Circular No. XNXX / 41 / TT-BTC supplementing the guideline for adding Decree No. XNXX / 2017 / ND-CP

Pursuant to the Tax Administration Law No. 78 / 2006 / QH11 dated 29 month 11 year 2006; The Law amending and supplementing a number of articles of the Law on Tax Administration No. 21 / 2012 / QH13 dated 20 month 11 year 2012;

Pursuant to the Enterprise Income Tax Law No. 14 / 2008 / QH12 dated 03 month 06 year 2008; The Law amending and supplementing a number of articles of the Law on Enterprise Income Tax No. 32 / 2013 / QH13 dated 19 month 6 year 2013;

Pursuant to the Law amending and supplementing a number of articles of the Tax Laws No. 71 / 2014 / QH13 dated 26 month 11 year 2014;

Pursuant to the Government's Decree No. XNXX / 12 / ND-CP dated 2015 month 12XYYYX 6, detailing the implementation of the Law amending and supplementing a number of articles of tax laws and amending and supplementing a number of articles of tax decrees;

Pursuant to the Government's Decree No. XNXX / 20 / ND-CP dated 2017 month 24XYYXX on regulations on tax administration for enterprises with associated transactions;

Pursuant to the Decree No. 215 / 2013 / ND-CP dated 23 / 12 / 2013 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

CIRCULARS

GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE / 20 / ND-CP DATE OF 2017 YEAR YEARS AND YEARS REGULATIONS REGULATION ON TAX MANAGEMENT FOR ENTERPRISES WITH LINKED TRANSACTIONS

At the proposal of the General Director of Taxation,

The Minister of Finance shall guide the implementation of a number of articles of the Government's Decree No. XNXX / 20 / ND-CP dated 2017 month of 24 year 02 on regulations on tax administration for enterprises with associated transactions (hereinafter) abbreviated as Decree No. 2017 / 20 / ND-CP) as follows:

Article 1. Scope

This Circular guides subjects of application of Decree No. XNXX / 20 / ND-CP to implement a number of provisions on comparative analysis, selection of methods to determine the price of associated transactions, information declaration, Prepare a dossier for determining the associated transaction price and apply the exemption regulation to set up the transaction price determination dossier in accordance with the provisions of Decree No. XNXX / 2017 / ND-CP.

Article 2. Comparative analysis, selection of independent comparison objects to compare and determine the associated transaction prices as stipulated in Article 6 Decree No. 20 / 2017 / ND-CP

1. The nature of the associated transaction is determined and compared between the legal contract or the transaction document, agreement of the parties associated with the practical implementation of the parties as stipulated in Item 1 Article 6 of Decree No. XNXX. / 20 / ND-CP is applied as follows:
2. a) Collecting information, determining the nature of tax transactions, economic, trade and financial relations of taxpayers at contracts (including appendixes and contracts attached) or a written agreement with an affiliated party to determine the obligations, rights and responsibilities of the signatories.
3. b) Analysis of practice of production and business activities, functions of taxpayers; compare practical practices of parties in the production and business process with signed documents, agreements and contracts; analyze the text, contracts, agreements and practices of the parties based on the application of business conduct principles between independent parties. Analysis of comparative factors follow the guidance in Item 3 of this Article.

In case the actual implementation of the parties is different from the provisions in the contract, the document, the agreement, the information collected on the actual implementation of the parties is the basis for comparative analysis and selection. choose the method of determining the price of affiliated transactions of taxpayers

Where the implementation practices of the associated parties are inconsistent with the principles of business conduct between independent parties, the principle of independent trading and the nature of formality shall be applied to redefine the associated transaction. and business risks incurred by the parties. In the case of associated transactions and allocation risks do not reflect the true nature of economic, financial and trade relations between independent parties, associated transactions and business risks are identified and allocated. again to perform comparative analysis, choose the method of determining the price of taxpayers.

1. c) Bases for comparison of contracts, documents, agreements and economic, commercial and financial relations in taxpayers' associated transactions are data and actual transactions between related parties. to compare with business decisions can be accepted by independent parties in similar conditions. The principle of comparison applies in a comparative analysis that values ​​the nature and practice of business, the risks of the parties involved rather than written agreements.
2. The range of standard independent transaction values ​​and grounds for adjustment of tax rates, profit margins and profit distribution ratios of taxpayers to determine enterprise income tax obligations under the provisions of Points c and đ Clause 2 Article 6 Decree No. 20 / 2017 / ND-CP is determined as follows:
3. a) Statistical probability method applies the quartile function to determine the standard value of independent transaction and the value chosen as a basis for comparing and adjusting the price of associated transactions in the absence of information The information assesses the reliability of each independent comparison object to find or not have data information as a basis to eliminate all material differences. The quartile function is used to determine the standard value of independent transaction as a basis for adjusting the price, profit rate, profit distribution ratio of taxpayers but not reducing the meaning. tax cases with the state budget. The quartile function is a combination of sorted values ​​from low to high of the price, profit ratio, profit distribution ratio of independent comparison objects into four parts with equal number of observations. . The formula for calculating the quartile function, the standard range of independent transaction values ​​and the median value shall comply with the guidance in Appendix 01 issued together with this Circular.

The standard independent trading range defined by the quartile function is from the first quartile value to the third quartile value. The middle value of the standard independent trading range is the value in the mineral from the first quartile to the third quartile. The second quartile value is the median value of the standard independent trading range.

1. b) Basis for adjustment of price, profit rate, profit distribution ratio of taxpayers to determine the price of associated transactions, taxable income and corporate income tax obligations applied as follows:

b1) In case of finding independent comparison objects with a similar level of comparison, there is no difference or difference but there is enough information and data as a basis to exclude all Key differences:

If the price, profit margin, the ratio of taxpayers' profit distribution falls within the independent transaction value range of similar independent comparison subjects, taxpayers do not have to adjust the price, profit rate, profit distribution rate to determine the price of the associated transaction.

If the price, profit ratio, and profit distribution ratio of taxpayers are not in the independent transaction value range of similar independent comparison subjects, taxpayers must determine the value of the intersection. Independent translation reflects the highest degree of similarity with the associated transaction to adjust the price, profit rate, profit distribution rate of associated transactions but does not reduce taxable income, does not reduce Tax obligations must be paid to the state budget of taxpayers.

b2) In case only data information is used as a basis to eliminate most of the significant differences of the independent comparison object, at least select five independent comparison objects according to the provisions of Point c, Clause XNXX Article 2 Decree No. 6 / 20 / ND-CP and apply the standard independent trading range according to the guidance at Point a of this Clause.

If the price, profit ratio, profit distribution ratio of the taxpayer is the middle value of the standard independent trading range of similar independent comparison objects, taxpayers do not have to adjust price, profit rate, profit distribution rate to determine the price of the associated transaction.

In case the price, profit ratio, profit distribution ratio of taxpayers do not fall within the standard independent transaction range of similar independent comparison objects, taxpayers must determine the value between The standard independent trading range reflects the highest degree of similarity with the associated transaction to adjust the price, profit rate, profit distribution rate of the associated transaction and determine the taxable income, payable tax but not reducing taxable income, does not reduce tax obligations payable to the state budget.

In case the tax agency adjusts or fixes the price, profit ratio, profit distribution ratio of taxpayers, adjusted or fixed value is the median value of the value range of exclusive transactions. Standard setting.

3. Comparison factors to perform analysis and selection of independent comparison objects according to the provisions of Points a and e, Clause 3 Article 6 Decree No. 20 / 2017 / ND-CP applies as follows:
4. a) Characteristics of properties, goods and services (abbreviated as products) are characteristics that affect the price of products, including: tangible goods properties such as physical properties and types of products products, quality, trade marks of products, reliability, availability and output; service characteristics such as nature, complexity, expertise and service scope; Intangible asset characteristics such as the form of transfer, the type of property, the form of ownership, the duration, the level of protection, the time of transfer, the rights to be transferred and the benefits that can be derived from use intangible assets.

