The General Department vtv2 trực tiếp bóng đá hôm nay Taxation to require strengthening tax administration for enterprises with related party transactions in Vietnam

Hello, the editor would like to answer as follows:

1. What is related-party transaction?

According to the provisions vtv2 trực tiếp bóng đá hôm nay Clause 22, Article 3 vtv2 trực tiếp bóng đá hôm nay theLaw on Tax Administration 2019,“related-party transaction” means a transaction between related parties.

Which transactions are considered related party transactions?

Clause 2, Article 1 vtv2 trực tiếp bóng đá hôm nayDecree 132/2020/ND-CPstipulates the scope vtv2 trực tiếp bóng đá hôm nay tax administration adjustments for enterprises with related party transactions:

Related party transactions covered byDecree 132/2020/ND-CPcomprise such transaction activities as purchase, sale, bartering, renting, leasing out, borrowing, lending, transfer or disposal vtv2 trực tiếp bóng đá hôm nay commodities, provision vtv2 trực tiếp bóng đá hôm nay services; financial borrowing, lending, financial services, financial guarantee and other financial instruments; purchase, sale, bartering, renting, leasing out, borrowing, lending, transfer or disposition vtv2 trực tiếp bóng đá hôm nay tangible assets, intangible assets and agreement on purchase, sale and sharing vtv2 trực tiếp bóng đá hôm nay resources such as assets, capital, labor and sharing vtv2 trực tiếp bóng đá hôm nay costs between related parties, except business transactions in goods and services subject to price adjustments that the State makes under laws on prices.

2. The General Department vtv2 trực tiếp bóng đá hôm nay Taxation to require strengthening tax administration for enterprises with related party transactions in Vietnam

On December 13, 2023, the General Department vtv2 trực tiếp bóng đá hôm nay Taxation issuedOfficial Dispatch 5654/TCT-TTKTon strengthening tax management for enterprises with related party transactions as follows:

Facing the increasing trend vtv2 trực tiếp bóng đá hôm nay integration and globalization, the problem vtv2 trực tiếp bóng đá hôm nay tax management
For businesses with related transactions, preventing the exploitation vtv2 trực tiếp bóng đá hôm nay transfer pricing to avoid corporate income tax is one vtv2 trực tiếp bóng đá hôm nay the key issues vtv2 trực tiếp bóng đá hôm nay tax management, receiving special attention from the Government and the Ministry vtv2 trực tiếp bóng đá hôm nay Finance.

In order to strengthen tax management, avoid loss vtv2 trực tiếp bóng đá hôm nay state budget revenue, and create equality among businesses, the General Department vtv2 trực tiếp bóng đá hôm nay Taxation recommends that the Tax Department perform the following tasks:

- Strengthen inspections and tax audits for businesses that have related party transactions with high transfer price risks:

Promote the inspection vtv2 trực tiếp bóng đá hôm nay tax declaration records and the analysis vtv2 trực tiếp bóng đá hôm nay the production and business activities vtv2 trực tiếp bóng đá hôm nay enterprises with related transactions in the locality; Review and synthesize information from sources about operating industries, types vtv2 trực tiếp bóng đá hôm nay businesses, investment status, declaration status, adjustment vtv2 trực tiếp bóng đá hôm nay associated transaction prices, etc. to identify businesses that show signs vtv2 trực tiếp bóng đá hôm nay transfer pricing risk (such as businesses that generate revenue and expenses with affiliated parties vtv2 trực tiếp bóng đá hôm nay great value or high proportion; enterprises that declare large and continuous losses for many years but still expand production and business scale; there is revenue growth but the amount vtv2 trực tiếp bóng đá hôm nay tax payable to the state budget is low;...).

Thereby, collect information and documents for in-depth analysis and identify businesses with signs vtv2 trực tiếp bóng đá hôm nay high transfer price risk.

The Department vtv2 trực tiếp bóng đá hôm nay Taxation, based on Official Dispatch 5127/TCT-TTKT dated November 16, 2023, will include businesses with signs vtv2 trực tiếp bóng đá hôm nay high transfer price risk (mentioned above) in the 2024 tax inspection and audit plan according to the law; which specifically defines inspection and examination vtv2 trực tiếp bóng đá hôm nay transfer prices.

- Coordinate with relevant departments, agencies, and branches in the area to promote anti-transfer pricing work:

+ Coordinate with departments, branches, and local press agencies to propagate and disseminate to businesses in the area about tax laws, including the law on tax management for enterprises with related party transactions and providing information on tax management policies for enterprises with concurrent related party transactions.

+ Enhance the exchange and collection vtv2 trực tiếp bóng đá hôm nay information and data by businesses that have related party transactions, especially foreign investment enterprises in the area, to serve tax management.

+ Capture information regularly and continuously to detect signs vtv2 trực tiếp bóng đá hôm nay violations and promptly prevent large-scale, complex fraud, new forms vtv2 trực tiếp bóng đá hôm nay transfer pricing, and tax avoidance. In the event vtv2 trực tiếp bóng đá hôm nay detecting signs vtv2 trực tiếp bóng đá hôm nay a criminal violation, promptly transfer them to the police agency for handling according to the provisions vtv2 trực tiếp bóng đá hôm nay the law.

- Regarding strengthening training, learning, and sharing experiences:

+ Organize training classes to improve tax officials' qualifications in foreign languages and expertise; organize training conferences to share experiences and problems arising in tax management for businesses that have related party transactions with local tax authorities.

+ Actively exchange and discuss at conferences and seminars on transfer pricing conducted by the General Department vtv2 trực tiếp bóng đá hôm nay Taxation in coordination with international organizations. Attend all training courses on transfer pricing inspection and testing organized by the General Department vtv2 trực tiếp bóng đá hôm nay Taxation.

- Regarding propaganda and raising legal awareness for the business community:

+ Organize business dialogue conferences with tax authorities; coordinate with business associations and relevant local departments to increase support, guidance, and answer questions for businesses through many forms: written, electronic, website, etc.To propagate tax laws, transfer pricing, and raise awareness among businesses.

+ Actively coordinate with local radio, television, and newspaper agencies to develop propaganda programs to disseminate tax laws in general and tax laws on related-party transactions in particular.

Thus, the General Department vtv2 trực tiếp bóng đá hôm nay Taxation requires local Tax Departments to strengthen tax management for businesses with related party transactions.

Specifically, Tax Departments need to improve inspection and examination work; Coordinate closely with local agencies; strengthen the training vtv2 trực tiếp bóng đá hôm nay professional human resources; and, at the same time, proactively propagate and raise awareness among the business community about tax laws and transfer pricing. Aims to strengthen control, prevent tax loss, and ensure fairness in business operations.

Best regards!

Key word: related party transactions | transactions | tax administration | in Vietnam |

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