Appendices of Decree 132/2020/ND-CP on related-party transactions

Name: Công ty Kiểm toán và Tư vấn EXPERTIS
Price range: $$

Updated at 29/09/2022 - 11:37 am

Where issued:	Goverment	Effective date:	20/12/2020
Date issued:	05/11/2020	Status:	Still validated

GOVERMENT	SOCIAL REPUBLIC OF VIETNAM Independence - Freedom - Happiness
Number: 132 / 2020 / ND-CP	Hanoi, date 05 month 11 year 2020

APPENDIX I

(Attached to the Decree No. XNXX / 132 / ND-CP dated 2020 month 05X year 11 of the Government)

INFORMATION ABOUT LINK RELATIONS AND LINKS TRANSACTIONS

(Attached to the corporate income tax finalization declaration)

Tax period: From …………. to ………….

[01] Taxpayer's name ………………………………………………………………………….

[02] Tax code:

[03] Address: …………………….………………………………………………………..

[04] District: …………………….. [05] Province/city: …………..

[06] Phone: ………….. [07] Fax: …………….. [08] Email: ……………………..

[09] Name of tax agent (if any): ……………………………………………………..

[10] Tax code:

SECTION I. INFORMATION ABOUT THE PARTIES

STT	Name of the affiliate	Countries	Tax code	Affiliate relationship form¹
(1)	(2)	(3)	(4)	(5)
(1)	(2)	(3)	(4)	A	B	C	D	Đ	E	G	H	I	K	L
1
2
3
...

SECTION II. CASE OF BENEFITS OF DECLARATION AND EXemption from Documenting ASSOCIATION OF LINK TRANSACTION PRICES

STT	Exemption case	Subject to exemption²
(1)	(2)	(3)
1	Exemption from declaration and determination of transfer pricing prices in Sections III and IV and exemption from preparation of transfer pricing documents
	Taxpayers only make transactions with affiliated parties that pay corporate income tax in Vietnam, apply the same corporate income tax rate to taxpayers and neither party is entitled to tax incentives Enterprise income in taxation period
2	No fee for setting up the linked transaction price determination file
a	Taxpayers have associated transactions but the total revenue generated in the tax period is less than VND28 billion and the total value of all related transactions arising in the tax period is less than VND28 billion.
b	Taxpayers who have signed a pre-agreement on the method of determining the taxable price shall submit the annual report in accordance with the law on the pre-agreement on the method of determining the taxable price.
c	Taxpayers conduct business with a simple function, without any revenue, expenses from activities of exploiting and using intangible assets, having turnover below VND8,000 billion, applying the net profit rate before interest and corporate income tax on revenue, including the following areas:
	Distribution: From 5% or more
	Production: From 10% or more
	- Processing: From 15% or more

SECTION III. INFORMATION DETERMINING LINKS TRANSACTION PRICE

Money unit: Vietnam Dong

STT

Write comment here...

Value sold to affiliates

Purchase value from the affiliate

Profit increased due to redefinition of independent transaction prices

Collecting, paying on behalf of, and allocating permanent establishments³

Transactions covered by APA⁴

Recorded value of affiliate transaction

The value is redefined according to the independent transaction price

Difference

Method of determining prices

Recorded value of affiliate transaction

The value is redefined according to the independent transaction price

Difference

Method of determining prices

(1)

(2)

(3)

(4)

(5) = (4) - (3)

(6)

(7)

(8)

(9) = (8) - (7)

(10)

(11) = (5) + (9)

(12)

(13)

Total transaction value arising from business activities

Total transaction value arising from affiliate activities

Goods

1.1

Commodities form fixed assets

Associated party A

Associated party B

...

1.2

Goods do not form fixed assets

Associated party A

Associated party B

...

Our Services

2.1

Research and Development

Associated party A

Associated party B

...

2.2

Advertising, marketing

Associated party A

Associated party B

...

2.3

Business management and consulting, training

Associated party A

Associated party B

...

2.4

Financial activities

2.4.1

Associated party A

Associated party B

...

2.4.2

Interest

Associated party A

Associated party B

...

2.5

Other services

Associated party A

Associated party B

...

SECTION IV. RESULTS OF PRODUCTION BUSINESS AFTER THE DETERMINATION OF LINKS TRADING PRICE

1. For taxpayers in production, trade and service industries

Taxpayers have signed prior agreement on tax calculation method (APA)

