{"id":2579,"date":"2025-12-05T02:38:00","date_gmt":"2025-12-05T09:38:00","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=2579"},"modified":"2025-12-11T02:58:18","modified_gmt":"2025-12-11T09:58:18","slug":"phu-luc-giao-dich-lien-ket","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/","title":{"rendered":"80% Enterprise has incorrect Appendix to Related Party Transactions"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The related-party transaction appendix is the first risk &quot;touchpoint&quot; that tax authorities consider when assessing signs of transfer pricing by businesses. In the context of stricter regulations under Decree 132\/2020\/ND-CP and the OECD&#039;s BEPS standards, any errors in declaration can trigger in-depth tax audits. With increasingly stringent tax management against transfer pricing under OECD (Organization for Economic Cooperation and Development) standards, understanding, accurately declaring, and managing risks related to the related-party transaction appendix becomes a vital requirement for all organizations that conduct transactions with related parties.<\/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\/phu-luc-giao-dich-lien-ket\/#Tam_quan_trong_cua_tuan_thu_giao_dich_lien_ket\" >The importance of compliance with related party transaction regulations.<\/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\/phu-luc-giao-dich-lien-ket\/#Tai_sao_Phu_luc_giao_dich_lien_ket_la_%E2%80%9CTai_lieu_rui_ro_cao%E2%80%9D_trong_Quan_ly_thue\" >Why is the Related Party Transaction Appendix considered a \u201cHigh-Risk Document\u201d in Tax Administration?\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Co_so_Phap_ly_cot_loi_va_khai_niem_nen_tang\" >Core legal basis and foundational concepts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Chi_tiet_cac_Ben_lien_ket_theo_Nghi_dinh_1322020ND-CP\" >Details of Affiliated Parties as per Decree 132\/2020\/ND-CP<\/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\/phu-luc-giao-dich-lien-ket\/#The_nao_la_giao_dich_lien_ket\" >What are related-party transactions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Quy_dinh_ve_Mien_tru_ke_khai\" >Regulations on Exemption from Filing\u00a0<\/a><\/li><\/ul><\/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\/phu-luc-giao-dich-lien-ket\/#Chi_tiet_cac_phan_trong_Phu_luc_giao_dich_lien_ket_buoc_ke_khai\" >Details of the sections in the Appendix on Required Disclosure of Related Party Transactions<\/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\/phu-luc-giao-dich-lien-ket\/#Phu_luc_giao_dich_lien_ket_Mau_01GDLK\" >Appendix to Related Party Transactions Form 01\/GDLK\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Muc_I_Thong_tin_cac_ben_lien_ket\" >Section I: Information of related parties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Muc_II_Cac_truong_hop_duoc_mien_nghia_vu_ke_khai_mien_tru_nop_Ho_so_xac_dinh_gia\" >Section II: Cases exempt from the obligation to declare and submit price determination documents.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Muc_III_Thong_tin_xac_dinh_gia_giao_dich_lien_ket\" >Section III: Information on determining transfer pricing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Muc_IV_Ket_qua_hoat_dong_kinh_doanh\" >Section IV: Business Performance Results<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Chien_luoc_tuan_thu_thue_va_quan_ly_rui_ro\" >Tax compliance and risk management strategy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Tu_dieu_chinh_va_xac_dinh_lai_gia\" >Self-adjusting and resetting prices\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#Quan_ly_rui_ro_chi_phi_lai_vay\" >Managing interest expense risk\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-giao-dich-lien-ket\/#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-17\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/phu-luc-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><span class=\"ez-toc-section\" id=\"Tam_quan_trong_cua_tuan_thu_giao_dich_lien_ket\"><\/span><b>The importance of compliance with related party transaction regulations.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Transfer pricing is a central issue in international tax administration. Vietnam, through the issuance of Decree 132\/2020\/ND-CP, has demonstrated alignment with the OECD&#039;s Base Erosion and Profit Shifting Action Plan (BEPS Actions). The core objective is to ensure that profits are allocated to where real economic value is created.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The related-party transaction appendix (including forms 01, 02, and 03) is an integral part of the Related-Party Transaction Pricing Documentation and is submitted with the Corporate Income Tax Return Form No. 03\/TNDN. This declaration helps the tax authorities gain an overview of the value chain and potential transfer pricing risks of the enterprise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The purpose of this article is to provide practical guidance based on Decree 132\/2020\/ND-CP and related documents to help businesses prepare related-party transaction appendices accurately and optimally.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tai_sao_Phu_luc_giao_dich_lien_ket_la_%E2%80%9CTai_lieu_rui_ro_cao%E2%80%9D_trong_Quan_ly_thue\"><\/span><b>Why is the Related Party Transaction Appendix considered a \u201cHigh-Risk Document\u201d in Tax Administration?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many businesses often confuse submitting the Transfer Pricing Appendix with completing the full Transfer Pricing Documentation (Master File and Local File).