{"id":4462,"date":"2026-06-20T16:17:52","date_gmt":"2026-06-20T09:17:52","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=4462"},"modified":"2026-06-20T16:17:52","modified_gmt":"2026-06-20T09:17:52","slug":"giao-dich-lien-ket-va-chuyen-gia","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/","title":{"rendered":"Related-party transactions and transfer pricing: Professional advice for businesses."},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the context of deep economic integration, an increasing number of Vietnamese businesses are participating in global value chains, especially foreign-invested enterprises (FDI), multinational corporations, or businesses with ownership or control relationships with other organizations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Along with this development, related-party transactions and transfer pricing have become one of the important issues in corporate tax management. This is not only related to tax declaration obligations but also directly affects the determination of reasonable profits and expenses, as well as the risks when tax authorities conduct audits and inspections.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, many businesses still confuse these two concepts. Related-party transactions do not equate to illegal transfer pricing. Transactions between businesses and related parties are normal within a corporate structure, but the crucial issue lies in determining whether the transaction prices comply with market principles.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A proper understanding of related-party transactions and transfer pricing helps businesses proactively develop pricing policies, prepare supporting documentation, and mitigate tax risks during their operations.<\/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-va-chuyen-gia\/#Tong_quan_giao_dich_lien_ket_va_chuyen_gia\" >Overview of related-party transactions and transfer pricing.<\/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-va-chuyen-gia\/#Giao_dich_lien_ket_la_gi\" >What is affiliate trading?<\/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-va-chuyen-gia\/#Chuyen_gia_la_gi\" >What is transfer pricing?<\/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-va-chuyen-gia\/#Moi_quan_he_giua_giao_dich_lien_ket_va_chuyen_gia\" >The relationship between related-party transactions and transfer pricing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Cac_truong_hop_phat_sinh_giao_dich_lien_ket_pho_bien\" >Common scenarios involving 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-6\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Giao_dich_mua_ban_hang_hoa_giua_cac_ben_lien_ket\" >Transactions involving the buying and selling of goods between related parties.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Giao_dich_dich_vu_noi_bo_tap_doan\" >Intercompany transaction<\/a><\/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\/giao-dich-lien-ket-va-chuyen-gia\/#Giao_dich_vay_von_giua_cac_ben_lien_ket\" >Loan transactions between related parties<\/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-va-chuyen-gia\/#Chuyen_giao_tai_san_vo_hinh\" >Transfer of intangible assets<\/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\/giao-dich-lien-ket-va-chuyen-gia\/#Nguyen_tac_xac_dinh_gia_giao_dich_lien_ket_theo_gia_thi_truong\" >The principle for determining transfer pricing is based on market prices.<\/a><\/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-va-chuyen-gia\/#Cac_phuong_phap_xac_dinh_gia_giao_dich_lien_ket\" >Methods of determining transfer pricing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Phuong_phap_so_sanh_gia_giao_dich_doc_lap\" >Independent transaction price comparison method<\/a><\/li><li class='ez-toc-page-1 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-va-chuyen-gia\/#Phuong_phap_gia_ban_lai\" >Resale price method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Phuong_phap_gia_von_cong_lai\" >Cost plus profit method<\/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\/giao-dich-lien-ket-va-chuyen-gia\/#Phuong_phap_so_sanh_loi_nhuan\" >Profitability comparison method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Phuong_phap_phan_bo_loi_nhuan\" >Profit allocation method<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Dau_hieu_doanh_nghiep_co_rui_ro_ve_chuyen_gia\" >Signs that a business is at risk of transfer pricing.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Doanh_nghiep_FDI_lien_tuc_bao_lo\" >FDI enterprises are consistently reporting losses.<\/a><\/li><li class='ez-toc-page-1 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-va-chuyen-gia\/#Chi_phi_dich_vu_noi_bo_lon\" >High internal service costs\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Khoan_vay_lon_tu_ben_lien_ket\" >Large loan from an affiliated party<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Vi_du_minh_hoa_thuc_te_ve_giao_dich_lien_ket_va_chuyen_gia\" >A real-world example illustrating related-party transactions and transfer pricing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Bang_so_sanh_tong_hop_giua_giao_dich_lien_ket_va_chuyen_gia\" >A comprehensive comparison table between related-party transactions and transfer pricing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#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-24\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/giao-dich-lien-ket-va-chuyen-gia\/#Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\" >Contact information MAN \u2013 Master Accountant Network<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Tong_quan_giao_dich_lien_ket_va_chuyen_gia\"><\/span><b>Overview of related-party transactions and transfer pricing.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_4463\" aria-describedby=\"caption-attachment-4463\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4463\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia.jpg\" alt=\"Giao d\u1ecbch li\u00ean k\u1ebft v\u00e0 chuy\u1ec3n gi\u00e1\" width=\"1200\" height=\"675\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-300x169.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-1024x576.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-768x432.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-4463\" class=\"wp-caption-text\">Related party transactions and transfer pricing<\/figcaption><\/figure>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Giao_dich_lien_ket_la_gi\"><\/span><b>What is affiliate trading?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Related-party transactions are understood as transactions arising between parties that have a related relationship in the course of their production and business activities.