Yes

Money unit: Vietnam Dong

STT	Targets	Value of linked transactions		Transaction value with independent parties	Total value arising from business activities in the period
STT	Targets	Values are determined according to the linked transaction price determination dossiers	Value determines the price according to APA
(1)	(2)	(3)	(4)	(5)	(6) = (3) + (4) + (5)
1	Revenue from sales and service provision
	In which: Revenue from sales of exported goods and services
2	The deduction from revenue
3	Net revenue from selling goods and providing services (3)=(1)-(2)
4	Cost of goods sold
5	Gross profit from sales and service provision (5)=(3)-(4)
6	Cost of sales
7	Enterprise Cost Management
8	Revenue from financial activities
8.1	In which: Deposit interest and loan interest
9	Financial expenses
9.1	In which: interest expenses
9.1.a	Interest expense is deducted in the period
9.1.b	The portion of interest expense in the period that is not deductible and carried forward to the next period as prescribed at Point b, Clause 3, Article 16
10	Depreciation expense incurred during the period
11	Net profit from business activities in the period (11)=(5)-(6)-(7)+(8)-(9)
12	Net profit from business activities in the period excluding the difference between revenue and expenses of financial activities (12)=(11)-(8)+(9)
13	Total net profit from business activities plus interest expense after deducting deposit interest and loan interest in the period plus depreciation expense for the period (13)=(11)+(9.1)-(8.1)+( ten)
14	Ratio of interest expense after deducting deposit interest and loan interest incurred during the period to total net profit from operating activities plus interest expense after deducting deposit and lending interest in the period plus expenses amortization during the period (14)=[(9.1)-(8.1)]/(13)
15	Interest expense of previous periods is carried over, in which: (15)=(15.1)+(15.2)+(15.3)+(15.4)+(15.5)
15.1	– Interest expense is not deductible from year (n-1) to tax period (n).
15.2	– Interest expense is not deductible from year (n-2) to tax period (n).
15.3	– Interest expense is not deductible from year (n-3) to tax period (n).
15.4	– Interest expense is not deductible from year (n-4) to tax period (n).
15.5	– Interest expense is not deductible from year (n-5) to tax period (n).
16	Ratio of interest expense after deducting deposit interest and arising loan interest plus interest expense of previous periods to the total net profit from business activities plus interest expense (after deducting interest rate) deposit and loan interest) during the period plus depreciation expense for the period (16)=[(9.1)-(8.1)+(15)]/(13)
17	Rate of return used to determine the price of associated transactions
17.1	- Rates …………………………………….
17.2	- Rates …………………………………….
17.3	– ……………………………………………………

2. For taxpayers in banking and credit industries

Taxpayers have signed prior agreement on tax calculation method (APA)

Yes

Money unit: Vietnam Dong

STT	Targets	Value of linked transactions		Transaction value with independent parties	Total value arising from business activities in the period
STT	Targets	Values are determined according to the linked transaction price determination dossiers	Value determines the price according to APA
(1)	(2)	(3)	(4)	(5)	(6) = (3) + (4) + (5)
1	Interest income and similar income
2	Interest expense and similar expenses
3	Net interest income (3)=(1)-(2)
4	Income from service activities
5	Service operation costs
6	Net profit/loss from service activities (6)=(4)-(5)
7	Net gain / loss from foreign exchange trading
8	Net gain / loss from trading securities
9	Net gain / loss from trading securities investment
10	Income from other activities
11	Other operating costs
12	Net profit/loss from other activities (12)=(10)-(11)
13	Income from capital contribution, share purchase
14	Operating costs
15	Provision for credit losses
16	Total profit before tax (16)=(3)+(6)+(7)+(8)+(9)+(12)+(13)-(14)-(15)
17	Net profit from production and business activities (17 = 16-12)
18	Rate of return used to determine the price of associated transactions
18.1	Rates ………………………….
18.2	Rates ………………………….
18.3	..........................................

3. For taxpayers who are securities companies

Taxpayers have signed prior agreement on tax calculation method (APA)

