{"id":1539,"date":"2025-08-18T00:59:27","date_gmt":"2025-08-18T07:59:27","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=1539"},"modified":"2026-03-16T03:29:16","modified_gmt":"2026-03-16T10:29:16","slug":"khai-bao-giao-dich-lien-ket","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/","title":{"rendered":"Declaring related party transactions under Decree 132: Instructions for declaring on the declaration system and appendix"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Declare related party transactions according to<\/span><a href=\"https:\/\/thuvienphapluat.vn\/van-ban\/Doanh-nghiep\/Nghi-dinh-132-2020-ND-CP-quy-dinh-quan-ly-thue-doi-voi-doanh-nghiep-co-giao-dich-lien-ket-452218.aspx\" rel=\"nofollow noopener\" target=\"_blank\"><b> Decree<\/b> <b>132\/2020\/ND-CP<\/b><\/a><span style=\"font-weight: 400;\"> is one of the important regulations on corporate income tax. Declaration of compliant related party transactions not only helps businesses to be transparent in their business activities but also protects them from legal and financial risks. When businesses do not declare related party transactions or declare related party transactions incorrectly according to regulations, they may face tax arrears and administrative fines for tax violations, seriously affecting their financial situation and reputation.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Khai_bao_giao_dich_lien_ket_la_gi\" >What is related party transaction declaration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Ke_khai_giao_dich_lien_ket_tren_HTKK\" >Declare related party transactions on HTKK<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Cach_dien_phu_luc_giao_dich_lien_ket\" >How to fill out the affiliate transaction appendix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Quy_trinh_thuc_hien_dien_phu_luc_khai_bao_giao_dich_lien_ket\" >Procedure for filling out the appendix to declare related transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Phu_luc_giao_dich_lien_ket_tren_HTKK_phu_luc_1\" >Appendix on related party transactions on HTKK, Appendix 1<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Cac_hinh_thuc_duoc_xem_nhu_la_co_quan_he_lien_ket\" >The forms are seen as having a relational relationship.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#MAN_%E2%80%93_Master_Accountant_Network_Doi_tac_tin_cay_trong_quan_ly_giao_dich_lien_ket\" >MAN \u2013 Master Accountant Network: Trusted partner in affiliate transaction management<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khai-bao-giao-dich-lien-ket\/#Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\" >Contact information: MAN \u2013 Master Accountant Network<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Khai_bao_giao_dich_lien_ket_la_gi\"><\/span><b>What is related party transaction declaration?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Declaration <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/tong-quan-giao-dich-lien-ket-2025\/\">affiliate transactions<\/a> is the process by which a business provides complete information to the tax authority about transactions arising with related parties. The content of the declaration of related party transactions includes:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Information about affiliate relationships.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of transactions (purchase and sale of goods, provision of services, loans, transfer of assets, etc.).<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The purpose of declaring related-party transactions is to help tax authorities determine and control tax prices for these transactions, ensuring transparency, fairness and preventing transfer pricing.<\/span><\/p>\n<figure id=\"attachment_1972\" aria-describedby=\"caption-attachment-1972\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1972\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Khai-bao-giao-dich-lien-ket-tren-HTKK.jpg\" alt=\"Khai b\u00e1o giao d\u1ecbch li\u00ean k\u1ebft tr\u00ean HTKK\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Khai-bao-giao-dich-lien-ket-tren-HTKK.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Khai-bao-giao-dich-lien-ket-tren-HTKK-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Khai-bao-giao-dich-lien-ket-tren-HTKK-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Khai-bao-giao-dich-lien-ket-tren-HTKK-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Khai-bao-giao-dich-lien-ket-tren-HTKK-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-1972\" class=\"wp-caption-text\">Declare related party transactions on HTKK<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">According to the regulations, parties are considered to have an affiliated relationship when one party directly or indirectly participates in the management, control, capital contribution or investment in the other party, or when both parties are under the management, control or capital contribution of a third party.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ke_khai_giao_dich_lien_ket_tren_HTKK\"><\/span><b>Declare related party transactions on HTKK<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Declare related party transactions on HTKK<\/span><span style=\"font-weight: 400;\"> is the process by which enterprises use the Tax Declaration Support Software (HTKK) of the General Department of Taxation to prepare and submit information on transactions arising with related parties, along with the corporate income tax finalization declaration. During this process, enterprises log into HTKK, select the corporate income tax finalization declaration form 03\/TNDN, select the item &quot;There are related party transactions&quot; and fill in all information in the appendix as required. This form of declaration helps data to be sent directly to the tax authority quickly, accurately and in compliance with legal regulations. Declaration on HTKK helps synchronize data and minimize errors compared to manual filling.