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">These transactions may include:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buying and selling goods<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Providing services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transfer of assets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lending, borrowing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transfer of the right to use intangible assets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost sharing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Granting the right to use trademarks and technologies.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The key to determining whether a transaction is a related-party transaction lies in the relationship between the parties involved.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>For example:<\/b><span style=\"font-weight: 400;\"> A manufacturing company in Vietnam purchases raw materials from its parent company abroad. These two businesses have a parent-subsidiary relationship, so the purchase and sale of raw materials is considered an related-party transaction.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Chuyen_gia_la_gi\"><\/span><b>What is transfer pricing?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Transfer pricing is the process of determining prices in transactions between related parties.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Transfer pricing is not inherently a wrongdoing. Businesses within the same group can absolutely develop internal pricing policies to serve their management objectives.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, problems arise when the transaction prices between related parties do not accurately reflect market value, leading to:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit shifting between businesses;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To change tax obligations;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit distribution is uneven among countries.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>For example:<\/b><span style=\"font-weight: 400;\"> A parent company sells raw materials to its subsidiary in Vietnam. The market price is $100 per product, but the internal transaction price is $150 per product.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Without a reasonable basis for this price, the business could be questioned about manipulating profits through purchase prices.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Moi_quan_he_giua_giao_dich_lien_ket_va_chuyen_gia\"><\/span><b>The relationship between related-party transactions and transfer pricing.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Simply put:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Related party transactions are transactional relationships.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transfer pricing is the method used to determine the price in a transaction.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>For example: <\/b><span style=\"font-weight: 400;\">Company A in Vietnam purchases goods from its foreign parent company at a price equivalent to the market price, with complete contracts, supporting data, and a suitable pricing method.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is a valid affiliate transaction.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Conversely, if the parent company sells goods at unusually high prices to increase costs in Vietnam, reduce taxable profits, and transfer profits abroad, transfer pricing risks may arise.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For businesses with related-party transactions, understanding the nature of related-party transactions and transfer pricing is crucial to ensuring tax compliance. However, in practice, many businesses still struggle to determine which transactions fall under their jurisdiction, how to develop appropriate pricing policies, and how to prepare supporting documentation for tax audits. In this case, businesses can refer to the following information. <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/dich-vu-tu-van-giao-dich-lien-ket\/\">related party transaction advisory services<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> to receive support in risk assessment, transaction review, and development of appropriate compliance plans.\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cac_truong_hop_phat_sinh_giao_dich_lien_ket_pho_bien\"><\/span><b>Common scenarios involving related-party transactions.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_4464\" aria-describedby=\"caption-attachment-4464\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4464\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-truong-hop-phat-sinh-giao-dich-lien-ket-pho-bien.jpg\" alt=\"Giao d\u1ecbch li\u00ean k\u1ebft v\u00e0 chuy\u1ec3n gi\u00e1, c\u00e1c tr\u01b0\u1eddng h\u1ee3p ph\u00e1t sinh giao d\u1ecbch li\u00ean k\u1ebft ph\u1ed5 bi\u1ebfn\" width=\"1200\" height=\"675\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-truong-hop-phat-sinh-giao-dich-lien-ket-pho-bien.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-truong-hop-phat-sinh-giao-dich-lien-ket-pho-bien-300x169.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-truong-hop-phat-sinh-giao-dich-lien-ket-pho-bien-1024x576.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-truong-hop-phat-sinh-giao-dich-lien-ket-pho-bien-768x432.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-truong-hop-phat-sinh-giao-dich-lien-ket-pho-bien-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-4464\" class=\"wp-caption-text\">Related-party transactions and transfer pricing: Common scenarios involving related-party transactions.<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In business practice, related-party transactions can arise in various aspects depending on the organizational model, ownership structure, and operating methods of each enterprise. Particularly for enterprises belonging to multinational corporations or enterprises with ownership or control relationships with other parties, internal transactions frequently occur to serve overall production, business, and management activities.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, each group of related-party transactions will have different characteristics, pricing methods, and risk levels. Some transactions may occur frequently, such as the buying and selling of goods, internal provision of services, borrowing, or transfer of intangible assets. These are also the types of transactions that tax authorities often consider when assessing the appropriateness of pricing policies and compliance with regulations on related-party transactions.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Below are some common types of related-party transactions that businesses need to be aware of:<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Giao_dich_mua_ban_hang_hoa_giua_cac_ben_lien_ket\"><\/span><b>Transactions involving the buying and selling of goods between related parties.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is the most common type of transaction within corporations.