<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Related Party Transaction Appendix (Forms 01, 02, 03): This is a mandatory annual summary report that must be submitted publicly. It is the first review tool used by the tax authorities. Errors in the Related Party Transaction Appendix will immediately trigger a tax audit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pricing documentation: This is a set of documents proving the independence of the transaction price. It only needs to be prepared and stored at the business and submitted when requested by the Tax Authority.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If a business fails to submit or submits the related-party transaction appendix late, it may face administrative penalties ranging from VND 8 million to VND 25 million as stipulated in Articles 19 and 20 of Decree 125\/2020\/ND-CP. In addition, it may be subject to tax recovery, tax assessment, and late payment penalties if transfer pricing is found.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Co_so_Phap_ly_cot_loi_va_khai_niem_nen_tang\"><\/span><b>Core legal basis and foundational concepts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_2581\" aria-describedby=\"caption-attachment-2581\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2581\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-so-phap-ly-nen-tang-cho-Phu-luc-giao-dich-lien-ket.jpg\" alt=\"C\u01a1 s\u1edf ph\u00e1p l\u00fd n\u1ec1n t\u1ea3ng cho Ph\u1ee5 l\u1ee5c giao d\u1ecbch li\u00ean k\u1ebft\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-so-phap-ly-nen-tang-cho-Phu-luc-giao-dich-lien-ket.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-so-phap-ly-nen-tang-cho-Phu-luc-giao-dich-lien-ket-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-so-phap-ly-nen-tang-cho-Phu-luc-giao-dich-lien-ket-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-so-phap-ly-nen-tang-cho-Phu-luc-giao-dich-lien-ket-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-so-phap-ly-nen-tang-cho-Phu-luc-giao-dich-lien-ket-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2581\" class=\"wp-caption-text\">The legal basis for the Related Party Transactions Annex<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Based on the established legal framework and fundamental concepts, the next step is to look at the most important regulatory framework currently in place: Decree 132\/2020\/ND-CP \u2013 the document governing all activities related to the declaration and management of related-party transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The core principle for filling out the Related Party Transaction Appendix is the Arm&#039;s Length Principle. This principle states that transactions between related parties must be conducted at the same price and under the same conditions as transactions between independent parties under the same conditions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Accurately identifying the Related Party is the first and most important step when preparing a related-party transaction addendum.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_tiet_cac_Ben_lien_ket_theo_Nghi_dinh_1322020ND-CP\"><\/span><b>Details of Affiliated Parties as per Decree 132\/2020\/ND-CP<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_2582\" aria-describedby=\"caption-attachment-2582\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2582\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Chi-tiet-cac-Ben-lien-ket-trong-Phu-luc-giao-dich-lien-ket.jpg\" alt=\"Chi ti\u1ebft c\u00e1c B\u00ean li\u00ean k\u1ebft trong Ph\u1ee5 l\u1ee5c giao d\u1ecbch li\u00ean k\u1ebft\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Chi-tiet-cac-Ben-lien-ket-trong-Phu-luc-giao-dich-lien-ket.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Chi-tiet-cac-Ben-lien-ket-trong-Phu-luc-giao-dich-lien-ket-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Chi-tiet-cac-Ben-lien-ket-trong-Phu-luc-giao-dich-lien-ket-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Chi-tiet-cac-Ben-lien-ket-trong-Phu-luc-giao-dich-lien-ket-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Chi-tiet-cac-Ben-lien-ket-trong-Phu-luc-giao-dich-lien-ket-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2582\" class=\"wp-caption-text\">Details of the Related Parties are in the Related Parties Appendix.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Based on Clause 2, Article 5 of Decree 132\/2020\/ND-CP, the related party relationship is defined in detail in the following 11 cases. Accurately identifying these cases is the first and most important step when preparing the Appendix on related party transactions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An enterprise directly or indirectly holds at least 25% of the equity of the owner of the other enterprise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Both enterprises have at least 25% of owner&#039;s equity held directly or indirectly by a third party.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One business is the largest shareholder in terms of owner&#039;s equity and directly or indirectly holds at least 10% of the total owner&#039;s equity of the other business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A business guarantees or lends money to another business on the condition that the loan accounts for more than 50% of the total value of the borrower&#039;s assets, and that the loan accounts for more than 50% of the borrower&#039;s total medium and long-term debt (excluding loans from credit institutions).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One party appoints over 50% the total number of members of the executive body or those authorized to decide on the financial and business policies of the other party.