Yes

Money unit: Vietnam Dong

STT	Targets	Value of linked transactions		Transaction value with independent parties	Total value arising from business activities in the period
STT	Targets	Values are determined according to the linked transaction price determination dossiers	Value determines the price according to APA
(1)	(2)	(3)	(4)	(5)	(6) = (3) + (4) + (5)
1	Doanh thu hoạt động (1)=(1.1)+(1.2)+(1.3)+(1.4)+(1.5)+(1.6)+(1.7)+(1.8)+(1.9)+ (1.10)+(1.11)
1.1	Gain from financial assets is recognized through profit/loss (FVTPL) (1.1)=(1.1.a)+(1.1.b)+(1.1.c)
1.1.a	Profit from selling financial assets FVTPL
1.1.b	Increased difference in revaluation of assets FVTPL
1.1.c	Dividends and interests arising from financial assets FVTPL
1.2	Gains from hold-to-maturity (HTM) investments
1.3	Interest on loans and receivables
1.4	Gain from financial assets available for sale (AFS)
1.5	Gains from hedging derivatives
1.6	Revenue from securities brokerage operations
1.7	Revenue from underwriting, securities issuance agency
1.8	Revenue from securities investment consulting services
1.9	Revenue from securities depository operations
1.10	Revenue from financial consulting activities
1.11	Other operating income
2	Operating Cost (2) = (2.1) + (2.2) + (2.3) + (2.4) + (2.5) + (2.6) + (2.7) + (2.8) + (2.9) + (2.10) + (2.11) ) + (2.12)
2.1	Loss of financial assets is recognized through profit/loss (FVTPL) (2.1)=(2.1.a)+(2.1.b)+(2.1.c)
2.1.a	Loss from selling financial assets FVTPL
2.1.b	Difference between revaluation of assets FVTPL
2.1.c	Transaction costs for purchasing financial assets FVTPL
2.2	Losses on hold-to-maturity (HTM) investments
2.3	Loss and revaluation difference at fair value of financial assets available for sale (AFS) upon reclassification
2.4	Cost of provision for financial assets, handling of loss of bad receivables and loss of impairment of financial assets and borrowing costs of loans
2.5	Losses from hedging derivative financial assets
2.6	Self-employment operating expenses
2.7	Securities brokerage service fees
2.8	Fees for underwriting and securities issuance agents
2.9	Professional fees for securities investment consulting
2.10	Securities depository fees
2.11	Cost of financial consulting activities
2.12	Cost of other services
3	Revenue from financial activities (3)=(3.1)+(3.2)+(3.3)+(3.4)
3.1	Realized and unrealized exchange rate difference
3.2	Revenues, dividends, interest on bank deposits are not fixed
3.3	Gains from sale and liquidation of investments in subsidiaries, associates and joint ventures
3.4	Other income from investment
4	Financial cost (4)=(4.1)+(4.2)+(4.3)+(4.4)+(4.5)
4.1	Realized and unrealized exchange rate losses
4.2	Interest expenses
4.3	Loss of sale, liquidation of investments in subsidiaries, associates, joint ventures
4.4	Provision expense for diminution in value of long-term financial investments
4.5	Other financial expenses
5	Cost of sales
6	Securities company management expenses
7	Operation result (7)=(1)-(2)+(3)-(4)-(5)-(6)
8	Total deposit interest and loan interest incurred during the period
9	Total interest expense incurred during the period
9.1	Interest expense is deducted in the period
9.2	The portion of interest expense in the period that is not deductible and carried forward to the next period as prescribed at Point b, Clause 3, Article 16
10	Depreciation expense incurred during the period
11	Total net profit from business activities in the period plus interest expense after deducting deposit interest and loan interest incurred in the period plus depreciation expense incurred in the period [(11)=(7)+(9 )-(8)+(10)]
12	Ratio of interest expense after deducting deposit interest and loan interest incurred during the period to total net profit from operating activities plus interest expense after deducting deposit and lending interest in the period plus expenses Depreciation incurred during the period (12)=[(9)-(8)]/(11)
13	Interest expense of previous periods is carried over to (13)=(13.1)+(13.2)+(13.3)+(13.4)+(13.5) In which:
13.1	– Interest expense is not deductible from year (n-1) to tax period (n).
13.2	– Interest expense is not deductible from year (n-2) to tax period (n).
13.3	– Interest expense is not deductible from year (n-3) to tax period (n).
13.4	– Interest expense is not deductible from year (n-4) to tax period (n).
13.5	– Interest expense is not deductible from year (n-5) to tax period (n).
14	Ratio of interest expense after deducting deposit interest and arising loan interest which is deducted in the period plus interest expense of previous periods carried forward to tax period (n) to total net profit from business activities plus net interest expense incurred in the period plus depreciation expense incurred in the period of the taxpayer (14)=[(9)-(8)+(13)]/(11)
15	Rate of return used to determine the price of associated transactions
15.1	Rates …………………………..
15.2	Rates …………………………..
15.3	..........................................

I declare that the above declared data is correct and is responsible before the law for the declared data./.

TAX AGENCY STAFF
First and last name: ……………………….
Practice certificate number: ………….1

……, day month Year …..
TAXPAYER or
LEGAL REPRESENTATIVE OF TAX PAYERS
(Signature, full name, position and seal (if any))

GUIDELINES FOR DECLARATION OF SOME INDICATORS

A. Tax period: Enter information corresponding to the tax period of the corporate income tax finalization declaration. The tax period is determined according to the provisions of the Law on corporate income tax.

B. General information of taxpayers: From target [01] to target [10], write the information corresponding to the information recorded in the enterprise income tax finalization declaration.

C. Section I. Information about related 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 the provisions of Clause 2, Article 5 of Decree No. ...../2020/ND-CP, the taxpayer that incurs a related party transaction declares the corresponding form of affiliate relationship with each party. link by placing an “x” in the corresponding box. In case the affiliated party belongs to more than one form of affiliated relationship, taxpayers mark “x” in the corresponding boxes.

D. Section II. Cases exempted from declaration or preparation of transfer pricing documentation:

If taxpayers are exempted from declaration or preparation of transfer pricing determination dossiers specified in Article 19 of Decree No. ...../2020/ND-CP in Column (2), mark "x" ” in the corresponding exemption box in Column (3).

