When declaring transaction information with associated parties using Form 03-7/TNDN (previous Form GCN-01/QLT) together with filing CIT Finalization, many companies currently tend to understand that the associated parties declared in this form, which is governed by Circular 66/2010/TT-BTC of the Ministry of Finance ("Cir. 66") are the same as the related parties presented in the Financial Statements under requirements of Accounting Standard No. 26. However, such interpretations are incorrect and therefore result in the incorrect declaration of associated transaction information under Cir. 66 as well as lead to the risk when going through tax inspection.
It can be said that when determining the associated parties, except some cases in which there is relatively similarity between accounting regulations and Cir. 66 in terms of control rights, Cir. 66 also extends many cases than accounting regulations, specifically, two enterprises shall be considered associated parties if:
We recommend that you should review the above-mentioned cases in order to ensure that all associated parties are declared as requested in Cir. 66. For error cases, enterprises must submit additional declaration before going through transfer pricing inspection by Tax authorities.