{"id":2202,"date":"2025-10-03T02:39:05","date_gmt":"2025-10-03T09:39:05","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=2202"},"modified":"2025-10-07T20:46:35","modified_gmt":"2025-10-08T03:46:35","slug":"kinh-doanh-voi-chuc-nang-don-gian","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/","title":{"rendered":"Is the enterprise classified as a business with simple functions according to Decree 132\/2020\/ND-CP? How to determine the standard?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Many businesses make mistakes or make false declarations when identifying themselves as businesses with simple functions, leading to risks in the declaration and filing process. According to the regulations at <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\">Decree 132\/2020\/ND-CP<\/a>Only enterprises with simple production and business activities, do not own intangible assets, do not bear large risks and achieve a minimum profit margin are exempted from filing. <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/tong-quan-giao-dich-lien-ket-2025\/\">affiliate transactions<\/a>Understanding and correctly applying this concept is key to business safety compliance.<\/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\/kinh-doanh-voi-chuc-nang-don-gian\/#Doanh_nghiep_kinh_doanh_voi_chuc_nang_don_gian_la_gi\" >What is a simple function business?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Dac_diem_nhan_dien_doanh_nghiep_kinh_doanh_voi_chuc_nang_don_gian\" >Identifying features of a business with simple functions\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Pham_vi_hoat_dong_han_che_kinh_doanh_voi_chuc_nang_don_gian\" >Limited scope of business operations with simple functions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Khong_so_huu_hoac_khai_thac_tai_san_vo_hinh\" >Do not own or exploit intangible assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Rui_ro_kinh_doanh_thap\" >Low business risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Co_cau_tai_chinh_va_loi_nhuan_dac_thu\" >Financial structure and specific profits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Phu_thuoc_vao_ben_lien_ket\" >Depends on the affiliate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Tieu_chi_xac_dinh_doanh_nghiep_kinh_doanh_voi_chuc_nang_don_gian\" >Criteria for determining a business with simple functions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Co_so_phap_ly\" >Legal basis<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#Ket_luan\" >Conclude<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/kinh-doanh-voi-chuc-nang-don-gian\/#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><span class=\"ez-toc-section\" id=\"Doanh_nghiep_kinh_doanh_voi_chuc_nang_don_gian_la_gi\"><\/span><b>What is a simple function business?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_2204\" aria-describedby=\"caption-attachment-2204\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2204\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Khai-niem-kinh-doanh-voi-chuc-nang-don-gian.jpg\" alt=\"Kh\u00e1i ni\u1ec7m kinh doanh v\u1edbi ch\u1ee9c n\u0103ng \u0111\u01a1n gi\u1ea3n\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Khai-niem-kinh-doanh-voi-chuc-nang-don-gian.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Khai-niem-kinh-doanh-voi-chuc-nang-don-gian-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Khai-niem-kinh-doanh-voi-chuc-nang-don-gian-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Khai-niem-kinh-doanh-voi-chuc-nang-don-gian-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Khai-niem-kinh-doanh-voi-chuc-nang-don-gian-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2204\" class=\"wp-caption-text\">Business concept with simple function<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">According to Official Dispatch 579\/TCT-TTR 2018, directly responding to the case of taxpayers conducting business with simple functions, the regulations apply to taxpayers operating in the fields of production, processing, and distribution with the following conditions:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No strategic decision making function<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low value-added transactions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No inventory risk, market risk fluctuations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No revenue or operating costs are incurred from exploiting valuable intangible assets of the group and no other costs are incurred (marketing, market research, etc.).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In short, businesses that conduct business with the simple function of distributors or manufacturers, processors only perform &quot;contractual&quot; work or resell goods without participating in the process of creating, building strategies as well as exploiting and using intangible assets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A typical example is a business that does not engage in brand development, licensing of intellectual property or receive revenue from royalties.