decree 132

Update news decree 132

Decree to prevent transfer pricing could inadvertently harm Vietnamese companies

Setting a cap on loan interest deductability is a tool to prevent foreign invested enterprises (FIEs) from conducting transfer pricing. However, the application of the regulation on Vietnamese enterprises as well has stirred controvesy.

New regulations on cap on loan interest deductions released

The regulations on the cap on loan interest deductions will cause enterprises to face difficulty as they have small capital and operate mostly with borrowed money.