In case taxpayers are exempted from declaration and preparation of transfer pricing determination dossiers as prescribed in Clause 1, Article 19 of Decree No. ...../2020/ND-CP, taxpayers only tick the box. respectively in Column (3) and do not have to declare items III and IV of Appendix I attached to Decree No. ...../2020/ND-CP.

In case the taxpayer is exempted from making the transfer pricing determination dossier as prescribed at point a or point c, clause 2, Article 19 of Decree No. ...../2020/ND-CP, the taxpayer shall declare the following items. III and IV according to the respective instructions in parts D.1 and E.

In case the taxpayer is exempted from making the transfer pricing determination dossier under the provisions of Point b, Clause 2, Article 19 of Decree No. ...../2020/ND-CP, the taxpayer shall declare according to the corresponding instructions. in sections D.2 and E.

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

A.1. In case the taxpayer is exempted from preparing the transfer pricing determination dossier as prescribed at point a or point c, clause 2, Article 19 of Decree No. ...../2020/ND-CP and has declared and marked (x) ) in column 3 at line a or line c, the criteria for exemption from preparation of the transfer pricing determination dossier of Section II Appendix I attached to Decree No. ...../2020/ND-CP shall be declared as follows: after:

- 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 making the transfer pricing determination dossier as prescribed at Point a, Clause 2, Article 19 of Decree No. ...../2020/ND-CP, the total value of all transactions The association arising in the tax period as a basis for determining the exempt conditions is calculated by (=) the total value in Column (3) plus (+) Column (7) of the target line "Total transaction value arising from association activities”.

A.2. Taxpayers who are not exempted from setting up a transfer pricing determination dossier at Point a or Point c, Clause 2, Article 19 of Decree No. ...../2020/ND-CP shall declare 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.

+ Columns (4) and (8): Record the total value arising from the purchase or sale of fixed assets with related parties determined according to the method of determining associated transaction prices in Column (6) and (ten).

- 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.

+ Columns (4) and (8): Record the total value arising from the purchase or sale of goods that are not fixed assets of the taxpayer with related parties determined by the method of determining the related transaction prices. links in Columns (6) and (10) respectively.

- 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.

+ Columns (4) and (8): Record the total value of each type of service arising from transactions with related parties determined according to the method of determining related transaction prices in Column (6) and Column respectively. (ten).

– Columns (6) and (10): Write corresponding to each indicator according to each associated party an abbreviated symbol for the name of the method of determining transfer pricing according to the provisions of Articles 13, 14 and 15 of the Decree. number ...../2020/ND-CP constitutes the selling value to the associate and the taxpayer's purchase value from the related party determined according to the transfer pricing documentation, specifically as follows: :

+ PP1: The method of comparing the associated transaction price with the independent transaction price (the method of comparing the independent transaction price).

+ PP2: Method of comparing the profit rate of taxpayers with the profit rate of independent comparables.

PP2-1: Gross profit margin comparison method (resale price method).

PP2-2: Comparative method of gross profit on cost of goods (cost plus interest method).

PP2-3: Net profit margin comparison method.

+ PP3: Method of profit distribution among related parties.

For example:

+ Purchase machinery from associated party A on the basis of independent transaction price comparison method, in the target line Goods forming fixed assets from related party A Column (10): Enter PP1.

+ Collect fees for management services provided to associated party B on the basis of cost-plus-interest method, at the target line Business management and consulting and training for associated party B Column (6): Enter PP2 -2.

– Columns (5) and (9): Enter the total value determined according to the formula in Appendix I issued together with Decree No. ...../2020/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 according to the instructions in Appendix I issued together with Decree No. ...../2020/ND-CP corresponding to each transaction under the scope of application of APA and leave the corresponding boxes blank. The target lines record the total value data.

E. Section IV. Business results after determining associated transaction prices:

- 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 the production, trade and service industries:

a) In case taxpayers have declared and marked (x) in Column 3 at line 2a, they are exempted from the preparation of the transfer pricing determination dossier of Section II, Appendix I enclosed with Decree No. ...../2020/ND -CP, make declaration according to the following instructions:

– Indicators at lines (1), (2), (3), (4), (5), (6), (7), (8), (8.1), (9), (9.1), (9.1.a), (9.1.b), (10), (11) and (12):

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

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

– The criteria at lines (13), (14), (15), (15.1), (15.2), (15.3), (15.4), (15.5) and (16) are determined and calculated according to the provisions of point a, point b, clause 3, Article 16 of Decree No. ...../2020/ND-CP.

