{"id":3044,"date":"2026-03-02T20:13:10","date_gmt":"2026-03-03T03:13:10","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=3044"},"modified":"2026-03-03T18:38:44","modified_gmt":"2026-03-04T01:38:44","slug":"giao-dich-lien-ket-khi-nhap-tscd","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/","title":{"rendered":"Related-party transactions when importing fixed assets from the parent company: Guide to safe tax handling."},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Before delving into a detailed analysis of the legal regulations, this article focuses on addressing a typical situation at a foreign direct investment (FDI) enterprise as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Parties involved: Company A (Export Processing Enterprise in Vietnam) and Parent Company B (Singapore).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Current debt situation: A owes B an accumulated goods debt of approximately $1.6 million USD and is making monthly offsetting payments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transaction occurred as follows: In 2026, Company A imported fixed assets worth USD 80,000 from China. However, Company B directly signed the contract and made the payment on behalf of Company A to the supplier in China.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company&#039;s objective: Company A wants to record an increase in fixed assets, depreciate them, and pay Company B by offsetting the debt (or converting it into an interest-bearing loan) to optimize costs without generating immediate cash flow.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Related-party transactions involving the import of fixed assets from the parent company are becoming a hot topic for tax audits in FDI and export processing enterprises (EPEs). Many businesses find themselves in a situation where the parent company signs contracts and makes payments to foreign suppliers, then offsets the debt or converts it into an internal loan without fully assessing the risks regarding asset ownership, depreciation conditions, interest expense limits under Decree 132\/2020\/ND-CP, and contractor tax obligations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In reality, even a small error in the structure of a contract or import document can lead to the disallowance of all depreciation expenses, the inability to deduct interest expenses, or the reassessment of related-party transaction prices during tax settlement. Let&#039;s analyze and explore this further with MAN \u2013 Master Accountant Network.<\/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\/giao-dich-lien-ket-khi-nhap-tscd\/#Ban_chat_phap_ly_cua_giao_dich_lien_ket_khi_nhap_TSCD_tu_cong_ty_me\" >The legal nature of related-party transactions when importing fixed assets from the parent company.<\/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\/giao-dich-lien-ket-khi-nhap-tscd\/#Xac_dinh_quan_he_lien_ket\" >Identify the relationship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Van_de_so_huu_tai_san_Diem_mau_chot_de_tinh_khau_hao\" >The issue of asset ownership: A key point for calculating depreciation.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Rui_ro_thue_thu_nhap_doanh_nghiep_va_chi_phi_khong_duoc_tru\" >Risks related to corporate income tax and non-deductible expenses.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Nguy_co_loai_tru_chi_phi_khau_hao\" >Risk of excluding depreciation expense<\/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\/giao-dich-lien-ket-khi-nhap-tscd\/#Van_de_can_tru_cong_no\" >The issue of offsetting debts.<\/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\/giao-dich-lien-ket-khi-nhap-tscd\/#Chuyen_doi_cong_no_thanh_khoan_vay_Giai_phap_hay_%E2%80%9CCon_dao_hai_luoi%E2%80%9D\" >Converting debt into loans: A solution or a &quot;double-edged sword&quot;?<\/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\/giao-dich-lien-ket-khi-nhap-tscd\/#Khong_che_lai_vay_theo_Nghi_dinh_132_EBITDA_30\" >Interest rate cap under Decree 132 (EBITDA 30%)<\/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\/giao-dich-lien-ket-khi-nhap-tscd\/#Nghia_vu_Thue_nha_thau_FCT_va_Hiep_dinh_tranh_danh_thue_hai_lan\" >Contractor Tax (FCT) obligations and Double Taxation Avoidance Agreements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Thu_tuc_voi_Ngan_hang_Nha_nuoc\" >Procedures with the State Bank of Vietnam<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Lap_Ho_so_xac_dinh_gia_Giao_dich_lien_ket\" >Prepare a Transfer Pricing Documentation File.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Phuong_an_xu_ly_truong_hop\" >Proposed solution for the case.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Phat_sinh_thue_nha_thau_FCT_doi_voi_lai_tra_cho_to_chuc_nuoc_ngoai_Singapore\" >Foreign Contractor Tax (FCT) arises from interest payments to foreign organizations in Singapore.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Doi_tuong_chiu_thue_va_muc_thue_suat\" >Taxable subjects and tax rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Thoi_diem_phat_sinh_nghia_vu_thue_khi_can_tru_cong_no\" >The time at which tax obligations arise when offsetting debts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Cach_tinh_thue_FCT\" >How to calculate FCT tax\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#Hiep_dinh_danh_thue_hai_lan_DTA\" >Double Taxation Agreement (DTA)<\/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-18\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#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-19\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-khi-nhap-tscd\/#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=\"Ban_chat_phap_ly_cua_giao_dich_lien_ket_khi_nhap_TSCD_tu_cong_ty_me\"><\/span><b>The legal nature of related-party transactions when importing fixed assets from the parent company.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To properly assess risks and choose appropriate solutions, it is first necessary to clarify the legal nature of related-party transactions when acquiring fixed assets from the parent company. Correctly identifying the related-party relationship and asset ownership will be the foundation for determining whether the enterprise can recognize the fixed assets, depreciate them, and account for expenses legitimately. Below are the core legal factors that need detailed analysis.