Consulting services for associated transactions
tax settlement service
Bring you peace of mind
tax settlement service
Contents of the service
We will advise whether or not the business has associated relationships that are governed by the law on associated transactions, whether or not under scope of regulation.
Consult and prepare the associated transaction documents for case 2
-  Enterprises are exempt from partial declaration (Exemption from Part III, IV)
-  The enterprise fully declares Form No. 01 but is exempted from making a dossier of price determination of related-party transactions.
Advise and support enterprises to prepare the associated transaction dossier set including:
-  National profile;
-  Global corporate information profile;
-  Report the inter-national profit.
This service includes:
-  Consultant working with tax authorities.
-  Review and analyze risks and transfer opportunities.
-  Protect records before inspecting prices.
regulations on affiliate transactions
interest expense on associated transactions
Frequently asked questions
Affiliate transactions within the scope of regulation of the Decree of the Government of Vietnam on Affiliate Transactions are transactions of buying, selling, exchanging, renting, leasing, borrowing, lending, transferring and transferring goods. goods, provide services; loans, loans, financial services, financial guarantees and other financial instruments; buy, sell, exchange, rent, lease, borrow, lend, transfer, transfer tangible assets, intangible assets and agree to buy, sell, use common resources such as assets, capital, labor activities, cost sharing among related parties, except for business transactions for goods and services subject to the State's price adjustment scope in accordance with the law on prices.
“Independent comparables” are independent transactions between unrelated parties or enterprises performing independent transactions selected on the basis of analysis, comparison and identification of comparables. similarity to determine the price, profit rate, profit distribution ratio in order to determine the tax obligations payable to the state budget of taxpayers, ensuring compliance with the provisions of the Law on Tax Administration and the Law on Taxation. enter the business.
“Database of the Tax Authority” means information and data collected, built and managed by the Tax Authority from different sources as prescribed in the Law on Collection Management, including database and exchange information with tax administration agencies, competent agencies abroad.
Taxpayers whose related-party transactions fall within the scope of this Decree are responsible for declaring information about the related-party relationships and related-party transactions according to Appendix I, II and III enclosed herewith. this Decree and submit it together with the enterprise income tax finalization declaration.
In case you have an affiliate transaction but do not submit the affiliate transaction report as prescribed:
Tax authorities have the right to fix prices; profit margin; profit allocation rate; taxable income or corporate income tax payable for taxpayers who fail to comply with regulations on declaration and identification of related-party transactions; failed to provide or provided incomplete information and data to determine the associated transaction price.
The related parties are defined quite broadly, in detail as follows:
1. Associated parties (hereinafter referred to as "associated party") are related parties 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.
2. The associated parties in Clause 1 of this Article 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.