New Transfer Pricing regulations in Vietnam

On 24 February 2017 Vietnam’s Government issued Decree No. 20/2017/ND-CP on transfer pricing between related parties and on 28 April 2017 Circular No.41/2017/TT-BTC was released to further guidance.


1. Decree No. 20/2017/ND-CP

Vietnam’s Government has recently released a Transfer Pricing (“TP”) Decree No. 20/2017/ND-CP (hereinafter refer to as “Decree 20” or “the Decree”), providing tax administration applicable to enterprises having related party transactions. The Decree shall take effect from 1 May 2017.

Read more here

2. Circular No. 41/2017/TT-BTC

On 28 April 2017, the Ministry of Finance released Circular No. 41/2017/TT-BTC (hereinafter referred to as “Circular 41” or “the Circular”) providing further guidance on the implementation of certain articles of Decree No. 20/2017/ND-CP dated 24 February 2017 on tax administration of enterprises engaging in related party transactions. Detailed guidance is outlined below:

Decree 20


Circular 41

Article 6 – Comparability Analysis


Article 2

Article 7 – Transfer Pricing Methods


Article 3

Article 10 – Transfer Pricing Compliance


Article 4

Article 11 – Exemption from Transfer Pricing Documentation


Article 5

Key points

  • Introducing “substance over form” principle 
  • Related Party Definition
  • Comparability analysis and Transfer Pricing adjustments (Article 2 – Circular 41)
  • Transfer Pricing adjustments
  • Transfer Pricing Methodology (Article 3 – Circular 41)
  • Tax Deductibility for Related Party Expenses
  • Three-tiered Transfer Pricing Documentation and annual Declaration
  • Timeline for Transfer Pricing Documentation
  • Transfer Pricing Documentation compliance exemption 

Our support

With our extensive experience in Transfer Pricing planning and compliance, and as one of the major Transfer Pricing service providers in Vietnam, we are pleased to assist you to properly comply with the laws and regulations with the following services:

  • Review and analysis of Transfer Pricing risks and opportunities;
  • Full Transfer Pricing documentation;
  • Localization of Groups’ Master File into Vietnam-specific Transfer Pricing documentation;
  • Transfer Pricing benchmarking study;
  • Transfer Pricing audit defense; and
  • Advanced Pricing Agreement application.

Should you need more information or assistance, don’t hesitate to contact us at the following details. 

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Mazars Vietnam - Transfer Pricing Alert (ENG) - New TP Regulations
Mazars Vietnam - Transfer Pricing Alert (ENG) - New TP Regulations