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Xac_dinh_quan_he_lien_ket\"><\/span><b>Identify the relationship<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">According to Clause 2, Article 5 of Decree 132\/2020\/ND-CP, Company A and Company B are considered related parties when:<\/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 businesses are directly or indirectly controlled by a third party (parent company-subsidiary model).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Therefore, all transactions involving the purchase and sale of assets, payments made on behalf of others, or loans between A and B are considered related-party transactions and are subject to strict regulation by the Tax authorities to combat transfer pricing.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Van_de_so_huu_tai_san_Diem_mau_chot_de_tinh_khau_hao\"><\/span><b>The issue of asset ownership: A key point for calculating depreciation.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In reality, many businesses mistakenly believe that they can depreciate assets simply because they are located at their factory. However, according to Circular 45\/2013\/TT-BTC, assets can only be depreciated and deducted as expenses if the business can prove ownership.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case where Company B (Singapore) is the party contracting with the Chinese supplier and directly making the payment, legally, the initial ownership belongs to B. If Company A records the increase in fixed assets and depreciates them without a contract transferring ownership from B to A (internal sales contract or asset transfer agreement), the risk of the tax authorities disallowing the entire depreciation expense is very high.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Rui_ro_thue_thu_nhap_doanh_nghiep_va_chi_phi_khong_duoc_tru\"><\/span><b>Risks related to corporate income tax and non-deductible expenses.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_3046\" aria-describedby=\"caption-attachment-3046\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3046\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me.jpg\" alt=\"R\u1ee7i ro thu\u1ebf thu nh\u1eadp doanh nghi\u1ec7p trong giao d\u1ecbch li\u00ean k\u1ebft khi nh\u1eadp TSC\u0110 t\u1eeb c\u00f4ng ty m\u1eb9\" width=\"1200\" height=\"675\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-300x169.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1024x576.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-768x432.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-3046\" class=\"wp-caption-text\">Corporate income tax risks in related-party transactions when importing fixed assets from the parent company.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Tax authorities typically assess based on legal documentation, cash flow, and the actual economic nature of the transaction. If the related-party transaction structure when acquiring fixed assets from the parent company is not properly designed from the outset, the business may face the risk of having depreciation expenses disallowed, interest expense deductions not allowed, or asset valuations being reassessed. Below are the key risks that businesses need to pay particular attention to:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Nguy_co_loai_tru_chi_phi_khau_hao\"><\/span><b>Risk of excluding depreciation expense<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For an asset to be recognized as a fixed asset of Company A, the documentation must ensure continuity and legality:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contract: A sales contract between B and A, or an agreement for B to purchase\/pay on behalf of A (where A is the ultimate owner).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customs documents: The import declaration form must clearly state Company A as the importer and beneficiary. Note the &quot;Exporter&quot; and &quot;Payment Method&quot; sections on the declaration form.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment documentation: There must be actual cash flow or a valid set of debt offsetting documents between A and B (contrasting with the amount B has paid to the Chinese side).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If any of these elements are missing, the related-party transaction when importing fixed assets from the parent company will be considered a form of &quot;asset leasing&quot; or &quot;asset borrowing,&quot; in which case A will not be allowed to deduct depreciation expenses.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Van_de_can_tru_cong_no\"><\/span><b>The issue of offsetting debts.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Since Company A owes Company B $1.6 million, importing additional assets worth $80,000 and offsetting the debt is a reasonable economic transaction. However, according to Corporate Income Tax and Value Added Tax regulations, debt offsetting must:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This is clearly stipulated in the original contract or its addendum.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are periodic (monthly\/quarterly) accounts receivable reconciliation statements signed by both parties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For export processing enterprises, even though they are not subject to VAT on imported goods, the offsetting process must still be transparent to prevent the tax authorities from reassessing the value of assets.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Chuyen_doi_cong_no_thanh_khoan_vay_Giai_phap_hay_%E2%80%9CCon_dao_hai_luoi%E2%80%9D\"><\/span><b>Converting debt into loans: A solution or a &quot;double-edged sword&quot;?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_3047\" aria-describedby=\"caption-attachment-3047\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3047\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1.jpg\" alt=\"R\u1ee7i ro thu\u1ebf thu nh\u1eadp doanh nghi\u1ec7p trong giao d\u1ecbch li\u00ean k\u1ebft khi nh\u1eadp TSC\u0110 t\u1eeb c\u00f4ng ty m\u1eb9\" width=\"1200\" height=\"675\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1-300x169.