- Target in line (17): The taxpayer leaves the declaration blank.

b) In case taxpayers have declared and marked (x) in Column 3 at line 2c, they are exempt from preparing the transfer pricing determination dossier of Section II, Appendix I enclosed with Decree No. ...../2020/ND -CP, make declaration according to the following instructions:

– Indicators at lines (1), (2), (3), (4), (5), (6), (7), (8), (8.1), (9), (9.1), (9.1.a), (9.1.b), (10), (11) and (12):

+ 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 net profit ratios from production and business activities in the period excluding the difference between revenue and expenses of financial activities on net revenue in the target lines (17.1), (17.2), (17.3), (17...) according to the provisions of point c, clause 2, Article 19 of Decree No. ...../2020/ND-CP.

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

+ Column 6: Taxpayers declare the value of Net profit from production and business activities in the period excluding the difference between revenue and expenses of financial activities on net revenue for the field of operation according to regulations. specified at point c, clause 2, Article 19 of Decree No. ...../2020/ND-CP.

In case taxpayers conduct business in more than one field, separately monitor and account revenues and expenses of each field or separately monitor and account revenue but cannot monitor and separately account expenses. Costs incurred by each field shall be declared separately for each field.

In case taxpayers conduct business in more than one field without monitoring, the revenue and expenses of each field shall be separately recorded and declared according to the field with the highest rate.

c) In case the taxpayer is not exempt from preparing the transfer pricing determination dossier as prescribed in point a or point c, clause 2, Article 19 of Decree No. ...../2020/ND-CP, the declaration shall be 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): Enter the total value determined according to the formula in Appendix I issued together with Decree No. ...../2020/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): Enter the total value determined according to the formula in Appendix I issued together with Decree No. ...../2020/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): Enter the total value determined according to the formula in Appendix I issued together with Decree No. …………/2020/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 “Deposit interest and loan interest”: Record the value of interest earned from lending activities included in financial income 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 “Expense of interest on loans used for production and business activities”: Record the value of loan interest expenses included in financial expenses in the period.

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

– Target “Depreciation expense incurred in the period”:

+ 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 in the period”:

+ 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 from production and business activities in the period excluding the difference between 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 “Total net profit from business activities plus interest expense after deducting deposit interest and loan interest in the period plus depreciation expense in the period”:

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

+ Column (6): Enter the value equal to the target value "Net profit from production and business activities" plus (+) the item "Loan interest expenses" minus (-) the target "Deposit interest and interest loans” plus (+) the indicator “Depreciation expenses”.

– Target “The ratio of interest expense after deducting deposit interest and lending interest incurred during the period to total net profit from business activities plus interest expense after deducting deposit interest and lending interest in the period.” period plus depreciation expense for the period”:

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

+ Column (6): Enter the percentage value equal to (=) the value of [the item "Loan interest expense" minus (-) the item "Deposit interest and loan interest"] divided (:) the price Target value "Total net profit from business activities plus interest expense after deducting deposit interest and loan interest in the period plus depreciation expense in the period".

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

+ Column (2): Record the profit rates applied to adjust and determine the associated transaction price at the target lines (17.1), (17.2), (17.3),... corresponding to the determination method. associated transaction prices as prescribed in Articles 13, 14, and 15 of Decree No. ...../2020/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 net profit ratio comparison method and apply Net profit from production and business activities in the period excluding the difference between revenue and expenses of financial activities on total expenses to To determine the net profit in the tax period, in Column (2), item (17.1): Record the net profit from production and business activities in the period excluding the difference between revenue and expenses of the above financial activities. the total cost and declare the corresponding rate according to the associated transaction price determination dossier in Column (3) and according to the APA in Column (4).

+ Taxpayers use the net profit ratio comparison method and apply Net profit from production and business activities in the period excluding the difference between revenue and expenses of financial activities on total expenses for with production activities according to the associated transaction price determination dossier; Net profit from business activities in the period does not include the difference between revenue and expenses of financial activities on net revenue from distribution activities according to APA, in Column (2) of target (17.1) and (17.2): Record net profit from production and business activities in the period excluding the difference between revenue and expenses of financial activities over total costs for production activities at target (17.1) and declare the corresponding ratio in Column (3); Record Net profit from production and business activities in the period excluding the difference between revenue and expenses of financial activities on net revenue from distribution activities at target (17.2) and declare the corresponding ratio. corresponding to 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 industries:

- 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): Enter the total value determined according to the formula in Appendix I issued together with Decree No. …………/2020/ND-CP.

– Target “Interest expenses 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): Enter the total value determined according to the formula in Appendix I issued together with Decree No. ...../2020/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): Enter the total value determined according to the formula in Appendix I issued together with Decree No. …/2020/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 applied to adjust and determine the associated transaction price at the target lines (18.1), (18.2), (18.3) ... corresponding to the method of price determination. associated transactions as prescribed in Articles 13, 14, and 15 of Decree No. ……../2020/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 who are securities companies:

a) In case taxpayers have declared (x) in Column 3 at line 2a, Section II, Appendix I to Decree No. …….2020/ND-CP, make declaration according to the following instructions: :