The analysis of intangible assets, characteristics and the ability to allocate profits to parties is based not only on legal ownership but also on all risk control and financial management activities. risks to the entire process of developing, increasing, maintaining, protecting and exploiting intangible assets between associated parties. Some characteristics of intangible assets such as monopoly; scope and duration of legal protection; rights established under protection titles, licenses and documents on transfer of intangible assets; geographical scope for the rights of intangible assets; life cycle; development stage; rights to enhance value, modify and update intangible assets; expected profit level of intangible assets.

Analysis of intangible asset characteristics includes the contents of identification of intangible assets to be used or transferred in transactions and specific and important economic risks related to development, increase and maintenance. , protect and exploit intangible assets; identify agreements in contracts such as legal ownership of intangible assets, terms and conditions of legal agreements, registration, license agreements and related contracts, risks attach; determine the party performing the function of asset exploitation and use, risk management related to the development, increase, maintenance, protection and exploitation of intangible assets; determine contractual terms and practices of the parties; identify actual associated transactions related to the development, increase, maintenance, protection and exploitation of intangible assets when considering the legal ownership of intangible assets and relationships, rights according to the relevant contract, the implementation process of the parties; and determine the price of the transaction in accordance with the parties' contributions, performance functions, assets, and assumed risks.

1. b) Operational functions by each side of the contract and production and business risks in relation to opportunity costs, economic conditions, sector conditions, areas of activity and position The geographic location of taxpayers is analyzed to determine the factors that reflect the ability to profit from business activities and practices that taxpayers have made associated with the function and use of assets. , capital and related costs.

The analytical results reflect the main function in the relationship between the use of assets, capital, opportunity costs as well as risks associated with the investment of assets, capital and costs with the ability to profit. profits that taxpayers make are related to business transactions, specifically:

b1) Some of the main functions of the enterprise are analyzed in the whole value chain of the group including research and development such as implementing research and development services under contracts, autonomy and development research and development. developing technical technology and product design; production includes autonomous production, licensing production, contract manufacturing, processing, assembly, equipment installation; trading, managing materials and other trading activities; distribution includes autonomous distribution, limited risk distribution, commission agency, wholesale distribution, retail distribution; providing support services such as legal, financial accounting, debt collection, training and human resource management; providing transportation and storage services; brand development such as marketing, advertising, marketing, market research and other functions in the industry value chain.

b2) Some of the main assets of the business include intangible assets such as technical know-how, copyright, business know-how, secret formulas, patents, intangible assets related to commercial activities. , marketing as a brand, a system to build and identify brands, lists, figures and relationships with customers; tangible assets such as factories, machines and equipment; financial assets and economic benefits and benefits from these assets during the process of asset exploitation, use and transfer.

b3) Some of the main business risks include strategic risks or market risks due to the implementation of business strategies such as market penetration, expansion or maintenance; infrastructure risks or inventory risks; financial risks such as credit risk and bad debt, exchange rate risks; transaction risks such as price factors and payment terms in commercial transactions; Product risk from design development, production to quality management and after-sales service; Business risks from capital investments and customer numbers and force majeure risks.

Business risk analysis of taxpayers throughout the group's value chain to identify key risks to the entire value chain of the industry, the ability to control risk, such as making management decisions risks and handling when these risks occur, including: identifying key economic risks; assess the level of allocation and settlement of risks in legal contracts or documents and agreements of taxpayers; functional analysis of risk control and mitigation on legal contracts or documents, agreements; check and review the situation of implementation and incidence, risk allocation of taxpayers in practice. In case of differences in risk allocation in legal contracts or documents, agreements compared with practical implementation, based on the results of risk analysis, tax authorities shall reallocate risks and adjust the price, profit ratio, profit distribution ratio of taxpayers.

1. c) Contractual terms when making transactions include a number of terms on volume, conditions for trading or distributing products; terms, conditions and methods of payment; conditions for warranty, replacement, upgrade, modification or correction of products; conditions on franchise and product distribution; Some conditions have other economic effects such as support services, quality inspection advice, user guides, advertising support, promotions.

Where legal contractual terms or documents, agreements do not fully reflect the practical implementation between the associated parties, comparative analysis is performed on the basis of reviewing facts or data. financial data to determine the characteristics, economic nature and practical business risks of the parties.

Where affiliated parties do not sign legal contracts or documents, agreements to disregard revenue or expenses such as technical assistance, synergies, sharing business secrets or using personnel separate, part-time analysis is conducted to determine the nature of the transaction, transaction value, income generated from these transactions and the contribution of each affiliate. On that basis, comparison with business decisions can be accepted by independent parties in similar conditions to redefine taxpayers' associated transactions.

1. d) Economic conditions of the transaction and market conditions at the time of the transaction affecting the price, profit ratio, profit distribution ratio of the parties.

Some economic conditions when transactions occur such as the size, geographical position of the market for production and consumption of products, the market level such as ordinary, retail, exclusive distribution; the level of product competition in the market and the corresponding competitive position of sellers and buyers; availability of replacement goods; supply and demand levels in the market in general and in specific areas; consumer purchasing power; economic factors affecting production and business costs incurred at the place of the transaction such as tax preferential policies; policies regulating the market of governments; production costs, land, labor and capital costs; business cycle and factors that have a positive impact on the price, profit margin, profit distribution ratio of taxpayers such as location, advantage and cost-saving characteristics on geographical factors, local market, labor force and concentration of synergistic and specialized functions based on the contributions of all parties involved in creating value.

Where taxpayers and comparison subjects do not reside in the same country or territory or do not provide goods or services in the same geographical market, analyze economic conditions including the analysis of similarity. copper in the markets where taxpayers and residents compare for comparative advantages, location rents affect competitive factors such as labor costs, material costs, transportation, land rent, training costs, subsidies, financial policy incentives, taxes, infrastructure costs, market growth and market advantages such as numbers population and customer volume with good growth spending and other comparative advantage characteristics.

d) Comparative analysis to exclude material differences based on quantitative and qualitative criteria to find and select independent comparison objects that are most similar to taxpayers as a basis for determining prices. , profit margin, profit distribution ratio of taxpayers according to independent transaction principles.

Some quantitative criteria include financial indicators for revenue, assets, working capital, inventory, and export proportion; Indicators of intangible assets such as intangible asset values, research and development costs and other specific quantitative differences of taxpayers are determined on the basis of analyzing the prescribed comparison factors. in Clause 3 Article 6 Decree No. 20 / 2017 / ND-CP and instructions at Points a, b, c and d of this Clause.

The qualitative and quantitative differences are analyzed, proving to have a significant impact on the price, profit rate, profit distribution ratio when comparing taxpayers with comparable objects. independent in the business cycle, in accordance with the economic and commercial nature of the industry and the functions of taxpayers. These differences are analyzed to find, select independent comparison objects similar to taxpayers.

Where taxpayers do not adjust prices, profit margins, profit distribution ratios according to independent comparison objects on the grounds that qualitative and quantitative differences affect materially, people tax payment must search, re-select independent comparison objects to determine the standard independent transaction range to ensure the most reliable, homogeneous level and adjust the associated transaction price according to instructions in Item 2 Article 2 of this Circular.

4. The process of comparative analysis includes steps as prescribed in Item 4 Article 6 of Decree No. 20 / 2017 / ND-CP as follows:
5. a) Determine the nature of the linked transaction through the collection of actual information made by taxpayers.
6. b) Comparative analysis, search, selection of similar independent comparison objects, specifically:

b1) Determine the scope, content and comparison factors including comparison time; analytical information about taxpayers for comparative factors of functions, assets and risks; product characteristics; Contract conditions; economic conditions when transactions arise, industry, market analysis, circumstances of business operations, goods and service transactions and assets of the parties to select the parties to link to determine the price Link translation as stipulated in Article 7 Decree No. 20 / 2017 / ND-CP and Article 3 of this Circular.

b2) Evaluation and search of comparative objects include the priority of reviewing internal independent comparison objects on the basis of verifying the reliability and independence of these objects ensuring that they are not transactions. settlement does not follow independent trading principles; develop criteria to find and identify reliable database sources that can be used in accordance with Article 9 Decree No. 20 / 2017 / ND-CP to conduct search for independent comparison objects similar. On the basis of the information analyzed and reviewed the availability of data of the independent comparison object, select the method of price determination in accordance with the nature of business, trade and financial activities, The risk of the associated party needs to determine the price.

b3) Analysis of the similarity and reliability of independent comparison objects selected on the basis of review and screening of qualitative and quantitative criteria; analyze economic information, industry and financial data of selected subjects to verify the similarity; identify material differences and adjust material differences (if any). On the basis of the results of selection of objects of independent comparisons, use of data and financial data of independent comparison objects selected to determine the basis for adjusting prices and exchange rates. Profit rate and profit distribution ratio of taxpayers under the guidance at Point b, Clause 8 of this Article.

