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Circular 66/2009/tt-Btc: Guide Implementation Of The Determination Of The Market Value Of The Business Transactions Between The Related Parties Links

Original Language Title: Thông tư 66/2010/TT-BTC: Hướng dẫn thực hiện việc xác định giá thị trường trong giao dịch kinh doanh giữa các bên có quan hệ liên kết

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CIRCULAR Guide made the determination of the market value of the business transaction between the parties link to base corporate income tax law No. 14/2008/QH12 June 3, 2008;
Pursuant to the law the tax management of 78/2006/QH11 on 29/11/2006;
Pursuant to Decree No. 124/2008/ND-CP on December 11, 2008 detailing the Government's implementation of some articles of the law on Enterprise Income Tax;
Pursuant to Decree 88/2007/ND-CP dated 07/06/2007 detailing the Government's implementation of some articles of the law on tax administration;
Pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government regulation of the functions, duties, powers, organizational structure of the Ministry of finance, the Ministry of Finance shall guide the implementation of the regulation on the determination of the market value of the business transaction between the parties related to the link as a base declaration defines the enterprise income tax obligations of business establishments following: Section a. GENERAL PROVISIONS article 1. The object to apply the production organisation, business, goods, services (hereinafter enterprise) business transaction with related parties links, are obliged to declare, determine corporate income tax obligations in Vietnam.
Article 2. Scope of The transaction to buy, sell, Exchange, rent, lease, transfer or conveyance of goods and services in the business process (referred to as business transactions) between the parties link, except the business transactions between enterprises in Vietnam with the related party links relating to the products in an adjustment of the price of real state provisions of the law on prices.
Article 3. Explanation of terms 1. "Market value" is the phrase to refer to the price of products according to objective agreement in business dealings on the market between the parties no relation links (the independence party).
2. "product" is the common word used to designate the goods and services that are the object of the business transaction.
3. "the purchase price", "sale price" is the common word used to indicate product prices in trading buy, sell, Exchange, rent, lease, transfer, assignment.
4. "The parties link" (hereinafter referred to as "the parties") is the term used to refer to the parties in a relationship in the case below: 4.1. A party involved directly or indirectly in the operating, control, raising capital or investment in any form to the other party;
4.2. The parties directly or indirectly subject to the same operating, control, raising capital or investment in any form of another party;
4.3. The parties involved directly or indirectly in the operating, control, raising capital or investment in any form on one side to the other.
Usually, two businesses in a tax period in a relationship business transaction in one of the following circumstances shall determine is the party affiliation: a) a business holds directly or indirectly at least 20% of the capital invested by the owner of the other enterprise;
b) both businesses have at least 20% of the capital invested by the owner due to a third party holding directly or indirectly;
c) both companies holds directly or indirectly at least 20% of the capital invested by the owner of a third party;
d) a business that is the largest shareholder of capital by owners of other businesses, holds directly or indirectly at least 10% of the capital invested by the owner of the other enterprise;
e) a business the guarantee or other loans for a business of any kind with the condition of loan terms at least equal to 20% of the capital invested by the owner of the business loan and accounts for over 50% of the total value of the medium and long term debt of the enterprises-borrowers;
f) A specified business executive leadership Committee members or control of a business other than the condition that the number of members to be appointed the first business accounted for over 50% of the total membership of executive leadership or control of the business Monday; or one member be appointed the first enterprise has the right to decide the financial policies or operations of the business Monday;
g) two businesses together have over 50% of the Board members or have a member of the Board of Directors has the right to decide the financial policy or business activity is indicated by a third party;
h) two businesses are operated or under the control of personnel, finance and business operations by individuals belonging to one of the following relationship: husband and wife; father, mother and child (irrespective of the offspring, adopted son or daughter-in-law, son-in-law); you, sister, children of the same father, mother (irrespective of the father, mother, father, foster mother); his grandfather, grandmother and grandson; his grandfather, grandmother and grandson; She, you, aunt, uncle, uncle and nephew;
I) two businesses have relationships headquarters and permanent basis or permanent basis is of the same organization, foreign individuals;
j) A production business, product business using intangible assets or intellectual property rights of another business on the condition that the cost is charged for the use of intangible assets, intellectual property rights that constitute over 50% of the capital (or cost) products;
k) a business providing directly or indirectly over 50% of the total value of raw materials, supplies or input products (not including depreciation for fixed assets) to use for manufacturing operations, business output products of another business;
l) a direct or indirect control over 50% of the product consumption (calculated according to each category of product) of a business;
m) two businesses have agreed to cooperate on the basis of the contract.
5. "transaction" is a transaction between the parties trading links.
6. "the independent transaction" is a transaction between the parties has no business relationships links.
7. "critical difference" is the difference in the information or data that increases or decreases of at least 1% of the unit price of products traded or different information or data increases or decreases of at least 0.5% of the gross profit rate or rate.
Example 1: Enterprise V is 100% foreign-owned enterprises in the province, Vietnam has 2 X transactions: (i) sale of 2,000 products for independent business with sale price is the price the whole (Z) plus (+) 6% Z, delivery conditions in V;
(ii) Sells 2,000 products for the parent company with the sales value is Z + 6% Z, conditions in the country of delivery CIF price, H is the cost of transportation and insurance from the X to the water H is 3% Z. simultaneously the parent company agreed to guarantee for business loan from the Bank V n. in fact , the guarantee of this credit is trust (i.e. not pay bail).
In transactions on the:-differences in delivery conditions relevant to transport and insurance costs from the X to the country increased influence on H 1% of the sale price should be the key difference.
-Differences in guarantee trust does not pay should not be the key difference.
8. "market price" is the set of values about the price either set the value of the rate of gross profit or sets the value of the product's lucrative rates determined from the independent transaction is selected to compare.
9. "the database of the tax authorities" is the information, the data related to the determination of the tax obligations of enterprises by the tax authorities collect, analyze, store, update and manage from different sources.
Part b. GUIDELINES on DETERMINING the MARKET PRICE in the TRADING price of the product LINKS in the link transactions prescribed in this circular are determined according to the market price on the basis of comparison between equivalent calculation transactions associated with independent transaction (hereinafter the comparative analysis) to choose the method of determining the most suitable price.
Article 4. Comparative analysis 1. 1.1 principles. Comparison between the transaction associated with the independent transaction is understood to be the comparison between the transaction associated with the independent transaction or comparison between the business transactions associated with business execution independently. The comparison was made on the basis of the selection and analysis of data, documents, documents related to independent transactions, transactions taking place in the same period links ensure reliability for use for the purpose of paying the tax, calculated in accordance with the legal provisions of accounting , statistics and taxation.
Example 2: A business is a subsidiary of multinational companies and businesses of H B is an independent business retail business the same motorcycle brand HX in year 2xxx. The comparison can be done in one of 2 ways:-compare buying motorcycles for sale out of A business with a similar transaction of business B.-comparison between A business-to-business B about retail business motorcycles.
1.2. selected independent transaction to transaction comparison is selected from the independent nature of transactions and the transaction context (hereinafter referred to as the trading conditions) is equivalent to a transaction link. Meanwhile, the price of products in the independent transaction is chosen for comparison is to determine the price of products in the affiliate transactions according to the method of determining the price specified in article 5 section B to this circular.
1.3. When comparing the transaction associated with the independent transaction, transaction conditions between affiliate transactions and transactions independently selected for comparison are not necessarily identical but must ensure the equal, there are no differences to influence vital to product prices. If the trading conditions of the transaction and the transaction links independent critical differences, enterprises must reflect the critical differences in currency values as a basis adjustment, eliminating a key difference. The determination of equivalent calculated when comparing transaction links and independent transaction and exclude the differences are specified in clause 2 article 4 of part B to this circular.

