The Ministry of Finance has prescribed tax administration for enterprises engaged in transfer pricing (You can refer at Decree No. 20/2017/ND-CP and Circular No. 41/2017/TT-BTC).

FTAC is specializing in providing service of consulting on transfer pricing documentation to support you to understand and comply with the above – mentioned provisions.

Transfer pricing is carrying out the pricing policies through transferring goods, assets and providing services within a corporation but not following the market price in order to minimize the final taxes of the companies in a corporation.

The nature of transfer pricing is choosing the most preferential place to pay company income taxes but not breaking the substantive law, therein, the object is  the price taken by companies to change value of goods and services in transactions with foreign related parties.

The price of the transaction between companies and the corporation is the foundation to check for transfer pricing. Tax authorities consider whether a transaction needs transfer pricing or not by comparing the transaction price with the market one. If the transaction price is not correspond with the market price, it is most likely to conclude that the  transaction has the sign of transfer pricing.