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dac_diem_nhan_dien_doanh_nghiep_kinh_doanh_voi_chuc_nang_don_gian\"><\/span><b>Identifying features of a business with simple functions\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Pursuant to Point c, Clause 2, Article 11 <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\">Decree 132\/2020\/ND-CP<\/a>, a business with a simple function is understood as a business model that only performs one or a few basic production and business activities, has a limited scope of functions, is low-risk and does not exploit or use important intangible assets. Businesses with a simple function often play the role of processing, manufacturing or providing support services for the group, parent company or affiliate, instead of being fully autonomous in all business activities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key identifying features include:\u00a0<\/span><\/p>\n<figure id=\"attachment_2205\" aria-describedby=\"caption-attachment-2205\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2205\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Dac-diem-nhan-dien-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-.jpg\" alt=\"\u0110\u1eb7c \u0111i\u1ec3m nh\u1eadn di\u1ec7n doanh nghi\u1ec7p kinh doanh v\u1edbi ch\u1ee9c n\u0103ng \u0111\u01a1n gi\u1ea3n\u00a0\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Dac-diem-nhan-dien-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Dac-diem-nhan-dien-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian--300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Dac-diem-nhan-dien-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian--1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Dac-diem-nhan-dien-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian--768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Dac-diem-nhan-dien-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian--18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2205\" class=\"wp-caption-text\">Identifying features of a business with simple functions<\/figcaption><\/figure>\n<h4><span class=\"ez-toc-section\" id=\"Pham_vi_hoat_dong_han_che_kinh_doanh_voi_chuc_nang_don_gian\"><\/span><b>Limited scope of business operations with simple functions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">When considering the scope of operations, a simple functional business will have the following characteristics:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A business only performs one step in the value chain, usually processing products, or distributing goods as directed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not involved in strategy development, marketing, research and development (R&amp;D), not product design, not responsible for strategic marketing.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Khong_so_huu_hoac_khai_thac_tai_san_vo_hinh\"><\/span><b>Do not own or exploit intangible assets<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Specifically, the characteristic of not owning intangible assets of a simple functional business enterprise is often shown through the following factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does not hold trademarks, patents, or proprietary technology.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No costs or revenues arise from the right to use intangible assets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The business relies primarily on the parent company&#039;s direction, assets and brand.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Rui_ro_kinh_doanh_thap\"><\/span><b>Low business risk<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In terms of risk, a simple functional business is often identified by the following points:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No major risks of market, price fluctuations or changes in consumer tastes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The main risks, if any, are usually limited to the costs of production, operations or order fulfillment.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Co_cau_tai_chinh_va_loi_nhuan_dac_thu\"><\/span><b>Financial structure and specific profits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In terms of financial structure and profit, simple functional businesses often have the following outstanding characteristics:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Net profit margin before deducting interest expenses and corporate income tax as prescribed by law. Specifically, distributing 51 TP3T or more; producing 101 TP3T or more and processing 151 TP3T or more.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is no large fluctuation in profit margins like in fully autonomous enterprises.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Phu_thuoc_vao_ben_lien_ket\"><\/span><b>Depends on the affiliate<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In terms of linkages, the level of dependence of a simple functional business enterprise is often shown through the following characteristics:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enterprises are often under direct control of the parent company or affiliate in terms of input (raw materials, technology) and output (customers, selling prices).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High level of dependence, almost no right to decide long-term business strategy.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It can be seen that a business with a simple function plays the role of a \u201csatellite\u201d in the supply chain, only performs limited functions, has low risks, stable profits and rarely incurs the obligation to prepare related-party transaction records if it meets the conditions. However, this characteristic also means that the business is unlikely to be able to expand or create independent added value without changing its operating model.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tieu_chi_xac_dinh_doanh_nghiep_kinh_doanh_voi_chuc_nang_don_gian\"><\/span><b>Criteria for determining a business with simple functions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Enterprises operating with simple functions are one of the conditions for determining whether an enterprise is exempt from preparing a dossier for determining related party transaction prices according to Decree 132\/2020\/ND-CP. Below is a summary table of the criteria prescribed by Decree 132\/2020\/ND-CP and tax inspection and examination practices often rely on these criteria when determining whether an enterprise is operating with simple functions.