1.4. The comparison between the transaction links and independent transaction is made on the basis of each transaction on each separate product category. However, in the case of transactions cannot be separated or the separate each transaction according to each type of product is not consistent with business practices, enterprises can mix many transactions below into a transaction: 1.4.1. Transactions are closely related and interdependent as the transactions on the basis of the contract to provide goods and services, in which the service is an integral part of the contract to deliver the goods; the continuous nature of the transaction as provided or authorized use of intangible assets associated with the supply of raw materials, semi-finished products for the production, processing and output of finished products;
1.4.2. The transaction with respect to the overall product production process, using the same primary materials or a nest, according to the molecular formula group, subgroups of goods and services specified in the statistical categories of goods or services by the State Agency has the authority to enact when making comparative analysis objective knowledge of the business functioning;
Example 3: A commercial enterprise to import 3 items of X, Y, Z from sidebar links abroad for distribution to supermarkets in the country. The three items that belong to the Group of products of the heat equipment for family (according to statistical standards in Vietnam).
In the case of the separation of each transaction according to each type of product X, Y, Z is inconsistent with business practices, A business can mix the import transaction value 3 this product type to apply a method of determining the most suitable price.
1.4.3. The small retail business transactions that included forming a complete transaction;
1.4.4. The independent transaction and transaction links due to a business made but could not reasonable allocation of revenues or costs involved for each type of transaction. In this case, the transactions that are included are considered transaction link and the price of the products in the transaction are included will be the highest price of the relevant product (if the transaction is sold out) or the lowest price of the relevant product (if the transaction is the buy-in).
Example 4: A business with two contracts: (i) contract 1: provide quality monitoring service with a party affiliation is the company B;
(ii) the contract 2: provide service quality monitoring and use of the patents franchise with independent company C in that franchise turnover using sales higher patent quality services charged by the unit price of products is 5 times.
Assumptions: quality monitoring services under contracts 1 and 2 is qualified to compare with each other.
Comparative analysis: the business case-A does not separate the revenue (or costs) related to the implementation of this contract 2 (includes 3 separate trading about 2 types of product), then the entire revenue of the business is considered A turnover from a transaction link and according to the regulations of each method of determining the market price specified in this circular , business must redefine the turnover corresponding to the highest price of the product is copyright.
-The business case A separate revenue (or costs) related to the implementation of this contract 2 the price of the contract of 1 will correspond to the price of the service provided under the contract 2.
1.5. When the independent transaction options to compare, select priority business independent of major trading business with independent trading conditions are not created or set back from affiliate deals.
Example 5: M company abroad established a manufacturing business in Vietnam. Business A has 2 transactions: (i) sale of 2,000 products to independent customers A1 with 10,000/contract products by the enterprise A directly negotiated and signed in the usual business conditions of A;
(ii) Sells 2,000 products for independent clients 0,4USD prices/product M1 under a contract due to the parent company M directly negotiate contracts with customers and assign A business delivery to customers. Sales by the company M of the money directly paid or due to the customer for payment A business M1.
Comparative analysis:-(i) the transaction is a transaction independent of corporate shilling;
-(Ii) transactions are not considered independent transactions of A business major because even though the product is output from A business and sent to the client is no M1 related links but the participation and control of the parent company into the negotiation, Contracting and payments.
1.6. The minimum number of independent transactions selected for comparison after comparison analysis and tuning key differences are as follows: 1.6.1. 1 transactions-in the case of independent trading and the traded links with no critical difference;
1.6.2.10 the transaction-in which case the independent transaction and transaction links have differences but business has enough information, data as a basis to exclude all the critical difference;
1.6.3.4 transactions-in the case of independent trading and trading links have differences but only business information, data as a basis to exclude most of the critical difference. In this case, the exclusion of forward key differences will be made according to the instructions on the standard market price in point 1.2 paragraph 1 article 5 part B to this circular.
This provision does not apply in the case of enterprise profit split method is applied, first be guided how to calculate the weather at 2.5 Points 2.5.2.1 item 2 article 5 section B of this circular.
1.7. In case of a business cannot be independent transactions option to compare the principles from the point of 1.1 to 1.6 Accounts Point 1 article 5 part B to this circular by the unique properties and peculiarities of trading links, business must explain the reason, and follow the instructions in article 6 section B to this circular.
2. Comparative analysis and exclusion of difference is 2.1. When comparing the independent transaction is selected for comparison and affiliate transactions, businesses have to perform analysis and reviews the objective consciousness influence and adjust the critical difference (if any) to clarify the calculation of the equivalent according to the 4 following criteria (here called 4 objective consciousness influence) : 2.1.1. Product characteristics: composed of influential characteristics primarily to the price of the product. The elements reflect the characteristics of the products mainly include: a) the category of the product (description of product properties are tangible goods, copyright, know-how, technology or service...) and the physical characteristics of the product (component materials, mechanical properties, physical, chemical, etc.);
b) quality, trademark of the product;
c) transfer properties of products (for example, buy, sell with or without conditions as exclusive distributor, licensed, franchised brands ...).
Example 6: A business is independent business producing cotton towel (100% cotton), in which cotton towel type A size 120 cm x 60 cm. The company is a subsidiary of M 100% foreign invested capital in Vietnam specializing in cotton towel (100% cotton), in which cotton towel size class A 121 cm x 60 cm for sale (export) for the parent company in overseas.
Assumptions: The other factor reflects the characteristics of both the product of towels two companies A and M are equivalent.
Comparative analysis: product Enterprise A cotton towel and company M was seen as a product of the equivalent product characteristics (the difference 1 cm length of the scarf is not important).
2.1.2. The functioning of the business: includes the elements reflect profitability from operations that have made businesses associated with the use of the property, capital and related costs. When analysing the functioning (hereinafter referred to as "functions"), the enterprise must reflect the main function in the relationship between the use of the property type, capital, costs as well as risks associated with the investment of assets, capital expenditure with the possibility of profiting which enterprises are related to the transaction of business. The main function of the enterprise mainly include: a) research, development;
b) design, the product samples;
c) produced, manufactured or processed;
d) machining, Assembly, installation of equipment;
e) distribution, circulation, marketting, advertising;
f) management, supply of materials;
g) shipping and delivery, warehouse supply service;
h) performed the service trades such as brokerage, consulting, training, auditing, accounting, personnel management, labor supply, collecting information.
Example 7 (a): N company (affiliate parties in Vietnam is of the multinational company X) in the year 200 x has some of the following information:-made medicine production on the production lines by the investment companies, under copyright due to a company in the Group X offers.
-Sells (exports) for company X under the contracts signed from the beginning of stabilization year;
-Do not conduct research and product development.
 When comparing affiliate transactions (with company X) and independent transactions, company N to perform comparative analysis function with an independent business have similar functions as the company N to exclude the difference. Due to the field of medicine production is often associated with research activities, development of new products to independent business case should be chosen that function for research, development, the company must eliminate this difference N.
Example 7 (b): next example 7 (a) above, suppose the company N, beyond the performed operations, medicine business have done more import Agency services and distribution of pharmaceuticals in Vietnam for company X.
Agent activity is an additional function that the company N has done, dropped the cost and risk of the business services industry. This activity is the company's affiliate transaction. This case, company N should identify and enumerate sales commissions agents according to the method of determining the market price specified in paragraph 2, article 5, section B to this circular.

