blue-check Effective period of an advance pricing agreement is shortened to 3 years

Circular No. 45/2021/TT-BTC dated June 18th, 2021 of the Ministry of Finance on guidance on application of advance pricing agreements (APA) to enterprises having related-party transactions
Posted: 22/6/2021 11:24:38 AM | Latest updated: 9/7/2021 1:27:21 PM (GMT+7) | LuatVietnam: 5232 | Vietlaw: 517

An advance pricing agreement (APA) means an advance agreement signed between a tax authority and enterprises having related-party transactions on method for determination to value for calculation of enterprise income tax (EIT)

This Circular of the Ministry Finance changes regulations on signing of an APA in order to specify Article 41 of Decree No. 126/2020/ND-CP, applicable to enterprises having related-party transactions specified at Article 5 of Decree No. 132/2020/ND-CP

Accordingly, the maximum effective period of a concluded APA is 3 tax years instead of 5 years under the earlier regulations.

The application for applying APA shall be made according to Clause 3 Article 41 of Decree No. 126/2020/NĐ-CP .

Related-party transactions to which an APA is proposed to be applied are transactions arose and will continue to take place during the proposed APA application period and not involved in tax disputes or complaints

This Circular takes effect from August 3rd, 2021 and replaces Circular No. 201/2013/TT-BTCstatus1 dated December 20th, 2013.

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Effective Date 3-Aug-2021
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Published Vietlaw's Newsletter No. 517
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