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cach_dien_phu_luc_giao_dich_lien_ket\"><\/span><b>How to fill out the affiliate transaction appendix<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">To complete the affiliated transaction appendix in the HTKK in accordance with the provisions of Decree 132\/2020\/ND-CP, enterprises need to fully prepare information and enter data into the software.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Regarding preparation, first of all, the enterprise must make a list of all related parties according to the criteria specified in <\/span><a href=\"https:\/\/thuvienphapluat.vn\/van-ban\/Doanh-nghiep\/Nghi-dinh-132-2020-ND-CP-quy-dinh-quan-ly-thue-doi-voi-doanh-nghiep-co-giao-dich-lien-ket-452218.aspx\" rel=\"nofollow noopener\" target=\"_blank\"><b>Article 5 of Decree 132<\/b><\/a><span style=\"font-weight: 400;\">, clearly stating the business name, tax code, country or territory where the affiliate is registered to operate.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Next, it is necessary to summarize the value of each transaction arising during the tax period, including the purchase and sale of goods, provision of services, borrowing or lending capital, transferring or permitting the use of tangible and intangible assets (such as copyrights, patents, trademarks). At the same time, enterprises must determine the method of transaction valuation according to the principle of independent transactions prescribed in Article 7 of Decree 132, which can be the method of comparing independent transaction prices (CUP), the resale price method (RPM), the cost plus profit method (CPM), the net profit comparison method (TNMM) or the profit allocation method (PSM).<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Quy_trinh_thuc_hien_dien_phu_luc_khai_bao_giao_dich_lien_ket\"><\/span><b>Procedure for filling out the appendix to declare related transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">About the declaration process <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/tong-quan-giao-dich-lien-ket-2025\/\">affiliate transactions<\/a> To perform on HTKK, the enterprise opens the latest version of HTKK software, selects corporate income tax settlement declaration form 03\/TNDN and ticks the box &quot;There are related transactions&quot; to activate the appendix.\u00a0<\/span><\/p>\n<figure id=\"attachment_1973\" aria-describedby=\"caption-attachment-1973\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1973\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Quy-trinh-thuc-hien-khai-bao-giao-dich-lien-ket.jpg\" alt=\"Quy tr\u00ecnh th\u1ef1c hi\u1ec7n khai b\u00e1o giao d\u1ecbch li\u00ean k\u1ebft\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Quy-trinh-thuc-hien-khai-bao-giao-dich-lien-ket.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Quy-trinh-thuc-hien-khai-bao-giao-dich-lien-ket-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Quy-trinh-thuc-hien-khai-bao-giao-dich-lien-ket-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Quy-trinh-thuc-hien-khai-bao-giao-dich-lien-ket-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/08\/Quy-trinh-thuc-hien-khai-bao-giao-dich-lien-ket-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-1973\" class=\"wp-caption-text\">Procedure for declaring related party transactions<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Then, select the correct appendix form to fill in (Form No. 01 - Information on related parties; Form No. 02 - Information on related transactions; or Form No. 03 - Information on exemption from filing related party transaction declarations) according to the provisions of the Appendix issued with Decree 132. In each appendix, enter complete information of each related party, identify the type of transaction, describe the content, clearly state the transaction value and the applicable valuation method.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Once the data entry is complete, the enterprise needs to save the data and use the software&#039;s checking function to check for errors, ensuring that the data matches the financial report and the related transaction declaration file. Finally, export the XML file and submit it via the General Department of Taxation&#039;s Electronic Information Portal.<\/span> <span style=\"font-weight: 400;\">within the time limit specified in Article 18 of Decree 132.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Phu_luc_giao_dich_lien_ket_tren_HTKK_phu_luc_1\"><\/span><b>Appendix on related party transactions on HTKK, Appendix 1<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><b>Section I \u2013 Information of related parties<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The section in the affiliated transaction appendix is used to fully declare data identifying parties having affiliated relationships with the enterprise, according to the criteria specified in Article 5 of Decree 132\/2020\/ND-CP.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In this section, the taxpayer must clearly state the name of each related party, tax identification number, country or territory where that party is registered to operate, along with basic contact information, if any. In addition, the form of related party relationship must be identified and expressed according to the prescribed symbols (A, B, C, D, \u0110, E, G, H, I, K), each symbol corresponding to a specific type of relationship such as equity ownership, control rights, loan guarantees or economic dependence.