– Indicators at line (1.1.a), (1.1.b), (1.1.c), (1.2), (1.3), (1.4), (1.5), (1.6) , (1.7), (1.8) ), (1.9), (1.10), (1.11), (2.1.a), (2.1.b), (2.1.c), (2.2), (2.3), (2.4) , (2.5), (2.6) ), (2.7), (2.8), (2.9), (2.10), (2.11), (2.12), (3.1), (3.2), (3.3), (3.4) , (4.1), (4.2), (4.3), (4.4), (4.5), (5), (6), (7), and (10):

+ 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.

b) In case the taxpayer is not exempt from preparing the transfer pricing determination dossier as prescribed at Point a, Clause 2, Article 19 of Decree No. ...../2020/ND-CP, the following declaration shall be made:

+ Column (6): Enter the total value determined according to the formula in Appendix I issued together with Decree No. ...../2020/ND-CP.

– For expenses incurred in the period, taxpayers keep track of accounting and record the accounting value, determine separately for costs from related parties within the scope of price determination according to the valuation dossier. related transactions; under the APA and dealing with independent parties in columns (3), (4) and (5) respectively. If it cannot be determined separately, the taxpayer shall choose the most appropriate allocation criterion according to one or several factors such as revenue, expenses, assets, human resources or other factors suitable to the nature of operations. and write the value of the allocated cost in the corresponding boxes (3), (4) and (5).

– Target “Total net profit from business activities in the period plus interest expense after deducting deposit interest and loan interest incurred in the period plus depreciation expense incurred in the period”:

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

+ Column (6): Enter the value equal to the target value "Operating results" plus (+) the indicator "Total interest expenses incurred in the period" minus (-) "Total interest on deposits and loans incurred in the period" plus (+) the item "Depreciation expenses incurred in the period".

– Target “The ratio of interest expense after deducting deposit interest and lending interest incurred in the period to total net profit from business activities plus interest expense after deducting deposit interest and lending interest in the period.” period plus depreciation expense incurred in the period”:

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

+ Column (6): Enter the percentage value equal to (=) the value of [the item "Total interest expense" minus (-) the indicator "Total deposit interest and loan interest"] divided (: ) target value "Net profit from business activities plus interest expense plus depreciation expense incurred during the period".

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

+ Column (2): Record the profit rates applied to adjust and determine the associated transaction price at the target lines (15.1), (15.2) (15.3), ... corresponding to the price determination method. associated transactions as prescribed in Clauses 2 and 3, Article 13, Article 14, Article 15 of Decree No. ...../2020/ND-CP.

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

APPENDIX II

(Attached to the Decree No. XNXX / 132 / ND-CP dated 2020 month 05X year 11 of the Government)

LIST OF INFORMATION AND DOCUMENTS NEED TO PROVIDE IN THE NATIONAL PROFILE

(Attached to the corporate income tax finalization declaration)

Tax period: From ……………… to…………………….

[01] Taxpayer's name ……………………………………………………..

[02] Tax code:

[03] Address: ………………………………………………………..

[04] County: …………………… [05] Province/city: ……………………

[06] Phone: …………………… [07] Fax: …………. [08] Email:……………………..

[09] Name of tax agent (if any): …………………………………………………….

[10] Tax code:

The Company reports the information and documents prepared and archived according to the provisions of Appendix II, as follows:

STT	Document	Created and saved	Note
1	Information about taxpayers:
1.1	Organization and management structure information, including organizational chart, list, summary information of management titles of the group that taxpayers must report directly and address of office and head office of these titles
1.2	Detailed information about taxpayers' business activities and business strategies, including information on whether taxpayers are involved or are affected by the process, decide to restructure or transfer capital, transfer transfer of corporate assets during the year of declaration
1.3	Information about businesses with similar products and services in domestic and international markets (main competitors)
2	Associated transactions: for each type of key affiliate transactions that taxpayers are concerned with, provide the following information:
2.1	Description of material associated transactions (e.g. provision of production services, purchase of goods, provision of services, loans, performance and financial guarantees, franchising, etc.) and the scene in which these transactions are performed
2.2	Amount and invoice of payments and intra-group payments for each type of transaction related to a subsidiary (e.g. payments and payments for products, services, copyrights, interest loans, etc.) to be regulated by foreign tax authorities
2.3	Identify the parties involved in the associated transactions and relations between the parties
2.4	Copies of affiliate agreements and contracts
2.5	Functional analysis and detailed comparative analysis for taxpayers and affiliates for each type of affiliate transaction, including any changes from the previous year
2.6	Explain the most appropriate method of determining the associated transaction price related to the associated transaction lines and the reasons for choosing the proposed method of determining the associated transaction price
2.7	Identify the selected affiliate to determine the associated transaction price, and explain the reason for the selection
2.8	Summary of material assumptions when applying the proposed transfer pricing method
2.9	Explain the reasons for performing data analysis for many years (if any)
2.10	List and description of independent comparison objects (internal and external objects) and information, financial indicators needed for transfer pricing analysis, including description of search methods Comparative data and source of search information
2.11	Describe the comparative adjustments made, the reason, the document on the adjustment results
2.12	Describe the reasons and explain the application of the proposed associated transaction pricing method that has complied with the principle of independent transactions
2.13	Summary of information on quantitative financial indicators, indicators, and criteria and the reasons and explanations for their use in the application of the proposed transfer pricing method
2.14	Copies of unilateral and bilateral, multilateral APA agreements and other tax agreements relating to taxpayers' associated transactions that the Vietnam Tax Agency is not a party to the agreement, signed link
3	Economic information:
3.1	Financial statements of the year of taxpayers' declaration
3.2	Information and allocation plan and how to use financial data when applying the proposed transfer pricing method
3.3	A brief description of the relevant financial data during comparative analysis and data sources
3.4	Summary of reasons and explanations of causes, business plans, investment and development strategies for enterprises with loss-making business results from 03 or more each year