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two businesses share more than one board member or have the same individual or organization with the authority to make decisions on financial and business policies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two businesses are managed or controlled in terms of personnel, finance, and business operations by an individual through that individual&#039;s ownership of capital or direct involvement in management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The two businesses have a family relationship (husband, wife, father, mother, child, brother, sister) between the Director\/CEO of one business and the Director\/CEO of the other business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two businesses are controlled by one or more individuals through the joint ownership of shares\/capital contributions by those individuals, and this controlling percentage exceeds the 50% equity capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The business has transactions with individuals\/organizations that are directly or indirectly related to the operation, control, or have a significant influence on the decision-making of the business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An affiliated relationship arises when a business transfers capital contributions from 25% or borrows\/lends capital contributions from 10% to an individual who manages, controls, or is classified as an affiliated entity according to regulations.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">After clearly identifying related parties as stipulated in Decree 132\/2020\/ND-CP, the next step is to accurately understand the nature of related-party transactions, i.e., transactions arising between entities with related relationships that may affect the tax obligations of the enterprise.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_nao_la_giao_dich_lien_ket\"><\/span><b>What are related-party transactions?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">According to Decree 132\/2020\/ND-CP of the Government on tax administration, related party transactions are understood as transactions arising in the production and business process between related parties. Related party relationships here are relationships in which one party has the ability to dominate, control or significantly influence the conditions, policies or business results of the other party.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Related transactions may include the following types of transactions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buying and selling goods, providing and using services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Borrowing, lending, financial guarantee activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchase or transfer of fixed assets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transfer of intellectual property and technology.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allocation of costs or profits among related parties.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">After understanding what related-party transactions are and how to identify them according to Decree 132, the next step for businesses is to grasp the cases exempt from declaration. This mechanism helps reduce the burden of documentation but only applies when all legal conditions are met.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quy_dinh_ve_Mien_tru_ke_khai\"><\/span><b>Regulations on Exemption from Filing\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Decree 132\/2020\/ND-CP provides conditions for exemption from preparing a Price Determination Dossier, but does not exempt the submission of the Related Party Transaction Appendix Form No. 01.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cases where a price determination report is waived but must still be submitted. <\/span><b>Related Party Transaction Appendix<\/b><span style=\"font-weight: 400;\"> Form 01, includes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are related party transactions but the total revenue in the tax period is less than VND 50 billion\/year and the total value of all related party transactions arising in the period is less than VND 30 billion\/year.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Signed an advance pricing agreement (APA) according to Circular 201\/2013\/TT-BTC;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses operate with a simple function (production based on orders, therefore not subject to inventory risk). Furthermore, they do not incur any operating costs. In addition, they must have annual revenue below VND 200 billion (excluding revenue from the exploitation and use of intangible assets such as royalties), and meet the EBIT requirements of each industry: Distribution industry: 51 units of 3T or more; Manufacturing industry: 101 units of 3T or more; Processing industry: 151 units of 3T or more.<\/span><\/li>\n<\/ul>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Even if exempt from filing, businesses are still required to prepare and submit the Related Party Transaction Appendix Form 01 as prescribed.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chi_tiet_cac_phan_trong_Phu_luc_giao_dich_lien_ket_buoc_ke_khai\"><\/span><b>Details of the sections in the Appendix on Required Disclosure of Related Party Transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This section provides a detailed analysis and guidance on how to fill out the most important related-party transactions that must be submitted with the Corporate Income Tax Return.