trực tiếp bóng đá việt nam hôm nayWhen is it prohibited to determine medium and long-term debt in related-party transactions in Vietnam from March 27, 2025?

Whenis it prohibited to determine medium and long-term debt in related-party transactionsin Vietnam from March 27, 2025?

Based on point d, clause 2, Article 5 ofDecree 132/2020/ND-CP, as amended and supplemented by point a, clause 1, Article 1 ofDecree 20/2025/ND-CP(document effective from March 27, 2025), as follows:

An enterprise guaranteeing or lending to another enterprise in any form (including loans from third parties secured from financial resources of affiliated parties and similar financial transactions) with trực tiếp bóng đá việt nam hôm nay condition that trực tiếp bóng đá việt nam hôm nay total outstanding debt of trực tiếp bóng đá việt nam hôm nay borrowing enterprise with trực tiếp bóng đá việt nam hôm nay lending or guaranteeing enterprise is at least 25% of trực tiếp bóng đá việt nam hôm nay owner's investment of trực tiếp bóng đá việt nam hôm nay borrowing enterprise and accounts for over 50% of trực tiếp bóng đá việt nam hôm nay total medium and long-term debt of trực tiếp bóng đá việt nam hôm nay borrowing enterprise.This regulation does not apply to trực tiếp bóng đá việt nam hôm nay following cases:

- trực tiếp bóng đá việt nam hôm nay guarantor or lender is an economic organization operating under trực tiếp bóng đá việt nam hôm nay Law on Credit Institutions, which does not directly or indirectly manage, control, invest, or contribute capital to trực tiếp bóng đá việt nam hôm nay borrowing or guaranteed enterprise as defined at points a, c, d, e, g, h, k, l, and m of clause 2, Article 5 ofDecree 132/2020/ND-CP.

- trực tiếp bóng đá việt nam hôm nay guarantor or lender is an economic organization operating under trực tiếp bóng đá việt nam hôm nay Law on Credit Institutions, and trực tiếp bóng đá việt nam hôm nay borrowing or guaranteed enterprise is not directly or indirectly under trực tiếp bóng đá việt nam hôm nay control, management, investment, or capital contribution of another party as defined at points b, e, and i of clause 2, Article 5 ofDecree 132/2020/ND-CP.

When is it prohibited to determine medium and long-term debt in related-party transactions in Vietnam from March 27, 2025?(Image from trực tiếp bóng đá việt nam hôm nay Internet)

What is trực tiếp bóng đá việt nam hôm nay method of calculating loan interest cost which is deducted in related-party transactions for corporate income tax in Vietnam(CIT)?

Pursuant to points a, b of clause 3, Article 16 ofDecree 132/2020/ND-CPregulating trực tiếp bóng đá việt nam hôm nay determination of expenses for tax calculation for enterprises with related-party transactions as follows

Determination of expenses for tax calculation concerning enterprises with related-party transactions

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3. Total loan interest cost which is deducted when determining income subject to corporate income tax for enterprises with related-party transactions:

a) Total interest expenses after deducting deposit interest and loan interest arising during trực tiếp bóng đá việt nam hôm nay period of trực tiếp bóng đá việt nam hôm nay taxpayer are deductible when determining trực tiếp bóng đá việt nam hôm nay income subject to corporate income tax not exceeding 30% of trực tiếp bóng đá việt nam hôm nay total net profit from business activities during trực tiếp bóng đá việt nam hôm nay period plus interest expenses after deducting deposit interest and loan interest arising during trực tiếp bóng đá việt nam hôm nay period plus depreciation expenses arising during trực tiếp bóng đá việt nam hôm nay period of trực tiếp bóng đá việt nam hôm nay taxpayer;

b) trực tiếp bóng đá việt nam hôm nay portion of non-loan interest cost which is deducted as prescribed at point a of this clause may be carried forward to trực tiếp bóng đá việt nam hôm nay subsequent tax period when determining trực tiếp bóng đá việt nam hôm nay total loan interest cost which is deducted if trực tiếp bóng đá việt nam hôm nay total interest expenses allowable for deduction of trực tiếp bóng đá việt nam hôm nay following tax period is less than trực tiếp bóng đá việt nam hôm nay limit at point a of this clause. trực tiếp bóng đá việt nam hôm nay interest expenses can be carried forward continuously for no more than 5 years from trực tiếp bóng đá việt nam hôm nay year following trực tiếp bóng đá việt nam hôm nay year trực tiếp bóng đá việt nam hôm nay non-loan interest cost which is deducted arise;

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Thus, according to trực tiếp bóng đá việt nam hôm nay above regulations, loan interest cost which is deducted in related-party transactions for corporate income tax are determined as follows:

- Total interest expenses after deducting deposit interest and loan interest arising during trực tiếp bóng đá việt nam hôm nay period of trực tiếp bóng đá việt nam hôm nay taxpayer are deductible when determining trực tiếp bóng đá việt nam hôm nay income subject to corporate income tax not exceeding 30% of trực tiếp bóng đá việt nam hôm nay total net profit from business activities during trực tiếp bóng đá việt nam hôm nay period plus interest expenses after deducting deposit interest and loan interest arising during trực tiếp bóng đá việt nam hôm nay period plus depreciation expenses arising during trực tiếp bóng đá việt nam hôm nay period of trực tiếp bóng đá việt nam hôm nay taxpayer.