Example 8: M company is multinational companies abroad has the transactions to wholesale T Mobile according international quality standards have been registered in Vietnam with company A's party affiliation and company B are independent companies.
A company made retail distribution T Mobile, the warranty card for each phone sold directly and made a warranty service, B company made retail distribution T Mobile, the warranty card for each phone sold but does not perform warranty service that deals will pay the company A $ 5 for each the phone company A made repairs in the warranty period.
When comparing affiliate transactions (between A and M) with independent transaction (between B and M), A company must analyze the functional comparison between company A and company B and exclude the differences:-the functioning of the two companies have differences about providing warranty service , in which A company made many more functions, use many resources and capable of collecting higher profit the company B.-A company must adjust product warranty functions by excluding the costs and revenues related to the practical implementation of warranty service of the company a.-the case of the "warranty" takes only a couple of times with the value of costs and revenues not significant (i.e. not important) then there is no need to make adjustments to this difference.
2.1.3. conditions of contract when making transactions: include the provisions or social responsibility, the rights of the parties participating in the transaction of business. Contractual conditions when making the transaction (hereinafter referred to as the "conditions of contract") mainly include: a) volume, traffic conditions or product distribution;
b) time limits, conditions and method of payment;
c) warranty conditions, replace, upgrade, modify or adjust the product;
d) condition of business, product distribution;
e) The influential economic conditions (for example, support services, consulting, quality control manual, ad support, promotion ...).
In all cases (whether or not there is a contract in writing), determining the conditions of the contract are the actual facts, or the financial data, the economy reflects the nature of the transaction.
2.1.4. when economic conditions place of transaction: include elements of economic conditions on the market at the time of the transaction affects the price of the product. Economic conditions when the transaction took place (hereinafter referred to as the "economic conditions") mainly include: a) scale and the geographic location of the market produce or consume the product;
b) time and the active nature of transactions on the market (for example: trading in the wholesale operations, conventional retail, exclusive distribution, the market segment under object consumer products);
c) the level of competitive products on the market;
d) economic factors impact the cost of production, business incurred at the place where the transaction took place (for example, taxes, fees, financial incentives);
e) policy of the State's markets.
2.2. Order of precedence when comparative analysis 4 objective consciousness influence referred to in Points 2.1.1 to 2.1.4 from the clause 2 2.1 article 4 of part B to this circular are provisions specific to each method of determining the price referred to in article 5 section B to this circular. In the analysis process, with respect to the goal of knowledge priority to detailed analysis; with regard to the supplementary form can not analyze in detail but to ensure adequate reflection of the basic properties of the target formula.
Example 3: assume M Vietnam company (the subsidiary company of M international) specializes in business 1 type of product X has type I standard quality registered in Vietnam. In the year 200 x, the company selected was 1 independent transactions (between the company and the independent party Vietnam M) to make the base comparison with affiliate transactions B (between Vietnam and M M) and the two have a single transaction price is 3 USD.
In this case, the analyze 4 objective consciousness effects of transactions A and B are as follows: (i) product characteristics: the same (because the same product is produced by M Vietnam);
(ii) functioning: same (company M was the main Vietnam);
(iii) contractual conditions: assuming this criteria of two transactions is the same except the delivery conditions in A transaction is in the company's warehouse M Vietnam; in the transaction B is delivered at the port of X-Y water and transportation costs from Vietnam to country Y is 0.5 USD/products are the responsibility of the company's payment M Vietnam;
(iv) economic conditions: assuming this criteria do not affect the price of the product (for example, country Y no policy to control prices for the business product X, sales conditions are wholesale, import duty and import procedures for product X in country Y by the buyer to bear).
As such, when making the comparison showed that during the transaction B has not been calculated price is equivalent to A transaction (the difference is 0.5 USD/products).
Meanwhile, company M Vietnam selection method of determining the price most suited to ensure the Declaration, tax for sale of product X in B is the equivalent of 3,5USD/products (instead of the old unit price is 3USD).
2.3. After comparative analysis, Enterprise determined the key difference about the conditions of the trading transactions between affiliated and independent transactions. Where there is no major difference made specified in point 2.4 item 2 article 4 of part B to this circular.
2.4. in case there is a key difference, the business must determine the monetary value of the critical difference that to adjust, depending on each particular case can increase or decrease the value to exclude the critical difference.
The case has a key difference about the functioning of the business, the adjustment is made according to the principle: a) If revenue or expenses related to a key difference in function is private accounting, then the adjustment is made on the basis of each account revenues or costs related to the critical difference.
b) If revenue or expenses related to a key difference in function is the accounting adjustments were made on the basis of allocation to determine the cost or revenue respectively related to the critical difference.
Example 1: suppose there are two transactions the company A and company B are 2 of the same company to perform services offshoring, in which garments companies A processing and delivery of the products in the warehouse of the company A and company B tools and procedures for the export of products abroad.
So, when comparing the product machining function of A and B we see the company B has done more to function as "export procedures". This difference will be separated by a private accounting or allocated in proportion to the total cost or revenue incurred by implementing the export procedure to ensure the comparison of business efficiency by outsourcing functions of products the company A and company B are equivalent.
B company made only the function "export procedures" in a couple of times at the suggestion of customers with cost or value negligible revenue (i.e. not important) then there is no need to make adjustments to this difference.
Article 5. The method of determining The market price method of determining a product's market price in trading links are specified in clause 2 article 5 part B to this circular includes:-the method of comparing the independent transaction price;
-Resale price method;
-Capital public interest price method;
-Comparable profit method;
-The profit split method.
Depending on each specific method mentioned above, the market price of the product can be calculated directly off the price of a product or indirectly through gross profit rate or the rate of lucrative product. However, for indirect evaluation methods, as defined for the purposes of business results declared, the enterprise income tax is not necessarily calculated unit price specific products.
1. principles of application of the method of determining the market value 1.1. The method of determining the most appropriate method is selected in 5 above mentioned methods match the conditions of the transaction and the source of the information, data, adequate and reliable data for comparative analysis.
1.2. Businesses choose the most suitable value in the value of the amplitude of the standard market price for base adjust the value of the transaction. Product prices in case of transactions other links with the most suitable value but the results do not reduce taxable income business income, the business does not have to make adjustments.
1.2.1. the most suitable value is a value that reflects the level equivalent to the highest condition of independent trading transactions were selected for comparison with trading links.
1.2.2. The magnitude of the standard market price is: a) the values in the range of the value is calculated from the independent transaction is selected to compare stated at the 1.6.1 and 1.6.2 Paragraph 1.6 Point 1 article 4 of part B to this circular;
b) the values are in the first quartile third quartile to math probability statistics quartiles, or values set in about the 25th position to fertilizer encyclopedia encyclopedia segment number 75 of the statistical operations define the Contango was calculated from the magnitude of the market value of the transaction independently chosen to compare referred to in 1.6.3 Weather 1.6 Account point 1 article 4 of part B to this circular (see Appendix 2-GCN/CC-C section on how to calculate the quartiles, encyclopedia segment).
Example 11: V business in Vietnam has some information:-the company Is specialized in producing and processing products for the parent company and must pay royalties to a subsidiary in the group with annual cost is N% per year calculated on net revenue, recurring payment is 4 times/year.
-Enterprise V options are 13 independent transactions to compare with data on the percentage (%) royalty on net sales of this transaction is: 1; 1.25; 1.25; 1.5; 1.5; 1.75; 2; 2; 2; 2.25; 2.5; 2.75; 3.

-Comparative analysis shows the key differences were adjusted to exclude, separate billing period have the disparity can affect the value of royalty but not enough information to convert the monetary value to adjust.
