According to Article 5 of Decree No. 132/2020/ND-CP, enterprises shall be considered to have related-party transactions if a party holds at 25% of equity of the other party.
Accordingly, in case a company acquires at least 25% of equity of another enterprise, including foreign company, it is considered to engage in related-party transaction.
The company shall be responsible for declaring the related-party transaction according to the regulations at Decree No. 132/2020/ND-CP .
|Published||Vietlaw's Newsletter No. 535|