In brief
Decree No. 255/2026/ND-CP on tax administration for related-party transactions ("Decree 255"), dated 30 June 2026, took effect on 1 July 2026 and applies from the 2026 corporate income tax year and replaces Decree No. 132/2020/ND-CP.
Key takeaways
- Expansion of data sources for transfer pricing analyses.
- Changes to the transfer pricing documentation exemption.
- Additional circumstances where tax authorities may make transfer pricing adjustments.
- Clarification of taxpayers' obligations relating to Country-by-Country Reporting (CbCR).
- Transfer pricing audits under the Law on Tax Administration 2025.
In more detail
1. Expansion of data sources for transfer pricing analyses
Decree 255 expands the data sources that may be used for transfer pricing comparability analyses by introducing the National Database as an additional source of comparable information. This is in addition to the existing data sources, including commercial databases, publicly available information from securities markets and domestic and international commodity and service exchanges, information published by Vietnamese ministries and government authorities, other publicly available official sources, and tax authorities' internal tax administration database.
In addition, Decree 255 establishes the following order of priority for the use of comparable data:
i. Publicly available information including information published on securities markets, domestic and international commodity and service exchanges, other publicly available official sources, and the National Database
ii. Commercial databases
iii. Tax authorities' internal tax administration database.
2. Changes to the transfer pricing documentation exemption
Decree 255 relaxes the conditions for exemption from the preparation of transfer pricing documentation. In particular, the revenue threshold is increased from VND 200 billion under Decree 132 to VND 500 billion. In addition, Decree 255 removes the requirement that taxpayers must perform only "simple functions" to qualify for the exemption.
3. Additional circumstances where tax authorities may make transfer pricing adjustments
Decree 255 expands the circumstances under which tax authorities may determine transfer prices, profit margins, profit allocation ratios, taxable income, or corporate income tax liabilities by including cases where taxpayers incorrectly declare information in Appendix I (Information on Related Party Relationships and Related Party Transactions).
4. Clarification of taxpayers' obligations relating to Country-by-Country Reporting (CbCR)
Decree 255 clarifies that a Vietnamese ultimate parent entity with consolidated group revenue of EUR 750 million or more in the fiscal year immediately preceding the reporting fiscal year is required to prepare and submit a CbCR to the Vietnamese tax authority.
However, as Vietnam is a signatory to the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA), a Vietnamese taxpayer is not required to submit a CbCR where its ultimate parent entity is required to file the CbCR in its jurisdiction of tax residence and such report is automatically exchanged with the Vietnamese tax authority under the CbC MCAA.
5. Transfer pricing audits under the Law on Tax Administration 2025
The Law on Tax Administration 2025 expressly includes transfer pricing audits within the scope of tax examinations. Under the new rules, the statutory time limit for conducting a tax examination of a taxpayer engaged in related party transactions is up to 40 days, which may be extended once for an additional period of up to 40 days where necessary. Where the tax examination requires the collection or exchange of information with foreign tax authorities, the examination period may be extended to a maximum of two years.
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Thanh Vinh Nguyen, Partner, Thanh Hoa Dao, Special Counsel, and Trung Kien Nguyen, Associate, have co-authored this legal update.
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