The enterprise is the ultimate parent company in Vietnam with consolidated global revenue during the tax period of eighteen trillion VND or more, responsible for preparing Country-by-Country reports in the transfer pricing documentation file.
Enterprises shall be responsible for retaining and providing the transfer pricing files comprising information, documents, data and records, including:
- Interrelationship and related party transaction information provided in the form given in Appendix I;
- Local files, including information about transfer pricing, transfer pricing policies and methods, prepared and deposited at taxpayers’ offices according to the directory of information and documents prescribed in Appendix II;
- Master files containing information about business activities of multinational groups, transfer pricing policies and methods of global groups and policies on allocation of income and decentralization of operations and functions in value chains of groups according to the directory of information and documents prescribed in Appendix III;
- Country-by-Country reports of profits of ultimate parent companies prescribed in Appendix IV
The obligation related to Country-by-Country reports
1. If a taxpayer is an ultimate parent company in Vietnam that generates at least eighteen thousand billions of Vietnam dong in their global consolidated revenue, then they shall take responsibility for preparing a Country-by-Country report of profits included in the transfer pricing file referred to in Appendix IV
The duration of submission of these reports to tax authorities shall be 12 months starting from the ending date of the ultimate parent company’s fiscal year.
2. Taxpayers in Vietnam having overseas ultimate parent companies responsible for submitting a Country-by-Country reports of profits under the host country’s legislation must submit such reports to tax authorities in the following cases:
- Countries, territories where ultimate parent companies are residents enter into international taxation agreements with Vietnam, but do not have any agreement with competent regulatory authorities by the deadline for submission of reports
Overseas countries, territories where ultimate parent companies are residents have agreements between competent regulatory authorities with Vietnam, but have terminated the automatic communication mechanism or fail to automatically provide Vietnam with Country-by-Country reports of profits of groups that are residents in these countries or territories.
- In case where a multinational group having more than one taxpayer in Vietnam and an ultimate parent company in an overseas country issues a written notification to designate one of the taxpayers in Vietnam to submit a Country-by-Country report of profits, the designated taxpayer shall be obliged to submit such report to a tax authority. Taxpayer shall be obliged to submit the written notification of designation issued by the ultimate parent company to the tax authority by or on the ending date of the fiscal year of the taxpayer’s ultimate parent company.
3. Regulations laid down in point 2. of this clause shall not apply to the cases where ultimate parent companies of taxpayers in Vietnam designate other entities to act on their behalf to submit Country-by-Country reports of profits to tax authorities of host countries by or on the date prescribed in point a of this clause, and meet the following requirements:
- Countries, territories where entities entrusted with submission of reports are residents adopt regulations requiring the submission of Country-by-Country reports of profits.
- Countries, territories where entities entrusted to submit reports are residents have agreements between competent regulatory authorities with Vietnam as signatories at the date due for submission of these reports as per point a of this clause.
- Countries, territories where entities entrusted with submission of reports are residents have agreements between competent regulatory authorities with Vietnam, but have not terminated the automatic communication mechanism and provide Vietnam with Country-by-Country reports of profits of groups that are residents in these countries or territories.
- Entities entrusted with submission of reports shall be obliged to show their written notifications stating that they are designated to submit Country-by-Country reports of profits to tax authorities of host countries by or on the ending date of the fiscal year of the group’s ultimate parent companies.
- Written notifications of designation of entities entrusted with submission of reports which are provided by taxpayers in Vietnam to Vietnamese tax authorities.
- Taxpayers in Vietnam must inform Vietnamese tax authorities in writing of names, tax identification numbers and host countries of ultimate parent companies or entities entrusted with submission of reports by or on the ending date of the group’s fiscal year.
4. If taxpayers' overseas ultimate parent companies are bound to submit Country-by-Country reports of profits under the regulations of host countries, tax authorities must automatically communicate under commitments made under international taxation agreements by Vietnam.
5. If taxpayers' ultimate parent companies are not bound to submit Country-by-Country reports of profits under the regulations of host countries, tax treaties must be observed.
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