-Enterprise application of statistics function quartiles, choose the first quartile and third quartile to determine the magnitude of the standard is 1.5 — 2.25; the median is the 2nd quartile of standard value is 2.
Adjust the data declaration: – where the royalty fee rate calculated on the net sales of the business V 2.1% business, V is not done to adjust figures declared the cost of copyright unless the enterprise income tax.
-Where the rate of royalty fees calculated on the net sales of the business V is 4%, while the business transaction to see that V has the copyright rate is 2% condition monitoring transactions with transaction of the business, Enterprise V make adjustments again figures to declare the cost of copyright unless the enterprise income tax at the rate of 2% on sales net income.
1.3. where the business has applied the method of determining the market price according to the provisions of this circular but in having unforeseen fluctuations such as a natural disaster, the fire causes that affect the situation of production, sales or purchase price, the sale price is affected by the policy, the State's regulatory regime, the enterprise was adjusted prices for these products bear photo enjoy according to the actual situation.
2. The method of determining the market price 2.1. Price comparison method independent transaction 2.1.1. The method compares the price of transactions independently based on the unit price of products in an independent transaction to determine the unit price of products in affiliate transaction when the transaction has a similar trading conditions.
2.1.2. the unit price of products traded links are compared to the most suitable value in the amplitude of the standard market prices according to the price of products to adjust in accordance with the principles specified in Paragraph 1.2 Point 1 article 5 part B to this circular.
2.1.3. for this method, when comparative analysis 4 objective consciousness influence according to the instructions in the article 4 part B to this circular, the preferred form is the product characteristics and conditions of the contract, the supplementary form is the functional and economic condition of the enterprise.
2.1.4. The method of comparing the price of transactions independently apply with one of the following conditions: a) no difference in trading conditions when comparing the independent transaction and transaction links a key influence to the price of the product;
b) case of the critical impact difference to price products but these differences have been excluded according to the instructions in the article 4 part B to this circular.
2.1.5. The critical influence factors to the price of products such as: a the physical characteristics), the quality and commercial brands of the product;
b) conditions in the supply contract, delivery of products such as: mass (if that affects the price level), the time limit for delivery of the products, billing period...;
c) distribution rights, product consumption can affect the economic value;
d) market where the transaction took place.
2.1.6. The method of comparing the independent transaction price is usually applied to the case: a) individual transactions of each of the categories of goods in circulation on the market;
b) individual transactions on each type of service, copyright, contract debt;
c) base business performs both independent transaction and transaction links of the same category of products.
Example 12: company V Vietnam at 100% of the business is foreign company's activities in the field of textile products machining. In the year 200 x, the company V has two deals on getting work pants code cat. 347 transactions as follows:-1: outsource the company's 1,000 dozen pants with 60 USD/dozens according to the delivery conditions at port X, Vietnam (S company will be responsible for exporting).
-2: transaction processing for companies of 1,000 Colonel N M pants with 100USD/dozen price according to the delivery conditions in country Y, N.
Assumptions:-M company is a company with no ties associated with the company and the company S.
-The two aforementioned transactions equivalent in trading conditions excluding critical difference is the cost of shipping and insurance for shipments from the port of X to Y city, N is 3 USD/dozens.
Comparative analysis:-When comparing the transaction 1 (dealing) with 2 transactions (transactions) shows the transaction 1 has not yet properly reflect the market price. In this case, the revenue from transactions with the company S is determined as follows: (100 USD-3 USD) x 1,000 = $ 97,000.
-Company V must declare his revenue recognition from the company S is 97,000 USD instead of the 60,000 USD.
2.2. the resale price method 2.2.1. Method of determining the selling price again based on the resale price (or price) of the product due to the business sold to independent parties to determine the purchase price of that product from the links.
2.2.2. The purchase price of the product from the link is determined on the basis of the sales value of products in the independent transaction minus (–) gross profit minus (-) other costs included in the price of purchased product (if applicable) (for example, import tax, customs fees, insurance costs, international shipping).
2.2.2.1. Gross profit is calculated according to the rate of gross profit on sales (revenue) and the sales value (net sales), reflecting the business value gained to offset the costs of operations and have a reasonable interest rate.
Rate of gross profit on sales (revenue) is determined by the value of the difference between the selling price (net of revenue) and the price of capital products bought on sale:) (share (revenue).
2.2.2.2. the business case can function as distributors do not have the right to own the product and enjoy the Roses dealer according to the percentage (%) on the sale price of the product, the rate of which is considered the rate of gross profit on sales value (net sales).
(See Appendix 2-GCN/CC-section 1 about the formula determines the market price according to the resale price method).
2.2.3. The rate of gross profit on sales value (revenue) of the transaction associated with the most suitable value in the amplitude of the standard market price according to the rate of gross profit to adjust in accordance with the principles specified in Paragraph 1.2 Point 1 article 5 part B to this circular.
2.2.4. for this method, when comparative analysis 4 objective consciousness influence according to the instructions in the article 4 part B to this circular, the form of priority is the functioning of the business, the supplementary form as a condition of the contract, product characteristics and economic conditions.
2.2.5. the resale price method is applied to one of the following conditions: a) no difference in trading conditions when comparing the independent transaction and transaction links key to influence the rate of gross profit on sales (revenue);
b) case of the critical impact difference to the rate of gross profit on sales value (net sales) but the differences have been eliminated following the instructions in the article 4 part B to this circular.
2.2.6. The factors critical to influence the rate of gross profit on sales value (net revenue) as: a) The costs reflect the function of the business (for example: exclusive distribution agents, made the advertising, promotion, maintenance, ...);
b) type, scale, volume, turnaround time of product purchase to resell and active nature of transactions on the market (for example: wholesale, retail, etc.);
c) accounting methods (i.e. to ensure the elements constituting gross profit and revenue of trading links and independent transaction is similar or the same applies the general accounting standards).
2.2.7. the resale price method is often applied to the case of dealing in products for stitching simple service providers and distribution trade turnaround time from when to when buying on short-sellers, less subject to fluctuations in seasonality. At the same time, products before being sold not through stitch processing, machining, Assembly, or product properties associated with the trade mark in order to significantly increase the value of the product.
Example 13: V business in Vietnam is the party affiliation of the foreign company H distribution business clock items by company H has provided some of the following information:-in the year 200 x, the company H assigned to 1,000 V business watch business requirements and payment amount V 330,000 USD (including price CIF + tax import fees, by company H submitted).
-End of the year 200 x, nghiệpV sales revenue gained from the sale of the whole of this clock for consumers in Vietnam to be converted is 400,000 USD.
T-enterprise is independent businesses in Vietnam operations distributed clock. In 200 x, the rate of gross profit of the enterprise T reaches 20%.
Suppose T business eligible to be selected for comparison of the rate of profit combined with business V business, then V will have to declare reasonable fees are deducted for the purchase of watches from company H as follows: [$ 400,000-$ 400,000 x (20%)] = $ 320,000 enterprises V only except for reasonable costs for the price of capital is $ 320,000 wholesale instead of $ 330,000.
The case of the company H has provided consulting services for sales and business requirements V must pay this (be on the cost accounting of sale) then the transaction is separate and must make one of the methods of determining the transaction prices specified in this circular to determine reasonable costs be deducted for sales consulting services.
2.3. capital plus interest 2.3.1 the price method. Capital price plus interest method based on capital cost (or price) of the product due to the business buy-in from independent parties to determine the sale price of that product for party affiliation.
2.3.2. the product's sales value for party affiliation is determined on the basis of taking the capital cost (or price) of the product (+) gross profit.

