VI In what cases are taxpayers exempt from declaring and filing related-party pricing documents from July 1, 2026? Let’s find out more with Pham Consult!
According to Article 20 of Decree 255/2026/ND-CP, taxpayers are exempt from declaring and preparing transfer pricing documentation from July 1, 2026 in the following cases:
(1) Taxpayers are exempt from declaring transfer pricing in Sections III and IV of Appendix I issued with Decree 255/2026/ND-CP, and are exempt from preparing transfer pricing documentation as prescribed in this Decree in cases where transactions only occur with related parties that are subject to corporate income tax in Vietnam, apply the same corporate income tax rate as the taxpayer, and neither party enjoys corporate income tax incentives in the tax period, but must declare the grounds for exemption in Sections I and II of Appendix I issued with Decree 255/2026/ND-CP.
(2) Taxpayers are responsible for declaring and determining the transfer pricing according to Appendix I issued with Decree 255/2026/ND-CP, but are exempt from preparing the Transfer Pricing Determination File in the following cases:
– Taxpayers have related-party transactions but the total revenue generated in the tax period is less than VND 50 billion and the total value of all related-party transactions generated in the tax period is less than VND 30 billion;
– Taxpayers who have signed a Prior Agreement on the method of determining taxable prices shall submit annual reports in accordance with the law on Prior Agreements on the method of determining taxable prices. For related-party transactions not within the scope of the Prior Agreement on the method of determining taxable prices, the taxpayer is responsible for declaring and determining the transfer pricing according to the provisions of Article 18 of Decree 255/2026/ND-CP;
– Taxpayers engaged in business activities that do not generate revenue or expenses from the exploitation or use of intangible assets, with revenue below VND 500 billion, shall apply the following net profit margin (excluding interest expense and corporate income tax) on net revenue, including the following sectors:
+ Distribution: 5% or more;
+ Manufacturing: 10% or more;
+ Processing: 15% or more.
In cases where the taxpayer separately tracks and accounts for revenue and expenses in each sector, the corresponding net profit margin (excluding interest expense and corporate income tax) on net revenue for each sector shall apply.
If the taxpayer can separately track and account for revenue but not for the expenses incurred in each business segment, the expenses shall be allocated proportionally to the revenue of each segment to apply the corresponding net profit margin (before deducting interest expenses and corporate income tax) on net revenue for each segment.
If the taxpayer cannot separately track and account for the revenue and expenses of each business segment to determine the corresponding net profit margin (before deducting interest expenses and corporate income tax) for each segment, the net profit margin (before deducting interest expenses and corporate income tax) of the segment with the highest margin shall be applied.
If the taxpayer does not apply the net profit margin stipulated in this point, they must prepare a Transfer Pricing Documentation as prescribed.
(3) Taxpayers who are exempt from declaring and preparing transfer pricing documentation as prescribed in Clause 1 and Clause 2 of Article 20 of Decree 255/2026/ND-CP, the determination of total deductible interest expense when determining taxable income of enterprises with related-party transactions shall be carried out according to the provisions of Clause 3 of Article 16 of Decree 255/2026/ND-CP.
What are the rights and obligations of taxpayers in declaring and preparing transfer pricing documentation?
Based on Article 18 of Decree 255/2026/ND-CP, the rights and obligations of taxpayers in declaring and preparing transfer pricing documents are stipulated as follows:
(1) Rights of taxpayers
The rights of taxpayers in declaring and determining transfer pricing are implemented according to the provisions of Clause 1, Article 37 of the 2025 Tax Administration Law.
(2) Obligations of taxpayers
The obligations of taxpayers in declaring and determining transfer pricing are implemented according to the provisions of Clause 2, Article 37 of the 2025 Tax Administration Law and the following provisions:
– Declaring and determining transfer pricing does not reduce the corporate income tax payable in Vietnam;
– Demonstrating the performance of analysis, comparison, and selection of transfer pricing methods;
– Declare information on related party relationships and related party transactions according to Appendix I, Appendix II, and Appendix III issued with Decree 255/2026/ND-CP and submit them together with the Corporate Income Tax Final Settlement Declaration;
– The transfer pricing documentation includes information, records, documents, data, and certificates, such as:
+ Information on related party relationships and related party transactions as per Appendix I issued with Decree 255/2026/ND-CP;
+ National documentation according to the list of information and documents specified in Appendix II issued with Decree 255/2026/ND-CP;
+ Global documentation according to the list of information and documents specified in Appendix III issued with Decree 255/2026/ND-CP;
+ Country-by-country profit report of the ultimate parent company as stipulated in Article 19 and Appendix IV issued with this Decree.
(3) Transfer pricing documentation must be prepared before the annual corporate income tax final settlement declaration and must be kept and presented upon request for information from the tax authority. . The transfer pricing dossier and the information, documents, and records provided by the taxpayer to the tax authority shall comply with the provisions of the tax management law. The data, documents, and records used as a basis for analysis, comparison, and transfer pricing must clearly state their origin. In cases where the data of independent comparable entities is accounting data, the taxpayer is responsible for storing and providing it to the tax authority in soft copy, in spreadsheet format.
(4) The taxpayer is responsible for providing complete and accurate information and is legally responsible for the information and documents in the transfer pricing dossier when requested by the tax authority during the consultation process before conducting an audit as prescribed in Article 21 of Decree 255/2026/ND-CP. The deadline for providing the transfer pricing dossier shall not exceed 30 working days from the date of receiving the request from the tax authority. In case the taxpayer has a legitimate reason, the deadline for providing the Transfer Pricing Documentation will be extended once for no more than 15 working days from the expiration date.
(5) Independent consulting, auditing or tax procedure service business organizations (hereinafter referred to as tax agents) representing the taxpayer in preparing the Transfer Pricing Documentation are responsible for complying with tax management laws for related-party enterprises as stipulated in Decree 255/2026/ND-CP and are liable before the law as prescribed.
What are the principles for applying tax management to related-party transactions of related-party enterprises?
According to Article 3 of Decree 255/2025/ND-CP, the principles for applying tax management to related-party transactions of related-party enterprises are as follows:
(1) Taxpayers with related-party transactions must exclude factors that reduce tax obligations due to the influence and impact of related-party relationships in order to declare and determine tax obligations for related-party transactions equivalent to independent transactions under the same conditions.
(2) Tax authorities manage and inspect the related-party transaction prices of taxpayers according to the principles applied in tax management stipulated in Clause 4, Article 6 and the principles of tax inspection stipulated in Clause 1, Article 22 of the 2025 Law on Tax Management.
