What are cases where the General Department of Taxation shall request suspension of APA negotiations in Vietnam?

Currently, Clause 1, Article 16 of Circular 201/2013/TT-BTC stipulates that the withdrawal of an application or cessation of APA negotiations can occur at any time before the APA is signed. The taxpayer proposes to withdraw the application or cease negotiations by submitting a written request to the General Department of Taxation of Vietnam.

Source: Internet

Simultaneously, the General Department of Taxation of Vietnam requires cessation of negotiations in the following cases:

- The scope of related-party transactions under the APA and the financial obligations arising from the transactions are subjects of dispute settlement, complaints regarding administrative violations in tax management;

- Related-party transactions under the APA are arranged for the purpose of tax evasion or exploitation of the Tax Agreement;

- The taxpayer does not provide or provides incomplete documents, materials, and information as required by the tax authority;

- The taxpayer provides inaccurate information and data to the tax authority;

- Other specific cases such as when tax authorities agree to cease bilateral or multilateral APA negotiations.

Note: In cases of requesting to cease APA negotiations, the General Department of Taxation shall issue a written notification to the taxpayer and the foreign tax authority (for bilateral or multilateral APAs).

More details can be found in Circular 201/2013/TT-BTC which comes into effect in Vietnam from February 5, 2014.

Thu Ba

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