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phu_luc_giao_dich_lien_ket_Mau_01GDLK\"><\/span><b>Appendix to Related Party Transactions Form 01\/GDLK<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_2583\" aria-describedby=\"caption-attachment-2583\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2583\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Phu-luc-giao-dich-lien-ket-Mau-01_GDLK.jpg\" alt=\"Ph\u1ee5 l\u1ee5c giao d\u1ecbch li\u00ean k\u1ebft M\u1eabu 01_GDLK\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Phu-luc-giao-dich-lien-ket-Mau-01_GDLK.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Phu-luc-giao-dich-lien-ket-Mau-01_GDLK-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Phu-luc-giao-dich-lien-ket-Mau-01_GDLK-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Phu-luc-giao-dich-lien-ket-Mau-01_GDLK-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Phu-luc-giao-dich-lien-ket-Mau-01_GDLK-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2583\" class=\"wp-caption-text\">Appendix to Related Party Transactions Form 01_GDLK<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The Related Party Transaction Appendix Form 01 provides an overview of the structure of related parties, types of transactions, and transaction values. This serves as the basis for tax authorities to determine the scale and level of transfer pricing risk of the enterprise.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Muc_I_Thong_tin_cac_ben_lien_ket\"><\/span><b>Section I: Information of related parties<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In Section I, businesses need to fill in the following information:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Affiliate Name<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nation\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax code\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Type of affiliated relationship: Businesses need to clearly identify the Affiliated Party according to the specific case in the 11 cases mentioned above (corresponding to A, B, C, D, E, G, H, I, K, L on the system).<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Muc_II_Cac_truong_hop_duoc_mien_nghia_vu_ke_khai_mien_tru_nop_Ho_so_xac_dinh_gia\"><\/span><b>Section II: Cases exempt from the obligation to declare and submit price determination documents.\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Section II: Businesses must clearly identify whether they are exempt from the obligation to declare or submit Transfer Pricing Documentation. If the business meets one of the exemption conditions under the Decree, select the box corresponding to its exemption condition.<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> If both businesses are subject to the same corporate income tax rate (20%), neither party will be eligible for corporate income tax incentives.<\/span><\/p>\n<p><b>If the business qualifies for this exemption, it only needs to declare in Sections I and II.<\/b><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Muc_III_Thong_tin_xac_dinh_gia_giao_dich_lien_ket\"><\/span><b>Section III: Information on determining transfer pricing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Section III of Form 01, Appendix on Related-Party Transactions, is where businesses report on how they have applied the independence principle, which pricing methods they have used, and the results of their price analysis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Choosing a Pricing Method: Businesses must explain their choice of method. Five main accepted methods include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CUP (Comparable Uncontrolled Price).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">RPM (Resale Price Method).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CPM (Cost Plus Method).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TNMM (Transactional Net Margin Method).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">PSM (Profit Split Method).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, if the company is a contract manufacturer, the net profit margin method is typically chosen to compare net profit margin on costs. This choice must be explained in detail in the pricing documentation and summarized in the Related Party Transactions Appendix, Section III.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Muc_IV_Ket_qua_hoat_dong_kinh_doanh\"><\/span><b>Section IV: Business Performance Results<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This section details the transaction values that occurred during the period. These values must match the corresponding accounts on the Financial Statements and the Corporate Income Tax Return.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fees for buying or selling goods or services: Clearly state the total value of the purchase and sale.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest expense or interest payments: This related-party transaction appendix must record the total amount of interest expense incurred. Disclosing interest expense in this section is the first step in subsequently applying the 30% EBITDA limit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other expenses include royalties, administrative fees, or loans\/borrowings. Businesses need to ensure these expenses are fully documented with invoices, receipts, and clear service contracts, adhering to the principle of &quot;actual benefit&quot;.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Providing complete and accurate information in the Related Party Transaction Appendix Form 01 is a stepping stone to ensuring transparency and compliance.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chien_luoc_tuan_thu_thue_va_quan_ly_rui_ro\"><\/span><b>Tax compliance and risk management strategy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It&#039;s not just about filling it out. <\/span><b>Related Party Transaction Appendix<\/b><span style=\"font-weight: 400;\"> Instead of mechanically managing risks, businesses need proactive strategies to optimize tax compliance.