THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 66/2010/TT-BTC
Hanoi, April 22, 2010
 
CIRCULAR
GUIDING THE DETERMINATION OF MARKET PRICES IN BUSINESS TRANSACTIONS BETWEEN ASSOCIATED PARTIES
 
Pursuant to June 3, 200S Law No. 14/2008/ QH12 on Enterprise Income Tax;
Pursuant to November 29, 2006 Law No. 78/ 2006/QIIII on Tax Administration;
Pursuant to the Government's Decree No. 124/2008/ND-CP of December II, 2008, detailing the implementation of a number of articles of the Law on Enterprise Income Tax;
Pursuant to the Government's Decree No. 85/ 2007/ND-CP of June 7, 2007. detailing the implementation of a number of articles of the Law on Tax Administration;
Pursuant to the Government's Decree No. 118/2008/ND C P of November 2 7. 2008. defining the functions, tasks, powers and organizational structure of the Ministry of Finance,
The Ministry of Finance guides the implementation of provisions on the determination of market prices in business transactions between associated parties, serving as a basis for determining enterprise income tax liabilities of business establishments, as follows:
Part A
GENERAL PROVISIONS
Article 1. Subjects of application:
Organizations producing and/or trading in goods and/or providing services (below collectively referred to as enterprises) and having business transactions with associated parties are obliged to declare and determine their enterprise income tax liabilities in Vietnam.
Article 2. Scope of application
Transactions of purchasing, selling, exchanging, renting, leasing, delivering or transferring goods or services in the process of doing business (below collectively referred to as business transactions) between associated parties, excluding business transactions between Vietnam-based enterprises and associated parties which are related to products subject to price adjustment by the State, which comply with the price law.
Article 3. Interpretation of terms:
1. Market price means the price of products objectively agreed upon in a business transaction on the market between non-associated parties (also called independent parties).
2. Product collectively refers to goods or services that are objects of business transactions.
3. Buying price or selling price is used to collectively refer to the price in transactions of buying, selling, exchanging, renting, leasing, delivering or transferring products.
4. Parties shall be considered parties having associated relations (below collective!) referred to as associated parties) in any of the following cases:
4.1. One party directly or indirectly participates in the management or control of, contribution of capital to. or investment in any form, in the other party;
4.2 The parties are directly or indirectly subject to the management or control of, contribution of capital to. or investment in any form, by another party;
4.3 The parties directly or indirectly participate in the management or control of, contribution of capital to, or investment in any form in. another party.
Normally, two enterprises shall be considered associated in a tax period if during such period:
a/ One enterprise directly or indirectly holds at least 20% of investment capital of the owner of the other enterprise; or.
b/ A third party directly or indirectly holds at least 20% of investment capital of the owners of both enterprises; or.

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