CIRCULAR GUIDING THE
APPLICATION OF ADVANCEPRICING AGREEMENTS IN TAXADMINISTRATION

On 18 June 2021, the Ministry of Finance issued Circular No.
45/2021/TT-BTC (“Circular 45/2021”) guiding the application ofadvance pricing agreements (“APA”) in tax administration forenterprises with related party transactions.
Circular 45/2021 takes effect from 3 August 2021 and replaces
Circular 201/2013/TT-BTC dated 20 December 2013.

APA effectivenessTaxpayers committing any tax administrative violations during
the implementation of the signed APA will be sanctioned fortax administrative violations according to regulations.

We would like to provide a summary of more salient points of
Circular 45/2021 below.

Effective period of a signed APA is up to 3 years instead of 5years as previously regulated.

Transactions covered by the APA

Application conditions:

For APA applications submitted before the effective date of
Circular 45/2021 but not been signed and the period for application of APA not yet ended by the effective date of Circular
45/2021 will continue to be dealt with according to the Law on
Tax Administration, Decree No. 126/2020/ND-CP and thisCircular.

►Transactions that have been already incurred in the taxpayer’s business operations and will continue to takeplace during the APA’s covered period.

If you need further information, do not hesitate to contact us.

►Transactions of which nature can be determined to verify
tax liability and the basis for analysis, comparison andselection of independent comparable subjects could beobtained from information and data complied with Articles 6 and 7, Decree No. 132/2020/ND-CP, based on
information and data complied with Point b, Clause 6,Article 42, Law on Tax Administration.

Transactions covered by APA are related party transactions
specified in Clause 2, Article 1, Decree 132/2020/ND-CP.

CONTACTS
UHY Auditing and Consulting Co Ltd
Nguyen Trung Thanh - Partner
E: thanhnt@uhyvietnam.com.vn►

Transactions that are not under tax disputes nor complaints.

Tran Thi Bo - Director
E: bott@uhyvietnam.com.vn►

Transactions that are made transparently, not arranged
for the purposes of tax evasion, tax avoidance or abuseof the Tax Agreements.

Phung Thi Oanh –Director
E: oanhpt@uhyvietnam.com.vnPrinciples for concluding APAs

Hanoi Head OfficeAPA will be applied on the basis of cooperation, coordinationand negotiation between the tax administration and the taxpayers (covered by the APA), or a Vietnamese tax administration,
counterpart tax authorities and the taxpayers on the applicationof laws and regulations on CIT in relation to related party transactions within the scope of APA in accordance with the principleof independent transactions and substance over form in determining the tax liability.

5th Fl, B2 Tower, Roman Plaza, To Huu Street, Nam
Tu Liem District, Hanoi, Vietnam

During the implementation of the APA, taxpayers are responsible for:►►

Complying with the conditions stated in the concluded
APA and make adjustments to taxable income in accordance with the price or profit margin or profit split ratioprescribed in the APA in preparing tax declaration andpayment in accordance with the laws and regulations.

Prepare and submit annual APA reports for each tax
year and ad hoc reports (if any) during the effective period of the signed APA according to Clause 7, Article 41,Decree No. 126/ 2020/ND-CP.

An independent member of UHY International

Tel: +84 245 678 3999Fax: +84 243 755 7448
Ho Chi Minh City Office
5th Floor, 146 Nguyen Cong Tru, Thai Binh Ward, District 1, Ho Chi Minh City
Tel: +84 283 820 4899
Fax: +84 283 820 4909
Website:www.uhy.vn

Facebook: UHY Tax Centre

Helping you prosper