This November 2020 publication of our Tax and Accounting Updates looks at a number of key Decrees that were released recently including Transfer Pricing, Tax Administration, E-Invoices and Company Establishment. These Decrees cover a wide range of subjects, and we encourage readers to read more in our detailed “Client Alerts” we have released for each of these at our publications page on our website www.DomicileCS.com/index.php/blog. We also cover our regular review of recent Official Letters released by the Tax Authorities in this publication.
DECREE 132 ON TRANSFER PRICING IN VIETNAM
On 5 November 2020, the Vietnam Government released Decree 132/2020/ND-CP (“Decree 132”) in respect of Transfer Pricing in Vietnam, replacing Decree 20/2017/ND-CP and Decree 68/2020/ ND-CP.
Decree 132 provides some significant changes to Transfer Pricing regulations in Vietnam, and although it comes into effect from 20 December 2020, it applies to the full 2020 tax year, therefore entities with related party transactions will need to ensure understanding and compliance with these regulations.
DECREE 126 IMPLEMENTING THE TAXATION ADMINISTRATION LAW
The Vietnamese Government released Decree 126/2020/ND-CP (“Decree 126”) on 19 October 2020, to implement elements of the Law on Tax Administration 2019. The Decree is a comprehensive document, spanning 266 pages (including appendices), a covering broad range of tax administration and compliance in Vietnam.
Of changes implemented by Decree 126, some of the more significant relate to:
– Taxation of cross-border e-commerce activities
– Tax administration during suspension of a business
– New Anti-avoidance provisions and increased penalties for taxation enforcement, and
– Changes to taxation lodgements and general administration
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