The interest expense deduction limit may be raised from the current 20% to 30% to support businesses, according to a draft decree on tax management for enterprises with related party transactions the Ministry of Finance recently made public for comments.
Tax evasion, tax avoidance and transfer pricing are getting more complicated, particularly through affiliated transactions, due to incomplete and impractical policies, said Deputy Minister of Finance Tran Xuan Ha on July 15.
The opposing viewpoints of domestic and foreign experts on transfer pricing – a hot topic attracting much public interest in recent times – were the focus of a workshop held by the American Chamber of Commerce in Vietnam (AMCHAM) in Hanoi on November 9.
An international workshop on “Transfer pricing – Critical issues of current state management” was held in Hanoi on July 19, drawing 200 delegates from the National Assembly, ministries, central and local agencies, professional associations, universities, research institutes, international organisations, domestic and foreign businesses.
Total revenue of the State budget reached VND308.4 trillion (US$13.6 billion) in the first quarter of 2018, equivalent to 23.4% of the yearly estimate and up 5.3% year-on-year, said the Ministry of Finance.
Vietnam’s long-standing efforts to tackle the practice of transfer pricing as a tax avoidance ploy have gained sharper legal teeth with a new decree.
Transfer pricing has been a serious problem in Vietnam, more so than in other economies.
2016 marked a major watershed regarding transfer pricing in Vietnam, with regulations now having been in effect for a decade, and the announcement of a new round of tax reforms by the Ministry of Finance (MoF) introducing regulatory changes to tackle base erosion profit shifting practices.
Significant changes in the newly-released draft decree on transfer pricing and tax erosion avoidance is grabbing companies’ attention on the matter of compliance.
Vietnam tax authorities have said that they are considering whether Big C Vietnam has committed transfer pricing.
Inspections over possible transfer pricing activities have continued to be a key task for the General Department of Taxation (GDT) this year.
The Ho Chi Minh City tax department has set up an anti-transfer pricing task force and is calling for a probe to be launched into alleged transfer pricing practices at Coca-Cola Vietnam, says an official.
Many major companies operating in Vietnam will soon come under tax inspections on suspicions of transfer pricing, an official from the inspectorate of the General Department of Taxation said on April 22.
(VOV) - Enforcing the Advance Pricing Agreement (APA) mechanism is considered an effective solution for combating transfer pricing which has been reportedly increasing among multinational corporations (MNCs) in Vietnam.
(VOV) - Finance Minister Dinh Tien Dung has confirmed the financial sector will use necessary instruments for managing market prices to support the government’s macroeconomic stabilisation efforts.
(VOV) - To corner the market, not a few businesses are resorting to unhealthy or even illegal competition.
Transfer pricing by foreign direct investment (FDI) businesses is causing a headache for management agencies, as this unhealthy practice has a detrimental effect on the economy.
Vietnam plans to crack down on transfer pricing, a common practice among foreign-invested firms.