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1-1024x576.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1-768x432.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/03\/Rui-ro-thue-thu-nhap-doanh-nghiep-trong-giao-dich-lien-ket-khi-nhap-TSCD-tu-cong-ty-me-1-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-3047\" class=\"wp-caption-text\">Corporate income tax risks in related-party transactions when importing fixed assets from the parent company.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">To address the problem of mounting debt, many businesses choose to create a loan agreement for this $80,000 asset.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Khong_che_lai_vay_theo_Nghi_dinh_132_EBITDA_30\"><\/span><b>Interest rate cap under Decree 132 (EBITDA 30%)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is the most important regulation. According to Clause 3, Article 16 of Decree 132\/2020\/ND-CP: The total deductible interest expense shall not exceed 30% of EBITDA.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Risk: If Company A is operating at a loss, its EBITDA will be low or negative, resulting in the entire interest expense paid to B being disallowed as a deductible expense.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Note: Any interest not deductible this year will be carried forward to the next period, but not exceeding 5 years.<\/span><\/li>\n<\/ul>\n<blockquote><p><b>Reference:<\/b> <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/chi-phi-lai-vay-trong-giao-dich-lien-ket\/\"><span style=\"font-weight: 400;\">Interest expense in related-party transactions<\/span><\/a><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Nghia_vu_Thue_nha_thau_FCT_va_Hiep_dinh_tranh_danh_thue_hai_lan\"><\/span><b>Contractor Tax (FCT) obligations and Double Taxation Avoidance Agreements<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When Company A pays interest on a loan to Company B in Singapore through debt offsetting, the Contractor Tax obligation arises immediately:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporate income tax: 5% on interest income.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Procedure: A must complete form 01\/NTNN within 10 days from the date of debt offsetting.<\/span><\/li>\n<\/ul>\n<p><b>Note: <\/b><span style=\"font-weight: 400;\">Singapore has a double taxation avoidance agreement with Vietnam; businesses need to check their tax exemption\/reduction notification records under the agreement to optimize their tax payments.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Thu_tuc_voi_Ngan_hang_Nha_nuoc\"><\/span><b>Procedures with the State Bank of Vietnam<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">According to Circular 12\/2022\/TT-NHNN, if a debt is structured as a loan with a term exceeding one year, the enterprise must register the foreign loan.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warning: Without registration, all interest\/principal payment transactions (including offsetting) will be considered a violation of foreign exchange management laws, resulting in interest expenses not being accepted by the Tax authorities.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Lap_Ho_so_xac_dinh_gia_Giao_dich_lien_ket\"><\/span><b>Prepare a Transfer Pricing Documentation File.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Even if a company only imports $80,000 worth of fixed assets, it is still required to fulfill its obligations regarding reporting related-party transactions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete Appendix I (Decree 132): Submit along with the annual corporate income tax return.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create a Local File: If total revenue exceeds VND 50 billion and total value of related-party transactions exceeds VND 30 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exemption case: If revenue is less than VND 50 billion and related-party transactions are less than VND 30 billion, the enterprise is exempt from preparing the Price Determination Document but must still declare Appendix I.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Phuong_an_xu_ly_truong_hop\"><\/span><b>Proposed solution for the case.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To ensure the safety of related-party transactions when importing fixed assets from the parent company in this case, the business needs to avoid risks by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A contract can be drawn up between the parent company abroad (B) and the subsidiary company in Vietnam (A), but then it must be proven that the loan is genuine and used for the intended purpose of production and business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest rates must follow the Arm&#039;s Length Principle because it is a related-party transaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest expense may be subject to limitations under regulations on interest expense in related-party transactions (30% EBITDA under Decree 132\/2020\/ND-CP on related-party transactions).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A contractor tax (FCT) liability arises for interest paid to a foreign organization (Singapore).<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Phat_sinh_thue_nha_thau_FCT_doi_voi_lai_tra_cho_to_chuc_nuoc_ngoai_Singapore\"><\/span><b>Foreign Contractor Tax (FCT) arises from interest payments to foreign organizations in Singapore.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In Vietnam, interest payments to foreign organizations and individuals are subject to Contractor Tax according to Circular 103\/2014\/TT-BTC. In the case where Company A pays interest to its parent company B (Singapore) by offsetting the debt, the following points need clarification:<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Doi_tuong_chiu_thue_va_muc_thue_suat\"><\/span><b>Taxable subjects and tax rates<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Interest income is income generated in Vietnam by Company B. Specifically:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax rate: Contractor corporate income tax is 51% of the total interest expense.