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Accurate and complete declaration of related party transactions in Section I helps tax authorities accurately identify the network of related parties of the enterprise, thereby serving as a basis for comparison and checking the reasonableness of transaction prices, while ensuring that the enterprise complies with the principles of transparency and regulations of Decree 132. In particular, the implementer needs to consider the following notes:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the affiliate in Vietnam is an organization, fill in information based on the business registration certificate; if it is an individual, fill in information based on the passport or citizen identification card.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the affiliated party is an organization or individual not located in Vietnam, the information will be based on the document identifying the affiliated relationship. This can be a transaction agreement, contract, business registration certificate, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you are an organization or individual operating in Vietnam, you need to fill in the full Tax Code (MST).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the organization or individual is not located in Vietnam: Fill in the full tax code and taxpayer identification code; if not available, state the reason.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Section II: Cases exempted from declaration obligation and exempted from preparing transfer pricing documents<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Cases exempted from the obligation to declare related-party transactions or exempted from preparing documents to determine the price of related-party transactions are prescribed as follows:<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Case 1: Case description<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Taxpayers will be exempted from declaring related-party transactions in Sections III and IV of the related-party transaction appendix, and will be exempted from preparing related-party transaction declaration dossiers if, during the tax period, there are only transactions with related parties that are corporate income tax payers in Vietnam, both parties apply the same corporate income tax rate and neither party enjoys tax incentives.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><strong>Case 2:<\/strong> <strong>Exemption from filing related party transaction declaration<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Taxpayers are exempted from filing related party transaction declarations in the following cases: (a) There are related party transactions but the total revenue in the tax period is less than VND 50 billion and the total value of all related party transactions arising in the period is less than VND 30 billion; (b) Have signed an advance pricing agreement (APA) and fully performed the obligation to submit annual reports as prescribed by law; (c) Conduct business activities with basic functions, costs arising from exploitation and use of intangible assets are less than VND 200 billion, and at the same time achieve the minimum profit margin before interest and corporate income tax for each field: distribution of 5% or more, production of 10% or more and processing of 15% or more.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Section III: Information on determining transfer pricing<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is a part of the appendix declaring related party transactions used for enterprises to present the method of determining prices for transactions arising with related parties, ensuring compliance with the principle of independent transactions as prescribed in <\/span><a href=\"https:\/\/thuvienphapluat.vn\/van-ban\/Doanh-nghiep\/Nghi-dinh-132-2020-ND-CP-quy-dinh-quan-ly-thue-doi-voi-doanh-nghiep-co-giao-dich-lien-ket-452218.aspx\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Article 6 and Article 7 of Decree 132\/2020\/ND-CP<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In this section, taxpayers need to clearly state the pricing method applied for each type of transaction, such as the comparable uncontrolled price method (CUP), resale price method (RPM), cost plus method (CPM), net profit comparable method (TNMM) or profit allocation method (PSM).\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Along with that, the enterprise must provide information on the data sources used for comparison, including financial statements, commercial databases, industry information or data from similar independent transactions.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In addition, Section III is also a place for enterprises to record the results of price comparison or profit margin between related transactions and the level of independent transactions, and explain the reasons for any differences (if any). If they are exempted from filing related-party transaction declarations according to Article 19 of Decree 132, taxpayers still need to tick the corresponding box for the tax authority to record.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The complete, clear and accurate declaration of related party transactions in Section III not only helps tax authorities assess the reasonableness of related party transaction prices but also serves as evidence that enterprises comply with regulations, avoiding the risk of being taxed or administratively sanctioned.