1. c) Determining the price, profit ratio, profit distribution ratio of taxpayers according to the results of comparative analysis to determine taxable incomes without reducing tax obligations to be paid to the state budget of persons taxpayer.

Article 3. The comparison methods determine the price of the associated transaction as defined in Article 7 Decree No. 20 / 2017 / ND-CP

1. Cases of applying the method of comparing the profit ratio of taxpayers to the profit margins of independent comparison subjects shall comply with the provisions at Point a, Clause 8, Article 2 of Decree No. XNXX / 7 / ND-CP apply as follows:
2. a) Method of comparing gross profit margin on revenue (resale price method) applies in cases where taxpayers make sales, redistribute products purchased from affiliates to exclusive customers establishing and not creating intangible assets associated with sold products; not participating in the process of developing, increasing, maintaining and protecting intangible assets owned by associated parties associated with products sold or not processed, processed or assembled to change properties, Product characteristics, commercial branding to increase product value. The resale price method does not apply to taxpayers who are distributors of the Group's intangible intangible assets for trademarks, trademarks and other marketing-related intangible assets such as list of customers, distribution channels, logos, images and brand identity elements in market research, marketing, trade promotion or generating costs of creating and designing distribution channels coordination, brand identity or post-sale costs.
3. b) Method of comparing gross profit ratio on cost price (method of cost plus interest) applies in cases where taxpayers do not own intangible assets and suffer from low risk of doing business export under contracts, orders or processing, assembly, fabrication, product processing, equipment installation; purchasing and supplying products; provide services or conduct contracted research and development for the affiliate. The method of cost plus interest does not apply to taxpayers who are autonomous manufacturing enterprises, perform the functions of product research and development to build brands, trademarks, market strategies and warranties. products, customer care.
4. c) The method of comparing the net profit rate applied in cases where taxpayers have no information to apply the independent transaction price comparison method; There are no data and information on accounting method of independent comparison objects or no comparable objects with similar functions and products can be found, so there is not enough basis to apply compared methods. compare the gross profit margin guided at points a and b of this clause; Taxpayers who perform distribution or production functions do not own intangible assets or participate in the development, increase, maintenance, protection and exploitation of intangible assets or are not subject to the application France allocates profits among associated parties according to the provisions of Point a, Clause 3 Article 7 of Decree No. XNXX / 20 / ND-CP.
5. Some important differences when choosing the method of comparing profit ratio as prescribed at Point b, Clause 8, Article 2 of Decree No. XNXX / 7 / ND-CP apply as follows:
6. a) In case of applying resale price method: Some differences can have a significant impact on gross profit ratio on selling price (net revenue) as costs reflecting the function of the enterprise. sales agent, exclusive distributor or distributor implementing marketing; the growth rate of product consumption market; functions of taxpayers in the supply chain such as retail, wholesale and accounting methods of the parties.
7. b) In case of applying the interest-plus cost method: Some differences may have a significant impact on the gross profit margin on cost of goods, including costs reflecting the operational functions of the enterprise such as production according to contract designation from the parent company or providing corporate internal services; obligations to perform contracts such as product delivery time, cost of quality supervision, storage, payment conditions and accounting method for the components of the cost of taxpayers and independent comparison objects.
8. c) In case of applying the method of comparing net profit ratios: Some differences may have a material impact on net profit ratios such as differences in functions, properties and risks; economic conditions; conditions of contracts and product characteristics as prescribed in Item 3 Article XNXX, Item 6 Article 2 of Decree No. XNXX / 7 / ND-CP and instructions in Clause 20 Article 2017 of this Circular.
9. The method of determination shall comply with the provisions at Point c of 1, 2 and 3 Article 7 of Decree No. 20 / 2017 / ND-CP as follows:
10. a) The price, profit ratio, profit distribution ratio of taxpayers must be adjusted according to the price, profit rate, corresponding profit distribution ratio of selected independent comparison objects. choose from comparative analysis results under the guidance at Point b, Clause XNXX Article 2 of this Circular.
11. b) In case of applying the method of comparing net profit ratios:

b1) For taxpayers in manufacturing, trade and service sectors: Net profit ratios are determined according to the law on accounting, tax administration and corporate income tax. rate of net profit not deducting interest expenses and corporate income tax on revenue (or net revenue); on cost (or total cost); on assets (or total fixed assets) consistent with the nature of taxpayers' business activities.

Net profit does not include revenue difference and expenses of financial activities used to determine net profit rate based on data on revenue, expenses, assets not controlled by the associated parties. control or transactions with affiliated parties constituting revenue, expenses of taxpayers have been accounted according to the independent transaction principle.

In case of using the financial indicators in the balance sheet for comparative analysis, quantitative screening and determination of net profit rate, use value is the average value of the year-end number and number beginning of the year on the balance sheet of the indicators used.

b2) For taxpayers in banking and credit sectors: Net profit ratios are determined in accordance with the law on accounting, tax administration, corporate income tax and operational management. Credit institutions 'operations are suitable to the taxpayers' business types.

b3) For taxpayers being securities companies and securities investment fund management companies: The net profit ratios are determined according to the law on accounting, tax and tax management. Enterprise income and securities operations management suitable for the type of business of taxpayers.

1. c) The results of adjustment of price, profit rate, profit distribution ratio of taxpayers are taxable prices, declaration of expenses, turnover determining taxable incomes, not reducing tax collection obligations. Enter the enterprise to pay the state budget of the taxpayer.

In case taxpayers do not adjust the price of associated transactions in accordance with Decree No. XNXX / 20 / ND-CP and this Circular leads to a lack of payable tax, they shall be dealt with in accordance with the law on tax .

Article 4. Declare links relationship information, associated transactions and set up the linked transaction pricing dossiers as stipulated in Item 8 Article 10 Decree No. 20 / 2017 / ND-CP

1. Taxpayers that are subject to the Decree No. 20 / 2017 / ND-CP shall declare the forms according to the provisions of Decree No. XNXX / 20 / ND-CP replacing the Model No. XNXX-2017 / TNDN ban Attached to the Circular No. 03 / 7 / TT-BTC dated 156 / 2013 / TT-BTC of the Ministry of Finance and attached to the declaration of enterprise income tax finalization No. XNXX / TNDN, as follows:
2. a) Form No. 01 Information on association and associated transactions is in accordance with detailed instructions in Appendix 02 issued with this Circular.
3. b) Form NOUMX List of information and documents to be provided at the National Profile and Form No. 02 List of information and documents to be provided at the Global Profile. Taxpayers tick the lines corresponding to the information and documents already established in the dossier of affiliated transaction price determination.
4. c) Form 04 Declare information Report on the inter-national profit of the supreme parent company in Vietnam with global consolidated revenue from eighteen trillion dong or more operating in many countries and regions ground according to detailed instructions in Appendix 03 issued together with this Circular.

In cases where taxpayers make additional declarations or detect errors in the declaration information to tax offices in forms 01, 02, 03 and 04 at Points a, b and c of this Clause, they shall make additional declarations. according to the Law on Tax Administration and guiding documents.

2. Documents to determine the price of affiliated transactions of taxpayers include:
3. a) National dossiers are information on associated transactions, policies and methods of determining prices for associated transactions made and kept at taxpayers' offices according to the list of information contents. documents specified in Form No. 02 issued together with Decree No. 20 / 2017 / ND-CP.
4. b) Global profile is information about the multinational corporation's business activities, policies and methods of determining the group's global affiliated transaction prices and its allocation and distribution policies. the activities and functions in the value chain of the group according to the list of information and documents specified in Form No. 03 issued together with Decree No. XNXX / 20 / ND-CP.

