Uni 16-11-2020 - tax policy applicable to enterprises with associated transactions

Decree 132/2020 / ND-CP on tax administration applicable to enterprises with associated transactions as follows:

Decree 132/2020 / ND-CP takes effect from December 20, 2020 and applies from the corporate income tax period of 2020. Compared with the provisions of Clause 2, Article 5 of Decree 20/2017 / ND- CP, associated parties are entitled to the following subjects:

- Two enterprises are operated or controlled by personnel, finance and business operations by individuals belonging to one of the relationships: stepfather, stepmother, parents-in-law, parents-in-law; Stepchild of husband or wife, daughter-in-law, son-in-law.

- An enterprise that has the following transactions with the person operating and controlling the enterprise or with an individual in a relationship as prescribed at Point g, Clause 2, Article 5 of Decree 132:

+ Transaction of capital transfer or transfer of contributed capital of at least 25% of contributed capital of the enterprise's owner in the tax period;

+ Transaction of borrowing, lending at least 10% of equity of the owner at the time of transaction arising in the tax period.