Enterprise Transfer Pricing

October 14, 2015

The main functions and tasks of the Transfer Pricing Inspection Department at 4 provincial tax department: Ha Noi; Ho Chi Minh; Binh Duong; Dong Nai are as follows:

• Setting up the Transfer Pricing inspection programs and plans on annual basis; Receiving the requests and dossiers requiring the inspection on Transfer Pricing forwarded by the Tax Inspection Departments, Tax Examination Departments and District Tax Departments.
• Organizing to collect information relating to the determination of tax obligation of the Enterprises having related party transactions.
• Organizing to implement the Transfer Pricing inspection and propose the treatment in accordance with the laws for the cases of detection of tax laws violation of organizations, individuals during Transfer Pricing inspection.
• Inspection to verify and resolve the allegations on tax laws violation of tax payers relating to Transfer Pricing.
• Attending the settlement process of tax bilateral agreements regarding Transfer Pricing under the Agreement and inspecting the compliance of implementation of advance agreements on taxable pricing determination method after the prior agreements (APA) were signed.

Grant Thornton (Vietnam) believes that this official issuance of the Decision on establishment of the Transfer Pricing Inspection Department at the GDT and 4 provincial tax departments: Ha Noi; Ho Chi Minh; Binh Duong; Dong Nai has showed the determination of Vietnam Tax Authorities in requesting the Enterprises, especially the foreign invested Enterprises to comply with Transfer Pricing regulations in Vietnam.

Accordingly, the Enterprises will need to pay attention to the below points:

1. Whether the Enterprise has fully and correctly declared the information on Transfer Pricing Form?
2. Besides the Contracts, invoices and payment vouchers with related parties, whether the Enterprise has any independent documents to prove that the pricing is in compliance with Transfer Pricing regulations of Vietnam Tax authorities or not?

Source: http://www.gt.com.vn/download.php?info=publications&submenu=455