News Share

The Tax Hub

Daily Tax Newsletter

Vietnam

Responsive image

Advanced Pricing Agreement Guidelines – details

Following the introduction of the Advanced Pricing Agreement (APA) regime under the Amended Tax Administration Law, Amended Corporate Income Tax Law and Decree 83/2013/ND-CP dated 22 July 2013, the Ministry of Finance (MOF) has issued Circular 201/2013/TT-BTC dated 20 December 2013 providing detailed guidance on Advance Pricing Agreements (Circular 201) which will be effective from 5 February 2014.
Key points of Circular 201 have been summarized as follows.

Scope of application
An APA is available to Vietnamese corporate income taxpayers with related-party business transactions. There is no restriction on the taxpayer in terms of the size of business (such as minimum revenue or capital thresholds) and it appears that an APA may apply to both domestic and international transactions.
The APA may be unilateral/bilateral/multilateral in nature and is based on the following principles:

- voluntary request by taxpayer;
- cooperative discussion and conclusion between the tax authority, taxpayers and/or relevant treaty partners;
- the prospective application; and
- is focused on predetermined related-party transactions only.
APA process
The APA process consists of five main steps as follows:
- pre-filing consultation;
- formal application;
- evaluation
- discussion and negotiation; and
- conclusion and circulation.
The GDT is responsible for the overall process with assistance from the provincial tax departments in negotiating, organizing and implementing the APA application, whilst the MOF is responsible for the APA framework itself.
There is no fee for an APA application.

Post-approval
An APA will be effective for no more than 5 years with the date of submission of the APA request being the earliest date possible. An APA can be renewed but for no more than another 5 years and if there are no material changes to the transaction(s) to which the APA applied.
Throughout the tenure of the APA, the taxpayer is required to submit an annual report together with its CIT return. If there are any material changes which may impact the APA, the taxpayer is required to submit an ad-hoc report within 30 days of the changing event.
The taxpayer is also responsible for making the necessary adjustments, in line with the agreed APA, throughout the APA period.

Others
- Information confidentiality is to be observed by all parties and any information/documentation provided during the APA application process shall not be used for other purposes, such as audits, investigations, etc.
- Taxpayers seeking application of a bilateral or multilateral MAP can submit a MAP request. The GDT will contact the competent tax authority within 30 days of the request and will inform the taxpayer of the corresponding response within 15 days of the receipt of the same.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More