<\/span><\/p>\n<figure id=\"attachment_2206\" aria-describedby=\"caption-attachment-2206\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2206\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Tieu-chi-xac-dinh-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-theo-Nghi-dinh-132_2020_ND-CP.jpg\" alt=\"Ti\u00eau ch\u00ed x\u00e1c \u0111\u1ecbnh doanh nghi\u1ec7p kinh doanh v\u1edbi ch\u1ee9c n\u0103ng \u0111\u01a1n gi\u1ea3n theo Ngh\u1ecb \u0111\u1ecbnh 132\/2020\/N\u0110-CP\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Tieu-chi-xac-dinh-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-theo-Nghi-dinh-132_2020_ND-CP.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Tieu-chi-xac-dinh-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-theo-Nghi-dinh-132_2020_ND-CP-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Tieu-chi-xac-dinh-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-theo-Nghi-dinh-132_2020_ND-CP-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Tieu-chi-xac-dinh-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-theo-Nghi-dinh-132_2020_ND-CP-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/10\/Tieu-chi-xac-dinh-doanh-nghiep-kinh-doanh-voi-chuc-nang-don-gian-theo-Nghi-dinh-132_2020_ND-CP-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2206\" class=\"wp-caption-text\">Criteria for determining businesses with simple functions according to Decree 132\/2020\/ND-CP<\/figcaption><\/figure>\n<p><b>Board<\/b><span style=\"font-weight: 400;\">Criteria for determining a business with simple functions<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><b>Criteria<\/b><\/td>\n<td style=\"text-align: center;\"><b>Explain<\/b><\/td>\n<td style=\"text-align: center;\"><b>Base<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Revenue and expenses mainly come from pure processing, production and distribution activities.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">An enterprise is considered to be a simple-function business when the majority of its business activities (and correspondingly the majority of its revenue and expenses) arise from \u201cpurely functional\u201d activities such as processing, assembling, authorized distribution, providing operational or support services without engaging deeply in strategic value creation stages (research and development, design, strategic marketing, market pricing, etc.). The Decree requires a clear classification of each activity to determine whether it falls under the category of \u201csimple functions\u201d or not.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Separate revenue and expenses by contract code to determine % net revenue from processing or distribution activities compared to total revenue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check contracts (purchase orders, processing or commission contracts), instructions from affiliates to demonstrate simple function performance.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">No competitive advantage arises or no ownership or exploitation of intangible assets.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A business enterprise with a simple function that does not create or exploit value from intangible assets (trademarks, patents, proprietary technology, strong brands) has no costs or revenues directly related to the licensing of intangible assets (e.g., royalties, technology commercialization fees). If there are signs of ownership or exploitation of intangible assets, the enterprise is usually considered to have a more complex function and is not exempt.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Copyright transfer or license agreement, invoice or royalty fee<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Patents, intellectual property, proprietary technology,\u2026<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Revenue depends largely on branding\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the above factors are present, the business is not considered to be a simple business.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Net profit margin<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Decree 132\/2020\/ND-CP stipulates that enterprises operating with simple functions that want to be exempted from preparing a dossier to determine the price of related-party transactions must achieve a net profit margin (calculated on net revenue, <\/span><span style=\"font-weight: 400;\">excluding interest expenses and corporate income tax<\/span><span style=\"font-weight: 400;\">) minimum according to each type of industry function. If this ratio is not applied or not achieved, the enterprise must prepare a dossier to determine the price of related-party transactions.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rate according to Decree:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Distribution from 5% and above<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Production from 10% or more<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Processing from 15% and up\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>For example:<\/strong> Enterprise A processes 01 batch of shoes and sandals according to the order of Company B (parent company) with net revenue of 100 million and net profit before interest of 15 million. At that time, the ratio reaches 15% according to regulations. Determine A to operate with simple functions.