In the context of an integrated economy, business activities between related parties are becoming increasingly complex. Controlling transparency and market prices in these transactions is not only a requirement from tax authorities but also a vital factor for businesses to ensure financial sustainability.
However, many businesses are still struggling with the stringent regulations of Decree 132/2020/ND-CP and Decree 20/2025/ND-CP Amendments and additions from Decree 132. Lack of understanding. related-party transaction pricing documentation Or, making false declarations can lead to a very high risk of tax arrears, seriously affecting the reputation and cash flow of the entity.
To thoroughly address this issue, related-party transaction advisory services in District 1 have emerged as a lifeline. Beyond simply ensuring legal compliance, these services are powerful tools that help businesses optimize tax costs and operate transparently in the eyes of regulatory authorities.
What is the related party transaction advisory service in District 1?
The need for transparency in financial data within multinational corporations or parent-subsidiary groups is increasing. However, related-party transactions are a highly specialized field requiring a comprehensive understanding of accounting, tax law, and economic analysis.
To provide related party transaction advisory services In District 1, businesses must meet all operating license standards from the Ministry of Finance and possess a team of experienced professionals. A reputable service will help businesses control data, ensuring the professionalism, completeness, and validity of their records according to current standards.
Procedures for preparing related-party transaction documents according to the latest regulations.
Businesses can either handle these procedures themselves or delegate them to specialized units for timely and accurate support. MAN – Master Accountant Network provides guidance on the key procedures as follows:
Identify related parties and related-party transactions.
Businesses need to review ownership, management, or control relationships to identify related parties. Incorrectly identifying the party from the outset will render the entire underlying record system ineffective.
Determine the deadline for submitting the declaration and documents.
According to regulations, the deadline for submitting the Related Party and Related Transaction Information Declaration Form (Form 01) coincides with the deadline for submitting the corporate income tax return. Businesses need to pay attention to these deadlines to avoid penalties for late payment.
Conditions and procedures for exemption from filing
Not all businesses are required to create price determination records. In certain specific cases regarding revenue and transaction value, businesses may be permitted to do so. Exemption from filing related-party transaction records.. Understanding this regulation helps businesses save significant internal costs and resources.
Create a Local File and a Master File.
These are two core components that demonstrate the objectivity of the transaction price. The documentation should clearly present the business strategy, organizational chart, and detailed comparative economic analyses. Use related party transaction documentation service This will help ensure the content of the records is thorough, minimizing the risk of data being rejected during tax audits.
Prepare evidence and supporting documents.
In addition to declarations, businesses need to keep records of contracts, payment documents, and related invoices. If a business participates in APA (Advance Pricing Agreement), thorough preparation of documentation for periodic review is necessary.
Professional related-party transaction advisory services at MAN – Master Accountant Network
With over 30 years of experience, we offer in-depth consulting services tailored to your business's specific operational needs:
- Comprehensive consulting: Updating the latest procedures and regulations from the Government related to tax management for businesses with related-party transactions.
- Professional services include: Assisting in filling out forms (Forms 01, 02, 03, 04 according to Decree 132), and representing businesses in direct explanations to tax authorities.
- Data analysis: Using specialized databases to compare market prices, ensuring that the company's transactions fall within a standard range.
The comprehensive service package includes:
- Monthly/Quarterly: Verify the validity of documents arising between related parties, and advise on proper accounting treatment reflecting the economic nature of the transaction.
- End of fiscal year: Consolidate data, prepare financial statements and related-party transaction pricing documentation, assist in optimizing tax costs based on balancing interest expense (limited to 30% EBITDA), and implement Transfer pricing consultancy Specialized in handling complex situations such as capital transfers and corporate restructuring.
Benefits of using related party transaction advisory services in District 1
In the context of tax authorities increasingly tightening inspections of related-party transactions, using related-party transaction advisory services in District 1 not only helps businesses meet compliance requirements but also serves as an effective financial risk management solution.
Minimize the risk of tax arrears and penalties.
The regulations on related-party transactions under Decree 132 require businesses to demonstrate the independence and market value of each transaction. If a business makes false declarations, lacks documentation, or incorrectly identifies the nature of a transaction, it may face penalties:
- Determine taxes;
- Collecting back corporate income tax.;
- An unreasonable type of expense;
- Administrative penalties and late payment fees.
Our in-depth related-party transaction advisory service in District 1 helps review all data, standardize records, and ensure businesses are always ready for tax audits.
Optimizing legal tax costs for businesses.
Beyond compliance support, MAN's experts also assist businesses in analyzing transaction structures, capital structures, and internal pricing policies to optimize tax obligations within the legal framework. This is especially beneficial for businesses with high interest expenses, internal borrowing activities, or group expense allocation; proper advice can help avoid exceeding the legally mandated limits on interest expense deductions.
Save time and internal resources.
Handling related-party transaction records requires in-depth expertise in accounting, taxation, and financial analysis. In-house preparation often results in businesses spending significant time gathering data, researching regulations, and processing complex forms.
When using MAN's related-party transaction advisory service in District 1, businesses will receive comprehensive support from data review and preparation of Local File and Master File to the proper submission of Forms 01, 02, 03, and 04 in accordance with current regulations.
Proactively provide explanations when the tax authorities conduct an audit.
One of the most significant benefits is that businesses always have a logical, complete set of documents and clear comparative analysis to support their accountability efforts. This helps to:
- Increase financial transparency;
- Reduce the pressure of tax settlement;
- Minimize disputes with regulatory authorities;
- Protecting the company's reputation in international investment and cooperation activities.
Stay up-to-date with the latest legal changes.
Tax policies for related-party transactions are regularly updated to align with international BEPS standards and anti-transfer pricing trends. Utilizing professional consulting services helps businesses quickly grasp these changes, allowing them to adjust their tax filings and strategies accordingly from the beginning of the fiscal year.
Absolute confidentiality of financial data and business strategies.
Information regarding cost of goods sold, profit allocation policies, corporate structure, or internal contracts are all sensitive data. MAN – Master Accountant Network By implementing strict security procedures, businesses can rest assured when providing data for the purpose of creating related-party transaction records.
Quotation for related party transaction advisory services in District 1
Service fees will be flexibly customized based on business size, transaction complexity, and the number of related parties. We are committed to providing the highest quality service, allowing businesses to focus on their core operations.
Conclude
Service fees will be flexibly customized based on business size, transaction complexity, and the number of related parties. We are committed to providing the highest quality service, allowing businesses to focus on their core operations.
Contact Contact the expert team at MAN – Master Accountant Network for advice and support on solutions tailored to your business operations.
Contact information MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder and CEO of MAN – Master Accountant Network, CPA Vietnam auditors with over 30 years of experience in accounting, auditing, and financial consulting.