2.3.2.1. Gross profit is calculated as gross profit rate on capital cost (or price) of products sold and the price of capital (or cost) products sold out, reflect a reasonable profit levels correspond to the functioning of the business and market conditions.
Rate of gross profit on capital cost (or price) is determined by the value the difference between revenue and capital price (or cost) products Division (:) for capital cost (or price). Capital cost (or price) of products sold includes the production costs directly, indirectly and does not include the costs of financial activities such as: the cost of the loan interest rate, copyright, ....
The business case is not a separate accounting of capital cost (or price) of products sold, the cost of sales and general administration costs, the price of capital (or cost) products sold as a base calculated gross profit will include all expenses.
2.3.2.2. The case of the business functioning product procurement agent does not have the right to own the product and enjoy the Roses dealer according to the percentage (%) on the costs for the purchase of products, the rate of which is considered the rate of gross profit on the price of capital.
(See Appendix 2-GCN/CC, section 2 of the formula determines the market price according to the cost of capital plus interest method).
2.3.3. The rate of gross profit on capital cost (or price) of the transaction associated with the most suitable value in the amplitude of the standard market price according to the rate of gross profit on capital cost (or price) to adjust in accordance with the principles specified in Paragraph 1.2 Point 1 article 5 part B to this circular.
2.3.4. for this method, when comparative analysis 4 objective consciousness influence according to the instructions in the article 4 part B to this circular, the form of priority is the functioning of the business, the supplementary form as a condition of the contract, product characteristics and economic conditions.
2.3.5. capital public interest price methods are applied to one of the following conditions: a) no difference in trading conditions when comparing the independent transaction and transaction links key to influence the rate of gross profit on capital cost (or price);
b) case of the critical impact difference to the rate of gross profit on capital cost (or price) but the differences have been eliminated following the instructions in the article 4 part B to this circular.
2.3.6. The factors critical to influence the rate of gross profit on capital cost (or price) usually include: a) The costs reflects the functioning of the business (for example, contract manufacturing, research, development of new products, the proportion of the value of the product in comparison with the scale of investment business);
b) The obligation to perform the contract (for example, the time limit for delivery of the product, cost of quality, storage, demurrage, payment conditions);
c) accounting methods (i.e. to ensure the constituent elements in capital price (or cost) of the transaction links and independent transaction is similar or the same applies the general accounting standards).
2.3.7. capital public interest price method is often applied to the case: a) transactions in the production, Assembly, manufacture and processing of products to sell to parties links;
b) transactions between affiliated parties made agreements, business cooperation contract to manufacture, assemble, manufacture and processing of products, or performing the agreement on providing the input factors of production and how the target output products;
c) deals on providing services for the affiliate side.
Example 14: A business in Vietnam is a subsidiary of the parent company T (Y) implement export shoes machining according to designs by the company T. The parent company is responsible for providing input materials, technicians check quality, transportation costs and international insurance. A business are paid according to the machining units products and bear the costs arising during machining. In 20xx, information about the activities of A business are as follows:-revenue (processing fee): 15 billion USD-Price sales: USD 13 billion capital-cost sales and business management: cost 1.8 billion USD.
Assumptions:-A number of other independent businesses also operate production of shoes to organizations, individuals and foreign outsourcing fees are calculated on the basis of: the charge fair (=) of the entire cost (the price of capital goods sold + business management costs + cost of sale) plus (+) 7% of the whole price.
-Independent transactions of this business is eligible to be selected for comparison with transactions of A business. In this case, the revenue from activities of footwear is determined as follows: (13 billion + 1.8 billion) + [7% x (13 billion + 1.8 billion)] = 15.836 billion VND.
A business must make the revenue statements is 15.836 billion USD instead of the old data is 15 billion USD.
2.3.8. capital public interest price method can be applied to redefine capital cost (or price) have elements of business link transactions based on the price of the product sold has been determined by the market price and the rate of gross profit on capital cost (or price).
Example 15: V business in Vietnam is 100% subsidiary of the multinational company P, specializes in manufacturing household detergents. Raw materials (casts of SOAP and other detergent chemicals) due to a medical supply companies. The output consumed in the year 200 x of V is the business 100 tons, of which:-transactions 1:60 tons were delivered to a company selling other members in the Group P with FOB price is 650 per ton,-transaction 2:40 tons were sold to supermarkets in the country with no VAT is 700USD per ton.
Accounting books in the period of the business represent the metric as follows:-net sales: 67,000 USD-the total cost of the whole: 65,000 USD assumes:-transactions 1 and 2 are eligible to V business approach of independent market price comparison.
-Data on the rate of gross profit on the entire price of the independent business activity in the manufacturing sector household cleaners is 15%.
Enterprise V declaring turnover, costs to calculate corporate income tax as follows:-to adjust the selling price in trading links according to the sale price in the independent transaction: $ 700 x 60 = $ 42,000-ton redefine revenue: $ 42,000 + $ 700 x 40 Mt = $ 70,000-to adjust the total cost of the entire : 70,000 USD/(1 + 0.15) = $ 60,870.
As such, Enterprise V will have to declare tax on the basis of whether revenue is $ 70,000 instead of the old data is 67,000 USD and the total cost is $ 60,870 whole instead of the old data is $ 65,000.
2.4.2.4.1 profit comparison method. Method comparison of profits based on the rate of lucrative product in the independent transaction is selected for comparison as a basis for determining the rate of lucrative products in affiliate transaction when the transaction has a similar trading conditions.
2.4.2. The fertility rate is calculated by the word profit (income) net business income before tax on net revenue, on costs or on the property of the business and production operations under the provisions of the accounting and financial reporting. Profit (income) net business income before tax can be plus (+) loan interest costs or depreciation of fixed assets to determine the efficiency of production, business before paying the expenses. The fertility rate commonly used words include: 2.4.2.1. The rate of net income before corporate income tax on revenue from the production and trading activities.
Example 16: L business activity in the manufacturing sector and a car 4 seats brand N and S, in that:-N marks assigned sold to independent parties.
-S trademark was assigned to sell the entire business is 100% capital company L1 's business l.-all buying into the production, assembly type 2 cars on both independent transaction.
 In the year 200 x, of the enterprise's accounting data L as follows: + revenue from car sales Mark N: 18,000 USD (as independent transactions) + net profit before tax from operations sold cars N: 2,000 USD + revenue from car sales Mark S : 25,000 USD (is trading links) + net profit before tax from operations sold cars Mark S: 1,800 USD.
+ L1 company to Company L lenders and loan interest rate value calculated according to the market interest rate is 100 USD.
The rate of net profit before corporate income tax on the revenue for cars N: 2,000 x 100% = 18,000/11.1% the rate of net profit before corporate income tax on the revenue for cars Mark S: 1,800 x 100% = 25,000/7.2% assuming that the difference between the 2 major influence car sales transaction N and S car was adjusted to the results dealing with the L1 company must reach the rate of net profit before corporate income tax and prior payment of interests on the loans is 11.1% of net sales. In this case, data on transactions of sale of automobiles Mark S was determined as follows: the total cost of the whole: 25,000-1,800-100 = $ 23,100.
Revenue: 23,100/(1-0, 111) = $ 25,984.
Net profit before tax, before interest: 25,984-23,100 = 2,884 USD net profit before tax: 2,884-100 = $ 2,784 L companies must declare net profit before corporate income tax for the sale transaction is USD 2,784 's checkered box instead of the old data in the accounting books is $ 1,800.
2.4.2.2. The rate of net income before corporate income tax on the total costs from the production and trading activities.