- trực tiếp bóng đá việt nam hôm nay non-deductible portion of interest expenses will be carried forward to trực tiếp bóng đá việt nam hôm nay subsequent tax period when determining trực tiếp bóng đá việt nam hôm nay total loan interest cost which is deducted if trực tiếp bóng đá việt nam hôm nay total loan interest cost which is deducted arising in trực tiếp bóng đá việt nam hôm nay subsequent tax period is less than 30% of trực tiếp bóng đá việt nam hôm nay total net profit from business activities during trực tiếp bóng đá việt nam hôm nay period plus interest expenses after deducting deposit interest and loan interest arising during trực tiếp bóng đá việt nam hôm nay period plus depreciation expenses arising during trực tiếp bóng đá việt nam hôm nay period of trực tiếp bóng đá việt nam hôm nay taxpayer.

trực tiếp bóng đá việt nam hôm nay period for carrying forward interest expenses is continuous and not exceeding 5 years from trực tiếp bóng đá việt nam hôm nay year following trực tiếp bóng đá việt nam hôm nay year in which trực tiếp bóng đá việt nam hôm nay non-loan interest cost which is deducted arise.

Note:trực tiếp bóng đá việt nam hôm nay above-mentioned loan interest cost which is deducted in related-party transactions do not apply to loans made by taxpayers in cases such as: financial institutions, insurance business organizations, official development assistance (ODA) loans, preferential loans from trực tiếp bóng đá việt nam hôm nay Government of Vietnam, loans under trực tiếp bóng đá việt nam hôm nay national target programs, and loans for investment projects implementing trực tiếp bóng đá việt nam hôm nay State's social welfare policies.

What are responsibilities and powers of trực tiếp bóng đá việt nam hôm nay Tax Authority in managing costs from related-party transactions in Vietnam?

According to Article 20 ofDecree 132/2020/ND-CP, responsibilities and powers of trực tiếp bóng đá việt nam hôm nay Tax Authority in managing costs from related-party transactions are regulated as follows:

- Apply risk management in tax administration regarding related party transaction pricing according to trực tiếp bóng đá việt nam hôm nay provisions of tax law.

+ Manage and use information of taxpayers engaged in related-party transactions to serve risk management;

+ Apply risk management in planning audits, inspections of enterprises with affiliate relationships and related-party transactions;

+ Manage and utilize cross-border profit reports of taxpayers to support risk management, information exchange as per Vietnam’s commitments in international tax agreements, without using them for tax imposition.

- trực tiếp bóng đá việt nam hôm nay Tax Authority, based on principles of analysis, comparison, principles, and methods for determining trực tiếp bóng đá việt nam hôm nay prices of related-party transactions as stipulated in this Decree and tax obligation declaration information of enterprises with related-party transactions, will impose tax in trực tiếp bóng đá việt nam hôm nay following cases:

+ Taxpayers violate tax laws but implement all policies on accounting, invoices, certificates: Determination of revenue, costs or taxable income to calculate tax obligations is done according to principles of analysis, comparison, transaction pricing methods and database used in managing related party transaction prices stipulated in this Decree;

+ Other cases as prescribed in clause 2, Article 50 ofTax Administration Law 2019, dated June 13, 2019;

+ trực tiếp bóng đá việt nam hôm nay Tax Authority is responsible for facilitating taxpayers to justify, explain about figures, data, and independent comparable objects used in trực tiếp bóng đá việt nam hôm nay Dossier for determining related transaction prices.

- trực tiếp bóng đá việt nam hôm nay Tax Authority is authorized to determine price levels, profit margins, distribution ratios of profit, taxable income, or corporate income tax payable for taxpayers not complying with regulations on declaration, determination of related-party transactions; failure to provide or incomplete provision of information, data declared to determine prices in related-party transactions in trực tiếp bóng đá việt nam hôm nay following cases:

+ Taxpayers do not declare, incompletely declare information, or do not submit Appendix I issued withNghị định 132/2020/NĐ-CP;