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Thus, to be recognized as a simple functional business enterprise, an enterprise needs to simultaneously satisfy all three groups of criteria:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scope of business activities is mainly &quot;purely functional&quot;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do not own or exploit intangible assets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain the minimum profit margin as prescribed in Decree 132\/2020\/ND-CP.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0Fully meeting these conditions not only helps businesses be transparent in declaring related-party transactions but also opens up important benefits such as being exempted from preparing a Transfer Pricing Document, reducing compliance burden and limiting tax risks during inspection and examination.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Co_so_phap_ly\"><\/span><b>Legal basis<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Decree 132\/2020\/ND-CP provides a legal framework for tax management for enterprises with related-party transactions, clearly regulating cases where taxpayers conduct business with simple functions. Accordingly, the Decree allows exemption from preparing a dossier to determine the price of related-party transactions for enterprises that simultaneously satisfy the following conditions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total annual revenue under 200 billion (not including revenue from exploitation and use of intangible assets)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No inventory risk, no costs (such as marketing, market research and development, etc.), no participation in strategic decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimum net profit margin (excluding interest expenses and corporate income tax) by sector, specifically: distribution from 5% or more, production from 10% or more and processing from 15% or more<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This provision is intended to reduce the compliance burden for enterprises with a \u201cpurely functional\u201d role, i.e., mainly performing processing, distribution or support services under the direction of related parties, not creating or exploiting intangible assets and bearing little commercial risk. If an enterprise meets the above conditions, the tax authority will not require the preparation of a complete Transfer Pricing Document.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if a business claims to be doing simple business but does not reach the prescribed profit margin or has evidence of owning or creating intangible assets, the tax authority has the right to request the preparation of records or make adjustments and determinations according to the principle of independent transactions. Therefore, keeping internal records, analyzing functions, and profit figures for each activity is mandatory even if exempted from preparing records.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It can be seen that enterprises correctly identifying themselves as belonging to a simple functional business group not only helps reduce the pressure of preparing related-party transaction records but also creates conditions for enterprises to focus on core activities. However, to maintain this benefit, enterprises need to strictly manage profit margins, be transparent in classifying functions and fully store documents. Careful preparation will be a &quot;shield&quot; to protect enterprises from legal risks and unnecessary costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your business wants to review the conditions or needs support in building a simple functional business identification profile, please contact us immediately. <a href=\"https:\/\/man.net.vn\" rel=\"nofollow noopener\" target=\"_blank\">MAN \u2013 Master Accountant Network<\/a> for timely advice, ensuring compliance and optimizing tax obligations safely\u00a0<\/span><\/p>\n<h3><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 style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Address: 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mobile\/ Zalo: +84 (0) 903 428 622 (Ms. Ngan)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">E-mail: <\/span><a href=\"mailto:nguyenthikimngan@man.net.vn\"><span style=\"font-weight: 400;\">nguyenthikimngan@man.net.vn<\/span><\/a><\/li>\n<\/ul>\n<p style=\"text-align: right;\"><b>Editorial Board: MAN \u2013 Master Accountant Network<\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>Kh\u00f4ng \u00edt doanh nghi\u1ec7p nh\u1ea7m l\u1eabn ho\u1eb7c khai b\u00e1o sai khi x\u00e1c \u0111\u1ecbnh m\u00ecnh thu\u1ed9c di\u1ec7n kinh doanh v\u1edbi ch\u1ee9c n\u0103ng \u0111\u01a1n gi\u1ea3n, d\u1eabn \u0111\u1ebfn r\u1ee7i ro trong qu\u00e1 tr\u00ecnh k\u00ea khai v\u00e0 l\u1eadp h\u1ed3 s\u01a1. Theo quy \u0111\u1ecbnh t\u1ea1i Ngh\u1ecb \u0111\u1ecbnh 132\/2020\/N\u0110-CP, ch\u1ec9 nh\u1eefng doanh nghi\u1ec7p c\u00f3 ho\u1ea1t \u0111\u1ed9ng s\u1ea3n xu\u1ea5t &#8211; kinh doanh [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2202","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/comments?post=2202"}],"version-history":[{"count":2,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2202\/revisions"}],"predecessor-version":[{"id":2261,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2202\/revisions\/2261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/2203"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=2202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=2202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=2202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}