Do not use the rate of net income before corporate income tax on the total costs for the case of costs incurred from the transaction cost data links from affiliate deals are in scope determines the market price.
Example 17: A business is a subsidiary of company B, agent forwarding service for B, C business as independent businesses specializing in business services (for multiple independent clients). Data on revenues, the cost of A and C as follows: unit: thousand USD A C total costs 1,500 2,000




A total turnover of 1,650 2,500 suppose C is eligible to be selected for comparison with A net income before the rate of tax on business income total costs.
-The rate of net income before corporate income tax on the total cost of A = (1,650-1500): 1,500 = 10%-the rate of net income before corporate income tax on the total cost of C = (2,500-2,000): 2000 = 25% of A business are made declared net income before tax corporate income from trading activities link under the rate of net income before corporate income tax of costs corresponding to the level of 25% of the business c. 2.4.2.3. The rate of net income before corporate income tax on the assets of the business functioning.
This rate is used only in the case of enterprises with fixed assets constitute a significant proportion of total investment (for example, enterprises in the manufacturing industry, the mining industry).
The property value is the average value of assets balance beginning of period and last property balance, including fixed and mobile assets, not including the property be used for investment activity, venture capital contribution links (for example: purchase of bonds, purchase of shares).
Example 18:-N is a subsidiary in Vietnam of the P rice wine production professionals. The parent company provides the majority of the input factors of production and how the whole pepper products. In the year 200 x N business income rate of net business income before tax on the property is 3%.
-V is an independent company specialized in producing kinds of drinks including the factory production of rice wine, beer and other carbonated drinks. In the year 200 x, the company had net income rates V previous corporate income tax on the property of the whole company is 7%, in which the rate of net income before corporate income tax on the property of the factory production of rice liquor is 7.5%.
Suppose V is eligible to be selected to compare with net income rate of N before the corporate income tax on the property, so the N will have to adjust the taxable income according to the rate of net income before corporate income tax on the property is 7.5%.
2.4.3. The business of choosing one of the above mentioned words fertility rate to compare the rate of lucrative trading links with the lucrative rates of independent trading and can use one or more other words fertility rate is regulated under the financial reporting regime to support checking the accuracy of the fertility rate of the selected words. The selection of the word fertility rate is calculated on net revenues, expenses or assets depends on the nature of economic transactions. (See Appendix 2-GCN/CC, section 3 of the lucrative rate formula to apply the method of comparing the profit).
For example, suppose:-19 businesses have trading links at the stage of sale of products shall not use the rate of net income before corporate income tax on the revenue due to data revenue from affiliate deals are in scope determines the market price.
-Assuming the business service providers do not use the rate of net income before corporate income tax on the property.
2.4.4. The rate of the lucrative trading links are compared with the fertility rate most appropriate words in the standard market price to adjust in accordance with the principles specified in Paragraph 1.2 Point 1 article 5 part B to this circular.
2.4.5. for this method, when comparative analysis 4 objective consciousness influence according to the instructions in the article 4 part B to this circular, the form of priority is the functioning of the business, the supplementary form as a condition of the contract, product characteristics and economic conditions.
2.4.6. The method of comparison of profits is applied to one of the following conditions: there is no difference in trading conditions when comparing the independent transaction and transaction links a key influence to the lucrative rate;
The case of the different critical effects to fertility rate lyrics but these differences have been excluded according to the instructions in the article 4 part B to this circular.
2.4.7. The critical influence factors to fertility rate lyrics such as: a) the elements of the property, and capital costs used for the implementation of the main functions of the business (for example, production, processing, on the basis of use of machinery by the likely investment business profit higher than the production processing, on the basis of the machinery used by the other facility to hire);
b) the nature of activities, product group and stage production or consumption (e.g. products made from raw materials or semi-finished);
c) accounting method and the cost structure of the product (for example, products that are in the period of depreciation as fast compared to the normal depreciation).
2.4.8. profits comparison method is the method of expansion of the resale price method and price method of capital plus interest. Therefore, comparison methods of profit is usually applied in cases as stated in the 2.2 Point 2.2.7 2.3.7 2.3 Points and item 2 article 5 part B to this circular.
2.5. the profit split method 2.5.1. The profit split method based on profits obtained from a general link trading due many business links made to determine an appropriate profit for each link in the independence party made to divide the profit in the equivalent independent transactions.
General link trading due many affiliate business transaction involved is specific in nature, unique, including many relevant links trading closely together of the unique product or self-contained link transactions between the parties of relevant links.
2.5.2. the profit split method has 2 calculation: 2.5.2.1. First: how to calculate the allocation of profits for each party affiliation on the basis of the cost of contributions; Accordingly, the profitability of each business link to participate in a transaction is determined on the basis of the allocation of the profits obtained from synthetic link transaction according to the rate of the cost of the actual contribution in dealing business links that in fact the total cost to create the end product (see Appendix 2-GCN/CC , Section 4 of the formula the profit distribution according to capital contribution rate).
For example 20: A business in Vietnam and abroad B business has some of the following information:-both companies are all subsidiaries of the group T electronic products manufacturing.
-Both companies involved in the production of the new product is a liquid crystal display televisions.
-A responsible design, chassis manufacturing and the lamp looks to pass to B with other parts Assembly (installation of biodegradation, the electronic chip ...) due to patent and manufacture B. Liquid crystal display televisions and product was sold to the C is an independent distributor with price is $ 550.
-The total cost of the product by A given B is 300 USD. B cost outlay to the next production is 150 USD.
The profits are allocated to A are calculated as follows: [(550-(300 + 150)): 450] x 300 = $ 66.66 2.5.2.2. The second calculation: divide the profit in two steps as follows: 2.5.2.2.1. First step: basic profit split: every business transaction the link received the basic profit portion corresponds with the functionality of their activities. Part of this reflects the basic profit profits of transaction aggregate link that business gained by performing his functions and given the particularities and unique elements (for example the exclusive ownership or use of intangible assets or intellectual property rights).
Part of the profits are calculated according to the rate of gross profit or lucrative rate corresponding to the most suitable value in the amplitude of the standard market price according to the rate of gross profit or lucrative rates according to the instructions in points 2.2, 2.3, 2.4 Paragraph 2 article 5 part B to this circular.
2.5.2.2.2. step two: divide the extra profits: every business transaction link is received next portion of extra profit corresponds to the rate of contribution of additional profit created (i.e. the total revenues minus (-) of the basic profits were divided in the first step) of affiliate transactions. Part of extra profit reflects the profitability of transaction aggregate link that the business be obtained in addition to the basic portion of profits thanks to the specific and unique elements.
Additional profit component of every business is calculated by the total of extra profits obtained from aggregate link trading with (x) the rate of contribution to the cost or the assets here of every business: a) the costs of research and development of products;
b) value (after deduction of depreciation) of intangible assets or intellectual property rights used to manufacture, product business.
Research and development costs, the value of intangible assets, intellectual property rights must be determined on the basis of the market value (according to the methods specified in this circular) or the actual cost of the contribution each party consistent with accounting principles with respect to costs or assets.
Example 21: the company H and M is the same two companies manufacturing mobile phones, in which H built sub-assemblies and Assembly, install the complete software to sell to independent distributors. The accounting data of the H and M business transaction related links about mobile phone production as follows: unit: thousand USD indicator H M revenue capital Price 200 500 wholesale include:-the cost of purchasing the raw material input 100 200 50 150 production costs-costs of research , Developer (R&D) 30 50 cost of sales and General Manager 10 50 10 50 profit calculation of profitability of H and M under the profit split method: step 1: divide the basic profit-reporting metrics recalculated results general business activity: unit: thousand USD of the target amount




Net revenue sales capital Price 500 300 research costs, development (R&D) 80 cost of sales and General Manager 60 60 profits-assuming have determined the rate of gross profit on the price according to the market value of H is 10% and M is 8% according to the instructions in 2.3 article 5 section B of this circular.
