{"id":658,"date":"2025-05-27T20:16:14","date_gmt":"2025-05-28T03:16:14","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=658"},"modified":"2025-10-14T19:18:44","modified_gmt":"2025-10-15T02:18:44","slug":"nghi-dinh-20-2017-nd-cp","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/nghi-dinh-20-2017-nd-cp\/","title":{"rendered":"Decree 20\/2017\/ND-CP"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP was issued with the purpose of controlling related-party transactions, tax management and transfer pricing prevention. This document not only provides principles for determining prices, stipulates the obligation to declare and prepare related-party transaction records, but also establishes a mechanism to control loan interest expenses to limit the situation of thin capital in enterprises. Understanding the legal framework of Decree 20\/2017\/ND-CP helps enterprises clearly understand their compliance responsibilities and at the same time create a transparent tax management foundation. <\/span><span style=\"font-weight: 400;\">Join MAN \u2013 Master Accountant Network to learn more about Decree 20\/2017\/ND-CP of the Government in the article below.<\/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\/nghi-dinh-20-2017-nd-cp\/#Gioi_thieu_chung_ve_Nghi_dinh_202017ND-CP\" >General introduction to Decree 20\/2017\/ND-CP<\/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\/nghi-dinh-20-2017-nd-cp\/#Nghi_dinh_202017ND-CP_la_gi\" >What is Decree 20\/2017\/ND-CP?\u00a0<\/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\/nghi-dinh-20-2017-nd-cp\/#Tam_quan_trong_doi_voi_quan_ly_thue_phong_chong_chuyen_gia\" >Importance for tax management and transfer pricing prevention<\/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\/nghi-dinh-20-2017-nd-cp\/#Pham_vi_dieu_chinh_doi_tuong_ap_dung\" >Scope of regulation and applicable subjects<\/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\/nghi-dinh-20-2017-nd-cp\/#Pham_vi_dieu_chinh\" >Scope of adjustment<\/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\/nghi-dinh-20-2017-nd-cp\/#Doi_tuong_ap_dung\" >Applicable objects<\/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\/nghi-dinh-20-2017-nd-cp\/#Nguyen_tac_ap_dung\" >Principles of application<\/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\/nghi-dinh-20-2017-nd-cp\/#Dieu_5_Quy_dinh_cac_ben_co_quan_he_lien_ket\" >Article 5: Regulations on related parties<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/nghi-dinh-20-2017-nd-cp\/#Nghi_dinh_202017ND-CP_quy_dinh_khong_che_chi_phi_lai_vay\" >Decree 20\/2017\/ND-CP regulates control of loan interest costs\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/nghi-dinh-20-2017-nd-cp\/#Co_che_chuyen_phan_chi_phi_lai_vay_vuot_tran\" >Mechanism for transferring excess interest expense<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/nghi-dinh-20-2017-nd-cp\/#Han_che_quy_dinh\" >Regulatory restrictions<\/a><\/li><\/ul><\/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\/nghi-dinh-20-2017-nd-cp\/#Moi_lien_he_voi_Nghi_dinh_1322020ND-CP\" >Relationship with Decree 132\/2020\/ND-CP<\/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\/nghi-dinh-20-2017-nd-cp\/#So_sanh_Nghi_dinh_202017ND-CP_va_Nghi_dinh_1322020ND-CP\" >Comparison of Decree 20\/2017\/ND-CP and Decree 132\/2020\/ND-CP<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/nghi-dinh-20-2017-nd-cp\/#Ket_luan\" >Conclude\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/nghi-dinh-20-2017-nd-cp\/#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=\"Gioi_thieu_chung_ve_Nghi_dinh_202017ND-CP\"><\/span><b>General introduction to Decree 20\/2017\/ND-CP<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Nghi_dinh_202017ND-CP_la_gi\"><\/span><b>What is Decree 20\/2017\/ND-CP?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP was issued by the Government on February 24, 2017 and officially took effect on May 1, 2017. Decree 20\/2017\/ND-CP sets out the legal framework to manage and regulate related-party transactions in the tax sector. This Decree provides many necessary contents to help businesses better understand their obligations in determining transaction prices.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Tam_quan_trong_doi_voi_quan_ly_thue_phong_chong_chuyen_gia\"><\/span><b>Importance for tax management and transfer pricing prevention<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP is of particular importance in tax management and transfer pricing prevention in Vietnam. Before this decree was issued, related party transactions often lacked transparency, creating conditions for some businesses to take advantage of transferring profits abroad, reducing actual tax obligations. This not only caused budget losses but also created inequality in the business environment.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For businesses, Decree 20\/2017\/ND-CP creates a clear legal framework: declaration obligations, interest expense control levels, as well as cross-border profit reporting responsibilities. By complying with regulations, businesses not only limit legal risks but also build a transparent tax management strategy.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP contributes significantly to protecting State budget revenue, creating a fair investment environment, and at the same time aligning Vietnam with international standards on preventing base erosion and profit shifting (BEPS). This is the foundation for the sustainable development of the tax administration system.