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Belonging to the category of exemption from filing related party transaction declaration dossiers<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">These are cases where taxpayers do not have to prepare a declaration of related-party transactions for the tax period because they have met the exemption conditions prescribed by law. Even though they are exempted from preparing a declaration of related-party transactions, enterprises still have to declare the related-party transaction appendix on the HTKK (except in cases where some information items are exempted, as stated below).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Stipulated in Decree 132\/2020\/ND-CP, applicable to a number of special cases where taxpayers meet the conditions set by law. Enterprises will be exempted from filing related party transaction declarations if during the tax period, there are only transactions with related parties that are CIT payers in Vietnam, both parties apply the same tax rate and neither party enjoys tax incentives.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In addition, enterprises are also exempted from filing related-party transaction declarations when they are small in scale, specifically, total revenue in the period is under VND 50 billion and total value of related-party transactions is under VND 30 billion, when the transactions have been covered by an advance pricing agreement (APA) and the enterprise fully performs the obligation to declare related-party transactions, annual reports, or when the enterprise operates with basic business functions, costs from exploitation and use of intangible assets in the period are under VND 200 billion and achieve a minimum profit margin before interest and corporate income tax for each field, including distribution of 5% or more, production of 10% or more and processing of 15% or more. Although exempted from filing related-party transaction declarations, enterprises must still declare information on the HTKK and keep full documents proving exemption conditions to present when requested by tax authorities.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Section IV: <\/b><b>Production and business results after determining transfer pricing declaration<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is the presentation of the business&#039;s profit picture after applying the valuation method according to the principle of independent transactions (declared in Section III) and making the necessary transfer pricing adjustments. This is the &quot;final&quot; figure used to compare with the corporate income tax finalization declaration, so it must be consistent with the financial statements and the entire working documents.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">When preparing Section IV, the enterprise starts from the original accounting data of the period (net revenue, cost of goods sold, selling and administrative expenses, financial expenses, income, other expenses) and then separates the declaration of related-party transactions and independent transactions to determine the scope of adjustment. Based on the selected method (CUP, RPM, CPM, TNMM, PSM) and the independent comparison range, the enterprise calculates the price adjustment or profit margin for each group of transactions: it can adjust to increase related-party revenue, reduce cost of goods sold\/internal service costs, adjust royalties or internal loan interest... to bring the results to the price and profit margin. After adjustment, the enterprise re-establishes the profit and loss report for the tax period, clearly showing adjusted revenue, adjusted cost of goods sold, gross profit, deductible selling and administrative expenses, financial expenses (note to control loan interest according to current regulations), other income, EBIT, EBITDA and taxable income after transfer pricing adjustment.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If there is a difference between the initial accounting figures and the adjusted figures, the increase or decrease should be recorded in the appropriate index, with a brief explanation of the comparative data base, the reason for the difference and the tax impact.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In case the enterprise is exempted from declaring related-party transactions in Section III and IV because it only has domestic transactions with the same tax rate and no tax incentives, Section IV may not have to be presented; but if it is only exempted from preparing price determination documents (revenue, transactions, APA, or reaching the minimum profit threshold), the enterprise must still show the adjusted production and business results in Section IV so that the tax authority can record the basis for tax calculation. Fully presenting related-party transaction declarations, with clear explanations and the ability to compare with working files will help the enterprise reduce the risk of being taxed, collected and fined during inspections.<\/span><\/p>\n<blockquote><p><b>See details at:<\/b> <a href=\"https:\/\/man.net.vn\/huong-dan-lap-to-khai-giao-dich-lien-ket\/\" rel=\"nofollow noopener\" target=\"_blank\"><b>Instructions for preparing a declaration of related party transactions<\/b><\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cac_hinh_thuc_duoc_xem_nhu_la_co_quan_he_lien_ket\"><\/span><b>The forms are seen as having a relational relationship.