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>For example:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The parent company supplies raw materials to the subsidiary.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies within the group sell products to each other.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vietnamese businesses import goods from affiliated countries.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">When evaluating this transaction, the business needs to consider:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trading price<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Terms of trade<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product quality<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shipping costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment terms<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Discount policy.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Not only the selling price, but all the terms of the transaction can affect the suitability of the deal.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Giao_dich_dich_vu_noi_bo_tap_doan\"><\/span><b>Intercompany transaction<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Many businesses incur service fees from their parent company or companies within the same group, such as:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Management fee<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consulting fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technical support services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technology services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing services.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is a group of transactions that are often of interest to tax authorities.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Businesses need to demonstrate:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The service is actually provided.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses benefit from the service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expenses incurred in the course of business operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A rational cost allocation method.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>For example: <\/b><span style=\"font-weight: 400;\">The parent company provides a software management system to its subsidiary in Vietnam. The business needs:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Service contract<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Documents proving usage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pricing method.<\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Giao_dich_vay_von_giua_cac_ben_lien_ket\"><\/span><b>Loan transactions between related parties<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Internal lending transactions are also a common problem.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For example: The parent company lends capital to the subsidiary to expand its factory.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Factors to be evaluated:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the loan real?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are the interest rates appropriate for the market?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loan term<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Guarantee conditions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ability to repay debt.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If borrowing interest rates are too high, a sharp increase in interest expenses can negatively impact taxable profits.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Chuyen_giao_tai_san_vo_hinh\"><\/span><b>Transfer of intangible assets<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Intangible assets include:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trademark<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technology<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Software<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Patent rights<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business secrets.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is a complex group of transactions because determining their value is often more difficult than with tangible assets.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>For example:<\/b><span style=\"font-weight: 400;\"> Vietnamese companies pay trademark usage fees to their parent companies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Businesses need to demonstrate:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">actual right of use<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">brand value<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Methods for determining fees.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Determining whether a business is required to declare related-party transactions is crucial for tax compliance. Businesses need to review their related-party relationships, the types of transactions involved, and the applicable conditions to ensure compliance. For a clearer understanding of applicable cases, businesses can refer to detailed guidance on... <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/cac-truong-hop-phai-ke-khai-giao-dich-lien-ket\/\">Cases where related-party transactions must be declared.<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> This aims to minimize the risk of errors during the declaration and documentation process.\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Nguyen_tac_xac_dinh_gia_giao_dich_lien_ket_theo_gia_thi_truong\"><\/span><b>The principle for determining transfer pricing is based on market prices.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">One of the most important principles in managing related-party transactions is the Arm&#039;s Length Principle.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">According to this principle:<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Related parties must determine transaction prices in the same way that independent parties would agree under similar conditions.<\/span><\/p><\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In other words, businesses need to demonstrate that, without any collusion, independent parties in the market can trade at similar prices.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cac_phuong_phap_xac_dinh_gia_giao_dich_lien_ket\"><\/span><b>Methods of determining transfer pricing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_4465\" aria-describedby=\"caption-attachment-4465\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4465\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-phuong-phap-xac-dinh-gia-giao-dich-lien-ket.jpg\" alt=\"Giao d\u1ecbch li\u00ean k\u1ebft v\u00e0 chuy\u1ec3n gi\u00e1, c\u00e1c ph\u01b0\u01a1ng ph\u00e1p x\u00e1c \u0111\u1ecbnh gi\u00e1 giao d\u1ecbch li\u00ean k\u1ebft\" width=\"1200\" height=\"675\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-phuong-phap-xac-dinh-gia-giao-dich-lien-ket.