Taxpayers make and provide a Global Profile of a multinational corporation where the financial statements of taxpayers are incorporated in Vietnam in accordance with the accounting regime. Where the taxpayer is a subsidiary of many parent companies of different multinational corporations and the financial statements of taxpayers are consolidated into many corporations, the taxpayer provides the Global Profile of all these corporations.

1. c) A copy of the report on the inter-national profits of the supreme parent company of a foreign taxpayer established in accordance with the laws of the host country.

Where taxpayers are subsidiaries of many supreme parent companies belonging to different multinational corporations and the financial statements of taxpayers are used to prepare the consolidated financial statements of many corporations then Taxpayers save copies of inter-national profit reports of all supreme parent companies.

In case the taxpayer does not provide the supreme parent profit statement for the tax period corresponding to the tax finalization period of the taxpayer, the taxpayer must provide the federal profit report. join of the supreme parent company of the fiscal year preceding the taxpayers 'tax calculation period and explain the reasons in writing together with taxpayers' dossiers of determination of affiliated transaction prices.

In case the taxpayer fails to provide the Inter-national profit report of the supreme parent company, the taxpayer explains the reasons in writing along with the dossier of affiliated transaction price determination.

1. d) Information in the Application file for determining the associated transaction price is determined to be essential if this information affects the analytical results and selects a similar independent comparison object; method of determining the associated transaction price or the result of adjusting the price, profit rate, profit distribution ratio of taxpayers.

Article 5. Exemption from setting up the linked transaction price determination dossier as stipulated in Point c Clause 2 Article 11 Decree No. 20 / 2017 / ND-CP

1. Taxpayers shall be exempt from making dossiers on determination of associated transaction prices according to the provisions of Point c, Clause 8, Article 20, Decree No. 2 / 11 / ND-CP, applying the net profit ratio but excluding loan interest and tax expenses. Corporate income on revenue determined in the tax period is the net profit excluding the interest expense and corporate income tax (excluding the difference in revenue and expenses of financial activities) on revenue. pure.

Net revenue determined by the tax policy and accounting regime is the difference of revenue from sales and service provision minus (-) revenue deductions in the taxpayer's period.

2. In case the taxpayer performs simple business functions more than one field as stipulated in Point c, Clause 2 Article 11, Decree No. 20 / 2017 / ND-CP, applying the net profit rate without deducting expenses Interest and corporate income tax on net revenue are as follows:
3. a) If taxpayers monitor and account separately revenues and expenses of each domain, the net profit ratio excluding the interest expenses and enterprise income tax on net revenue corresponding to each field.
4. b) If taxpayers monitor and separately account revenues but cannot monitor and separately account expenses incurred by each domain in production and business activities, then allocate expenses according to billion turnover rate of each field to apply the net profit ratio not yet subtracted from loan interests and corporate income tax on net revenue corresponding to each domain.
5. c) In case taxpayers fail to monitor and separately account revenues and expenses of each production and business activity field to determine the net profit margin but not subtract interest expenses and business income tax For industries corresponding to each field, the net profit ratio shall not be deducted from the interest expense and corporate income tax on net revenue of the sector with the highest rate.
6. Taxpayers applying the guidance in Item 1 of this Article shall declare the Form No. 01 in the Appendix issued together with Decree No. XNXX / 20 / ND-CP as guided in Appendix 2017 issued together with this Circular. .

If the selected taxpayer does not apply under the provisions of Clause 1 of this Article, it must make a dossier for determining the associated transaction price and declare and determine the affiliated transaction price as prescribed in Article 10 of the Decree No. 20 / 2017 / ND-CP and Item 1 Article 4 of this Circular.

Article 6. Enforcement

1. This Circular takes effect from the effective date of Decree No. XNXX / 20 / ND-CP. To annul Circular No. 2017 / 66 / TT-BTC dated 2010 / 22 / 04 of the Ministry of Finance, guiding the determination of market prices in business transactions between parties with affiliated relations and Forms of 2010- 03 / TNDN issued together with Circular No. XNXX / 7 / TT-BTC dated 156 / 2013 year 06 of the Ministry of Finance.
2. In the course of implementation, if any problems arise, agencies, organizations and individuals are requested to promptly report them to the Ministry of Finance for study and guidance.

APPENDIX I

FORMULA CALCULATION OF DEFINITION OF DISTRIBUTION, STANDARD TRANSACTION AND MIDDLE VALUE
(Issued in conjunction with Circular No. XNXX / 41 / TT-BTC dated April 30, 2012, Year of the year of the Ministry of Finance)

The formula for calculating the quartile function, the standard independent trading range and the median value is determined by the Quartile function in Microsoft Excel as follows:

1.1. Calculation

- Set up a range of data in Excel that are cells containing the values ​​of price or profit rate or profit distribution ratio determined from independent comparison objects (can be a column or row. ).

- Move the cursor to another cell outside the data range and execute the Quartile command to find the corresponding quartile values, namely:

QUARTILE (Data area, parameter)

- Data area: Is the area containing the value of the price or profit rate or profit distribution rate.

- Parameters: Get the corresponding values ​​0, 1, 2, 3, 4.

+ The first quartile is the value of QUARTILE function with the parameter of 1.

+ The second quartile (median) is the value of QUARTILE function with the parameter of 2.

+ The third quartile is the value of QUARTILE function with the parameter of 3.

+ Standard independent trading range is the value range from the first quartile to the third quartile.

1.2. Illustration

In the year of 201x, Enterprise A selected the independent enterprises to compare with the data on net profit margin on assets: 1,0; 1,25; 1,25; 1,5; 1,5; 1,75; 2,0; 2,0; 2,0; 2,25; 2,5; 2,75; 3,0.

Determine the Quartile function's quartile values ​​in excel as follows:

From that, it is possible to determine the standard independent trading range of profit rate values ​​as the value range from the first quartile to the third quartile: [1,5; 2,25]; Median number: 2,0.

APPENDIX II

INSTRUCTIONS FOR SAMPLE EXTENSION FORM RELATED RELATIONS AND LINKS TRANSACTIONS
(Issued together with Circular sstink 41 / 2017 / TT-BTC on 28 month 4 year 2017 of The set Tài chính)

1. Tax calculation period: Write information corresponding to the tax calculation period of the enterprise income tax finalization declaration. The tax period is determined according to the provisions of the Enterprise Income Tax Law.
2. General information of taxpayers: From criteria [01] to norm [10], write information corresponding to the information recorded in the enterprise income tax finalization declaration.
3. Section I. Information on affiliated parties:

- Column (2): Write the full name of each related party:

+ In case the affiliate in Vietnam is an organization, write according to the information in the business registration license; As an individual, write the information in the identity card, citizenship card, passport.

+ In case the affiliate is an organization or individual outside Vietnam, write in accordance with the information in the document to determine the linkage such as the business registration license, contract, transaction agreement of the taxpayer with the party. link.

- Column (3): Insert the name of the country or territory where the related party is the resident.

- Column (4): Enter the tax identification numbers of the related parties:

+ In case the affiliate is an organization or individual in Vietnam, write enough tax code.

+ In case the affiliate is an organization or individual outside Vietnam, write the tax code and identification code of the taxpayer, if not, write the reason.

- Column (5): Pursuant to Clause 2, Article 5 of Decree No. 20/2017 / ND-CP, the taxpayer declares the relationship with each respective associated party by marking “x” in the box. corresponding. In case the associate belongs to more than one form of association relationship, the taxpayer marks an "x" in the corresponding boxes.

Information in Section I is declared for affiliated parties arising related transactions with taxpayers as prescribed in Item 3 Article 4 of Decree No. XNXX / 20 / ND-CP.

1. Section II. Cases of exemption from the obligation to declare and exempt the submission of dossiers for determining affiliated transaction prices:

If the taxpayer is exempted from the obligation to declare and exempt the establishment of a dossier for determining the associated transaction price specified in Article 11 of Decree No. 20 / 2017 / ND-CP at Column (2), mark "x "In the corresponding exemption box in Column (3).

In case the taxpayer is exempt from the declaration of affiliated transaction price as prescribed in Item 1 Article 11 of Decree No. 20 / 2017 / ND-CP, the taxpayer only ticks the corresponding box in Column (3). and do not have to declare items III and IV Form No. 01 enclosed with Decree No. XNXX / 20 / ND-CP.