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tu_dieu_chinh_va_xac_dinh_lai_gia\"><\/span><b>Self-adjusting and resetting prices<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Article 13 of Decree 132\/2020\/ND-CP provides a flexible mechanism allowing enterprises to adjust their transfer pricing to bring their profit margins within an independent range, thereby minimizing the risk of being subject to tax recovery.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Self-adjustment mechanism for increasing taxable income: If a company&#039;s profit margin is lower than the median (P50) or the independent range, the company must adjust its taxable income upwards. This mechanism protects the company from penalties for transfer pricing. This must be reflected in the related-party transaction appendix and the tax return.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Income Reduction Adjustment: A rare case where a reduction adjustment is permitted is when the tax authorities have already audited and issued a tax assessment decision for the foreign affiliated party, and this reduction adjustment does not reduce taxable income in Vietnam.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quan_ly_rui_ro_chi_phi_lai_vay\"><\/span><b>Managing interest expense risk<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Regulations limiting interest expense are a major risk for corporations with thin financial structures.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The limit: The total interest expense after deducting interest on deposits and loans incurred during the period of the enterprise that is deductible for corporate income tax purposes must not exceed 30% of the total net profit from business operations during the period (EBITDA).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Management strategy:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses need to closely monitor their EBITDA on a quarterly basis.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If interest expense exceeds the 30% EBITDA threshold, the excess amount will not be deductible for corporate income tax purposes, although it may still be subject to deductions. <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/ke-khai-giao-dich-lien-ket\/\">Declare related-party transactions.<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This non-deductible portion of interest expense can be carried forward to the next tax period for up to five consecutive years. This is an important point to note in order to optimize tax benefits.<\/span><\/li>\n<\/ul>\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;\">In the context of increasingly stringent transfer pricing regulations by tax authorities, even minor errors in declaring related-party transactions can cost businesses dearly: tax assessments, back taxes for many years, late payment penalties, and even comprehensive audits. Many businesses face risks due to seemingly insignificant errors such as incorrectly identifying related-party relationships, omitting transactions, or inconsistent figures with financial statements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is why businesses need to thoroughly and properly review their related party records right from the start. Contact MAN \u2013 Master Accountant Network for timely advice and support.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take proactive steps before risks arise; start reviewing your affiliate transaction history today!<\/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 MAN \u2013 Master Accountant Network<\/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: No. 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: 0903 963 163 \u2013 0903 428 622<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Email: man@man.net.vn<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Content production by: Mr. <\/span><a href=\"https:\/\/man.net.vn\/le-hoang-tuyen\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Le Hoang Tuyen<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 Founder and CEO of MAN \u2013 Master Accountant Network, CPA Vietnam with over 30 years of experience in accounting, auditing, and financial consulting.<\/span><\/p>\n<p style=\"text-align: right;\"><b>Editorial Board of MAN \u2013 Master Accountant Network<\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>Ph\u1ee5 l\u1ee5c giao d\u1ecbch li\u00ean k\u1ebft l\u00e0 \u201c\u0111i\u1ec3m ch\u1ea1m\u201d r\u1ee7i ro \u0111\u1ea7u ti\u00ean m\u00e0 c\u01a1 quan thu\u1ebf xem x\u00e9t khi \u0111\u00e1nh gi\u00e1 d\u1ea5u hi\u1ec7u chuy\u1ec3n gi\u00e1 c\u1ee7a doanh nghi\u1ec7p. Trong b\u1ed1i c\u1ea3nh quy \u0111\u1ecbnh si\u1ebft ch\u1eb7t theo Ngh\u1ecb \u0111\u1ecbnh 132\/2020\/N\u0110-CP v\u00e0 chu\u1ea9n BEPS c\u1ee7a OECD, m\u1ecdi sai s\u00f3t trong k\u00ea khai \u0111\u1ec1u c\u00f3 th\u1ec3 k\u00edch [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2579","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\/2579","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=2579"}],"version-history":[{"count":2,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2579\/revisions"}],"predecessor-version":[{"id":2649,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2579\/revisions\/2649"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/2580"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=2579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=2579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=2579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}