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-phuong-phap-xac-dinh-gia-giao-dich-lien-ket-300x169.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-phuong-phap-xac-dinh-gia-giao-dich-lien-ket-1024x576.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-phuong-phap-xac-dinh-gia-giao-dich-lien-ket-768x432.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-cac-phuong-phap-xac-dinh-gia-giao-dich-lien-ket-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-4465\" class=\"wp-caption-text\">Related-party transactions and transfer pricing, methods for determining transfer pricing.<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">To ensure that related-party transactions are determined in accordance with the arm&#039;s length principle and accurately reflect their true economic value, businesses need to choose a transfer pricing method that is appropriate for the characteristics of each type of transaction.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Choosing the appropriate method for determining transfer pricing should be based on the operational characteristics, functions, assets, and level of risk that each business assumes within the value chain. A suitable method not only helps businesses demonstrate the independence of the transaction but also minimizes risks during tax audits. For more in-depth assessment, businesses can explore further options. <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/dich-vu-xac-dinh-gia-giao-dich-lien-ket\/\">Transfer pricing services<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> To receive support in data analysis, method selection, and profile building.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">According to the principles of related-party transaction management, businesses can apply one of five pricing methods. Each method has a different scope of application and approach, suitable for specific business models.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Specifically, the methods for determining transfer pricing are analyzed as follows:<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Phuong_phap_so_sanh_gia_giao_dich_doc_lap\"><\/span><b>Independent transaction price comparison method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This method directly compares the price of a related-party transaction with a transaction between independent parties.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Example: Businesses selling the same product:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For affiliated companies: $90<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For independent customers: $100<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Businesses need to explain the difference.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Phuong_phap_gia_ban_lai\"><\/span><b>Resale price method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This applies when a business purchases goods from an affiliated party and then resells them to an independent party.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">How to determine:<\/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;\"><span style=\"font-weight: 400;\">Purchase price = Resale price \u2013 Appropriate profit margin<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Phuong_phap_gia_von_cong_lai\"><\/span><b>Cost plus profit method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Typically applied to the following activities:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manufacture<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Machining<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Providing services.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Recipe:<\/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;\"><span style=\"font-weight: 400;\">Transaction price = Costs + Reasonable profit margin<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Phuong_phap_so_sanh_loi_nhuan\"><\/span><b>Profitability comparison method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This method evaluates profitability through indicators such as:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">profit margin;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit margin on revenue;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit margin on costs.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The business is compared to other independent businesses with similar characteristics.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Phuong_phap_phan_bo_loi_nhuan\"><\/span><b>Profit allocation method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Applicable in the following cases:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complex transactions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiple parties contribute value.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is difficult to find data for direct comparison.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Dau_hieu_doanh_nghiep_co_rui_ro_ve_chuyen_gia\"><\/span><b>Signs that a business is at risk of transfer pricing.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_4466\" aria-describedby=\"caption-attachment-4466\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4466\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-dau-hieu-doanh-nghiep-co-rui-ro-ve-chuyen-gia.jpg\" alt=\"Giao d\u1ecbch li\u00ean k\u1ebft v\u00e0 chuy\u1ec3n gi\u00e1, d\u1ea5u hi\u1ec7u doanh nghi\u1ec7p c\u00f3 r\u1ee7i ro v\u1ec1 chuy\u1ec3n gi\u00e1\" width=\"1200\" height=\"675\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-dau-hieu-doanh-nghiep-co-rui-ro-ve-chuyen-gia.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-dau-hieu-doanh-nghiep-co-rui-ro-ve-chuyen-gia-300x169.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-dau-hieu-doanh-nghiep-co-rui-ro-ve-chuyen-gia-1024x576.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-dau-hieu-doanh-nghiep-co-rui-ro-ve-chuyen-gia-768x432.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2026\/06\/Giao-dich-lien-ket-va-chuyen-gia-dau-hieu-doanh-nghiep-co-rui-ro-ve-chuyen-gia-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-4466\" class=\"wp-caption-text\">Related-party transactions and transfer pricing: indicators of transfer pricing risk in businesses.<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Not all related-party transactions pose transfer pricing risks. However, during the process... <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/tu-van-chuyen-gia\/\">Transfer pricing consultancy<\/a><\/span><\/strong><span style=\"font-weight: 400;\">, Based on experience, MAN \u2013 Master Accountant Network has observed that tax authorities often focus on businesses with unusual characteristics in their operations, cost structure, or internal transaction policies. Early identification of these signs helps businesses proactively review and assess the appropriateness of transactions and prepare sufficient supporting evidence when necessary.