Global Daily Tax News, Vietnam Overhauls CbCr Rules In New TP Decree, (Mar 25, 2026)

Vietnam's Finance Ministry has released for consultation a draft Decree governing transfer pricing that would be effective from July 1, 2026.

The draft Decree is intended to establish rules governing related-party transactions under the nation's new Law on Tax Administration (No. 108/2025/QH15), which is also due to become effective from July 1. The new Decree is intended to enhance the existing legal framework governing related-party transactions in Decree No. 132/2020/ND-CP.

According to the Government, the Decree largely mirrors existing provisions from the former Decree in the areas of comparability analyses, the selection of comparables, transfer pricing methodologies, and the rules regarding internal transactions, among other things. Many changes have been made to Articles 2, 3, 4, 5, 17, 18, 20, 21, and 22 of the existing Decree, and the Government said the rights and obligations of taxpayers have also been clearly defined.

A major change in the Decree affects the scope of the nation's country-by-country reporting regime.

Changes are proposed to the rules regarding how global consolidated revenue should be calculated at group level for purposes of determining whether the group falls within scope of transfer pricing documentation-related obligations.

In particular, the current Decree provides that country-by-country reports must be prepared where a group's consolidated global turnover exceeds VND18 trillion. Due to currency fluctuations, this amount no longer corresponds with the EUR750m threshold recommended by the OECD in its BEPS Action 13 report (equal, now, to about VND22 trillion).

The new Decree provides that groups will be required to prepare and submit a CbC report if the group's consolidated group turnover in the fiscal year immediately preceding the reporting year was equal to or exceeded the national currency equivalent of EUR750m, calculated based on rules set out in the Decree. The Decree stipulates that the applicable exchange rate will be the central rate or the average cross-exchange rate of December of the year immediately preceding the reporting year, as referenced and published by the State Bank of Vietnam.

Further, it specifically stipulates how such reports must be filed. The Decree provides that the report should be submitted to the tax authority via the national public service portal, the Tax Management Information System, or through an approved service provider, in encrypted XML format.