-Calculate the profitability of H and M according to the formula: profit = gross profit rate X the price of the entire price = price + cost of wholesale capital R & D + the cost of sales and general management of profit + H = 10% X (100 + 50 + 30 + 10) = 20 thousand USD of the profit + M = 8% X (300 + 80 + 60-190) = 20 thousand DOLLARS of extra profits after the basic profit Division : 60-19-20 = 21 thousand USD step 2: divide the extra profit based on cost contribution rate of R&D-Computes the proportion R&D costs contribution of each party: + H = 30/80 100% = 37.5% + 37.5%-100% = M = 62.5%-as part of extra profit of H and M: + H: 21 X 37.5% = 8.87 thousand USD + M : 21-8.87 = 12.13 thousand USD concluded:-H declaring profits from affiliate deals are: 19 + 8.87 = 27.87 thousand USD instead of the old data is 10 thousand USD;
-M declaring profits from trading links is: 20 + 12.13 = 32.13 thousand USD instead of the old data is 50 thousand USD.
2.5.3. for this method, when comparative analysis 4 objective consciousness influence according to the instructions in the article 4 part B to this circular and the applicable conditions is made according to the regulations with respect to the resale price method, the method of capital plus interest method or price comparison profitable custom case applied consistent with instructions at Score 2.5 2.5.2.2.1 Weather item 2 article 5 Section B to this circular.
2.5.4. the profit split methods are usually applied in cases where the parties involved linking the research and development of new products or product development as intangible assets or exclusive dealing in the manufacturing process, business transition between the parties linked from raw materials to final products to the circulation of products associated with owning or Use unique intellectual property rights.
Article 6. Regulation on determining the market price for some special circumstances cases due to the peculiarity of the transaction or single link, the business could not be independent transactions option to compare according to the instructions in points from 1.1 to 1.6 Accounts 1 article 4 of part B to this circular and the method of determining the fair market value referred to in article 5 section B of This circular, enterprises must explain the reasons (including information on the business activities of enterprises) and do one of the following measures: 1. synthetic measure 1.1. Expand the range of options the transaction (or business) to independent national economic sectors (according to the national economic sector portfolio due to the State Agency has the authority to enact) differs from subdivision to which businesses are in operation to compare the condition of the business make independent transactions that have equivalent functionality to business; perform analysis 4 objective consciousness influence and exclude the key differences on the basis of objective economic formula used in subdivision to reflect objectively the effectiveness of business investment, economic growth or value of the product. The number of transactions is independent or independent businesses are choosing to compare at least 5 (five).
1.2. determination of the magnitude of the standard market price according to the calculation method of determining the appropriate price for the provisions of article 5 of part B of this circular; use the math jaw quartiles statistics or statistics math function distributed encyclopedia to determine the magnitude of the standard market price and the median value is drawn from the standard market price. (See Appendix 2-GCN/CC, part c. calculating quartiles, encyclopedia segment to determine the magnitude of the standard market price).
1.3. where the selling price of the product, the rate of gross profit or lyrics of the fertility rate products in the transaction involved is lower than the median value in a standard market price or the purchase price of the product in trading links no higher than this value, the business does not have to make adjustments for the transaction. The case of the product selling price, gross profit rate or the rate of lucrative product in trading links is lower than the median value or the purchase price of the product in the transaction linked to this median value higher then the businesses make adjustments according to the most suitable value in the amplitude of the standard market price but not lower median value reflects the price sold, gross profit rate or the corresponding word or fertility rate no higher than median values reflect the purchase price respectively.
1.4. Customize each case, businesses using the method of determining the price specified in article 5 section B of this circular (see example 15) or apply at the same time 2 method of determining the price support to check the accuracy and objectivity of prices, the rate of gross profit or lyrics of the fertility rate products in the affiliate transactions.
1.5. Private for profit split method, the second calculation, the instructions in the score from 1.1 to 1.3 paragraph 1 article 6 of part B to this circular is the base to adjust the basic profit; business resume of extra profit divided according to the instructions in Point 2.5 2.5.2.2.2 item 2 article 5 section B of this circular.
For example 22: the company X manufactures electronic integrated circuits to export all products for the parent company abroad with sale price (sales) = 1.1 times the total costs.
Assumptions:-in the field of manufacture of the integrated circuit electronics had no independent business transaction or to compare.
-Company X 10 options business in the electronic manufacturing industry to determine the magnitude of the standard market prices and the corresponding median value (according to article 5 of part B to this circular), the result shows the median of the magnitude of the market value of the rate of net income before corporate income tax on the revenue of the 10 selected enterprises is 30%.
-When analysing the Economic Protocol reflecting the efficiency of investment in electronic industry, company X determines the rate of net income before corporate income tax on the revenue by 30%, which is consistent with the company's operations practice X (i.e. no key differences are adjusted).
So:-Company X can check the computer reviews to ensure reaching the rate of net income before corporate income tax on sales was 30% or based on the rate of net income before corporate income tax on the revenue to calculate the rate of net income before corporate income tax on the total costs to compare and make adjustments.
-The calculation can be defined as follows: + net income rate before tax on corporate income net revenue = (revenue-cost)/doanh net income = 0.3 + revenue = 1.429 times costs 2. Use metric measures between States, businesses use the equivalent link transaction was determined the market price according to the instructions in this circular between the States (not exceeding 5 years from the time of arising of the transaction the link), making comparative analysis 4 objective consciousness influence between the transaction , adjust the key differences and use the base to adjust the economic value over time (for example, the average price rise rate, interest rate, inflation rate, economic growth) to determine the price of products, the rate of gross profit or appropriate words fertility rate of affiliate transactions arising in the tax declaration the business.
For example 23: Enterprise A is 100% business foreign investment and is the only business of extraction and processing of metal ores X in Vietnam to export has the following information:-in the year of 2xx1, A business that made the whole trades linked and independent transactions. Link exchange, A business has to apply the method of comparing the price of transactions independently and determine the unit price of products is 800 USD per ton of ore with metal X 35%.
-In A business, exporting 2xx2 100% product for the parent company (no independent transactions to compare; reviews the international market of metal ore in year X 2xx2 20% increase compared to 2xx1 the year; other factors affect the price of the product (metal content, conditions of delivery payment, ...) do not change.
As such, the business A tax declaration made in 2xx2 according to revenue from selling iron ore price X unit price not lower than with 960 USD/ton (= 800 USD/ton x 120%). Article 7. Keep and provide data, documents on the method of determining the market price 1. Choose data, evidence from 1.1. The data and documents to be used as a base when comparative analysis must clearly state the source of origin to the tax authorities can check, verify. Businesses can use the information, the data from the following sources: a) information, data by the organs of State departments, research institutes, associations and professional organizations are recognized by the State and is responsible for public disclosure or provide as required;
b) information, data by organizations and individuals active in the field of independent practice services are licensed or publicly (for example, independent auditing Agency, the registry, register the quality, classification, organization reviews the prestige of the enterprise);
c) financial reports, annual investment reports or of the companies listed on the stock market was publicized under the regulations and rules of operation of the stock market;
d) The data, documents and materials on business purpose tax declaration by enterprises to provide and be responsible for.
The data and documents originating from the unofficial sources or unknown origin only reference.