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Pham_vi_dieu_chinh_doi_tuong_ap_dung\"><\/span><b>Scope of regulation and applicable subjects<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Pham_vi_dieu_chinh\"><\/span><b>Scope of adjustment<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP provides a comprehensive legal framework on tax management for enterprises that have arising <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/tong-quan-giao-dich-lien-ket-2025\/\">affiliate transactions<\/a> Specifically, the decree clearly stipulates the principles, methods, procedures and processes for determining the price of related-party transactions based on economic nature, ensuring consistency with market prices. At the same time, this document also sets out the obligations of taxpayers in declaring and determining the price of related-party transactions, as well as fully declaring and paying taxes. In addition, the decree also stipulates the responsibilities of state management agencies in monitoring, checking and tax inspection of enterprises with related-party activities, thereby limiting transfer pricing and budget loss.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The scope of Decree 20\/2017\/ND-CP includes all transactions arising in the production and business process between related parties as prescribed in Article 5 of the Decree. However, some specific transactions such as the purchase and sale of goods and services subject to State price management will be carried out according to separate provisions of the law on prices, not within the scope of application of this Decree.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Doi_tuong_ap_dung\"><\/span><b>Applicable objects<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Units that produce and trade goods and services (collectively referred to as taxpayers) are subject to corporate income tax (CIT) and have transactions with related parties as prescribed in Article 5 of Decree 20\/2017\/ND-CP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">General Department of Taxation, Tax Department and Tax Branch<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other relevant State agencies, organizations and individuals<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Nguyen_tac_ap_dung\"><\/span><b>Principles of application<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP, taxpayers when having related-party transactions are responsible for fully declaring and eliminating factors that may reduce tax obligations due to the influence of related-party relationships.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For tax authorities, Decree 20\/2017\/ND-CP empowers them to manage, inspect and closely examine the transfer pricing of taxpayers. Tax authorities apply the principle of independent transactions and the principle of \u201csubstance over form\u201d to eliminate transfer pricing that reduces the tax obligations of enterprises. When necessary, tax authorities can adjust the transfer pricing to accurately and fully determine tax obligations to the state budget.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The principle of arm\u2019s length trading is applied consistently according to international standards, based on the provisions of the Double Taxation Avoidance Agreement that Vietnam has signed. This ensures transparency and creates a fair competitive environment between domestic enterprises and foreign-invested enterprises.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Dieu_5_Quy_dinh_cac_ben_co_quan_he_lien_ket\"><\/span><b>Article 5: Regulations on related parties<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><b>1\/ Regulations on the relationship of related parties (collectively referred to as \u201crelated parties\u201d).<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A party directly or indirectly involved in the management, control, capital contribution or investment in the other party.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Parties are jointly under the management, control, capital contribution or investment of another party (directly or indirectly).<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>2\/ About the affiliated parties\u00a0<\/b><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP, an affiliated relationship is determined when there is significant control over capital, finance or management between enterprises or between enterprises and individuals. Specifically, in the case where an enterprise directly or indirectly holds 25% or more of the capital contribution of another enterprise, or is jointly owned by a third party, it is considered an affiliated relationship.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In addition, holding a controlling stake, lending or guaranteeing capital that accounts for a large proportion of total debt, or the right to appoint and control the board of directors of 50% members also creates an affiliated relationship.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This relationship is also established when two enterprises have common management from key personnel, have family ties (husband and wife, parents, children, siblings, etc.), or when there is a head office - permanent establishment relationship, both are permanent establishments of foreign organizations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In general, any case showing actual domination or control over the production and business activities of another enterprise is considered an affiliated relationship according to regulations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Not only stopping at determining the relationship, Decree 20\/2017\/ND-CP also regulates controlling loan interest expenses to limit the risk of thin capital and optimize tax management.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Nghi_dinh_202017ND-CP_quy_dinh_khong_che_chi_phi_lai_vay\"><\/span><b>Decree 20\/2017\/ND-CP regulates control of loan interest costs\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP regulates the control of loan interest expenses. Specifically, the decree stipulates:<\/span><\/p>\n<figure id=\"attachment_1943\" aria-describedby=\"caption-attachment-1943\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1943\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Nghi-dinh-20_2017_ND-CP-chi-phi-lai-vay.jpg\" alt=\"Ngh\u1ecb \u0111\u1ecbnh 20\/2017\/N\u0110-CP chi ph\u00ed l\u00e3i vay\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Nghi-dinh-20_2017_ND-CP-chi-phi-lai-vay.