documentation as per regulations.
(3)Taxpayers eligible for exemption from transfer pricing declaration and documentation requirements under Clause 1, Clause 2 of Article 19 ofDecree 132/2020/ND-CP, vtv2 trực tiếp bóng đá hôm nay determination of total deductible interest expenses when computing taxable income from corporate income tax for companies with related-party transactions is to be conducted in accordance with Clause 3, Article 16 ofDecree 132/2020/ND-CP.
What are vtv2 trực tiếp bóng đá hôm nay principles for determining taxable prices for related-party transactions in Vietnam?
According to Clause 5, Article 42 ofvtv2 trực tiếp bóng đá hôm nay Law on Tax Administration 2019, vtv2 trực tiếp bóng đá hôm nay principles for determining taxable prices for related-party transactions are as follows:
- Determining related-party transaction prices based on analyses, comparisons with independent transactions and vtv2 trực tiếp bóng đá hôm nay principle that vtv2 trực tiếp bóng đá hôm nay essence of operations, transactions determine tax obligations to establish tax obligations as if transactions were between independent parties;
- Related-party transaction prices are adjusted according to independent transactions to determine vtv2 trực tiếp bóng đá hôm nay tax liabilities payable, ensuring no reduction in taxable income;
- Small-scale taxpayers with low tax risk are exempted from implementing vtv2 trực tiếp bóng đá hôm nay provisions at Point a, Clause 5, Article 42 ofvtv2 trực tiếp bóng đá hôm nay Law on Tax Administration 2019, Point b, Clause 5, Article 42 ofvtv2 trực tiếp bóng đá hôm nay Law on Tax Administration 2019of this clause, and they are subject to simplified mechanisms in determining related-party transaction prices.
