On 13 June 2019, the National Assembly approved a new Law on Tax Administration No. 38/2019/QH14 (“LTA”). This law will take effect on 01 July 2020 (except for its provision on invoices and e-documents, which will come into force on 01 July 2022) and replace the current Law on Tax administrative No. 78/2006/QH11. LTA 2019 provides the number of significant changes to the current Law on related- party transactions, e-commerce business, the deadline for submission of tax declaration dossiers, etc.
1. In recent years, the transfer pricing issue has been very much concerned by the Tax Authority. Therefore, at Clause 5, Article 42, the LTA 2019 guides the detail of the principles for declaration, determination the taxable prices of related-party transactions as follows:
2. Currently, e-commerce business has been growing with rapid speed, therefore, declaration and calculation principles are added in the LTA 2019. However, the guidelines are only general guidelines in the LTA 2019, these points shall be more detailed guided in following sub-law documents in future.
3. The LTA 2019 has also changed deadline for submission of tax declaration dossiers for quarterly and annual basis, this can make it easier for taxpayers to not need to calculate the number of specific days as before. Accordingly,