Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
On July 1, 2026, the Government officially implemented Decree No. 255/2026/ND-CP on tax administration for enterprises with related party transactions. This Decree replaces Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, while continuing to refine the legal framework for anti-transfer pricing in line with OECD international standards.
Although maintaining the basic structure of current regulations, Decree 255 adds many important contents related to comparative analysis data sources, exemption from preparing Transfer Pricing Documentation (Local File), Country-by-Country Report (CbCR), and information exchange mechanisms between Vietnamese tax authorities and foreign tax authorities.
These changes will directly affect enterprises with related party transactions, especially multinational corporations and FDI enterprises operating in Vietnam.
Decree 255 continues to affirm the principle that enterprises must prepare Transfer Pricing Documentation no later than the time of submitting corporate income tax finalization dossiers and retain it for submission when requested by tax authorities.
In addition, the Decree supplements and clarifies several important concepts such as:
Although these are mainly clarifications of existing regulations, the more specific provisions indicate that the regulatory agency has higher expectations for timely and fully documented preparation of dossiers.
In practice, during tax audits, many enterprises only begin preparing Transfer Pricing Documentation after receiving an inspection decision. This approach carries significant risks because the law requires the documentation to be completed at the time of tax finalization, not when tax authorities request clarification.
One of the notable new points is that Decree 255 clearly specifies the priority order when selecting comparative data for determining related party transaction prices.
Accordingly, enterprises should prioritize using:
Firstly, public or official data sources, including:
Secondly, commercial databases.
Thirdly, data managed by tax authorities.
The clear regulation of the priority order helps enterprises have a basis for selecting transparent, objective, and more defensible data sources when explaining to tax authorities during audits or inspections.
At the same time, enterprises also need to review their current benchmarking methods to ensure compliance with the new guidelines.
Decree 255 adjusts the mechanism for exemption from preparing Transfer Pricing Documentation in a way that is more favorable to enterprises.
Two notable changes include:
Removing qualitative criteria will help enterprises easily determine whether they are eligible for documentation exemption, while limiting different interpretations during application.
However, enterprises need to note that exemption from Transfer Pricing Documentation does not mean exemption from the obligation to declare or prove the arm's length nature of related party transactions when requested by tax authorities.
Decree 255 significantly updates the regulations on Country-by-Country Report (CbCR) to align with international standards.
Some notable points include:
Instead of using the threshold of VND 18,000 billion as before, the Decree now applies the international threshold of EUR 750 million in consolidated revenue for the group.
This conversion helps synchronize with the OECD's Base Erosion and Profit Shifting (BEPS) Action Plan.
If an enterprise in Vietnam has the obligation to submit a CbCR:
In addition, the designated enterprise must also submit Form 01/TB-BCLN to notify the entity responsible for submitting the CbCR.
The Decree allows enterprises to notify only once.
If there are changes in information, they must be updated within 90 days from the date the change occurs.
This regulation significantly reduces administrative procedures for multinational corporations.
Compared to Decree 132, Decree 255 specifies more clearly the cases where enterprises in Vietnam must or must not submit Country-by-Country Reports.
Enterprises are not required to submit in Vietnam if:
Conversely, enterprises may incur the obligation to submit in Vietnam if:
This is a very important content for multinational corporations because the obligation to submit CbCR in Vietnam depends not only on domestic regulations but also on the status of information exchange between Vietnam and the country where the parent company is located.
A notable new point is that the Decree requires Vietnamese tax authorities to publicly disclose on their electronic portal contents related to the exchange of CbCR with other countries.
Information to be disclosed includes:
This helps businesses proactively monitor to accurately determine CbCR obligations in Vietnam.
To ensure compliance with Decree 255/2026/ND-CP, businesses should:
Decree 255/2026/ND-CP does not introduce groundbreaking changes in transfer pricing policy, but it clearly demonstrates a trend towards standardization and increased transparency in tax administration, while aligning with international practices in anti-transfer pricing. The new regulations on comparable data sources, documentation exemption conditions, and Country-by-Country Reports will require businesses to be more proactive in preparing documents, managing data, and coordinating with the parent group.
For FDI enterprises and multinational corporations, compliance is no longer limited to declaring related-party transactions but requires building a comprehensive tax management system, ensuring documents are prepared on time, data is verifiable, and ready for explanation when tax authorities conduct inspections or audits. This will help minimize tax risks, protect transfer pricing policies, and enhance compliance in an increasingly stringent tax management environment.
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
Decree 255/2026/ND-CP officially takes effect from July 1, 2026, replacing Decree 132/2020/ND-CP and Decree 20/2025/ND-CP, completing the legal framework for anti-transfer pricing in accordance with OECD standards. This Decree adds many important contents related to comparative analysis data sources, exemption from pre
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