The Ministry of Finance yesterday announced establishment of Transfer Pricing Inspection Agency under the Inspection Department of the General Taxation Department.
This aims to fight against complicating transfer pricing which has resulted in budget revenue’s losses.
The agency will act as a counselor for the Taxation General Department to work out inspection plans over transfer pricing, build inspection process, collect and handle information from businesses on the issue.
In 2012, the department has piloted an anti transfer pricing unit to study tax measures against this activity, as well as build database and inspection process.
After the pilot program concluded, they had inspected 29 cases and reclaimed VND20 billion (US$896,000) in taxes each case.
There are 13,000 foreign direct investment enterprises in Vietnam now, of these about 4,098 businesses have transactions related to transfer pricing.