Transfer Pricing

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Category: Our Services

Published on Wednesday, 10 May 2017 02:33

Written by Lý Trà My

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Updated Regulations on Transfer Pricing

According to Circular 66/2010/TT-BTC, main requirements on Transfer Pricing compliance are:

• Filing declaration of related party transactions to be submitted to the tax authority together with year-end CIT return; and
• Contemporaneous Transfer Pricing documentation to be prepared and maintained at the enterprise as an evidence of the arm’s length principle. Upon written request of the tax authority, the documentation must be submitted for review within 30 working days.

Current Situation and Facts

Increasing number of FDI enterprises have been inspected with signs of transfer pricing and subjected to a fixed tax amount imposed and penalties charged by the tax authority in recent years.

• 2013: 2,110 enterprises inspected; losses reduced by VND4,192 billion, tax arrears and penalties collected over VND988 billion.
• 2014: 2,866 enterprises inspected; losses reduced by VND5,830 billion, penalties and refund collected by VND1,701 billion.
• 2015: 4,751 enterprises inspected; losses reduced by VND10,050 billion, penalties and refund collected by VND1,063 billion.

Source: the General Department of Taxation

Nexia STT’s Solutions

Given the compliance requirements above, we are pleased to offer our services of “Transfer Pricing Review and Documentation”. We will, following the Vietnamese transfer pricing regulations and OECD guidelines, carry out a review of the Company’s circumstance and prepare a comprehensive documentation for transfer pricing purpose as follows:

• Analysis of the transactions under review;
• Company analysis;
• Industry analysis;
• Functional and risk analysis;
• Financial analysis;
• Selection of the most appropriate transfer pricing method;
• Research and selection of comparable for benchmarking purpose; and
• Deliverables and reporting.

Contact us

• Mr. Nguyen Thanh Trung
  tel: +84 (0) 913 569 598
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• Mr. Le Quang Phi
  tel: +84 (0) 903 789 911
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• Ms. Nguyen Thi Phuong Thao
  tel: +84 (0) 904 380 648
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• Mr. Nguyen Viet Manh
  tel: +84 (0) 977 266 561
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