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Nghi-dinh-20_2017_ND-CP-chi-phi-lai-vay-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Nghi-dinh-20_2017_ND-CP-chi-phi-lai-vay-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Nghi-dinh-20_2017_ND-CP-chi-phi-lai-vay-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Nghi-dinh-20_2017_ND-CP-chi-phi-lai-vay-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-1943\" class=\"wp-caption-text\">Decree 20\/2017\/ND-CP on loan interest expenses<\/figcaption><\/figure>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total net interest expense (interest expense after deducting deposit interest and loan interest) of an enterprise that is deductible when calculating corporate income tax does not exceed 20% of total net profit from business operations plus interest expense and depreciation expense (similar to EBITDA indicator).<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In other words, a business can only calculate a maximum of 20% of net interest expenses into deductible expenses, the excess amount will not be deductible when determining taxable income.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Co_che_chuyen_phan_chi_phi_lai_vay_vuot_tran\"><\/span><b>Mechanism for transferring excess interest expense<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The interest expense exceeding the 20% limit is not completely lost, but is carried forward to the next tax period (up to 5 years). Therefore, the enterprise still has the opportunity to record this expense in the future if it has a profit large enough to absorb the excess amount.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Han_che_quy_dinh\"><\/span><b>Regulatory restrictions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP is the first legal document at the Decree level issued by the Government to manage taxes on related-party transactions and prevent transfer pricing. The issuance of this Decree marks an important step forward in bringing Vietnam&#039;s regulations closer to international practices, in the context of increasingly sophisticated and complex transfer pricing and tax avoidance behaviors of multinational corporations.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201c<\/span><span style=\"font-weight: 400;\">The current corporate income tax policy provides for tax incentives and exemptions for industries, sectors, and localities. Corporations take advantage of differences in tax rates, incentives, and tax exemptions to transfer profits between domestic corporations to evade taxes. In addition, some domestic corporations also arrange transactions and transfer pricing to transfer profits to corporations that are operating at a loss (with losses to be transferred); transfer profits from profitable enterprises to loss-making enterprises to evade taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Transfer pricing and profit transfer not only occur in FDI enterprises but also appear in domestic enterprises because even in domestic operations, Vietnamese enterprises have invested in many industries and fields such as trade, services, production... Obviously, even domestically, there is a phenomenon of transferring profits from enterprises and locations with high tax rates to enterprises and locations with low tax rates; transferring profits from profitable enterprises to loss-making enterprises&quot;<\/span><\/p>\n<p><b>References:<\/b> <a href=\"https:\/\/portal.mof.gov.vn\/webcenter\/portal\/btcvn\/pages_r\/l\/tin-bo-tai-chinh?dDocName=MOFUCM198657\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Ministry of Finance<\/span><\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Moi_lien_he_voi_Nghi_dinh_1322020ND-CP\"><\/span><b>Relationship with Decree 132\/2020\/ND-CP<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_1944\" aria-describedby=\"caption-attachment-1944\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1944\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Moi-lien-he-Nghi-dinh-20_2017_ND-CP-voi-Nghi-dinh-132_2020_ND-CP.jpg\" alt=\"M\u1ed1i li\u00ean h\u1ec7 Ngh\u1ecb \u0111\u1ecbnh 20\/2017\/N\u0110-CP v\u1edbi Ngh\u1ecb \u0111\u1ecbnh 132\/2020\/N\u0110-CP\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Moi-lien-he-Nghi-dinh-20_2017_ND-CP-voi-Nghi-dinh-132_2020_ND-CP.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Moi-lien-he-Nghi-dinh-20_2017_ND-CP-voi-Nghi-dinh-132_2020_ND-CP-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Moi-lien-he-Nghi-dinh-20_2017_ND-CP-voi-Nghi-dinh-132_2020_ND-CP-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Moi-lien-he-Nghi-dinh-20_2017_ND-CP-voi-Nghi-dinh-132_2020_ND-CP-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/05\/Moi-lien-he-Nghi-dinh-20_2017_ND-CP-voi-Nghi-dinh-132_2020_ND-CP-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-1944\" class=\"wp-caption-text\">Relationship between Decree 20\/2017\/ND-CP and Decree 132\/2020\/ND-CP<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP has revealed some limitations, especially the regulation on controlling loan interest costs at 20%, causing difficulties for many businesses, as well as not being really flexible in applying to each specific case.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The connection between Decree 20\/2017\/ND-CP and Decree 132\/2020\/ND-CP is shown in that: Decree 132 inherits the basic principles of Decree 20 on anti-transfer pricing and tax management for related-party transactions, but at the same time has important adjustments to better suit reality.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"So_sanh_Nghi_dinh_202017ND-CP_va_Nghi_dinh_1322020ND-CP\"><\/span><b>Comparison of Decree 20\/2017\/ND-CP and Decree 132\/2020\/ND-CP<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the process of tax management for related-party transactions, Decree 20\/2017\/ND-CP is considered the first legal foundation. However, the implementation has revealed many limitations, especially the regulation on controlling interest expenses 20%. To overcome and approach international practice, the Government issued Decree 132\/2020\/ND-CP with many important innovations. The table below will help you clearly visualize the differences and connections between these two decrees.