The growth of foreign-invested enterprises (FIEs) in Vietnam has recently raised increasingly complicated tax concerns. These problems arise primarily from the practical issues of determining the transaction price between FIEs and their related parties.
On February 24, 2017, the Vietnamese government released the new transfer pricing (TP) Decree No. 20/2017/ND-CP ‘Providing tax administration applicable to enterprises having controlled transactions’ (Decree 20), which will take effect from May 1, 2017.
Significant changes in the newly-released draft decree on transfer pricing and tax erosion avoidance is grabbing companies’ attention on the matter of compliance.