If taxpayers are exempt from making dossiers on determination of associated transaction prices according to the provisions of Point a or Point c of 2 Article 11 of Decree No. 20 / 2017 / ND-CP, taxpayers shall declare items III and IV according to the corresponding instructions in sections D.1 and E.

If taxpayers are exempt from making dossiers on determination of associated transaction prices according to the provisions of Point b, Clause 8, Article 2 of Decree No. 11 / 20 / ND-CP, taxpayers shall declare according to the corresponding instructions at part D.2017 and E.

A. Section III. Information on determining the associated transaction price:

D.1. If taxpayers are exempt from making dossiers on determination of associated transaction prices according to the provisions at Point a or Point c, Clause 2 Article 11 of Decree No. 20 / 2017 / ND-CP and have declared and marked (x) in column 3 at line a or line c of free quotas to set up dossiers for determining the associated transaction prices of Section II, Form 01, enclosed with Decree No. XNXX / 20 / ND-CP, declaring this item as follows:

- Columns (3), (7) and (12): Declare as guided in section D.2 of this Appendix.

- Columns (4), (5), (6), (8), (9), (10) and (11): Taxpayers leave the declaration blank.

In case the taxpayer is exempted from setting up the dossier of affiliated transaction price as stipulated in Point a, Item 2 Article 11, Decree No. 20 / 2017 / ND-CP, the total value of all associated transactions arises in the tax period as the basis for determining the exempted conditions calculated by (=) the total value in Column (3) plus (+) Column (7) of the target line "Total value of arising transactions from affiliate activities ".

D.2. Taxpayers who are not exempted shall make dossiers on determination of associated transaction prices at Point a or Point c of 2 Article 11 of Decree No. 20 / 2017 / ND-CP declared as follows:

- Target "The total value of transactions arising from business activities":

+ Column (3): Write the total value of sales to the associated parties and independent parties, including: Sales of goods and service provision, revenue from financial activities and other incomes (no including collection).

+ Column (7): Write the total value of expenses payable to the associated parties and independent parties, including: Costs of purchased goods and services, financial costs, selling expenses and expenses business management and other costs (excluding expenditures).

+ Column (4), (5), (6), (8), (9), (10), (11), (12) and (13): Leave blank not declared.

- Target "Total transaction value arising from associated activities":

+ Column (3), (4), (7) and (8): Write the total value in the boxes corresponding to each criterion of Commodity plus (+) Service.

- Target "Goods":

+ Columns (3), (4), (7) and (8): Write the total value in the boxes corresponding to the criteria Goods forming fixed assets plus (+) Goods not forming assets permanent.

- Target "Goods forming fixed assets" and detailed lines "linked party A", "linked party B", ...:

+ Column (3) and (7): Write the total value arising from buying or selling taxpayers' fixed assets with associated parties according to the value in accounting books.

+ Column (4) and (8): Write the total value arising from buying or selling fixed assets with associated parties determined by the corresponding price determination method at Column (6) and (10).

- Target "Goods not forming fixed assets" and detailed lines "Linked party A", "Linked party B", ...:

+ Column (3) and (7): Write the total value arising from buying or selling goods that are not fixed assets of taxpayers with associated parties according to the value in accounting books.

+ Column (4) and (8): Write the total value arising from buying or selling goods that are not fixed assets of taxpayers with affiliated parties determined according to the corresponding price determination method at Column (6) and (10).

- Target "Service":

+ Columns (3), (4), (7) and (8): Write the total value in the boxes corresponding to the criteria "Research and development" plus (+) "Advertising, marketing" plus (+) "Business management and consulting, training" plus (+) "Financial activities" plus (+) "Other services".

- The indicators "Research and development"; "Advertising and marketing"; "Business management and consulting, training"; "Financial activities and other services", and details for each "Linked party A", "Linked party B", ...:

+ Column (3) and (7): Write the total value of each type of service arising from transactions with associated parties recorded according to the value recorded in the accounting book.

+ Column (4) and (8): Write the total value of each type of service arising from transactions with associated parties determined by the corresponding price determination method at Column (6) and Column (10).

- Columns (6) and (10): Record corresponding to each item according to each related party the abbreviation name of the method of price determination of the associated transaction constitutes the selling value to the related party and the value Buying from an associated party of a taxpayer determined according to the transfer pricing documentation dossier as prescribed in Article 7 of Decree No. 20/2017 / ND-CP and guidance in Article 3 of this Circular, specifically as follows:

+ P1.1: Method of comparing transaction prices associated with independent transaction prices (method of comparing independent transaction prices).

+ P1.2: Methods of comparing independent transaction prices of products publicly listed on prices of domestic and international commodity and service exchanges.

+ P2.1: Method to compare gross profit margin on revenue (resale price method).

+ P2.2: Method of comparing gross profit margin on cost price (method of cost price plus interest).

+ P2.3: Method of comparing net profit rate.

+ P3: Method of distributing profits between affiliates.

For example:

+ Purchase of machinery from the associated party A on the basis of the method of comparing independent transaction prices, at the indicator line Commodities form fixed assets from the associated party A Column (10): Record P1.1.

+ Collect management service fees provided to associates B on the basis of cost-plus method, at the target line Business management and consultancy, training for B-linker (6): Record P2.2 .

- Column (5) and (9): Insert the total value determined according to the formula in the Form No. 01 of the Appendix issued together with Decree No. 20/2017 / ND-CP.

- Column (11): Record profit increase due to re-determination according to the independent transaction price.

- Column (12): Enter the total value of collection on behalf of the establishment, the total value of payment on behalf of the household, the total value of revenue attributable to the permanent establishment, the total value of expenses attributable to the permanent establishment arising in the period tax.

- Column (13): Write under the instructions in Form No. 01 of the Appendix issued together with Decree No. 20/2017 / ND-CP corresponding to each transaction in the APA scope and leave the boxes blank corresponding to the the target line records the total value data.

1. Section IV. Production and business results after determining the associated transaction price:

- Target "The taxpayer has signed a prior agreement on the method of determining the taxable price (APA)":

Taxpayers marked "x" in "Yes" if they signed a single, bilateral or multilateral APA with the Vietnam Tax Authority. In case the taxpayer does not sign APA with the Tax Agency, mark "x" in "No" and leave blank to declare the criteria in Column (4) of the business results table in this section.

- Taxpayers only generate revenues or revenues with independent parties only declared in Column (6) of the table of production and business results suitable to each type of business for each corresponding criterion. instructions in this Appendix.

1. For taxpayers in manufacturing, trade and service sectors:
2. In case the taxpayer has declared (x) in the column 3 in line 2a, it is exempted to set up a dossier for determining the associated transaction price of Section II Form No. 01 enclosed with the Decree No. 20 / 2017 / ND-CP, actually currently declare as follows:

- The criteria in line (1), (2), (3), (4), (5), (6), (7), (8), (8.1), (9), (9.1) ( 10), (11), (12), (13) and (14);

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the value determined from the data in the Financial Statements.

- Target in line (15): The taxpayer leaves the declaration blank.

1. In case the taxpayer has declared (x) in the column 3 in line 2c exempted from making a dossier of determining the associated transaction price of Section II Form No. 01 enclosed with the Decree No. 20 / 2017 / ND-CP, actually currently declare as follows:

- The criteria in line (1), (2), (3), (4), (5), (6), (7), (8), (8.1), (9), (9.1) ( 10), (11), (12), (13) and (14):

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the value determined from the data in the Financial Statements.

- Target "The rate of return used to determine the associated transaction price"

+ Column (2): Record the ratio of net profit without loan interest expense and corporate income tax over net revenue in line of item (15) (a, b, c ...) as prescribed in point c Clause 2 Article 11 of Decree No. 20/2017 / ND-CP and Article 5 of this Circular.

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column 6: Taxpayers declare the value of net profit ratio not including interest expenses and corporate income tax on net revenue for the field of operation as prescribed at Point c, Clause XNXX of Decree 82 number 2 / 11 / ND-CP and instructions in Article 20 of this Circular.

In case the taxpayer participates in more than one field in the cases guided at Point a, Point b, Clause 8, Article 2 of this Circular, to make separate declarations according to each domain.