The company hereby undertakes that all information declared in this form and the attached documents is correct and responsible to the law for the information declared.

TAX AGENCY STAFF
First and last name:…………..
Practicing certificate number ………

Day month Year ….
TAXPAYER or
LEGAL REPRESENTATIVE OF TAX PAYERS
(Signature, full name, position and seal (if any))

Note: Columns that have no information are left blank.

APPENDIX III

(Attached to the Decree No. XNXX / 132 / ND-CP dated 2020 month 05X year 11 of the Government)

LIST OF INFORMATION AND DOCUMENTS NEED TO PROVIDE IN GLOBAL DOCUMENTS

(Attached to the corporate income tax finalization declaration)

Tax period: From…………… to…………..

[01] Taxpayer's name ……………………………………………………

[02] Tax code:

[03] Address: ………………………………………………………..

[04] District: …………… [05] Province/city: ………………

[06] Phone: …………….. [07] Fax: …………… [08] Email:……………….

[09] Name of tax agent (if any): …………………………………………………….

[10] Tax code:

The Company reports the information and documents prepared and archived according to the provisions of Appendix III, as follows:

STT	Document	Created and saved	Note
(1)	(2)	(3)	(4)
1	Organizational mechanics:
1.1	Diagram illustrating ownership structure; the legal structure of the corporation and the geographical position of the subsidiaries of the group are operating.
2	Information about the Group's business activities includes:
2.1	Key elements and important channels create business profits.
2.2	A description of the supply chain of the five largest group products and/or services by revenue and any goods and/or services that account for more than 05% of group revenue, including market information. the main geographical market of these goods and services. Description can be in the form of diagrams or charts
2.3	List and brief description of key service agreements between group members, excluding research and development (R&D) services, including a description of headquarters capabilities (global level) and regional) provides key services and transfer pricing policies to allocate service costs and determine the price to be charged for intra-group services. Summarize and explain the main reasons in case the group conducts procurement and advertising and marketing activities through centralized shopping centers and marketing centers
2.4	Describe the main geographic markets of the products of the mentioned group in section 2.2
2.5	A written description of the functional analysis that outlines the headquarters' contributions to the values created by the group's native businesses, e.g. material functions performed, material risks are incurred and the material assets are used
2.6	Description of key business restructuring transactions, mergers and acquisitions, and transactions arising in the fiscal year
3	Information about intangible assets (TSVH) of the group:
3.1	Overview of MNE's overall strategy for TSVH development, ownership and exploitation, including the location of headquarter research and development (R&D) facilities and location of R&D management
3.2	The group's portfolio of cultural assets or groups of assets that have a material impact on the transfer pricing policy and the companies that legally own the assets or group of assets.
3.3	List of important agreements between related parties related to TSVH, cost-sharing agreements, research service agreements, and licensing and franchising agreements
3.4	General description of transfer pricing policies of the corporation for R&D and TSVH activities
3.5	General description of any significant benefit transfer to TSH between affiliates in the relevant fiscal year, including information on subsidiaries, countries participating in transfers and related payments.
4	Internal financial activities of the Group:
4.1	General description of the group's financial allocation mechanism, including financial agreements, important funding agreements with independent lenders
4.2	Information that identifies any member of the corporation that provides financial, centralized capital for the corporation, including the countries where the subsidiary is established and where the subsidiary's actual operating headquarters is located.
4.3	General description of the Group's transfer pricing policy for financial arrangements, funding between affiliates
5	Business results and tax obligations of the group:
5.1	Consolidated financial statements for the year of the Group's declaration and reports, financial mechanisms and internal management for tax purposes of the Group; Applicable tax rates determine tax obligations corresponding to profits earned from production and business activities of affiliated parties with transactions related to taxpayers
5.2	List of brief descriptions of unilateral pre-agreements on taxable pricing (APA) and other tax policies related to the distribution of income between countries

The company hereby undertakes that all information declared in this form and the attached documents is correct and responsible to the law for the information declared.