<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><b>Criteria\u00a0<\/b><\/td>\n<td style=\"text-align: center;\"><b>Decree 20\/2020\/ND-CP<\/b><\/td>\n<td style=\"text-align: center;\"><b>Decree 32\/2020\/ND-CP<\/b><\/td>\n<td style=\"text-align: center;\"><b>Change points and significance\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Main objective<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Anti-transfer pricing, tax management with related transactions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Perfecting the mechanism, in line with international practices (BEPS), reducing shortcomings of Decree 20<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Increase transparency, balance interests<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Control interest costs<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Up to 20% EBITDA<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to 30% EBITDA<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Support businesses, reduce loan burden<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Transfer pricing determination dossier<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Requested to be established, but not yet synchronized<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Clearly defined according to BEPS standards: Local file, Master file, CbCR<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Transparency, international integration<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Country-by-Country Reporting (CbCR)<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Yes, but not in detail<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Clearly stated: The parent company in Vietnam with revenue \u226518,000 billion must pay<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Clear multinational corporate responsibility<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Principles of application\u00a0<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Independent transaction, nature determines form<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Inheriting the principles of Decree 20, but more detailed and stricter<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Increase the effectiveness of anti-transfer pricing<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Impact on business<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Being reflected causes difficulties, especially regulation 20% loan interest<\/span><\/td>\n<td><span style=\"font-weight: 400;\">More open, but still tightening anti-transfer pricing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Balance between management &amp; business support<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Through the comparison table, it can be seen that Decree 132\/2020\/ND-CP not only inherits the foundation from Decree 20\/2017\/ND-CP but also completes and adjusts many regulations to be more suitable to reality. These changes help businesses have a clear and transparent legal basis in declaring and determining transfer pricing, while creating conditions for tax authorities to enhance management efficiency and prevent budget losses.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 20\/2017\/ND-CP plays an important foundational role in establishing the first legal framework on tax management for related-party transactions and anti-transfer pricing in Vietnam. Although it was later inherited and supplemented by Decree 132\/2020\/ND-CP, the initial provisions of Decree 20 have created a premise to enhance transparency and fairness in production and business activities, while limiting transfer pricing and loss of State budget revenue. Proper and full compliance with the provisions of this Decree not only helps businesses minimize legal risks, but also contributes to building a sustainable, healthy investment environment in accordance with international practices.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For specific advice, businesses please contact <a href=\"https:\/\/man.net.vn\/\" rel=\"nofollow noopener\" target=\"_blank\">MAN \u2013 Master Accoutant Network<\/a>.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\"><\/span><strong>Contact information <a href=\"https:\/\/man.net.vn\/\" rel=\"nofollow noopener\" target=\"_blank\">MAN \u2013 Master Accountant Network<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Address: No. 19A, Street 43, Binh Thuan Ward, District 7, Ho Chi Minh City.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mobile\/zalo:+84 (0) 903 963 163 or +84 (0) 903 428 622<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Email: man@man.net.vn<\/span><\/li>\n<\/ul>\n<p style=\"text-align: right;\"><b>Editorial Board: MAN \u2013 Master Accountant Network<\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>Ngh\u1ecb \u0111\u1ecbnh 20\/2017\/N\u0110-CP \u0111\u01b0\u1ee3c ra \u0111\u1eddi v\u1edbi m\u1ee5c \u0111\u00edch ki\u1ec3m so\u00e1t giao d\u1ecbch li\u00ean k\u1ebft, qu\u1ea3n l\u00fd thu\u1ebf v\u00e0 ph\u00f2ng ch\u1ed1ng chuy\u1ec3n gi\u00e1. V\u0103n b\u1ea3n n\u00e0y kh\u00f4ng ch\u1ec9 \u0111\u01b0a ra nguy\u00ean t\u1eafc x\u00e1c \u0111\u1ecbnh gi\u00e1, quy \u0111\u1ecbnh ngh\u0129a v\u1ee5 k\u00ea khai v\u00e0 l\u1eadp h\u1ed3 s\u01a1 giao d\u1ecbch li\u00ean k\u1ebft, m\u00e0 c\u00f2n thi\u1ebft l\u1eadp c\u01a1 ch\u1ebf [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,11],"tags":[],"class_list":["post-658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trung-tam-kien-thuc","category-khung-phap-ly"],"acf":[],"_links":{"self":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/658","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/comments?post=658"}],"version-history":[{"count":9,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/658\/revisions"}],"predecessor-version":[{"id":2292,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/658\/revisions\/2292"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/1942"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}