In case the taxpayer participates in more than one field in the case guided at Point c, Clause 2 Article 20 of this Circular, it shall declare according to the domain with the highest rate.

1. If taxpayers are not exempted from making dossiers for determining associated transaction prices according to the provisions at Point a or Point c, Clause 2 Article 11 of Decree No. 20 / 2017 / ND-CP, declare as follows:

- Target "Sales of goods and services":

+ Column (3) and (4): Write the total value of the transactions of supplying goods and services to the related parties to determine the price according to the dossier of affiliated transaction price determination in Column (3) and follow APA in Column (4).

+ Column (5): Write the total value of transactions of providing goods and services to independent parties according to the value recorded in the accounting book.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

Indicators of "Export sales of goods and services" and "Revenue deductions": Taxpayers declare accordingly sales of goods and services and record them according to similar instructions at "Sales and service provision" targets.

- Target "Net revenue from selling goods and providing services":

+ Column (3), (4), (5) and (6): Write the value equal to each value in the column "Sales and service provision" except (-) target " The deduction from revenue".

- Target "Cost of goods sold":

+ Column (3) and (4): Write the total value of the cost of goods sold corresponding to the sales and service provision for the associated parties and equal (=) the total value of arising with the related parties. The result is determined according to the associated transaction price determination dossier and according to APA plus (+) value of arising transactions with independent parties recorded in the accounting book.

+ Column (5): Write the total value of the cost of goods sold corresponding to sales and service provision for independent parties and equal (=) the total value generated with the affiliated parties determined according to Records of determining the associated transaction prices and according to APA plus (+) value of arising transactions with independent parties recorded in the accounting books.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Target "Gross profit from sales and service provision":

+ Column (3), (4), (5) and (6) are equal to the corresponding value according to each column in the index "Net revenue from sales and service provision" minus (-) the target "Cost of goods sold".

- The criteria "Selling expenses" and "Expenses for business management":

+ Column (3) and (4): Write the total value of selling expenses, enterprise management costs corresponding to sales and service provision to the associated parties equal to (=) total value arises with affiliated parties to determine according to the associated transaction price determination dossier and according to APA plus (+) value of arising transactions with independent parties recorded in the accounting book.

+ Column (5): Write the total value of selling expenses, enterprise management expenses corresponding to sales revenue and service provision to independent parties equal to (=) the total value arising from the The affiliated party determines according to the associated transaction price determination dossier and according to APA plus (+) value of arising transactions with independent parties recorded in the accounting book.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- For expenses incurred in production and business activities, the taxpayer shall monitor the accounting and record the accounting value, and determine separately the expenses from the related party under the price determination scope. Transfer pricing documentation file; According to the APA and transactions with independent parties corresponding to columns (3), (4) and (5). If the taxpayer cannot determine the most appropriate allocation criteria for one or more factors such as revenue, expenses, assets, human resources or other factors consistent with the nature of the operation. and record the value of the amortization expenses in the boxes (3), (4) and (5), respectively.

- Target "Revenue from financial activities":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value of revenue from financial activities.

- Target "Revenue interest from loan": Write the value of interest earned from lending activities into the revenue from financial activities in the period.

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value as determined in the dossier of affiliated transaction price determination, according to APA for arising transactions with associated parties and the value recorded in accounting books for transacting transactions. born with independent parties.

- Target "Financial expenses":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value of financial activities.

- Target "Loan interest expenses": Write the value of interest expenses calculated into financial expenses in the period.

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value as determined in the dossier of affiliated transaction price determination, according to APA for arising transactions with associated parties and the value recorded in accounting books for transacting transactions. born with independent parties.

- Target "Depreciation cost":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value of depreciation expenses calculated into the expenses in the period and is determined by the total value of depreciation expenses already included in cost of goods sold, selling expenses and management expenses. enterprise.

- Target "Net profit from production and business activities":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the value equal to the value of each column at the index "Gross profit on selling goods and providing services" except (-) "Sales cost" target minus (-) only "Enterprise management cost" plus (+) target "Financial revenue" minus (-) the target "Financial expenses".

- Target "Net profit not subtracting interest expenses and corporate income tax" (excluding difference of revenue and expenses of financial activities):

+ Column (3), (4), (5) and (6): Write the value equal to the value of each column at the index "Gross profit on sales and service provision" minus (-) only "Selling expenses" target minus (-) the "Enterprise management expense" target.

- Target "Net profits from operating activities plus interest expenses plus depreciation costs":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the value equal to the value of "Net profit from production and business activities" plus (+) the "Loan interest expense" index plus (+) the "Depreciation expense" index .

- Target "The ratio of interest expenses to net profit from business activities plus interest expenses plus depreciation costs":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the percentage value equal to (=) the target value of "Loan interest expense" divided (:) the target value "Net profit from business activities plus interest expense plus depreciation cost ”.

- Target "The rate of profit used to determine the associated transaction price":

+ Column (2): Record the profit rates applicable to the adjustment and determination of associated transaction prices in the line of items (15) (a, b, c ...) corresponding to the method of determining the delivery price. link translation as prescribed in Clauses 2 and 3 Article 7 of Decree No. 20/2017 / ND-CP.

+ Column (3) and (4): Write the value of profit rate used to determine the associated transaction price according to the dossier of affiliated transaction price determination at Column (3) and according to APA in Column (4).

+ Column (5) and (6): Taxpayer left blank to declare.

For example:

+ Taxpayers use the method of comparing net profit ratios and apply the net profit ratio not including interest expenses and corporate income tax on the total cost to determine net profit in the tax period, in Column (2) of norm (15a): Write the ratio of net profit not subtracting interest expenses and corporate income tax on the total cost and declare the corresponding rate according to the dossier of determination of inter-transaction prices Link at Column (3) and follow APA at Column (4).

+ Taxpayers use the method of comparing net profit ratios and applying the net profit ratio not including interest expenses and corporate income tax on the total cost of production activities according to the determined dossier. linked transaction prices; Net profit margin has not deducted interest expenses and corporate income tax on net revenue for distribution activities according to APA, in Column (2) of target (15a) and (15b): Record Profit rate net, except for interest expenses and corporate income tax on the total cost of production activities at the target (15a) and declare the corresponding rate in Column (3); write the ratio of net profit not subtracting interest expenses and corporate income tax on net revenue for distribution activities at the target (15b) and declare the corresponding rate in Column (4).

- In case the taxpayer performs many production and business functions and the profit margin used to determine the transfer price is different, then declare the production and business results after determining the transfer price. separately for each production and business function.

2. For taxpayers in banking and credit sectors:

- Target "Interest income and similar incomes":

+ Column (3), (4) and (5): Write the total value of interest income and similar incomes from non-APA affiliates determined according to the associated transaction price determination dossier at Column (3), according to APA in Column (4) and follow the value of the accounting book generated with the independent side in Column (5).

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Target "Payment of interests and similar expenses":

+ Column (3) and (4): Write the total value of interest payment and similar expenses corresponding to interest income and similar income obtained from the associated parties and equal (=) total Value arising with affiliated parties determined by Associated Transaction Price Determination Records and according to APA plus (+) value of arising transactions with independent parties recorded in the accounting books.

+ Column (5): Write the total value of interest payments and similar expenses corresponding to interest income and similar income obtained from independent parties equal to (=) the total value arising from The affiliated parties determine according to the associated transaction price determination dossier and according to APA plus (+) value of arising transactions with independent parties recorded in the accounting book.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Target "Net interest income":

Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the target Interest income and similar incomes except (-) indicator Interest payments and similar expenses.

- Target "Income from service activities": Record according to the same guidance in the target Interest income and similar incomes.

- Target "Service expenses": Record according to the same guidance in the item Interest payment and similar expenses.

- Target "Net profit / loss from service activities":

Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the index "Income from service activities" minus (-) the target " Service operation costs ”.

- The indicators "Net gain / loss from foreign exchange trading", "Net gain / loss from trading securities", "Net gain / loss from trading investment securities": Record according to the instructions. similar to the index "Interest income and similar income".

- Target "Income from other activities": Write according to the same guidance in the index "Interest income and similar incomes".

- Target "Other operating expenses": Record according to the same guidance in the item Interest payment and similar expenses.