TAX AGENCY STAFF
First and last name:…………..
Practicing certificate number ………

Day month Year ….
TAXPAYER or
LEGAL REPRESENTATIVE OF TAX PAYERS
(Signature, full name, position and seal (if any))

Note: Columns that have no information are left blank.

APPENDIX IV

(Attached to the Decree No. XNXX / 132 / ND-CP dated 2020 month 05X year 11 of the Government)

INFORMATION DISCLOSURE REPORTING NATIONAL PROFIT

(Attached to the corporate income tax finalization declaration)

Tax period: From ……………………. to……………..

[01] Name of taxpayer ………………………………………………………………………………………………

[02] Tax code:

[03] Address: ……………………..……………………………………………………..

[04] County: …………………….. [05] Province/city: …………….……………..

[06] Phone: …………………….. [07] Fax: ………………. [08] Email:………….

[09] Name of tax agent (if any): ……………………………………………………..

[10] Tax code:

SECTION I. OVERVIEW OF NATIONAL RESIDENCE INCOME, INCOME TAX AND BUSINESS ACTIVITIES

Countries	Revenue			Profit before tax	Total corporate income tax payable	Paid income tax	Registered capital	Accumulated profit	Number of employees	Tangible assets other than cash and cash equivalents
Countries	Independent party	Associated party	Total							Tangible assets other than cash and cash equivalents

SECTION II. LIST OF SUBSIDIARY COMPANIES OF THE NATIONAL RESIDENCE GROUP

Name of multinational corporation

Countries

Companies that are residents of the host country

Country or territory of business registration if different from the country or territory of tax residence

Business activities

Research and development

Holding or managing intellectual property

Purchase

Crafting or manufacturing

Sales, marketing or distribution

Operating, management and support services

Providing services to unrelated parties

Corporate finance

Financial services as prescribed

Insurrance

Holding shares or other capital tools

The company does not work

....

I certify that the above declared data is correct and take responsibility before the law for the declared data./.

TAX AGENCY STAFF
First and last name:…………..
Practicing certificate number ………

Day month Year ….
TAXPAYER or
LEGAL REPRESENTATIVE OF TAX PAYERS
(Signature, full name, position and seal (if any))

Note: Columns that have no information are left blank.

GUIDELINES FOR DECLARATION OF SOME INDICATORS

B. General information of taxpayers: From target [01] to target [10], write the information corresponding to the information recorded in the enterprise income tax finalization declaration.

C. Section I. Overview of income distribution, taxes 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 of total revenue: Enter the total value of revenue in the column of the Independent Party plus (+) the value of the revenue in the column of the Affiliate.

– Target “Profit before tax”: Record the total pre-tax accounting profit of the affiliates of the multinational corporation in the country or territory where they reside.

- 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.

D. Section II. List of subsidiaries of the group by country and 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.

APPENDIX DRAW

(Attached to the Decree No. XNXX / 132 / ND-CP dated 2020 month 05X year 11 of the Government)

STANDARD INDEPENDENT TRADING VALUE CALCULATOR

The formula for calculating the standard independent transaction interval and the median value determined by the Percentile function in Microsoft Excel is as follows:

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 a cell other than the data range and execute the Percentile command to find the corresponding percentile values, specifically:

Percentile (Data area, parameter)

– Data area: Is the area containing the values of the price or profit rate or profit distribution rate.

– Parameters: Get the corresponding values 0,35 to 0,75.

+ The 35th percentile is the value of the Percentile function with the parameter 0,35.

+ The 50th percentile (median) is the value of the Percentile function with a parameter of 0,5.

+ The 75th percentile is the value of the Percentile function with the parameter 0,75.

The standard independent transaction range is the range from the 35th percentile to the 75th percentile.

2. Illustration

In the year of 202x, 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; 2,15; 2,25; 2,5; 2,75; 3,0.

Determine the percentile values of the Percentile Function in excel as follows:

Value found rate	Determine the 35th percentile to the 75th percentile		Return value
1.00	35th percentile	“=Percentile(A5:A17,0.35)”	1.55
1.25	Median	“=Percentile(A5:A17,0.5)”	2
1.25	75th percentile	“=Percentile(A5:A17,0.75)”	2.25
1.50
1.50
1.75
2.00
2.00
2.15
2.25
2.50
2.75
3.00

1 Taxpayers mark “x” in the column of form of association declared according to the provisions of Clause 2, Article 5 of Decree No. …/2020/ND-CP dated …/…/2020 of the Government. In case the affiliated party belongs to more than one form of affiliated relationship, taxpayers mark “x” in the corresponding boxes.

2 Taxpayers mark "x" in the corresponding applicable exemption case line.

3 The value allocated to a permanent establishment must be declared and clearly stated as the allocation of revenue or expenses to the permanent establishment.

4 Taxpayers declare "x" for transactions within the scope of APA application and "no" for transactions not covered by the scope of APA application.

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Updated on 29/09/2022

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