+ Taxpayers provide incomplete information within trực tiếp bóng đá việt nam hôm nay Dossier determining related party prices prescribed in Appendix II, Appendix III issued with this Decree or do not present trực tiếp bóng đá việt nam hôm nay Dossier determining related party prices and trực tiếp bóng đá việt nam hôm nay data, documents and records used as a base for analysis, comparison, determining prices in trực tiếp bóng đá việt nam hôm nay Dossier determining related party prices as requested by trực tiếp bóng đá việt nam hôm nay Tax Authority within trực tiếp bóng đá việt nam hôm nay time limit prescribed inNghị định 132/2020/NĐ-CP. Information in Dossier determining related party prices is identified as critical if it affects results of selecting similar independent comparable objects; prices determination method for related-party transactions or results of adjusting price level, profit margin, distribution rate of taxpayer’s profit;

+ Taxpayers use information on independent transactions that is not truthful or in line with reality to analyze, compare, declare on determining related party prices or base their determinations on illegal, invalid documents, data and evidence or do not clarify trực tiếp bóng đá việt nam hôm nay origins to determine price levels, profit margins, or allocation rates of profit applicable to related-party transactions;

+ Taxpayers violate provisions on trực tiếp bóng đá việt nam hôm nay determination of related party prices in Article 19 of this Decree;

+ trực tiếp bóng đá việt nam hôm nay database for tax imposition complies with provisions of Tax Administration LawLuật Quản trực tiếp bóng đádated June 13, 2019.

- trực tiếp bóng đá việt nam hôm nay Tax Authority is responsible for ensuring trực tiếp bóng đá việt nam hôm nay confidentiality of information provided by taxpayers relating to trực tiếp bóng đá việt nam hôm nay determination of related party prices in accordance with this Decree. Information provision to agencies, organizations follows trực tiếp bóng đá việt nam hôm nay provisions in clause 5, Article 3 ofDecree 132/2020/ND-CP.

- In cases where inspections reveal issues regarding mechanisms, policies concerning specific sectors or industries, trực tiếp bóng đá việt nam hôm nay Tax Authority will consult with relevant agencies, organizations, individuals, specifically:

+ Specialized management agencies, professional associations;

+ trực tiếp bóng đá việt nam hôm nay Tax Authority is responsible for providing dossiers, information, and documents relating to trực tiếp bóng đá việt nam hôm nay determination of related party prices to specialized agencies, organizations for consultation. Agencies and units requested for consultation must ensure trực tiếp bóng đá việt nam hôm nay confidentiality of information according to trực tiếp bóng đá việt nam hôm nay law.

- trực tiếp bóng đá việt nam hôm nay Tax Authority exchanges information with taxpayers and counterpart Tax Authority under pre-consultation procedures before, during, and after inspections on related party transaction prices as follows:

+ When applying risk management in tax administration for related party transaction prices, if trực tiếp bóng đá việt nam hôm nay Tax Authority deems it necessary to exchange information beforehand with taxpayers on Appendix I issued withDecree 132/2020/ND-CPand trực tiếp bóng đá việt nam hôm nay Dossier for determining related party prices of taxpayers, trực tiếp bóng đá việt nam hôm nay Tax Authority shall send an official dispatch requesting consultation with taxpayers to exchange, provide preliminary information on trực tiếp bóng đá việt nam hôm nay Dossier for determining related party prices of taxpayers according toNghị định 132/2020/NĐ-CP;

+ In cases where trực tiếp bóng đá việt nam hôm nay Tax Authority needs to make contact, exchange with counterpart Tax Authorities on cross-border profit reports and other related information in accordance with provisions of trực tiếp bóng đá việt nam hôm nay bilateral procedure clause and information exchange in relevant tax agreements. If necessary, trực tiếp bóng đá việt nam hôm nay Tax Authority informs taxpayers in writing about trực tiếp bóng đá việt nam hôm nay temporary suspension of inspections to exchange information with counterpart Tax Authorities as per tax law regulation.

- trực tiếp bóng đá việt nam hôm nay Tax Authority implements trực tiếp bóng đá việt nam hôm nay automatic information exchange mechanism according to Vietnam’s international commitments within international tax agreements. Annually, trực tiếp bóng đá việt nam hôm nay Tax Authority announces trực tiếp bóng đá việt nam hôm nay list of foreign Tax Authorities engaged in automatic information exchange for national cross-border profit reports of taxpayers on trực tiếp bóng đá việt nam hôm nay electronic portal of trực tiếp bóng đá việt nam hôm nay tax industry.

- trực tiếp bóng đá việt nam hôm nay Tax Authority adjusts trực tiếp bóng đá việt nam hôm nay determination of related party prices according to bilateral agreements stipulated in relevant tax treaties.

- Where trực tiếp bóng đá việt nam hôm nay Tax Authority signs an Advance Pricing Agreement (APA) with a taxpayer, trực tiếp bóng đá việt nam hôm nay Tax Authority is responsible to:

+ Manage, inspect, audit related-party transactions outside trực tiếp bóng đá việt nam hôm nay scope of trực tiếp bóng đá việt nam hôm nay APA according to risk management principles;

+ Manage, inspect, audit compliance of trực tiếp bóng đá việt nam hôm nay taxpayer's signed APA as stipulated.