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Pursuant to Clause 2, Article 5 of Decree 132\/2020\/ND-CP, when falling into one of the following cases, it is considered to have an affiliated relationship:<\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equity relationship: One party directly or indirectly holds 25% or more of the other party&#039;s equity, or both parties have at least 25% of equity owned by the same third party. In addition, one party is the largest shareholder holding at least 10% of the total voting shares of the other party, which is also considered an affiliate. This applies to both the charter capital of a limited liability company and the share capital of a joint stock company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial dominance relationship: One party guarantees or lends to the other party with a loan value of more than 25% of the borrower&#039;s contributed capital and at the same time accounts for more than 50% of the borrower&#039;s total medium and long-term debt. In this case, the borrower&#039;s ability to repay the debt and financial performance are significantly influenced by the lender.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dominant relationship in management or personnel: One party has the right to appoint more than half of the members of the Board of Directors, Board of Management or key management positions of the other party. Or both parties are directly managed and controlled by an individual or a group of individuals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Economic dependence relationship: One party has revenue or expenses from transactions with the other party that account for more than 50% of total revenue or total expenses during the period. For example, if company A sells most of its products to company B and revenue from B accounts for the majority of A&#039;s revenue, then the two parties are considered to have an affiliated relationship.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contractual or cooperative relationship: Two parties jointly contribute capital to a project, joint venture, business cooperation contract, or jointly share costs and profits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other forms as prescribed by law: Including relationships that do not belong to the above groups but still show significant influence, control or influence on finance, management and business according to the guidance of the Ministry of Finance or tax authorities.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"MAN_%E2%80%93_Master_Accountant_Network_Doi_tac_tin_cay_trong_quan_ly_giao_dich_lien_ket\"><\/span><b>MAN \u2013 Master Accountant Network<\/b><b>: Trusted partner in affiliate transaction management<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">MAN \u2013 Master Accountant Network (abbreviated as MAN) is proud to be a professional transfer pricing compliance consulting and support service provider, fully meeting the regulations of Decree 132\/2020\/ND-CP and international standards. With a team of experienced experts, MAN not only helps businesses accurately identify related parties and declare related party transactions, but also builds solutions to determine prices according to the principle of independent transactions, prepare standard transfer pricing documents and optimize tax strategies.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">We are committed to providing transparent, legally safe and business effective services, helping businesses feel secure in sustainable development in an integrated environment.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Please contact MAN for more detailed advice and answers on solutions for managing and declaring related transactions suitable for your business.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\"><\/span><b>Contact information: <a href=\"https:\/\/man.net.vn\/\" rel=\"nofollow noopener\" target=\"_blank\">MAN \u2013 Master Accountant Network<\/a><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li aria-level=\"1\">Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City<\/li>\n<li aria-level=\"1\">Mobile\/Zalo: 0903 963 163 \u2013 0903 428 622<\/li>\n<li aria-level=\"1\">Email: man@man.net.vn<\/li>\n<\/ul>\n<p>Content production by: Mr.\u00a0<a href=\"https:\/\/man.net.vn\/le-hoang-tuyen\/\" target=\"_blank\" rel=\"nofollow noopener\">Le Hoang Tuyen<\/a>\u00a0\u2013 Founder &amp; CEO MAN \u2013 Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.<\/p>","protected":false},"excerpt":{"rendered":"<p>Khai b\u00e1o giao d\u1ecbch li\u00ean k\u1ebft theo Ngh\u1ecb \u0111\u1ecbnh 132\/2020\/N\u0110-CP l\u00e0 m\u1ed9t trong nh\u1eefng quy \u0111\u1ecbnh tr\u1ecdng y\u1ebfu v\u1ec1 thu\u1ebf thu nh\u1eadp doanh nghi\u1ec7p. Vi\u1ec7c khai b\u00e1o giao d\u1ecbch li\u00ean k\u1ebft tu\u00e2n th\u1ee7 kh\u00f4ng ch\u1ec9 gi\u00fap doanh nghi\u1ec7p minh b\u1ea1ch h\u00f3a ho\u1ea1t \u0111\u1ed9ng kinh doanh m\u00e0 c\u00f2n b\u1ea3o v\u1ec7 kh\u1ecfi nh\u1eefng r\u1ee7i ro ph\u00e1p l\u00fd [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,12],"tags":[],"class_list":["post-1539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trung-tam-kien-thuc","category-huong-dan-thuc-hien"],"acf":[],"_links":{"self":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/1539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/comments?post=1539"}],"version-history":[{"count":12,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/1539\/revisions"}],"predecessor-version":[{"id":3233,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/1539\/revisions\/3233"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/1971"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=1539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=1539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=1539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}