Latest News about transfer pricing
The State Audit Office of Vietnam requested the police to investigate the case.
Such increases have created a burden on the citizens, while multinationals are taking advantage of Vietnam’s incentive policies to avoid taxes.
Under the draft law, financial incentives would be given in three fields – corporate income tax, import/export tax; finance and land; and accelerated depreciation.
While FDI firms continue to report losses, they keep expanding operations in the country.
Vietnam plans to enact a law to fight against the transfer pricing tax in an effort to enforce transfer pricing rules more aggressively, according to Cao Anh Tuan, general director of the General Department of Taxation (GDT).
The extent of economic restraints caused by COVID-19 now cannot be known, but the Vietnamese economy will not grow as was estimated until recently.
The growth of FIEs in Vietnam has recently raised increasingly complicated tax concerns. These problems arise primarily from the practical issues of determining the transaction price between FIEs and their related parties.
There were 5,720 cases of foreign investors contributing capital or buying into Vietnamese enterprises in HCM City in 2019, which was 4.3 times higher than the number of FDI projects, according to the HCM City Planning and Investment Department.
Economists, applauding the decision to impose fines and force Coca Cola to pay tax arrears, totaling VND821 billion, said it is necessary to deal with foreign invested enterprises that evade tax and conduct transfer pricing.