On September 13, in Ho Chi Minh City, the Vietnam Chamber of Commerce and Industry (VCCI) - Ho Chi Minh City Branch coordinated with Tavitax Investment and Development Company Limited to organize a seminar on "Transfer pricing and comprehensive tax risk management".

The seminar aims to provide information and guide enterprises to grasp regulations on related-party transactions to limit risks in the tax transaction process.

At the workshop, Mr. Le Van Hai, Deputy Head of the Legal Department of the Tax Department (the Ministry of Finance) said that in recent years, many enterprises, including FDI enterprises, have not fully declared their related transactions between companies in the same group, so they have been charged hundreds of billions of VND in back taxes. Therefore, it is extremely necessary to disseminate the regulations to businesses so that they can fully understand them.

Mr. Le Van Hai, Deputy Head of the Legal Department of the Tax Department (Ministry of Finance) informed about the amendment of legal regulations related to related party transactions - Photo: L.Q

According to Mr. Hai, many countries have tightened the management of transfer prices and related party transactions between companies in the same group, and Vietnam is doing the same.

Specifically, the Tax Department (Ministry of Finance) is drafting a revised Decree 125 on administrative sanctions in the tax field to submit to the Government.

At the same time, the Ministry of Finance is drafting a revised Tax Law with many new regulations, which is expected to be submitted to the National Assembly for approval by the Government in October 2025.

At the workshop, many businesses said that related party transactions and transfer pricing are becoming a "hot" issue, attracting the attention of many businesses.

Mr. Le Anh Tuan, Director of Tavitax Investment and Development Company Limited, said that in the context of FDI capital flows into Vietnam continuously increasing in recent years, while the ecosystem of domestic enterprises is increasingly developing, affiliated transactions and transfer pricing between companies in the same group are becoming more and more popular.

Enterprises discuss on the sidelines of the workshop on issues related to transfer pricing - Photo: L.Q

According to Mr. Tuan, in 2025, when implementing the global minimum tax according to international standards of the Organization for Economic Cooperation and Development (OECD) and Vietnam's legal regulations are increasingly tightened, many enterprises have been affected by in-depth inspections, leading to many cases of tax arrears and fines with quite large amounts of late payment.

"Informing enterprises about legal regulations related to transfer pricing and tax risk management is very necessary and practical for enterprises. From there, enterprises will build a standard related party transaction profile according to the provisions of law. This is an important factor determining the sustainable development of each enterprise", Mr. Tuan emphasized.

To prevent risks in implementing related party transactions, Mr. Le Van Hai recommended that enterprises need to improve and update the provisions of the law on tax.

In particular, when there are unclear issues, businesses should send documents to the tax authorities to receive instructions on how to comply with legal regulations to avoid tax arrears.