1.2. When done selecting the transactions to analyze, compare, calculate the gross profit rate or the fertility rate, the business must reflect the data in the form can compare is in the period of at least 3 consecutive financial years. For the business case have time exist under 3 years financial or business activities in temporary in nature does not take place throughout the year, the time limit to be determined respectively according to the period of the month, quarter, or the time of the service concerned.
1.3. When calculating the relative numbers (for example, data on rate calculated according to the percentage (%)) from the absolute number, business number rounded to the third digit after the decimal point. Relatively few cases are taken from the published figures have no absolute number comes up and not use the rounded principles as on the retrieved according to the data published there.
Example 24:-the absolute figures used to calculate gross profit rate for the value is 5.2856%, the relative number is 5.286 percent rounded up.
-The publication number of the economic growth was 7.8%, then do not perform rounding.
-The publication number of the interest rate is 4.9854% shall be rounded up to 4.985 percent.
2. the retention requirements, providing information, documents and testimony from 2.1. The business transaction link has the obligation and the responsibility to keep the information, materials and documentation as a basis to apply the method of determining the market price for the product in the affiliate transactions and present the required checks, Inspector of the tax authorities. The information, materials and documentation related to manufacturing operations, business methods and determine the market price for affiliate transactions must be created at the time the affiliate transactions, are updated and supplemented during the transaction and stored in accordance with the provisions on the retention of documents bookkeeping, under the provisions of the law on accounting, statistics and taxation.
2.2. When implementing the enterprise income tax, businesses have the responsibility to process transactions the link under model GCN-01/QLT specified in annex 1-GCN/CC attached to this circular. Deadline Appendix 1-GCN/CC together with the time limit for filing the Declaration enterprise income tax.
2.3. The enterprise has the obligation to prepare and keep records including the information, materials and documentation related to link transactions are as follows: 2.3.1. General information about the business and the party affiliation: a) information about the relations between the parties associated with the business;
b) the documents, reports updates on strategy development, Executive, control of the link between the parties; the policy of building the transaction price of each product group oriented common links and businesses;
c) documents, reported on the process of development, business strategy, investment plans, project, production and business; regulations and procedures of the financial reporting and internal control of the enterprise;
d) documents describing the Organization, the functioning of your business.
2.3.2. Information about business transactions: a transaction diagram) and document the description of the transaction including the information on the parties involved in transactions, order and payment procedure, delivery, ...;
b) description document specification, the product specification; detailed cost (or price) of the product, unit price, total quantity of products produced and consumed in the States (details under the link trading and independent transaction (if any)); the number of the product;
c) The information, materials and documents on the process of negotiation, conclusion, implementation and liquidation of the contract, economic agreements are related to the transaction;
d) of information, materials and documentation related to the economic conditions of the market when the transaction took place links can affect the method of determining the price of the transaction.
2.3.3. Information about the method of determining the market price a) building policy reviews buy, sell or Exchange your business products, process control, review of reviews, the selling price of the product on the market;
b) the information, materials and documentation as a basis for the selection and application of the method of determining the most suitable price in the transaction of the business links include information, data and documentation are used for comparative analysis, adjust the key difference spreadsheet trading price, according to the method of determining which businesses apply and explain the reason for the choice of methods;
c) The information, document and other documents bearing the reference related to the selection and application of the method of determining the price in trading links (if available).
2.4. Upon request of the tax authority, the enterprise has the obligation to provide the information, documents and vouchers within a period not exceeding 30 days from the date of receiving the written request of the tax authority. The case of business establishments have justifiable reasons, the deadline was extended once no more than 30 days from the expiry date.
2.5. The information, documents and evidence from the business of providing tax authorities is the original or a copy prescribed by the law. The business case for electronic documents using the provided documentation is made under the provisions of the law on accounting and relevant guidance documents on electronic documents.
The documents, testimony from the record in a foreign language must be translated into Vietnamese under the provisions of the accounting Act and accounting regime. Businesses are responsible for the content of the translation.
Part v. rights, OBLIGATIONS of enterprises; The RESPONSIBILITIES and powers of TAX AUTHORITIES article 8. Rights and obligations of the business in addition to the implementation of rights and obligations under the provisions of tax legislation are specified in the legal and tax law in this circular, enterprises also have the following rights and duties: 1. Have the right to request tax authorities keep secret the information already provided to the tax authorities served the determination of market value in the business between the parties link for tax purposes;
2. Is obliged to present a full range of data, documents and vouchers necessary to prove to the selection and application of the method of determining the best fit for the affiliate transactions.
Article 9. The responsibility and authority of the tax authorities in addition to the implementation of the responsibilities and powers under the provisions of tax legislation are specified in the legal text of this circular and tax, tax authorities also have the following powers and responsibilities: 1. Confidentiality of the information provided by enterprises relating to the determination of the market value of the business transactions between the sidebar link for tax purposes as prescribed in this circular when that information is not made from the sources are publicized. Provide the relevant State bodies about the secret information of the tax payers are made according to the provisions of the law.
2. Determine the price that is used to enumerate the fixed tax calculation taxable income or business income tax amount payable for the trading business links in the following cases: a) the business based on the materials, data and evidence from illegal, invalid or not specified origin to determine the price gross profit rate, or the rate applicable for the lucrative trading links;
b) enterprise created independent trading fake or rearrange the links trading transactions independently to get this transaction done independent transactions selected for comparison;
c) enterprise does not enumerate or incomplete declaration Appendix 1-GCN/CC for affiliate transactions arising during the year corporate income tax; do not make the correct time limit requirements provide the information, data and documentation to justify the Declaration, accounting for the transacted market price links;
d) tax authorities suspect businesses do not apply or deliberately incorrect application of the provisions of this circular and the businesses do not prove to be within a maximum of 90 days from the receipt of the notice of the tax authorities.
3. The General Department of Taxation based on information from the declared tax obligations of business transactions and the database of the tax authorities to tax the fixed implementation guide under the principle: a business case) fully implementing the mode of accounting, invoices, vouchers Fixed: the revenue, expense or taxable income to determine tax obligations are made according to the method of determining the market price specified item 2 article 5 and article 6 of part B to this circular on the basis of price, the rate of gross profit or the lucrative rate by the tax authorities determine fit each case or individual business lines;
b) other cases: the tax assessments are made based on the database of the tax authorities in accordance with the regulations on fixed taxes for business not yet fully implementing the accounting mode, bills, vouchers or rules for tax violation processing;
c) case when done fixing the tax is related to the amplitude of the standard market price, the most suitable value to determine the selling price, the rate of gross profit or lucrative rates apply to businesses have been fixed link transaction tax is not lower than the value of the amplitude value market value standard is the tax authorities identify; the most suitable value to determine the purchase price applies for business transactions were tax the fixed link is not higher than the value of the amplitude value market value standard is the tax authorities identify.
4. total tax guide inspection, inspection of enterprises implementing the provisions of this circular.
Section D. IMPLEMENTATION article 10. Enforceable

This circular has the effect after 45 days from the date of signing. Abolish circular No. 117/2005/TT-BTC on December 19, 2005 of the Ministry of Finance on "Guide to make the determination of the market value of the business transaction between the parties" and decision No. 37/2006/QD-BTC dated 04/01/2006 of the Minister of finance "on the revised circular No. 117/2005/TT-BTC on December 19, 2005 of the Ministry of Finance shall guide the implementation of the determine the market value of the business transaction between the parties ".
In the process of implementation of this circular, if there are difficulties, obstacles and proposed subdivisions and enterprises reflects the timeliness of the Ministry of finance to be researched, timely resolution./.