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">VAT: According to Clause 8, Article 4 of Circular 219\/2013\/TT-BTC, lending activities by foreign organizations are not subject to VAT. Therefore, in this case, FCT only includes 5% Corporate Income Tax.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Thoi_diem_phat_sinh_nghia_vu_thue_khi_can_tru_cong_no\"><\/span><b>The time at which tax obligations arise when offsetting debts.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This is a common mistake businesses make. According to regulations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contractor tax obligations arise at the time a Vietnamese enterprise makes payment to a foreign contractor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offsetting liabilities with payment. Company A&#039;s action of offsetting interest on loans against existing goods debt is considered a completed payment. Therefore, A must declare and pay FCT tax immediately upon making the offsetting entry in the books.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Cach_tinh_thue_FCT\"><\/span><b>How to calculate FCT tax\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If the contract stipulates that A is liable for tax:<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Taxable revenue for corporate income tax = Actual interest paid \/ (1 \u2013 5%)<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">The contractor tax (FCT) is then determined:<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Contractor&#039;s Corporate Income Tax = Taxable Revenue x 5%<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">If the contract stipulates that B is liable for tax:<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Contractor&#039;s Corporate Income Tax = Actual Interest Paid x 5%<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h4><span class=\"ez-toc-section\" id=\"Hiep_dinh_danh_thue_hai_lan_DTA\"><\/span><b>Double Taxation Agreement (DTA)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Vietnam and Singapore have a Double Taxation Avoidance Agreement (DTA). However, for interest income from loans, most agreements (including the one with Singapore) still allow Vietnam (the source country) to levy taxes at preferential rates (usually 10% or 5%). Since the 5% rate under Circular 103\/2014\/TT-BTC on contractor tax (FCT) is already the lowest rate, applying the DTA usually does not further reduce the amount of tax payable, but businesses must still follow the procedure for notifying tax exemptions and reductions under the agreement to ensure compliance.<\/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;\">Related-party transactions involving the import of fixed assets from the parent company are not merely accounting issues, but a comprehensive problem concerning legal structure, taxation, and foreign exchange management. A single misstep, from asset ownership and payment processing to debt offsetting mechanisms and interest expense limits under Decree 132\/2020\/ND-CP, can lead to risks such as the disallowance of depreciation expenses, retroactive collection of contractor taxes, or reassessment of related-party transaction prices during audits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For FDI and EPE businesses, the safest approach is not &quot;legalization later,&quot; but rather designing the right transaction structure from the outset, ensuring marketability, complete documentation, and cash flow that accurately reflects the economic nature of the transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your business is currently involved in asset purchases, internal borrowing, or debt restructuring with your parent company, an early review will significantly reduce the risk of tax arrears in upcoming tax settlements. Check it out now. <\/span><a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/dich-vu-chuyen-gia-tron-goi\/\"><span style=\"font-weight: 400;\">deep transfer pricing services<\/span><\/a><span style=\"font-weight: 400;\"> Contact MAN for advice on structuring related-party transactions in a systematic, practical, and tax-safe manner for 2026.<\/span><\/p>\n<div class=\"su-button-center\"><a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/lien-he\/\" class=\"su-button su-button-style-flat\" style=\"color:#FFFFFF;background-color:#d9534f;border-color:#ae4340;border-radius:5px\" target=\"_self\"><span style=\"color:#FFFFFF;padding:0px 22px;font-size:17px;line-height:34px;border-color:#e58784;border-radius:5px;text-shadow:none\">  Contact Us for Consultation <\/span><\/a><\/div>\n<p>&nbsp;<\/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 &amp; CEO MAN \u2013 Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Tr\u01b0\u1edbc khi \u0111i v\u00e0o ph\u00e2n t\u00edch chi ti\u1ebft c\u00e1c quy \u0111\u1ecbnh ph\u00e1p lu\u1eadt, b\u00e0i vi\u1ebft n\u00e0y t\u1eadp trung gi\u1ea3i quy\u1ebft m\u1ed9t t\u00ecnh hu\u1ed1ng \u0111i\u1ec3n h\u00ecnh t\u1ea1i doanh nghi\u1ec7p FDI nh\u01b0 sau: Ch\u1ee7 th\u1ec3: C\u00f4ng ty A (Doanh nghi\u1ec7p ch\u1ebf xu\u1ea5t t\u1ea1i Vi\u1ec7t Nam) v\u00e0 C\u00f4ng ty m\u1eb9 B (Singapore). Th\u1ef1c tr\u1ea1ng c\u00f4ng n\u1ee3: A \u0111ang [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":3045,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3044","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\/3044","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=3044"}],"version-history":[{"count":1,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/3044\/revisions"}],"predecessor-version":[{"id":3048,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/3044\/revisions\/3048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/3045"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=3044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=3044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=3044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}