MAN – Master Accountant Network proudly pioneers the provision of professional transfer pricing services in the Thu Duc area. With a team of experienced experts and a deep understanding of Decree 132/2020/ND-CP and OECD's Global Minimum Tax (Pillar Two) guidelines, we are committed to providing optimal tax risk management solutions, helping businesses comply with the law and enhance their competitiveness in the market.
What is transfer pricing? Why should businesses care about it?
Transfer pricing (also known as related-party transactions) refers to transactions arising between related parties in the production and business process (buying, selling, exchanging, leasing, renting, borrowing, lending, transferring assets, providing services, borrowing, etc.).
The purpose of controlling these transactions is to prevent transfer pricing, a practice that is currently being rigorously investigated by the Tax authorities. (Using...) comprehensive transfer pricing service This is the best way for businesses to make their cash flow transparent and avoid huge administrative penalties.
Entities required to use transfer pricing services in Thu Duc
According to current regulations, the following individuals and entities should pay particular attention and regularly utilize professional consulting services to ensure tax safety:
- FDI (Foreign Direct Investment) enterprises: This is a key group that often engages in transactions involving the purchase and sale of raw materials, technology transfer, or borrowing of capital from parent companies abroad.
- Multinational corporations with branches in Vietnam must comply with regulations regarding country-by-country profit reporting and global corporate profiles.
- Domestic businesses often have many subsidiaries and affiliated companies, especially those units that engage in internal borrowing and lending transactions, or the buying and selling of goods between parties with the same owner or operator.
- Businesses that are operating at a loss but are still expanding production: This is a sign that raises suspicions of transfer pricing by the Tax authorities and will lead to a rigorous inspection.
- Businesses eligible for corporate income tax incentives: The transfer of profits from non-incentivized entities to tax-incentivized entities is a tightly controlled practice.
The role of Transfer Pricing Documentation
Filing related-party transactions is not merely a legal obligation, but also a strategic tool for:
- Financial risk control: Identify and adjust inconsistencies in transaction fees before tax audits.
- Tax optimization: Ensuring businesses apply the correct pricing methods and protect their legitimate interests.
- Building credibility: Demonstrating transparency with investors and shareholders, especially FDI businesses.
To better understand this process, your company can refer to the following information. Transfer pricing reporting guidelines our details.
What should businesses with related-party transactions in Thu Duc do?
To maintain sustainable business operations and avoid legal risks arising from transfer pricing activities, affiliated businesses in Thu Duc District need to strictly implement the following core tasks as stipulated by the Ministry of Finance:
Ensure accuracy in declarations.
Businesses must declare information on related-party relationships and related-party transactions according to prescribed forms. All figures must be supported by independent comparative market data.
Establish and maintain records of transfer pricing.
According to current regulations, businesses are required to prepare a local file, a master file, and a country-by-country profit report (CbCR) if they meet the specified revenue/transaction value thresholds.
Provide the documents requested by the Tax authorities.
During inspections and audits, businesses in Thu Duc District are responsible for providing complete information and documents within the stipulated timeframe (usually 15 working days from the date of receiving the request).
Regular and ad hoc reports
Annually, along with the corporate income tax return, businesses must submit appendices on related-party transactions. Delays or errors can lead to direct tax assessment.
Cases where the Transfer Pricing Documentation is not required
According to Article 19 of Decree 132/2020/ND-CP, enterprises with related-party transactions in Thu Duc District are exempt from preparing a Price Determination Document in the following specific cases:
- Case 1: The business only has related-party transactions with related parties that are subject to corporate income tax in Vietnam, applying the same corporate income tax rate, and neither party is entitled to corporate income tax incentives during the tax period.
- Case 2: The enterprise has total revenue generated during the tax period below VND 50 billion and total value of related-party transactions below VND 30 billion.
- Case 3: The company has signed an Advance Pricing Agreement (APA) and submitted its Annual Report as required by APA regulations.
- Case 4: Businesses performing simple business functions, not generating revenue or expenses from the exploitation of intangible assets, with revenue under VND 200 billion and achieving the following net profit margin on revenue (EBIT): Distribution from 5% or more, Manufacturing from 10% or more, and Processing from 15% or more.
Note: Although exempt from preparing Local File/Master File for Price Determination, businesses falling under the above categories must still declare information in Appendix I on related-party transactions and submit it with the Corporate Income Tax Return.
Why is MAN – Master Accountant Network the top choice for affiliate trading in Thu Duc?
Amidst increasingly stringent regulations on anti-transfer pricing and anti-tax base erosion, MAN – Master Accountant Network affirms its distinctive value through a combination of in-depth expertise, practical experience, and continuous updates on tax policies, based on the following solid foundations:
Quality and reputation
With over 30 years of practical experience and direct contact with countless complex cases, MAN understands the risk appetite of the Thu Duc District Tax Authority. We constantly update global tax policies and apply modern international databases to find the most comparable properties for our clients.
A dedicated team of experts
We don't just submit reports; we stand by your business. Our consulting team is always ready to provide direct explanations to authorities, protecting your company's best interests.
Benefits of trusting MAN's transfer pricing services in Thu Duc.
Choosing Viet-Australia Audit's services not only helps businesses complete their legal documentation but also brings practical added value to their financial management system:
- Ensuring transparency: Standardized workflows and the application of data analytics technology help to ensure reports are absolutely accurate.
- Timely risk management: Early identification of risks related to interest expense (exceeding the 30% EBITDA ceiling) or transactions that are not economically viable.
- Resource saving: Instead of maintaining an expensive internal team of specialists, businesses can confidently focus on their core business operations.
Conclude
MAN – Master Accountant Network's transfer pricing service in Thu Duc is not only a solution for legal compliance but also a leverage to help businesses achieve sustainable growth. Contact MAN – Master Accountant Network for expert advice and to protect your business from changes in tax policies.
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 & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.