Vietnam: What information, documents, data and records does a transfer pricing file include?
- Vietnam: What information, documents, data and records does a transfer pricing file include?
- Vietnam: When will the transfer pricing files be compiled?
- If taxpayers is exempted from the transfer pricing declaration in Vietnam, shall they be exempted from the transfer pricing documentation requirements?
Vietnam: What information, documents, data and records does a transfer pricing file include?
Pursuant to Clause 4, Article 18 of Decree 132/2020/ND-CP:
Rights and obligations of taxpayers regarding the declaration and determination of transfer prices
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4. Taxpayers shall be responsible for retaining and providing the transfer pricing files comprising information, documents, data and records, including:
a) Interrelationship and related party transaction information provided in the form given in Appendix I hereto;
b) Local files, including information about transfer pricing, transfer pricing policies and methods, prepared and deposited at taxpayers’ offices according to the directory of information and documents prescribed in Appendix II hereto;
c) Master files containing information about business activities of multinational groups, transfer pricing policies and methods of global groups and policies on allocation of income and decentralization of operations and functions in value chains of groups according to the directory of information and documents prescribed in Appendix III hereto;
d) Country-by-Country reports of profits of ultimate parent companies prescribed in clause 5 of this Article and Appendix IV hereto.
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The transfer pricing files comprise information, documents, data and records, including:
(1) Interrelationship and related party transaction information provided in the form given in Appendix I to Decree 132/2020/ND-CP; DOWNLOAD
(2) Local files, including information about transfer pricing, transfer pricing policies and methods, prepared and deposited at taxpayers’ offices according to the directory of information and documents prescribed in Appendix II to Decree 132/2020/ND-CP: DOWNLOAD
(3) Master files containing information about business activities of multinational groups, transfer pricing policies and methods of global groups and policies on allocation of income and decentralization of operations and functions in value chains of groups according to the directory of information and documents prescribed in Appendix III to Decree 132/2020/ND-CP: DOWNLOAD
(4) Country-by-Country reports of profits of ultimate parent companies prescribed in clause 5 of Article 18 of Decree 132/2020/ND-CP and Appendix IV to Decree 132/2020/ND-CP: DOWNLOAD
Vietnam: What information, documents, data and records does a transfer pricing file include? (Image from the Internet)
Vietnam: When will the transfer pricing files be compiled?
Pursuant to Clause 6, Article 18 of Decree 132/2020/ND-CP on the time limit for the compilation of transfer pricing files:
Rights and obligations of taxpayers regarding the declaration and determination of transfer prices
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6. Transfer pricing files must be compiled before the time of filing corporate income tax finalization returns each year, and must be deposited and presented to meet tax authorities’ requests for provision of information. When tax authorities carry out transfer pricing inspections and audits, the time limit for submission of the transfer pricing files shall be subject to regulations laid down in the Law on Inspection, starting after receipt of information requests.
Transfer pricing files and documentary information or evidencing documents must be provided by taxpayers to tax authorities in compliance with laws and regulations on tax administration. Sources of data, evidencing documents and records used as the basis for comparability analysis and determination of prices of related-party transactions must be clearly cited. In case where data of independent comparables are accounting data and figures, taxpayers shall be responsible for retaining and providing tax authorities with these data represented in a soft copy and in the spreadsheet format.
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Thus, transfer pricing files must be compiled before the time of filing corporate income tax finalization returns each year.
Notes: Sources of data, evidencing documents and records used as the basis for comparability analysis and determination of prices of related-party transactions must be clearly cited.
In case where data of independent comparables are accounting data and figures, taxpayers shall be responsible for retaining and providing tax authorities with these data represented in a soft copy and in the spreadsheet format.
If taxpayers is exempted from the transfer pricing declaration in Vietnam, shall they be exempted from the transfer pricing documentation requirements?
Pursuant to Clause 1, Article 19 of Decree 132/2020/ND-CP on cases of exemption from transfer pricing documentation requirements.
Safe harbor rules for taxpayers’ exemption from transfer pricing declaration and documentation requirements
1. Taxpayers shall be exempted from the transfer pricing declaration requirements referred to in Section III and IV of the Appendix I to this Decree, and the transfer pricing documentation requirements prescribed herein only if they are engaged in transactions with related parties that must pay corporate income tax within the territory of Vietnam, are subject to the same corporate income tax rates as applied to these taxpayers and all of them are not offered the corporate income tax incentive within a specified taxable period, but they shall be required to clarify bases for such exemption in Section I, II included in the Appendix I hereto.
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Therefore, taxpayers shall be exempted from the transfer pricing declaration requirements referred to in Section III and IV of the Appendix I to Decree 132/2020/ND-CP, and the transfer pricing documentation requirements prescribed herein only if they are engaged in transactions with related parties that must pay corporate income tax within the territory of Vietnam, are subject to the same corporate income tax rates as applied to these taxpayers and all of them are not offered the corporate income tax incentive within a specified taxable period.
In this case, they shall be required to clarify bases for such exemption in Section I, II included in the Appendix I to Decree 132/2020/ND-CP.
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