<\/span><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Some indicators commonly considered to be potential transfer pricing risks include:\u00a0<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Doanh_nghiep_FDI_lien_tuc_bao_lo\"><\/span><b>FDI enterprises are consistently reporting losses.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A business that has been operating for many years but continuously:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue increased<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expand production<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Still reporting losses.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is likely to be further reviewed by the tax authorities regarding related-party transaction policies.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Chi_phi_dich_vu_noi_bo_lon\"><\/span><b>High internal service costs\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For example, corporate management fees account for a large proportion of total costs. Therefore, the business needs to demonstrate:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the service real?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are the allocated costs reasonable?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is there an economic benefit?<\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Khoan_vay_lon_tu_ben_lien_ket\"><\/span><b>Large loan from an affiliated party<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Risks typically come from:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inappropriate interest rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High interest costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Impact on taxable profit.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Vi_du_minh_hoa_thuc_te_ve_giao_dich_lien_ket_va_chuyen_gia\"><\/span><b>A real-world example illustrating related-party transactions and transfer pricing.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Let&#039;s assume: A Vietnamese company imports raw materials from its parent company in the US. The data is as follows:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market price: $10\/kg<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Internal purchase price: 15 USD\/kg<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production volume: 100,000 kg<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Difference:<\/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;\"><span style=\"font-weight: 400;\">Market difference = (15 \u2013 10) x 100,000 = 500,000 USD<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This difference results in:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rising costs in Vietnam<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduced profits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce the amount of corporate income tax payable.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Businesses need to provide evidence to justify the higher price, such as:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ingredients of different quality<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other delivery conditions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additional costs incurred (if any).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Bang_so_sanh_tong_hop_giua_giao_dich_lien_ket_va_chuyen_gia\"><\/span><b>A comprehensive comparison table between related-party transactions and transfer pricing.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In practice, corporate tax management, related-party transactions and transfer pricing are often mentioned together, but they are not two identical concepts. Confusing these two terms can lead businesses to misassess their declaration and documentation obligations, as well as the level of risk involved in their operations. To clarify the differences, businesses can refer to the comparison table between related-party transactions and transfer pricing below.\u00a0<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<caption><span style=\"font-weight: 400;\">A comprehensive comparison table between related-party transactions and transfer pricing.<\/span><\/caption>\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><b>Criteria<\/b><\/td>\n<td style=\"text-align: center;\"><b>Affiliate transactions<\/b><\/td>\n<td style=\"text-align: center;\"><b>Transfer pricing<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Concept<\/span><\/td>\n<td><span style=\"font-weight: 400;\">These are transactions that arise between related parties in the course of production and business activities, such as buying and selling goods, providing services, borrowing capital, transferring assets, etc.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This involves determining the price in transactions between related parties in order to allocate revenue, costs, and profits among the parties involved in the transaction.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Nature<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A transactional relationship is defined by the fact that the parties have a relationship of ownership, control, or dominance over each other.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This is an issue related to how pricing is established and applied in related-party transactions.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Applicable objects<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Businesses that have transactions with related parties are subject to the regulations on tax management for related-party transactions.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Businesses with related-party transactions need to determine transaction prices according to the principle of independence, consistent with market prices.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">For example<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The parent company in Japan sells raw materials to its subsidiary in Vietnam; the two companies within the same group provide services to each other.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The parent company sells raw materials to its subsidiary at significantly higher prices than the market rate in order to increase costs in Vietnam and shift profits overseas.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Purpose<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Serving the business operations, supply chain management, or internal administration of a company or corporation.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This could be aimed at profit management, optimizing corporate operations, or potentially for profit shifting and reducing tax obligations if regulations are not complied with.