Updated at 23/12/2023 - 04:55 pm
In order to strengthen tax management for businesses with associated transactions, the General Department of Taxation issued Official Dispatch No. 5654/TCT-TTKT dated December 13, 12 with the following notable instructions.
Some contents of official dispatch No. 5654/TCT-TTKT #
1. Strengthen inspection and tax audits for businesses that have associated transactions with high transfer price risks #
Promote the inspection of tax declaration records, analysis of production and business activities of enterprises with associated transactions in the area; Review and synthesize information from sources about operating industries, types of businesses, investment status, declaration status, adjustment of associated transaction prices... to identify businesses with signs of risk on transfer prices (such as businesses generating revenue and expenses with affiliated parties of great value or high proportion; businesses declaring large and continuous losses for many years but still expanding production scale, business; has growing revenue but the amount of tax payable to the state budget is low;...). Thereby, collect information and documents for in-depth analysis and identify businesses with signs of high transfer price risk.
The Department of Taxation, based on the guidance in Official Dispatch No. 5127/TCT-TTKT dated November 16, 11 on guidance on planning for tax inspection and examination in 2023, will carry out bringing back businesses with signs of high risk. transfer price (mentioned above) into the 2024 tax inspection and audit plan according to regulations; which specifically defines inspection and examination of transfer prices.
2. Coordinate with relevant departments, agencies and branches in the area to promote anti-transfer pricing work: #
– Coordinate with departments, branches, branches, and local press agencies to propagate and disseminate to businesses in the area about tax laws, including laws on tax management for businesses with related transactions. At the same time, it provides information on tax management policies for businesses with concurrent related transactions.
– Enhance the exchange and collection of information and data of businesses that have associated transactions, especially foreign investment businesses in the area to serve tax management.
– Capture information regularly and continuously to detect signs of violations, promptly prevent large-scale, complex fraud, new forms of transfer pricing and tax avoidance. In case of detecting signs of criminal violation, promptly transfer to the police agency for handling according to the provisions of law.
What do businesses need to do to avoid tax risks? #
To proactively comply and prevent risks of affiliated transactions, businesses need to be equipped with knowledge about affiliated transactions. You can read our guide to affiliate trading here.
To proactively comply and prevent related transaction risks, businesses should do the following:
- Carefully study the legal regulations on tax management for businesses with associated transactions, especially the recently issued regulations.
- Develop internal regulations on transfer prices and procedures for determining associated transaction prices in accordance with the specific operations of the enterprise.
- Prepare complete records and documents to prove independent transaction prices between affiliated parties.
- Strengthen accounting work, store documents and records related to associated transactions.
- Proactively provide accurate, complete and timely information as requested by tax authorities.
- Regularly review and re-evaluate transaction prices to ensure compliance with the principle of independent transactions.
Remember, complying with regulations and following the right processes not only helps you avoid legal risks, but also contributes to the transparency and financial health of your business.
Doing the above is not easy for businesses, the effective solution is to use a professional service: Cooperate with a financial, accounting and tax expert to ensure you follow the correct process and comply with the regulations. legislation.
See detailed information about our services in the article
