đá bóng trực tiếpVietnam: What is a multilateral APA?

What is a multilateral APA?

đá bóng trực tiếp advance pricing agreement for determining tax payable is referred to as an APA.

According to Clause 3, Article 4 ofCircular 45/2021/TT-BTC, a "multilateral APA" is an agreement signed between đá bóng trực tiếp Vietnamese tax authority, đá bóng trực tiếp taxpayer, and several partner tax authorities relating to determining đá bóng trực tiếp tax obligations of đá bóng trực tiếp taxpayer requesting đá bóng trực tiếp application of đá bóng trực tiếp APA based on đá bóng trực tiếp tax treaty.

What are principles of application of multilateralAPAin Vietnam?

According to Article 5 ofCircular 45/2021/TT-BTCregarding đá bóng trực tiếp principles of application of multilateral APA:

[1] đá bóng trực tiếp APA is applied on đá bóng trực tiếp principle that đá bóng trực tiếp tax authority and taxpayer, or đá bóng trực tiếp Vietnamese tax authority and đá bóng trực tiếp partner tax authority and đá bóng trực tiếp taxpayer, cooperate, exchange, and negotiate đá bóng trực tiếp application of legal regulations on corporate income tax obligations for related transactions within đá bóng trực tiếp APA's scope, in line with đá bóng trực tiếp arm's length principle and đá bóng trực tiếp principle that đá bóng trực tiếp essence of đá bóng trực tiếp operations and transactions determines đá bóng trực tiếp tax obligations.

[2] đá bóng trực tiếp application of đá bóng trực tiếp APA aims to enhance tax administration efficiency, reduce compliance costs with tax laws, determine đá bóng trực tiếp taxpayer's related transaction prices in accordance with đá bóng trực tiếp principles of analysis, comparison with independent transactions, and đá bóng trực tiếp principle that đá bóng trực tiếp nature of operations and transactions determines đá bóng trực tiếp tax obligations, to identify đá bóng trực tiếp nature of đá bóng trực tiếp related transactions, and đá bóng trực tiếp corporate income tax obligations payable by đá bóng trực tiếp taxpayer as in conditions between independent parties, and to prevent double taxation and tax evasion, minimizing disputes over determining đá bóng trực tiếp price of related transactions.

[3] đá bóng trực tiếp taxpayer's request for APA application is resolved based on đá bóng trực tiếp dossier with đá bóng trực tiếp necessary documents and information as required in Clause 3, Article 41 ofDecree 126/2020/ND-CPprovided fully, accurately, truthfully, and promptly by đá bóng trực tiếp taxpayer.

[4] đá bóng trực tiếp analysis, comparison, selection of independent comparables, and đá bóng trực tiếp method used to compare and determine đá bóng trực tiếp related transaction price within đá bóng trực tiếp scope of đá bóng trực tiếp APA's application are conducted as specified inDecree 132/2020/ND-CP.

[5] đá bóng trực tiếp application of đá bóng trực tiếp APA mechanism must comply with đá bóng trực tiếp principles stipulated in Clause 6, Article 42 ofLaw on Tax Administration 2019, specifically:

- đá bóng trực tiếp application of đá bóng trực tiếp advance pricing agreement mechanism for determining tax payable is based on đá bóng trực tiếp taxpayer's request and đá bóng trực tiếp consensus between đá bóng trực tiếp tax authority and đá bóng trực tiếp taxpayer via a unilateral, bilateral, or multilateral agreement between đá bóng trực tiếp tax authority, đá bóng trực tiếp taxpayer, and foreign tax authorities from relevant countries or territories;

- đá bóng trực tiếp application of đá bóng trực tiếp advance pricing agreement mechanism for determining tax payable must be based on đá bóng trực tiếp taxpayer's information and verified commercial database ensuring legal compliance;

- đá bóng trực tiếp application of đá bóng trực tiếp advance pricing agreement mechanism for determining tax payable must be approved by đá bóng trực tiếp Minister of Finance before implementation; for bilateral and multilateral agreements involving foreign tax authorities, it is carried out according to đá bóng trực tiếp provisions of international treaty laws, international agreements.

What is a multilateral APA? (Image from đá bóng trực tiếp Internet)

What documents are included in đá bóng trực tiếp application for a multilateral APA in Vietnam?

According to Clause 3, Article 41 ofDecree 126/2020/ND-CP, đá bóng trực tiếp application for a multilateral APA includes:

Application of đá bóng trực tiếp advance pricing agreement mechanism for determining tax payable for enterprises with related transactions

...

3. Taxpayers who request to apply an APA submit an official APA application form according to Form No. 02/APA-CT in Appendix III issued concurrently with this Decree together with one set of đá bóng trực tiếp official APA application to đá bóng trực tiếp General Department of Taxation.

In cases where taxpayers request to apply a bilateral or multilateral APA, taxpayers submit đá bóng trực tiếp request for conducting bilateral procedures according to Form No. 03/APA-MAP in Appendix III issued concurrently with this Decree.

Taxpayers may consult đá bóng trực tiếp General Department of Taxation before submitting an official APA application by sending a consultation request according to Form No. 01/APA-TV in Appendix III issued concurrently with this Decree to đá bóng trực tiếp General Department of Taxation.

...

Thus, đá bóng trực tiếp application for a multilateral APA includes:

- đá bóng trực tiếp official APA application form according to Form No. 02/APA-CT in Appendix III issued withDecree 126/2020/ND-CP;

- đá bóng trực tiếp request for conducting bilateral procedures according to Form No. 03/APA-MAP in Appendix III issued withDecree 126/2020/ND-CP.

* Note: Taxpayers may consult đá bóng trực tiếp General Department of Taxation before submitting an official APA application by sending a consultation request according to Form No. 01/APA-TV in Appendix III issued withDecree 126/2020/ND-CPto đá bóng trực tiếp General Department of Taxation.