On 09/7/2026, the Tax Department issued Official Letter No. 4697/CT-CS to provincial and municipal tax authorities, the E-commerce Tax Sub-department, and the Large Enterprise Tax Sub-department, introducing key changes and implementing Decree No. 255/2026/ND-CP on tax administration for related-party transactions of enterprises with related-party relationships.
Decree No. 255/2026/ND-CP was promulgated by the Government on 30/6/2026 and takes effect from 01/7/2026 (the same effective date as the Law on Tax Administration No. 108/2025/QH15). It applies from the 2026 corporate income tax period. Comprising 4 chapters and 24 articles, the Decree largely inherits Decree No. 132/2020/ND-CP (as amended and supplemented by Decree No. 20/2025/ND-CP), while seeking to simplify administrative procedures, align with OECD standards, and reduce taxpayers' compliance costs.
Below are 10 notable groups of changes summarized by the Tax Department in the Appendix to Official Letter No. 4697/CT-CS.
The principles governing tax authority administration and inspection of transfer pricing have been amended by reference to the tax administration principles in Clause 4, Article 6 and the tax inspection principles in Clause 1, Article 22 of the Law on Tax Administration No. 108/2025/QH15.
The definitions of "Ultimate Parent Entity" and "Tax Treaty" have been added and refined by reference to Resolution No. 107/2023/QH15 on additional corporate income tax under the global anti-base erosion rules and Decree No. 236/2025/ND-CP guiding that Resolution. The terms "Related-party transaction", "Local File", "Master File", and "Systemic failure to exchange information" have also been refined.
Related-party relationships arising from borrowing and lending of assets have been added. Under Point l, Clause 2, Article 5, an enterprise is deemed to have a related-party relationship where, during a tax period, it enters into a transaction involving the transfer or receipt of at least 25% of the owner's contributed capital; or borrows, lends, takes assets on loan, or gives assets on loan in an amount equal to at least 10% of the owner's contributed capital at the time of the transaction with an individual who manages or controls the enterprise, or with an individual in a relationship specified at Point g of this Clause.
Previously, related-party relationships between an enterprise and an individual managing or controlling it through asset borrowing or lending were not regulated. The addition addresses practical issues and better reflects the substance of such transactions.
A new case in which a related-party relationship does not apply has been added (Point d.3, Clause 2, Article 5): the creditor or guarantor is an organization wholly owned by the State, has the function of purchasing, selling, or resolving debts, and does not directly or indirectly participate in the management or control of, contribute capital to, or invest in the debtor enterprise or the guaranteed enterprise. This case was not previously regulated.
Taxpayers' rights and obligations in declaring and determining transfer prices are governed by Clauses 1 and 2, Article 37 of the Law on Tax Administration No. 108/2025/QH15. Regarding representatives preparing transfer pricing documentation, the phrase "company providing tax procedure services" has been replaced with "organization providing tax procedure services".
This is the most extensively amended group of provisions and follows OECD BEPS Action 13:
The revenue threshold has been increased to below VND 500 billion (previously below VND 200 billion), and the criterion of "performing simple functions" has been removed.
Previously, a taxpayer had to satisfy all 4 criteria to qualify for the exemption: (i) performing simple functions; (ii) not generating revenue or expenses from, or using, intangible assets; (iii) revenue below VND 200 billion; and (iv) achieving the prescribed net profit margin for each sector. This change significantly expands the group of low-risk taxpayers exempt from preparing documentation.
CbCR may not be used to adjust transfer prices (Point c, Clause 1, Article 21). Previously, the regulation only stated that CbCR could not be used to impose prices. CbCR may be used only for risk management and information exchange under Vietnam's international commitments.
Clause 10, Article 21 has been added on voluntary compliance support, reflecting a shift from a "risk management" model, focused on detecting violations, inspections, and penalties, to a "compliance management and support" model centered on taxpayers. Accordingly, tax authorities shall: develop and implement voluntary compliance support programs based on risk management; publish industry profit margins by sector, location, or taxpayer group using declared data; support taxpayers participating in programs to improve compliance and reduce risk; and maintain the confidentiality of taxpayer-provided information and data.
The names of certain ministries have been updated, and their functions and responsibilities for coordinating communications, providing information, and connecting and sharing sector-specific data for tax administration of enterprises with related-party transactions have been refined to align with the new functions and responsibilities following organizational mergers.
Enterprises eligible for the transitional treatment of interest expense under Article 3 of Decree No. 20/2025/ND-CP dated 10/02/2025 may continue applying that treatment for the remaining period in accordance with Article 3 of Decree No. 20/2025/ND-CP, ensuring policy continuity and protecting taxpayers' rights.