• Service: Tax, Global Transfer Pricing Services
  • Type: Regulatory update
  • Date: 12/18/2013

Vietnam - Transfer pricing audits based on risk profiles 

December 18:  Vietnam’s General Department of Taxation initiated transfer pricing audits throughout a number of provinces, and selected 42 textile, garment, and footwear companies based on transfer pricing risk assessment profiles.

The tax authorities’ goal was to complete all of these transfer pricing audits by 10 December 2013. However, reports of current progress indicate the audits will likely take longer to complete.

The transfer pricing audits were implemented based on standardized comprehensive information requests, transfer pricing risk assessments, selection of the most appropriate transfer pricing method(s), and transfer pricing adjustments.

KPMG observation

The audits are being conducted without clear and transparent procedures between the tax authorities and taxpayers. Also, the audit teams are facing time constraints. Therefore, these elements may contribute to a risk of arbitrary transfer pricing adjustments and perhaps to future prolonged appellate or judicial challenges.

Read a December 2013 report [PDF 492 KB] prepared by the KPMG member firm in Vietnam: Transfer Pricing Audits

Contact a tax professional with KPMG's Global Transfer Pricing Services.

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