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Is it always a violation?<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No. The occurrence of related-party transactions is a normal practice within corporations and businesses that have ownership or control relationships.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not all transfer pricing activities are violations. Risks arise when businesses determine prices not according to market principles or cannot demonstrate their reasonableness.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Assessment basis<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Based on the relationship between the parties: ownership, control, dominance, parent-subsidiary relationship, etc.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Based on a comparison of prices, profits, and trading conditions with similar independent transactions.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Main content<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Determine whether the business falls under the category of having related-party transactions; identify the type of related-party transaction that occurred.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Selecting an appropriate pricing method, performing FAR functional analysis, preparing supporting documentation, and ensuring that the transaction price is in line with market conditions.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Tax Risk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Failure to declare or file as required may result in the risk of legal action for tax violations.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Transactions found to be inconsistent may be subject to price adjustments, taxable profit adjustments, tax arrears collection, and penalties by the tax authorities.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">Relationship<\/span><\/td>\n<td><span style=\"font-weight: 400;\">It forms the basis for transactions that require price management.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This is an issue that needs to be controlled during the process of conducting related-party transactions.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Simply put, related-party transactions and transfer pricing are closely related but not identical. Related-party transactions reflect the relationship between the parties involved, while transfer pricing focuses on how a business determines the value of that transaction. Therefore, businesses with related-party transactions need to pay special attention to developing appropriate pricing policies, adhering to the arm&#039;s length principle, and maintaining complete documentation.\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Related-party transactions and transfer pricing are crucial areas for businesses with related-party relationships, especially in today&#039;s global business environment.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Businesses should not view this merely as a tax filing obligation, but as an integral part of their financial and risk management strategy.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">An effective affiliate trading system needs to ensure:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The transaction price has an economic basis.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adherence to market principles<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">We have all the necessary supporting documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proactively conduct regular risk assessments.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Good preparation from the outset will help businesses minimize the risk of tax adjustments, while building a foundation for transparent and sustainable operations.<\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/lien-he\/\"><span style=\"font-weight: 400;\"><strong><span style=\"color: #0000ff;\">Contact MAN \u2013 Master Accountant Network<\/span><\/strong><\/span><\/a><span style=\"font-weight: 400;\"> For free support and advice!<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\"><\/span><b>Contact information MAN \u2013 Master Accountant Network<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Address:<\/b><span style=\"font-weight: 400;\"> No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mobile\/Zalo:<\/b><span style=\"font-weight: 400;\"> 0903 963 163 \u2013 0903 428 622<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>E-mail:<\/b><span style=\"font-weight: 400;\"> man@man.net.vn<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Google Business Profile:<\/b> <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/share.google\/EmihzHg354pCASC9k\" rel=\"nofollow noopener\" target=\"_blank\">View MAN \u2013 Master Accountant Network&#039;s Google Business Profile\u00a0<\/a><\/span><\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LinkedIn Founder:<\/b> <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.linkedin.com\/in\/tuy%C3%AAn-l%C3%AA-ho%C3%A0ng-65292aa0\/\" rel=\"nofollow noopener\" target=\"_blank\">View expert Le Hoang Tuyen&#039;s LinkedIn profile.\u00a0<\/a><\/span><\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Responsible for production and professional content review by: Mr. <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/man.net.vn\/le-hoang-tuyen\/\" rel=\"nofollow noopener\" target=\"_blank\">Le Hoang Tuyen \u2013 Founder &amp; CEO of MAN \u2013 Master Accountant Network<\/a><\/span><\/strong><span style=\"font-weight: 400;\">. He is a CPA Vietnam auditor with over 30 years of in-depth experience in accounting, auditing, taxation, and corporate legal consulting.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Trong b\u1ed1i c\u1ea3nh n\u1ec1n kinh t\u1ebf h\u1ed9i nh\u1eadp s\u00e2u r\u1ed9ng, ng\u00e0y c\u00e0ng nhi\u1ec1u doanh nghi\u1ec7p Vi\u1ec7t Nam tham gia v\u00e0o chu\u1ed7i gi\u00e1 tr\u1ecb to\u00e0n c\u1ea7u, \u0111\u1eb7c bi\u1ec7t l\u00e0 c\u00e1c doanh nghi\u1ec7p c\u00f3 v\u1ed1n \u0111\u1ea7u t\u01b0 n\u01b0\u1edbc ngo\u00e0i (FDI), t\u1eadp \u0111o\u00e0n \u0111a qu\u1ed1c gia ho\u1eb7c doanh nghi\u1ec7p c\u00f3 quan h\u1ec7 s\u1edf h\u1eefu, ki\u1ec3m so\u00e1t v\u1edbi c\u00e1c [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4462","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\/4462","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=4462"}],"version-history":[{"count":1,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/4462\/revisions"}],"predecessor-version":[{"id":4467,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/4462\/revisions\/4467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/4463"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=4462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=4462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=4462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}