Transfer pricing refers to the determination of the price at which transactions between the related parties will be carried out. National tax authorities are aware of the potential for MNCs to use discretionary transfer pricing to avoid paying income taxes, import taxes, and so on. Most countries have guidelines regarding what will be considered an acceptable transfer price for tax purposes and have other documentation requirements and penalties.

1. Discuss the regulations on transfer pricing in Vietnam compared with international regulations.

2. Interpret a recent international transfer pricing case.

Answer rating: 100% (QA)

The Vietnam Government the Government issued on 5 November 2020 Decree 1322020NDCP Decree 132 on tax administration for transactions with related parties Decree 132 is effective from 20 December 2020 ... View the full answer