DRAFT OF NEW DECREE AMENDING DECREE 20/2017/ND-CP REGARDING THE CAP ON DEDUCTIBLE INTEREST EXPENSE
1/9/2020
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Decree 20/2017/ND-CP – Guiding the tax administration apply for enterprise with related party transaction, issued 24 February 2017 (“Decree 20”), since its issuance, has been considered as an important step in tax management on the enterprise having related party transactions ("RPTs"), in order to limit transfer pricing activities and tax evasion through RPTs. Decree 20 adopts several regulations proposed in the OECD's Base Erosion and Profit Shifting Actions ("BEPS Actions"). Decree 20 has made Vietnamese transfer pricing regulation closer to international standards and increased the transparency in anti-transfer pricing activities.