- Target "Net profit / loss from other activities":

Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column in the index "Income from other activities" minus (-) the target "Chi Other operating fees ".

- Target "Income from capital contribution, share purchase": Write according to the same guidance in the target "Interest income and similar incomes".

- Target "Operating expenses": Record according to the same guidance in the "Payment of interests and similar expenses" index.

- Target "Expenses for provision for credit risks":

+ Column (3), (4) and (5): Write the total value of credit risk provision expenses corresponding to income and revenues that are revenue in column (3), (4) and (5) for provision.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- For items of expenses arising in business activities, taxpayers shall account and determine separately corresponding to each revenue that is revenue in columns (3), (4), (5). ) and record the value separately calculated and determined. If the taxpayer cannot determine the most appropriate allocation criteria for one or more factors such as revenue, expenses, assets, human resources or other factors consistent with the nature of the operation. and record the value of the amortization in the boxes (3), (4) and (5), respectively.

- Target "Total profit before tax": Reflecting the total profit before tax of a banking or credit institution in the tax period and is determined as follows:

+ Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the index "Net interest income" plus (+) the target "Interest / Net loss from service activities ”plus (+) target" Net gain / loss from foreign exchange trading activities "plus (+) target" Net gain / loss from trading securities "plus (+) indicator "Net gain / loss from trading securities investment" plus (+) index "Net gain / loss from other activities" plus (+) target "Income from capital contribution, share purchase" minus ( -) "Operating expenses" target minus (-) the "Credit risk provision expense" target.

- Target: "Net profit from production and business activities":

+ Column (3), (4), (5) and (6): Write the value equal to each value according to the column "Total profit before tax" minus (-) the target "Net gain / loss" from other activities ”.

- Target "The rate of profit used to determine the associated transaction price":

+ Column (2): Record the profit rates applicable to the adjustment and determination of associated transaction prices in the line of items (15) (a, b, c ...) corresponding to the method of determining the delivery price. link translation in accordance with Clause 2 and 3 Article 7 of Decree No. 20/2017 / ND-CP:

+ Column (3) and (4): Write the value of profit rate applied to determine the associated transaction price according to the dossier of affiliated transaction price determination at Column (3) and according to APA in Column (4).

+ Column (5) and (6): Taxpayer left blank to declare.

3. For taxpayers being securities companies and securities investment fund management companies:
4. In case the taxpayer has declared (x) in the column 3 at line 2a Section II, Form 01, attached to Decree No. 20 / 2017 / ND-CP, make declaration according to the following guidelines:

- The criteria in line (1), (2), (3), (4), (5), (6), (7), (8), (8.1), (9), (9.1) ( 10), (11), (12), (13) and (14):

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the value determined from the data in the Financial Statements.

- Target in line (15): The taxpayer leaves the declaration blank.

1. If taxpayers are not exempted from making dossiers for determining associated transaction prices according to the provisions of Point a, Clause 2 Article 11 of Decree No. 20 / 2017 / ND-CP, declare as follows:

- Target "Collecting from service charges for customers and proprietary trading":

+ Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the target "Collect securities brokerage service fee" plus (+) only "Collection of portfolio management fee" plus (+) the target "Collection of guarantee fees and issuance agency fees" plus (+) the target "Collecting financial and securities investment consultancy fee" plus (+ +) "Criteria for collecting securities investment fund management fees and bonuses for fund management companies" plus (+) index "Revenues from issuance of fund certificates" plus (+) criteria "Fee remuneration for the Board of Directors received by participating in the Board of Directors of other companies "plus (+) the target" Difference in the price of securities purchased and sold in the period, collecting bond interests from the company's proprietary trading activities securities, financial investment activities c the fund management company ”plus (+) the target“ Other revenues in accordance with the law on provision of services to customers and self-trading activities ”.

- Target "Collection of securities brokerage service fees":

+ Column (3), (4) and (5): Write the total value from securities brokerage services from non-APA affiliates determined according to the associated transaction price determination dossier at Column (3) ); According to APA in Column (4) and follow the value of the accounting book generated with the independent side in Column (5).

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Criteria "Collection of fees for investment portfolio management", "Collection of fees for underwriting fees and issuance agency fees," Collection of fees for financial advisory and securities investment "," Collection of fees for management of securities investment funds securities and bonuses for the Fund Management Company "," Collection from fund certificate issuance fees "," Fees for the Board of Directors' fees received by participating in the Board of Directors of other companies "," Difference in securities prices for sale and purchase during the period, interest income on bonds from proprietary trading activities of securities companies, and financial investment activities of fund management companies ”, Other revenues according to the provisions of law on providing services to customers and dealing in proprietary trading ": Record according to the same instructions in the item" Collection of securities brokerage services ".

- Target "Costs to provide services to customers and costs for proprietary trading":

+ Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the index "Payment for securities trading center membership fee" (for with the company being a member of the Securities Trading Center) plus (+) "Securities custody costs, securities transaction fees at the Securities Trading Center" plus (+) the target "List fee and securities registration ”(for companies issuing listed securities at the Securities Trading Center) plus (+) the target" Costs related to the management of investment funds, investment portfolio "plus ( +) "Target of capital mobilization for investment fund" plus (+) target "Payment of loan interests" plus (+) target "Remuneration cost for the board" plus (+) only "Paying taxes, fees and charges payable c related to business activities "plus (+) the target" Expenditures on management and public services, expenses for employees "plus (+) norms" Expenses for depreciation of fixed assets and other assets "Plus (+) the target" Extracting provisions for reducing the price of self-trading securities "plus (+) the target" Other expenses according to the provisions of law on provision of services for customers and self-trading activities ".

- Target "Payment for members of securities trading centers" (for companies that are members of the Securities Trading Center):

+ Column (3) and (4): Write the total value of the payment of securities trading center members (for companies being members of the Securities Trading Center) corresponding to the turnover earned from affiliates and equals (=) the total value of arising with affiliates determined according to the associated transaction price determination dossiers and according to the APA plus (+) the value recorded in the accounting books for the transaction born with independent parties.

+ Column (5): Write the total value of the payment of securities trading center members (for companies being members of the Securities Trading Center) corresponding to the revenues obtained from independent parties. and (=) the total value generated by affiliates determined by the associated transaction price determination file and according to the APA plus (+) the value recorded in the accounting book for transactions arising with the parties independence.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Target "Expenses for securities depository, securities transaction fees at Securities Trading Centers":

+ Columns (3), (4) and (5): Taxpayers shall separately monitor and record the total value of expenses arising from the affiliated parties to determine the price at the dossier of affiliated transaction price determination at the Column ( 3); according to APA in Column (4); and from independent parties in Column (5).

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Target "Securities listing and registration fees" (for companies issuing securities listed at the Securities Trading Center):

+ Column (3), (4), (5): Taxpayer left blank to declare.

+ Column (6): Write the total value of listing and securities registration fee.

- Target "Expenses related to the management of investment funds, investment portfolios":

+ Column (3) and (4): Write the total value of expenses related to the management of investment funds, the corresponding investment portfolio of revenues which are revenues obtained from the associated parties. determined by (=) the total value of the arising with the affiliated parties determined by the Associated Transaction Price Determination Document and according to the APA plus (+) the value recorded in the accounting book for transactions arising with the independent party.

+ Column (5): Write the total value of the costs related to the management of the investment fund, the investment portfolio corresponding to the revenue nature of revenue obtained from independent parties determined. Equal to (=) the total value generated by the associated parties determined by the Linked Transaction Price Determination Profile and according to APA plus (+) the value recorded in the accounting book for transactions arising with the exclusive parties. up.

+ Column (6): Write the total value determined according to the formula calculated in Form 01 of the Appendix issued together with Decree No. XNXX / 20 / ND-CP.

- Criteria "Expenses for raising capital for investment funds", "Remuneration expenses for the Board of Directors", "Payable taxes, fees and charges related to business activities", " Expenses for management activities and public services, expenses for employees ": Record according to the same guidance in the item" Expenses related to the management of investment funds, investment portfolios ".

- Target "Loan interest payment": Reflecting the interest expenses payable to the financial expenses in the period.

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value-according to the value specified in the linked transaction price determination dossier, according to APA for arising transactions with associated parties and the value recorded in the accounting book for transactions arise with independent parties.

- Target "Depreciation of fixed assets, other expenses on assets":

+ Column (3), (4), (5): Taxpayer left blank to declare.

+ Column (6): Write the total value equal to (=) the value at the index "Expenses for fixed asset depreciation" plus (+) the index "Other expenses on assets".

- Target "Depreciation of fixed assets": Reflecting the depreciation value of fixed assets in the tax period.

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total depreciation value calculated into the cost of production and business activities.

- Target "Other expenses on assets":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the total value of other assets on the cost of production and business activities.

- Target "Deduction for provision for diminution in proprietary trading securities": Record according to the same guidance in the item "Expenses for securities depository, securities transaction fees at the Securities Trading Center".

- Target "Other expenses according to the provisions of the law on providing services to customers and proprietary trading": Record according to the same guidance in the item Expenses related to the management of investment funds, investment portfolio.

- Target "Profit (loss) from service provision to customers and proprietary trading":

+ Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the target "Income from fees for providing services to customers and self-operation sales "minus (-) the target" Costs for providing services to customers and expenses for self-trading activities ".

- Target "Other incomes other than providing services to customers and proprietary trading": Write under the same guidance in the item "Collection of fees for securities brokerage services".

- Target "Other expenses than providing services to customers and proprietary trading": Record according to the same guidance in the item Expenses related to the management of investment funds, investment portfolios.

- Target "Profit (loss) other than providing services to customers and proprietary trading":

+ Column (3), (4), (5) and (6): Write the value equal to (=) the corresponding value according to each column at the target "Other income other than providing services to customers and self-trading activities "except (-) the target" Other expenses other than providing services to customers and self-trading activities ".

- For items of expenses arising in business activities, taxpayers shall account and determine separately corresponding to each type of revenue that is revenue in columns (3), (4), (5). ) and record the value separately calculated and determined. In case the taxpayer cannot determine the most appropriate allocation criteria for one or more factors such as revenue, expenses, assets, human resources or other factors consistent with the nature of the operation. and record the value of the amortization expense in the boxes (3), (4) and (5), respectively.

- Target "Total accounting profit before enterprise income tax":

+ Column (3), (4), (5) and (6): Write the total value equal to (=) the corresponding value according to each column at the target "Profit (loss) from service provision to customers self-trading and trading activities "plus (+) the target" Profit (loss) other than providing services to customers and self-trading activities ".

- Target "Net profit from production and business activities":

+ Column (3), Column (4), (5) and (6): Write the eagle value (=) corresponding value according to each column at the index "Total profit before tax of corporate income" except (-) Target "Profit (loss) other than providing services to customers and self-trading activities".

- Target "Net profit not yet subtracting interest expenses and corporate income tax":

+ Column (3), (4), (5) and (6): Write the total value equal to (=) the corresponding value according to each column at the index "Net profit from production and business activities plus" ( +) "Loan interest payment" target.

- Target "Net profits from operating activities plus interest expenses plus depreciation costs":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the value equal to the value of "Net profit from production and business activities" plus (+) the "Loan interest expense" index plus (+) the "Depreciation expense" index .

- Target "The ratio of interest expenses to net profit from business activities plus interest expenses and depreciation costs":

+ Column (3), (4) and (5): Taxpayer left blank to declare.

+ Column (6): Write the percentage value equal to (=) the target value of "Loan interest expense" divided (:) the target value "Net profit from business activities plus interest expense plus depreciation cost ”

- Target "The rate of profit used to determine the associated transaction price":

+ Column (2): Record the profit rates applicable to the adjustment and determination of associated transaction prices in the line of items (15) (a, b, c ...) corresponding to the method of determining the delivery price. link translation in accordance with Clause 2 and 3 Article 7 of Decree No. 20/2017 / ND-CP:

+ Column (3) and (4): Write the value of profit rate applied to determine the associated transaction price according to the dossier of affiliated transaction price determination at Column (3) and according to APA in Column (4).

+ Column (5) and (6): Taxpayer left blank to declare.

APPENDIX III

INSTRUCTIONS FOR SAMPLE NO. 30 REPORT ON NATIONAL PROFITS
(Issued in conjunction with Circular No. XNXX / 41 / TT-BTC dated April 30, 2012, Year of the year of the Ministry of Finance)

1. Tax calculation period: Write information corresponding to the tax calculation period of the enterprise income tax finalization declaration. The tax period is determined according to the provisions of the Enterprise Income Tax Law.
2. General information of taxpayers: From criteria [01] to norm [10], write information corresponding to the information recorded in the enterprise income tax finalization declaration.
3. Section I. Overview of income distribution, tax and business activities by country of residence:

The contents listed in currency units are converted into units of Vietnamese dong according to the regulations of the enterprise accounting regime. In case the affiliated parties of the group have different fiscal years, report profits based on data and information in the report of the fiscal year preceding the tax period of taxpayers.

- Norm "Country": Specify the name of the country, territory where the affiliated parties are the resident and the place where the permanent establishment, production and business establishment is located through which the related parties are to conduct part or all of the production and business activities of the taxpayer and its associates (including where these associates are not identified as residents of the country. , which territories).

+ In the case of the supreme parent company and the resident tax association in many countries, the tax residence must be determined in accordance with the guidance of the relevant tax agreement.

+ In case there is no tax agreement between the concerned countries and territories, write the country or territory of the party to the business registration or write the country or territory where the associated parties have production facilities. , business that through this establishment the parties undertake part or all of the production and business activities in that country or territory.

- Target "Revenue": The total value of the revenues that are the revenue of the period from associates and independent parties, minus dividends and profits shared from associated parties, including:

+ The independent party: Write down the total revenues of the affiliated parties of the group in each country or territory of residence obtained from independent parties.

+ Associated party: List the total revenues of affiliated parties of the group in each country or territory of residence obtained from other affiliated parties.

+ Target Total revenue: Write the total revenue value in the Independent party column plus (+) the turnover value in the Linked party column.

- Target "Profit before tax": Record the total pre-tax accounting profit of the affiliated parties of the multinational corporation in the country or territory of residence

- Target "Total corporate income tax payable": Indicate the total corporate income tax (or tax of similar nature) that the affiliated parties of a multinational corporation must pay in the country or territory of residence and tax amount similar to corporate income tax (such as contractor corporate income tax) payable in other countries or territories of residence.

The total amount of corporate income tax payable is determined based on the accounting regime on the basis of cash or accrued basis as prescribed in the place of residence of the party and note the method applied if determined according to Cash basis.

- Target "Income tax paid": Enter the total amount of income tax paid by all affiliated parties of the group.

In case the associated parties have paid the enterprise income tax of the foreign contractor (or the tax of similar nature) in other countries or territories where such residence resides, this contractor tax amount shall be calculated into the total tax amount. Enterprise income paid.

- Target "Registered capital": Record the total amount of investment commitments actually disbursed by the affiliated parties of the multinational corporation at the place of residence.

- Target "Accumulated profits": Record the total amount of undistributed net profit of all affiliated parties of the corporation in the country at the end of the period.

- Target "Number of employees": Record the average total number of employees used by the related parties.

- Target "Tangible assets except cash and cash equivalents": Record the total value of assets of related parties, including: Tangible fixed assets, Financial lease fixed assets, Real Investment properties, Long-term work in progress.

1. Section II. List of subsidiaries of the group by country or territory of residence

- "National" Target: Record similarly to the National Target in Section I.

- Norm "Companies are residents of the host country": Specify legal names of associates of the supreme parent company that is obliged to declare corporate income tax (or tax of nature similar) in accordance with the laws of the country or territory of residence.

+ In case the supreme parent company or affiliated parties have a permanent establishment at another affiliate, write the permanent establishment corresponding to the line of declaring the name of the country or territory of the related party. link.

- Target "Country or territory registered business if different from the country or territory of residence": Insert the name of the country or territory in which the subsidiaries of the corporation register for business differently from country or territory of residence.

- Target "Business activities": The supreme parent company determines the business functions of the associated parties, tick "x" in the corresponding box according to each function listed in the target " Business activities ”. Where the Affiliate performs more than one function, the Supreme Parent Company marks an “x” in all boxes corresponding to each function.

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